SEMGROUP CORP COM STK USD0.01'CL A' (NYSE:SEMG)

CAPS Rating: 4 out of 5

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5
Player Avatar TMFDeej (99.26) Submitted: 3/23/2011 9:23:37 PM : Outperform Start Price: $32.64 SEMG Score: +6.11

Wish that I would have picked up this one a while ago, but heck it wasn't even available in CAPS until I requested that it be added so oh well. This company is a post-bankruptcy David Einhorn play that may change into a dividend-paying MLP in the future. It was also the winning pick that Wharton presented in the Michigan Interactive Investments Undergraduate Investment Conference.

Deej

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Member Avatar TMFDeej (99.26) Submitted: 3/23/2011 9:34:57 PM
Recs: 1

This company seems to be a classic, "This stock's share price is going to explode once it starts paying a dividend"-esque situation that we have discussed here on the Special Ops boards several times in the past.

Currently trading at $33.74/share, the Wharton group pegs the upside of this stock at $65 (+95%) and the downside based on the liquidation value of its assets at $23/share (-28%). Those seem like good odds to me.

Member Avatar RRobertsmith (< 20) Submitted: 6/15/2011 4:40:31 PM
Recs: 0

cover? why no, plus 95 players never ever cover!

Member Avatar TMFDeej (99.26) Submitted: 6/15/2011 8:33:00 PM
Recs: 0

Why on Earth would I cover SEMG at this level? If anything I actually am hoping that it will pull back more so that I can add to my real-life position. SEMG is one of my best ideas right now. This thing is going to convert to an MLP that yields 9% soon. When it does it's share price is going to soar, or at the very least it is going to provide shareholders with an amazing yield an an environment when interest rates are near zero.

I close tons of picks, that's why my accuracy score is so lousy.

Deej

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