Hi-Crush Partners (NYSE:HCLP)

CAPS Rating: 5 out of 5

Recs

2
Player Avatar sloandm (< 20) Submitted: 9/11/2012 3:38:15 PM : Outperform Start Price: $19.71 HCLP Score: -20.41

This seems to be a pure yield play on a conservatively financed company (0 long term debt), predictable cash flow (long term contracts). The risk is a complete fall off in gas well drilling whcih is currently keeping the yiled above 8%. As gas exports and conversions pick up, the need for additional yield to hold this stock should decrease which could easily lead to double digit returns. Downside is limited by long term contracts and an 8% plus yiled to wait.

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