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Targa Resources Partners LP Message Board

  • larry2607 larry2607 Jan 8, 2013 3:10 PM Flag

    this is the worst

    performing mlp on my screene and in my portfolio. does someone have a answer or at least make up one. in 2 months went from being a mlp darling to a dog.

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    • hey...whats with you ? back on nov 30th, you said you sold all your position, then rate, as a strong buy ? now on jan 8 your still complaining...about something you don't own? go buy some fertilizer stock, or sulfuric acid stock, if you know what your doing ?

    • I like having a mixed bag so will keep NGLS for a long time but one other natural gas MLP I own that's kicking but is RNF

      • 1 Reply to illflem
      • The problem with RNF is making sure you understand that you own a play in nitrogen fertilizer which is a heavy cyclical going the right way now. When the fertilizer cycle turns you have to be nimble enough to know when to get to the door. I prefer pure NG, NGL, and especially petroleum and products plays where there is not as much cyclicality. Good luck with it.

    • NGLS, as a business operation, is a gem. I have owned since 2009 and they have more than met my expectations. The G&P MLPs are subject to more volatility because of more commodity and capacity risks.

      But the fact is NGLS is executing and made an acquisition just last week in order to expand liquids exporting from the Houston Ship Channel. Unfortunately, most investors using words like darling and dog tend to reflect the mass of investors that have no understanding that a business model can be incredible and under appreciated and reflected in stock price but has nothing to do with LONG TERM outlook.

      I also own TRGP (NLGS's GP). Right now, NGLS is being taken to the woodshed for making the Baaken acquisition at a price that will be dilutive in the first year. NGLS stock took the hit but is gradually coming back. As NGLS expands the Baaken opportunity and is able to lower the ebitda multiple on the initial purchase price and make it a more accretive acquisition I suspect those that sold because they were not happy with an initially dilutive acquisition will come back. I also suspect they will pay higher prices than they sold NGLS for and passed on a number of quarters of distribution growth meaning those that play the darling and dog game ALWAYS end up losers.

      The people who look at business models and understand long term opportunities sometimes result in some short term dilution will be the big winners. I bought more on the dip after the secondary and am up 15% on that piece. The knee-jerk, shoot first and ask questions later crowd has so damaged their own long term prospects by selling without thinking. Conference calls are the best outlet for investors to gain an understanding of what NGLS and other businesses for that matter are trying to accomplish for the long term. Management teams are not there to placate short term investors that have no interest in the long term.

      • 1 Reply to bjfcpainc
      • i to o have owned ngls since june of 09 and have bought 2 secondaries since. also traded several hundred shares around core along the way. i also believe in the nat gas phenom coming. i also know that investors fall inlove with these mlps and think they can just hold them forever because they are lazy. i do wonder though the fact that while leaving capitol in these with such a good yeild, and not taking any other risks if a person is missing out on some hefty gains in other areas of the market. know lots if investors that just own mlps or oil llc

        Sentiment: Strong Buy