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Investing Ideas What are PTPs ?
Investing Ideas What are PTPs ? 
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| What are PTPs ? |
| Saturday, 20 October 2007 | |||||||||
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So, why during one of the real go-go markets that’s almost heading for bubble-like pricing conditions are many of my favorite petrol companies languishing in stock price? What’s even more confusing is companies such as LINN ENERGY (NSDQ: LINN) and LEGACY (NSDQ: LGCY) are continuing to bolster their dividend cashflows quarter after quarter, and still folks don’t seem to be getting onboard these stocks.Well, there are two reasons for this bit of market mayhem.
First is that these companies and others like them that are publicly traded partnerships (PTP) aren’t on the radar screens of most of the major brokerages and therefore aren’t getting airtime on television or ink in the financial papers. Even as this past week saw yet another incredible set of numbers, including bigger profits and bigger dividends, they still don’t have many champions. Meanwhile, the usual suspects of the petrol market are getting lots of press. These are the drillers and the majors that were mostly pricey months ago and are now beyond just pricey. Plus, they have crummy dividends to boot. The second reason for the lack of bidders might continue to rest with the theory that these PTP are somehow in dire credit straights because they pay such good dividends. As we keep writing, these are some of the best capitalized of the petrol patch with current and quick ratios--the measurement of how much cash and cash alternatives are on hand to cover near term liabilities--are vastly better by multiples over the majors in the petrol market. The bottom line is that these petrols are the real bargains, especially this month. Now with yields in the high 7- to 8-plus rates, these won’t last for that much longer. So, if you’ve been vacillating, now is indeed one of the better times to get into these as they’re “back up the truck” priced. Pay Me Weekly This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
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