metal27

On EPS and MLPs

Pipeline operators exist in a nether world where assets have useful lives much longer than the lives assigned to them by the accountants. In addition, there is little in the way of technological obsolescence. Still, investors should keep a wary eye on the level of "maintenance cap-ex" to make sure it is adequate. That said, the article reflects my experience as an owner of several MLPs for many years--DCF is a better gauge than EPS.

What a relief to find a writer on SA who actually knows what they are talking about!

Suburban Propane's Future Looks Bright

SPH is not a corporation and does not pay dividends. It is a master limited partnership (MLP) and pays what are called distributions, some of which may be returns of capital. This difference can complicate your tax return, especially if you trade iin and out of it! There are also potential problems with putting it in an IRA.

Anyone considering SPH should first learn about MLPs, since they are rather different animals and a decent analysis of SPH should compare it with other similar MLPs. Start with AmeriGas, then look at ETP since they are partially a propane business.

SPH has been one of my core holdings for years.

The Hartford: Only Paper Profits

Your 79 cent quarterly loss is incorrect. You got that by writing off the $5.8B remaining unrealized loss but ignoring the fact that it is smaller than a year earlier. You can't have it both ways--either write off the $13.2B from last year and then take the ensuing gain into income this year, or leave HIG's accounting alone, HIG is reporting results from this quarter, during which their unrealized loss SHRANK.

Portfolio Recovery Associates: Apropo of Bailouts

PRAA is well run, has a record of making money on the debt they buy. They also are reputed to be more humane in their collection efforts than most in the business. I owned the stock some years ago, sold because times were too good (hedge funds were buying debt at too high a price) but I may have to revisit it, do new DD, as anyone should.

The keys in this business are the price paid for the debt and the skill of the collection people--PRAA gets high marks in both categories from TMF, which has followed and recommended this stock for years.

Turnabout: Wells Fargo's Better Deal for Wachovia

Thr FDIC statement says it will study the deal and do what is in the best interests of the taxpayer. I take that to mean Citi is out (or "pantsed" as one columnist put it).

Does Warren Buffett Think Goldman Is More Creditworthy Than GE?

Buffet's GS and GE investments seem to combine equal parts of opportunism, value hunting, and an ability to create value simply by endorsing strong institutions in trouble, all at a very cash high return to him. Now i know why he has been sitting on that growing pile of cash for all those years!

Does Warren Buffett Think Goldman Is More Creditworthy Than GE?

Following the announcement, CNBC interviewed Buffet, who was on his airplane, which he said is powered by GE engines that were performing faultlessly! Buffet strongly endorsed GE, stated he believed the "bailout" will pass, and mentioned GS had brought him the GE deal.

Maybe it's time to buy BRK again.

Buffett's Big Bet: The Real Value of the Berkshire Investment in Goldman Sachs

Buffet is now putting $3B into GE, which is also issuing an additional $12B in common, in a deal similar to his GS deal, and which he says GS brought him, according to his interview today on CNBC.

GE Capital Default Risk Soars

Buffet just said "if we don't (get Congressional action on the bailout plan), then I'll have done some dumb things."

GE Capital Default Risk Soars

Buffet will buy$3B of preferred with a 10% return, get some warrants. Pfd is redeemable after 3 years, Buffet issued strong statement on strength of GE, is being interviewed on CNBC this minute.

Buffet says deal similar to GS deal, GE approached him.

GE Capital Default Risk Soars

CNBC is reporting that Warren Buffet will buy several $B of a new GE perpetual preferred and GE will sell $12B of common.

The Lowdown on Citi / Wachovia

So Bob Steel's nickname is not "Stainless" after all.

Petrobras: Extremely Overvalued

Frankly, I am disappointed with the heat and vitriol in the responses to this article. I hear people who are too much in love with their stock, people who vilify the author as a way of justifying their investment theses. This place is little better than Yahoo if this is the sort of "discussion" that greets a contrarian opinion.

I sold my shares and am more comfortable having reduced my downside risk. Yes, the rewards may be great, but there is simply too much risk now, and there's plenty of time to re-enter if and when more is known about what is really down there.

Petrobras: Extremely Overvalued

Very convincing. I'm out tomorrow.

Yahoo's Jerry Yang: We're Done

Very insightful. I think you've confirmed what Adami on Fast Money said--the way to play the Yahoo/MSFT deal is to own Google.