Seeking Alpha

Albert Alfonso

View as an RSS Feed
View Albert Alfonso's Comments BY TICKER:
Latest  |  Highest rated
  • Linn Energy: Making Sense Of The Recent Decline [View article]
    Chippy,

    The notes carry an interest rate well above LINE's average. There are several other Berry notes on the books that will need to be refinanced over time, likely at much lower rates.
    Mar 31 05:16 PM | 3 Likes Like |Link to Comment
  • Linn Energy: Making Sense Of The Recent Decline [View article]
    Don't get me started on the motley fool. Without getting into specifics, I would be weary of their articles.
    Mar 31 05:13 PM | 6 Likes Like |Link to Comment
  • Linn Energy: Making Sense Of The Recent Decline [View article]
    LINE at current prices still is not the cheapest upstream MLP by P/DCF. That honor goes to QRE. Others such as MEMP, BBEP, and LRE now trade at similar multiples.

    LINE has historically traded at a 30% plus premium to its peers due to its perceived safety. However, this premium has basically evaporated or past year or so.
    Mar 31 05:11 PM | 2 Likes Like |Link to Comment
  • Linn Energy: Making Sense Of The Recent Decline [View article]
    As noted by RLP, LINE has very little cash on hand to payoff this debt.
    Mar 31 05:07 PM | 1 Like Like |Link to Comment
  • Kinder Morgan: Who Said That The Growth Story Is Dead? [View article]
    I actually think KMP may be inclined to sell off its E&P assets given all the bad press. However, the company is growing the midstream segment so fast that these assets now represent only a small fraction of overall DCF.
    Mar 31 05:05 PM | 1 Like Like |Link to Comment
  • Kinder Morgan: Who Said That The Growth Story Is Dead? [View article]
    I totally agree. Canada will be a major growth area for the company.

    KMP is also supplying nearly all of Mexico's natural gas imports with demand growing at a double-digit clip.
    Mar 31 05:03 PM | 2 Likes Like |Link to Comment
  • Linn Energy Just Can't Catch A Break [View article]
    a dividend increase just to appease investors is never a good thing. That reminds me of (EROC) when they increased the dividend just to slash it a few quarters later.
    Mar 28 11:18 AM | 2 Likes Like |Link to Comment
  • Linn Energy Just Can't Catch A Break [View article]
    RLP,

    Where is LINE going to find this $100M in DCF?

    As you noted above, LINE is looking like a poor bet compared to others in the sector. MEMP has a similar yield and offers a 1.15x coverage ratio. (Do note that I am long this stock)
    Mar 28 11:00 AM | 2 Likes Like |Link to Comment
  • Realty Income: Buy The Dip? [View article]
    Bryce,

    It looks like (O) has already recovered from its offering. I am not a trader, however, $40 seems to be where the big buyers are at.
    Mar 28 10:53 AM | 2 Likes Like |Link to Comment
  • Realty Income: Buy The Dip? [View article]
    Jim,

    O issues equity at 5% and then goes out and buys properties with a 7% to 8% yield. As an example, last December the company bought 84 single-tenant net-leased properties for $503M. Estimated yield on these properties 7.0%.

    http://yhoo.it/1hi1Wx4
    Mar 28 10:47 AM | 5 Likes Like |Link to Comment
  • Realty Income: Buy The Dip? [View article]
    Dieuwer,

    Do you consider debt offerings to be accretive then? Using equity to pay down debt is common practice for REITs. The cost of capital (around 5.60%) is well below what the company can generate in any acquisition and hence will be accretive.
    Mar 27 10:57 AM | 6 Likes Like |Link to Comment
  • Realty Income: Buy The Dip? [View article]
    AP,

    The demise of the brick and mortar store has been grossly hyped up. Certain segments of retail are actually very much in a growth phase, including the drug stores and dollar stores.

    As for some of the retailers that are on the way out (JC Penny, Radio Shack, Toys R Us), the company basically has zero exposure.
    Mar 27 10:51 AM | 11 Likes Like |Link to Comment
  • Realty Income: Buy The Dip? [View article]
    Many lease contracts have built in rent increases if rates go higher. I believe its about 60%.
    Mar 27 10:44 AM | 4 Likes Like |Link to Comment
  • Kinder Morgan: Some Good News And Some Bad News [View article]
    sumflow,

    Please note that I was summarizing the Morningstar analyst views.

    Mar 26 07:23 AM | 1 Like Like |Link to Comment
  • Linn Energy Just Can't Catch A Break [View article]
    The situation with LINE is exactly the reason why diversification matters. I keep my positions in high yield stocks small, at or under 2.5% of my portfolio.

    Some of LINE's issues are self inflicted. However, the sentiment has clearly become overly bearish. I hate stocks that do not trade on fundamentals and is the reason why I have never owned LINE.
    Mar 25 02:09 AM | 1 Like Like |Link to Comment
COMMENTS STATS
1,084 Comments
1,155 Likes