Valuentum Exclusive Analysis for the Discerning Investor

FAQ: Regarding your article, "Warning: The Master Limited Partnership Business Model May Not Survive..."
Regarding your article, "Warning: The Master Limited Partnership Business Model May Not Survive," – what are you basing your comments on financial engineering the dividend on? It seems to me that Energy Transfer Equity has enough free cash flow to cover its dividend with a 1.2x coverage ratio. Am I missing something?

Sep 29, 2015

FAQ: Regarding your article, "Warning: The Master Limited Partnership Business Model May Not Survive..."
Regarding your article, "Warning: The Master Limited Partnership Business Model May Not Survive," it seems that you are lumping both “growth capex” and “maintenance capex” into the same category. The two should be separated out since “growth capex” has to do with future cash flows (building of new pipelines) and “maintenance capex” has to do with current cash flows. If you were to do this, it shows that the dividends are NOT financially engineered. Are my comments incorrect?

Sep 28, 2015

Warning: The Master Limited Partnership Business Model May Not Survive
The master limited partnership business model may not survive this downdraft of the energy cycle as the worst may still be ahead, unfortunately.

Aug 24, 2015

The Debt Bubble Is Deflating; Will It Pop?
"What remains to be seen, from our perspective, is whether the collapse in the mining and energy sectors and the crisis in emerging-market currencies will eventually lead to yet another credit crisis, similar to the one that shocked the world in 2008-2009 and brought some well-known names to their knees across the financial sector." -- inside this piece

Aug 12, 2015

3 Anomalies Across Pipeline Equities
Things that make you go hmmm...

Aug 7, 2015

The Great Pipeline Cash Flow Deficiency
Investors simply don’t know the quality of the assets in the ground, and the operators’ financials aren’t much to speak of in light of much safer dividend growth opportunities elsewhere.

Jul 21, 2015

Higher Maintenance Costs for Pipelines?
Plains All American Pipeline has garnered national attention with two pipeline spills in the past two months. Let’s take a look at the reasons behind Plains All American Pipeline’s infrastructure problems.

Jul 12, 2015

Dividend Increases/Decreases for the Week Ending July 10
Let's take a look at companies raising/lowering their dividends this week.

Jul 10, 2015

Creditor Risk Aversion Rises Considerably in Energy, Metals & Mining Sectors
In a recent Moody’s ‘Capital Markets Research’ report, according to a tabulation performed by Credit Suisse, bond spreads have widened an incredible 385 basis points for high-yield metals/minerals companies and 367 basis points for energy companies in the one-year period ending July 8, 2015. We continue to underweight these sectors within the newsletter portfolios. Creditor risk aversion continues to swell in these two sectors, and the worst has yet to come, in our view.

Jun 18, 2015

5 More Reasons Why We Think Kinder Morgan’s Shares Will Collapse
“...the credit rating agencies have a lot to think about. Kinder Morgan’s investment-grade credit rating is in part supported by the firm’s ability to access the equity markets to sell its own stock. But its share price is artificially propped up by the incorrect application of dividend discount models that are using financially-engineered dividends, which themselves are in part supported by the debt raised from an investment-grade credit rating, which is then used to keep raising debt and growing the dividend…and so on."

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Valuentum Exclusive Analysis for the Discerning Investor