Energy investor Darren Schuringa has been quietly racking up stellar returns by investing in...


Energy investor Darren Schuringa has been quietly racking up stellar returns by investing in MLPs with growing payouts. On Linn Energy (LINE), questions around some accounting practices are "not material to the underlying business or the quality of their assets," and fundamentals "will overshadow the short-term noise about their hedging programs." Other favorites: ATLS, CVRR, SEMG, ACMP.

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Comments (16)
  • rmdonovan
    , contributor
    Comments (70) | Send Message
     
    Linn is a "keeper". Great dividend and should see future growth.
    28 May 2013, 03:58 PM Reply Like
  • paddler
    , contributor
    Comments (18) | Send Message
     
    Get rid of the advertisements for other publications.
    28 May 2013, 04:21 PM Reply Like
  • rplatter
    , contributor
    Comments (4) | Send Message
     
    Including dividend reinvestment this stock is down over 10% since Sept. 2012---what is good about it?
    28 May 2013, 04:49 PM Reply Like
  • Petrarch
    , contributor
    Comments (1126) | Send Message
     
    it is a bargain...that's what's good about it
    P
    29 May 2013, 01:12 AM Reply Like
  • Junkbond guy
    , contributor
    Comments (110) | Send Message
     
    You should be buying cash flow and looking at how much money you are getting for the dollar you invest. The drop in price enables you to buy more cash flow cheaper. If you are a net buyer with distribution paying stocks, if the companies' fundamentals are fine and have distribution growth, you actually make more money if stock prices are lower than if they are higher. If you don't look at the fundamentals of a company, their financials and business environment, and simply use the stock price as a proxy for how good a company is doing (high, they are doing well and low, they are doing poorly), then you want a high stock price. On the other hand, you will not be able to tell when a stock is cheap or if there is a valid reason for a low stock price.
    31 May 2013, 12:54 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (6913) | Send Message
     
    Growing dividends is a great way to build wealth.
    28 May 2013, 08:38 PM Reply Like
  • egmjpb
    , contributor
    Comments (30) | Send Message
     
    Short term noise about their hedging program? The noise is smart and they know how to manage price risk. Buy.
    28 May 2013, 08:56 PM Reply Like
  • toomuchgas
    , contributor
    Comments (996) | Send Message
     
    LINE is ok as long as they can resume growing production.
    28 May 2013, 10:43 PM Reply Like
  • rmdonovan
    , contributor
    Comments (70) | Send Message
     
    When merger is complete and production problems are corrected Linn will be greater than ever
    29 May 2013, 10:14 AM Reply Like
  • chopchop0
    , contributor
    Comments (5155) | Send Message
     
    An E&P MLP like LINE is not nearly as safe as a pipeline toll road MLP like EPD or MMP
    29 May 2013, 09:39 PM Reply Like
  • arthur_bishop1972
    , contributor
    Comments (4300) | Send Message
     
    Hence the 3% premium in yield (risk).
    31 May 2013, 09:04 AM Reply Like
  • arthur_bishop1972
    , contributor
    Comments (4300) | Send Message
     
    Well, after today's new low, mgmt/Linn certainly has its work cut out for it.

     

    Anyone buying down here??
    31 May 2013, 09:04 AM Reply Like
  • chopchop0
    , contributor
    Comments (5155) | Send Message
     
    LNCO seems to be less hurt by this and supposedly is easier to manage at tax time. Why not go for that instead of LINE?
    31 May 2013, 09:42 AM Reply Like
  • Junkbond guy
    , contributor
    Comments (110) | Send Message
     
    Yep. Agree 100%. On the other hand, if you bought LINE and they cut their distribution in half, it will then pay you the same amount of money per dollar you paid to buy the stock as if you bought EPD.
    31 May 2013, 12:58 PM Reply Like
  • Junkbond guy
    , contributor
    Comments (110) | Send Message
     
    If you get $2,000 more per year buying LINE rather than LNCO, why don't you buy LINE and hire an accountant to do your taxes?
    31 May 2013, 01:00 PM Reply Like
  • chopchop0
    , contributor
    Comments (5155) | Send Message
     
    8 vs 8.77%. Not a huge diff IMO

     

    I've been buying APU in the 20s and 30s. AT this point, I'm collecting double-digit % on my original investment. Ditto on EPD.
    31 May 2013, 01:04 PM Reply Like
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