Seeking Alpha

Tim Plaehn

 
View as an RSS Feed
View Tim Plaehn's Comments BY TICKER:
Latest  |  Highest rated
  • Market Wrongly Undervaluing Kinder Morgan Energy Partners [View article]
    I think a quick overview is necessary. KMR is a separate company where each share is backed by one share of KMP. The cash distributions paid by KMP are converted to shares of KMR and credited to KMR investor accounts. KMR lets investors compound the distributions and growth of KMP. The share price of KMR historically has been a few dollars less -- just over $3 right now -- than the KMP share that it represents. The result is a higher "yield" on KMR but no cash into an investor's account, just additional shares. Over time the total return of KMR will match KMP with a bonus from compounding.
    Dec 27 02:06 PM | 1 Like Like |Link to Comment
  • Market Wrongly Undervaluing Kinder Morgan Energy Partners [View article]
    As noted below, I think that much higher rates, especially floating based on short-term market rates are long way in the future.
    Dec 27 09:37 AM | Likes Like |Link to Comment
  • Market Wrongly Undervaluing Kinder Morgan Energy Partners [View article]
    KMR is KMP except it does not pay cash dividends. Distributions are in the form of additional shares. KMR is a great option for someone who wants to reinvest and grow the value of the investment. Not so great if you need the cash and have to pay a brokerage commission to convert the distributions of shares to cash.
    Dec 27 09:34 AM | 1 Like Like |Link to Comment
  • Market Wrongly Undervaluing Kinder Morgan Energy Partners [View article]
    I agree with the basic premise. However, for the yield skewed investor, KMP looks better with the higher current yield plus potential for distribution growth.
    Dec 26 06:20 PM | Likes Like |Link to Comment
  • Market Wrongly Undervaluing Kinder Morgan Energy Partners [View article]
    nice catch. I'll get that fixed.
    Dec 26 04:37 PM | 1 Like Like |Link to Comment
  • Market Wrongly Undervaluing Kinder Morgan Energy Partners [View article]
    The KMR option to buy into KMP provides automatic reinvestment of the yield from this MLP. Distributions from KMR are in the form of additional shares of KMR.
    Dec 26 04:19 PM | 1 Like Like |Link to Comment
  • Market Wrongly Undervaluing Kinder Morgan Energy Partners [View article]
    I was going to mention KMR, but ran out of words. Just kidding. KMR is a nice, alternative way in invest in KMP.
    Dec 26 03:25 PM | 4 Likes Like |Link to Comment
  • Profit From Rapid Dividend Growth With New IPO: Valero Energy Partners [View article]
    I agree that VLP and PSXP are not really income plays. If things work out as expected, Investors could get a nice capital gains double in 3 to 4 years. The income would be extra icing on the cake as well as the driver of the share price gains.
    Dec 25 11:32 AM | 2 Likes Like |Link to Comment
  • Pros And Cons Of MLP Investing Through Closed-End Funds [View article]
    Regulated Investment Company - it is the tax reporting status of most mutual and closed-end funds. As such a fund does not pay taxes and is required to pass all net income and capital gains along to investors as distributions.
    Dec 19 06:18 PM | Likes Like |Link to Comment
  • Pros And Cons Of MLP Investing Through Closed-End Funds [View article]
    They do not differ. I singled them out as what I view as better performing and investment opportunities among the bunch. Not enough space to cover 26 closed-end funds.
    Dec 19 01:23 PM | Likes Like |Link to Comment
  • Pros And Cons Of MLP Investing Through Closed-End Funds [View article]
    The timing of NML was not very good considering what has happened to MLP prices since. The share price decline has been worse than the NAV, so the fund may be a good value now.

    The portfolio structure is similar to the other MLP funds.
    Dec 19 10:16 AM | Likes Like |Link to Comment
  • Pros And Cons Of MLP Investing Through Closed-End Funds [View article]
    I am hoping Linn comes out with some 2014 projections on the combined company results. Those numbers should help with the unit price. Probably see that info in Q1 sometime. Dividend is not at risk, so collect the nice yield and wait patiently for the company to again be able to increase the distributions.
    Dec 18 01:08 PM | 2 Likes Like |Link to Comment
  • Pros And Cons Of MLP Investing Through Closed-End Funds [View article]
    TTR has kept its MLP holdings at less than 25% of the portfolio and is taxed as a RIC. There will be no internal tax issues that increase the expenses.

    CTR is just about all MLP investments and organized as a corporation. Tax expenses show in both the statement of operations and balance sheet. From your point of view, deferred tax expense reduces the calculated NAV.

    TTP has been an above average performer for the sector and CTR is only about 16 months old and I would rate the performance as OK.
    Dec 18 01:05 PM | Likes Like |Link to Comment
  • Pros And Cons Of MLP Investing Through Closed-End Funds [View article]
    A major benefit of all of the MLP owning funds will be the receipt of a 1099 for tax reporting. The CEFs owning the MLP units take care of the tax issues, but the taxes do effect the NAV and dividends paid compared to owning MLP units outright.

    However, MLP investors will eventually pay the taxes that a CEF becomes obligated to pay.
    Dec 18 12:51 PM | Likes Like |Link to Comment
  • Pros And Cons Of MLP Investing Through Closed-End Funds [View article]
    Kel, a quick look shows that TPZ is primarily a bond fund, so will not have the deferred tax issues like a fund holding MLP shares.
    Dec 18 11:22 AM | Likes Like |Link to Comment
COMMENTS STATS
1,028 Comments
765 Likes