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Inergy, L.P. Message Board

  • mentges mentges Sep 2, 2012 3:50 PM Flag

    Suburban Propane Distribution

    The shares of SPH will essentially be a gift at this point, as NRGY shares have gone down because of the divestment of their large propane business. We now own a smaller company which is focused on their 27% growth area (see quarterly report). Propane is nice - I also own APU, but not a big growth industry. Pipelines are where it is at right now, and NRGY is in the right place. I already own Suburban Propane, and with their addition of NRGY's business should be doing well. The winter is forecast to be colder than normal, so this looks like a win win situation.

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    • Also own SPH and holding both for the very reasons you mentioned. I could add that SPH may take some time to integrate the NRGY purchase as these changes usually bring problems. SPH had a similar problem many years ago when they bought (Agway?). It took them a few years to straighten out, but their share values went from 18 to 55, along with increased dividends. Not bad I say. Hope they don't repeat the same mistakes.

      Good luck!