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Steve Rasher

Steve Rasher
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  • Energy Transfer's Lake Charles LNG Exports (Analyst Day, Part 2) [View article]
    Jennifer: Thanks for the article. This is one project that doesn't seem to get much attention from the press or investors, so it is nice to see a well laid out and cogent presentation. I didn't realize the cost advantages you explain. I have had ETP for a few years now, and I am quite pleased with the investment. Steve Rasher
    Nov 25, 2014. 10:25 AM | Likes Like |Link to Comment
  • Update: These Expansion Projects Will Be Key For Energy Transfer Partners [View article]
    UTA: Thanks for the kind words; I enjoy your comments as well. As I have mentioned in other comments, a major focus for me is creating cash flow. So I have been willing to look at MLPs. I have been a bit more selective now, as I said, in that sector. I looked at NGLS because I will be getting its units in exchange for the APL units. I believe in a sense NGLS is an upgrade in quality although I will be taking a slight hit in yield from that which I currently receive from APL. But I think it is a quality company and it focuses on natural gas as opposed to oil. Over the long run, I believe it will turn out to be a positive for me.

    I am not too concerned about what the Fed does on interest rates. Sure, when they do raise the discount rate there will be a knee jerk sell off in dividend paying stocks, such as REITs, BDCs, MLPs, utilities, etc. But after that, everyone will realize that the world is not ending and types of companies are all still solid investments. Even after today's release of the minutes, I believe it is steady as it goes for the time being. A lot of folks got all concerned about the debate around removing the "considerable time" language regarding when there will be an increase in rates, but they misinterpreted what the debate was about. As I understand, those who wanted to delete that language were arguing that a temporal reference was inappropriate given that the discount rate will be raised if and when the appropriate metrics require it. There was also consternation about the debate on "inflation" but, again, the debate seemed to be about the lack of inflation and not getting to their benchmark 2% inflation rate. The only material change was in relation to the labor market where there was a change in the language recognizing that there is some improvement in that regard. But when you cut through it all, until there is some wage inflation we are not going to have inflation anywhere near 2%, particularly given that a) the price of basic commodities are in the tank and b) the dollar is quite high compared to other currencies. Also, with Europe and Japan near or in a recession, that is going to hold them back, even though they decided not to add any language to that effect because it has not yet evidenced an impact on the U.S. economy (But we all know it will eventually). But most significantly, as a final thought, none of the Fed's metrics that would dictate or justify a raise in the discount rate will materialize unless and until the economy is chugging along nicely, which will mean that companies are doing well and what happens to interest rates take on less relevance.  Sorry for the rambling, but hope this helps.

    Steve Rasher
    Nov 20, 2014. 12:13 AM | 1 Like Like |Link to Comment
  • Update: These Expansion Projects Will Be Key For Energy Transfer Partners [View article]
    UTA: Thanks for the thoughts. I am learning to be a little more selective in this sector with only a couple of E&PS mixed in. I got into EEP at around $29 before EPD and EEP announced their restructuring, which seems to have benefited EEP. Have APL, which is being acquired by NGLS. Any thoughts on that one? Regards, Steve Rasher
    Nov 16, 2014. 09:52 AM | Likes Like |Link to Comment
  • Update: These Expansion Projects Will Be Key For Energy Transfer Partners [View article]
    IEA: Much thanks for the update on these projects. I owned ETP for a few years now. I bought when it was out of favor and people thought the structure of ETE and ETP was too complicated. I think they really do have their act together, and I am happy I rode this one out. It does remind me that even in these times when many energy names are down, it pays to exercise a little patience if you believe in the investment theme. Steve Rasher
    Nov 7, 2014. 11:32 PM | 1 Like Like |Link to Comment
  • Energy Transfer Partners At A Crossroad: Proceed With Caution [View article]
    Ray: I am long ETP as well, and I really appreciate your thorough analysis. I do believe the management team is quite capable of executing on this, and for that reason believe that this is a good long term hold. Steve Rasher
    Feb 24, 2012. 04:34 PM | 4 Likes Like |Link to Comment
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