• Energy and Income Advisor
  • Conrads Utility Investor
  • Capitalist Times
  • Twitter
  • Seeking Alpha
  • Roger S. Conrad

Investing Topics: Investment Strategy

Get out of My Dreams and into My Portfolio

There’s more pain coming for MLPs in the near term, creating a real buying opportunity for investors with a longer time horizon. To help you out, we’ve created a list of Dream Buy Prices for our favorite MLPs in an effort to take advantage of any panic that might ensue if our forecast pans out and oil prices suffer another leg down.

Bond Update

In December 2014, we highlighted a basket of undervalued bonds issued primarily by upstream master limited partnerships (MLP) that we thought would rally if they cut their distributions to shore up their balance sheets and focus on paying down debt. We also reasoned that these securities would pop on any relief rally in energy prices. This strategy worked nicely and we took some decent profits off the table. A similar opportunity appears to be in the works.

Avoid Complacency: Challenges and Opportunities in the MLP Space

Investors shouldn’t gloss over the emerging challenges in the MLP space. Instead, focus on the names that are best-positioned to deal with these headwinds and continue to build wealth for their unitholders.

Outlook 2015: Pains and Gains

At the beginning of each year, we update our outlook for the economy and commodity prices for the year ahead. Although our forecast necessarily evolves over the course of the year based on economic data and corporate earnings reports, stepping back to take in the big picture helps to establish a basic roadmap and strategy.

Given the sea changes underway in global energy markets, this exercise is of particular importance as we head into 2015.

The plunge in global oil prices that occurred last fall reflects growing production and spare capacity in North America and slowing demand growth in emerging markets. Although investors shouldn’t rule out the potential for short-term bounces, the down-cycle in the energy patch will take at least six to 12 months to play out.

When the crude-oil market finds a new balance, investors will have a golden opportunity to pick up shares of high-quality energy companies at favorable valuations.

However, this epic buying opportunity has yet to arrive. Until then, investors must remain patient and focus on high-yielding names that pay sustainable dividends and growth stories that don’t hinge on commodity prices.

In this issue, we review our predictions for last year (see Looking into the Crystal Ball), roll out our predictions for 2015 and update our outlook for the stocks in our International Portfolio and International Coverage Universe.

Subscribe today to receive a sample issue of EIA
  • Live Chat with

    Elliott and Roger on May. 30, 2017

  • Portfolios & Ratings

    • Model Portfolios

      Balanced portfolios of energy stocks for aggressive and conservative investors.

    • Coverage Universe

      Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.

    • MLP Ratings

      Our assessment of every energy-related master limited partnership.

    • International Coverage Universe

      Roger Conrad’s coverage of more than 70 dividend-paying energy names.

    Experts

    • Roger S. Conrad

      Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor

    • Elliott H. Gue

      Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor

    • Peter Staas

      Managing Editor: Capitalist Times and Energy & Income Advisor