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Inergy, L.P. Message Board

divyinvstr 6 posts  |  Last Activity: Apr 2, 2014 10:26 AM Member since: Jun 30, 2011
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  • divyinvstr by divyinvstr Apr 2, 2014 10:26 AM Flag

    Likely payout appears to be at least $5.60 for all of 2014. The underlying MLPs have an expected dividend growth rate of just a little less than 7% (at least according to ML reports). With a multiple of at least 1.7x the dividend should get there. And please realize this is back of the envelope and not meant to be exact.

  • divyinvstr divyinvstr Feb 19, 2014 1:37 PM Flag

    So if I own a business and borrow money for a new building and the new building costs more than my business makes in a year, if I then go out to eat lunch at the local taco stand am I just eating up the borrowed money?

  • Reply to

    A question about the DCF

    by earth457 Jan 31, 2014 11:27 AM
    divyinvstr divyinvstr Feb 3, 2014 10:30 AM Flag

    Taking a different tact. Bought at under 20, will collect the distribution and will wait on earnings as I believe coverage will be at least 1.1X or so (BOA/ML predicts 1.2X coverage). If coverage is as I expect their could be a rally into the 9% range (2.20/.09=24.44). However, as always, we figure out what we can to fill in the blanks but can't know if we are correct until after the fact.

    Sentiment: Buy

  • Reply to

    A question about the DCF

    by earth457 Jan 31, 2014 11:27 AM
    divyinvstr divyinvstr Feb 1, 2014 1:46 PM Flag

    Coverage ratio was less than 1 due to the timing of asset purchases. The costs were recognized while cash flow from the assets were not in the third quarter. Recognition of all cash flows should bring DCF coverage to well above 1 when first quarter numbers are reported.

    Sentiment: Buy

  • Reply to

    Why is this stock....

    by gumballchewer Jan 23, 2014 9:13 PM
    divyinvstr divyinvstr Jan 30, 2014 8:36 AM Flag

    With Fidelity I just have to acknowledge the risks. BOA/Merrill Lynch blocks the leveraged ETRACS. They tell me it is on an internal, non-public banned list.

  • Reply to

    HEADING ON UP TO THE BIGTIME.

    by artusaj Jan 21, 2014 4:43 PM
    divyinvstr divyinvstr Jan 29, 2014 2:29 PM Flag

    Yes, spreads will, over time, increase as new, higher yielding securities replace owned lower yielding securities. However, book value can (and does) change quickly as rates change. A lower book value requires that the portfolio become smaller if leverage is maintained and to become much smaller if leverage is reduced. Hedging can help reduce the impact of higher treasury rates, but hedging cannot help if there is a simultaneous widening of mortgages versus treasuries (see Spring 2013). So in the near term one is left with a smaller portfolio of older, lower yielding securities and almost certainly a lower dividend. The impact of higher rates longer rates, even when short rates remain anchored, is almost certainly negative for MREITs in at least the short run.

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