May have found a small glitch in the pipes, sort of. Was going through the pipeline lists and may have found a nice buying deal in the works.
"NRGY" looks to be about $16.00 to $21.00's undervalued due to a repayment of debt in the total of $10.6 million. This looks to be a one time only payment put on the books last quarter. Read company headlines and do some digging...
Inergy records $10.6M annual loss on debt repaymentat bizjournals.com (Tue, Nov 15)
Also an increase in insider buying that includes others in the industry, outside this one company...These people don't buy units to lose money!
The payout is not going to stay at 12.5% ....One of two things is going to happen here
1) the unit price is going to rise and put the payout closer to the industry average. 2) the payout will be cut in half. I do not think that this payout will be cut-
Ignoring the problems they have had, their building of the NLG export facilities leads me to believe they have a tremendous upside and I think management sees that. Hence although I am in the hole at the present with this stock, I am buying more for the coming yeas growth.