The folks at Oppenheimer are telling us this morning that we should buy 2 GP's (general partners) and they are Energy Transfer Equity (ETE) with a $33 target and Enterprise Holdings (EPE) with a $39 target. Energy Transfer Equity (ETE) has recently underperformed Energy Transfer Partners (ETP) and some healthy and informative debate has broken out on the Yahoo message board about this. Its worth a read as it provides some interesting views on the situation.
The same underperformance holds true for Enterprise Equity(EPE) verses Enterprise Products Partners (EPD). EPD's yield is 6.50% vs 3.80% for EPE.
As far as the next 2 are concerned the yield spread is much tighter; 5.60% for ETP vs 4.40% for ETE.
Which one you perfer to own...or perhaps you could own both...or neither would depend on among other things tax issues, yield, and whatever else could come to mind. Certainly EPD and ETP have been solid leaders in this upleg and show now signs of relinquishing that leadership. GP's have not done as well in this move but ETE clearly has the better looking chart than EPE.
Speaking of GP's the best performer of the last 12-18 months has been Crosstex (XTXI) which has nearly tripled in value. And now with the stock near 100 bucks the company has approved a previously announced 3 for 1 stock split!
Nice chart!
In the news department this morinng we are dry...nothing going on corporate wise. Crude Oil is nicely higher up 60 cents so far this morning. The 10 year is flat at 4.60% Natural gas is down 4 cents.
joseph cioffi's Source Page - Associated Content
2 comments:
some of these GP'S can be usefull stuffed in an IRA, or maybe it was KMI/KMR. Am hoping someone can say if EPE,ETE or VEH generate UBI not goog in an IRA.
I know that they can't go up every day but the relative underperformance of ETE to ETP has me a bit stumped. VEH i think will move higher once we get the non-dilutive secondary out of the way.
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