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Nomadamon
Nomadamon vip
P&P Score: 3.21   Points: -70.40   Accuracy: 69.44%   Average Pick Score: 0.76   Annual Return: 27.50% (92.37% since 1/16/09)  

Nomadamon's Blog : Playing with Gas - Naturally

Date September 21, 2009    Comments Comments (6)    Rate this post Recommend This Post (82)   
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OK - so you probably all heard for a while now how natural gas was at an all-time low and there was no demand and inventories keep going up, yadda yadda. So I sat here thinking to myself, "how can I play this?" I had my eye on a little company ($270M market cap) called Eagle Rock Energy Partners, L.P. (EROC), whose share price had gone from well over $20 to below $3 in the last 2 yrs or so.

When I started looking at them I could not see any fundamental problems with their finances or their growth - including 90% revenue growth during the past 12 months. With a PE of 1.2 and paying a 2.2% dividend they are practically paying you to buy their stock!

A few weeks ago it looked like the bearish trend reversed and I picked up a few shares at below $3.50. Since then the stock has gone up over 40% and looks to have some momentum with increasing volume.

They could flame out but I think not - more like rocket fuel hopefully! Any others have some insights regarding EROC?
Tags : EROC   NATURAL GAS  

6 Comment(s):

Author aaaenescu     Date September 21, 2009 16:47 Abuse this post Report Abuse
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Helo,
Please pay attention to DEBT: 799 M, and free cash is: 181M ( cash from operating activities) -69M (capital expediture)=112M. Company has a big EPS because is down in DEBT. Maybe is for selling now.
Good luck, Nomadamon!
Author guyguyette     Date September 22, 2009 12:20 Abuse this post Report Abuse
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A hugh difference in projected EPS from different sources. P/E = 5.73 while APA P/E 17.14, again my sources
Author bulld     Date September 22, 2009 14:30 Abuse this post Report Abuse
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Check out APL for the gas play,
Author Nomadamon     Date September 23, 2009 12:24 Abuse this post Report Abuse
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APL (Atlas Pipeline Partners) looks good but have even more debt than EROC. I like their General Partner, AHD, better. As APL's eps goes up AHD takes larger and larger IDR payments as the % they get is greater the higher the eps. So AHD is likely to grow faster than APL and they have dropped about 80% in the past year.
Author bulld     Date September 23, 2009 13:54 Abuse this post Report Abuse
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Thanks Nomadamon, I will look into AHD.
Author JoeJustJoe     Date September 23, 2009 14:44 Abuse this post Report Abuse
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I thunk it twas neato the way the bid/axed on GAZ was at 16.43/16.45 about an hour ago, yet Manny and his Nipulators were filling limit buy orders above 16.50 ...I saw 16.51. Manny isn't such a bad guy...ifn you want yerass kicked he is certainly willing to accomodate ya..."obviously" :-) Not sho ifn the 16.55 high needs to go bye bye....but I'll see what I can do. *-) 3J
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