Inergy, L.P. (NYSE:NRGY)

CAPS Rating: 2 out of 5

The Company is engaged primarily in the sale, distribution, storage, marketing, trading, processing and fractionation of propane, natural gas and other natural gas liquids.

Recs

2
Player Avatar ALPHADividend (95.66) Submitted: 4/16/2009 1:33:06 AM : Underperform Start Price: $15.81 NRGY Score: +50.22

This company was individually screened to verify that during the boom years ('04-'08), their Balance Sheet expansion appeared excessive or at the very least aggressive. At some point or another, something's gotta give with this company. Income will start collapsing due to debt levels, and/or dividends will be slashed or removed, and/or significant losses will be realized. The chances of this being a growth company or having significant growth is heavily muted due to its dividend paying obligations at the current levels of today.
This company was personally found after using a screener. The screener yielded many companies that often relate to the energy/commodity industry, or FIRE (financial insurance real estate).

google screener options:
Market cap over 400M
Dividend yield over 2%
1 Year price change better than -35%
price to book 0.9 or higher
total debt/assets (recent qtr) greater than 50%
total debt/equity (recent qtr) greater than 50%
13 week price change greater than 10%

After individually screening for companies appearing overvalued due to Balance sheet expansion, it yielded the following stocks to short:
EPE NRGP NRGY OFC EV EPB CNK ASCA MAA EVR

For the heavy shorting within the energy sector as part of the above picks, I will offset them with the following longs relating to energy/commodities:
LONG on PBT, BPT, SJT, GCC

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