Glenn Rogers'  Instablog

Glenn Rogers
Send Message
Glenn Rogers is a longtime contributor for BuildingWealth.ca (http://www.buildingwealth.ca). His background is in Media and Publishing and has held a number of senior positions in major magazine and newspaper organizations. He has also successfully partnered with private equity firms to... More
My company:
Glenn Allin Rogers
My blog:
  • ONEK A good place to hide out 0 comments
    Aug 22, 2010 9:47 PM | about stocks: OKE

     ONEK INC. (NYSE: OKE)

     

    Originally recommended on Nov. 17/08 (IWB #2841) at $26.88. Closed Friday at $43.99. (All currency in U.S. dollars.)

     

    This stock has been another big gainer since I recommended it at $26.88, reaching a 52-week high of $50.85 before pulling back. Now that it's a little cheaper, I think this is a good opportunity to add your position. As a reminder, the company is a natural gas distributor which operates mainly in the Midwestern United States including Kansas, Oklahoma, Texas, and the Rocky Mountain regions. The company has also been active in shale projects in North Dakota and Oklahoma and is continuing to expand its pipeline network. I continue to like the distribution companies since the commodity prices do not affect them as much as they do the natural gas stocks, for example.

     

    OKE recently reported first-half earnings per share of $1.82, up from $1.55 to the same period in 2009. Operating income for the three months ending June 30 increased to $178.7 million from $154.8 million for the same period last year. Although this is not runaway growth, it's slow and steady in a crazy environment and the stock still pays a nice dividend of $1.84 a year for a yield of 4.2%.

     

    Action now: Buy with a target of $50.



    Disclosure: long oke
    Stocks: OKE
Back To Glenn Rogers' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.