Inergy, L.P. (NRGY)

paid out a dividend of $0.68

Too much debt. Dividend isn't safe. Low margins.

navallier: 9, moneycentral: 9 with 8.6% div

yield

They have their hands in just about every phase of natural gas...I particularly like the home retail business. They just keep raising their dividend, which is normally a sign that management feels they have a growing business.

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

Actually started accumulating share of this in 2004 at $22. Has increased dividend every quarter for 28 straight quarters. Caught it low in Dec 08/Jan 09 and loaded up on more shares. Recouped all my losses for the year with this one purchase, and got another dividend payment in Feb to ice the cake. Suggest others study this, and other MLP's for steady income from sound energy-related middlemen. They make their money on throughput, and generate great cashflow.

Nice Dividend.

*IF* the pres gets his way and CNG vehicles start becoming more widely available, there will need to be some type of infrastructure put in place to fuel them.

Like for tax deferred income

way undervalued 10/08/08 good dividends and earnings

They seem to be buying the whole industry.The future is to buy.

raymond james pick

They are providing a necessary resource, and I'm impressed with the way they're growing their business. Nice dividend.

Full Time Employees: 2,880

BUSINESS SUMMARY
Inergy, L.P. engages in the sale, distribution, storage, marketing, trading, processing, and fractionation of propane, natural gas, and other natural gas liquids in the United States. The company involves in the retail marketing, sale, and distribution of propane, including the sale and lease of propane supplies and equipment, to residential, commercial, industrial, and agricultural customers. As of November 1, 2007, it served approximately 700,000 retail customers in 28 states from 321 customer service centers, which have an aggregate of approximately 32.2 million gallons of above-ground propane storage. Inergy, L.P. also operates a wholesale supply, marketing, and distribution business, providing propane procurement, transportation and supply, and price risk management services to its customer service centers, as well as to independent dealers, multistate marketers, petrochemical companies, refinery and gas processors, and other natural gas liquids (NGL) marketing and distribution companies in 40 states. In addition, the company owns and operates a midstream operation, including the following assets: the Stagecoach natural gas storage facility with approximately 26.25 billion cubic feet of working gas capacity located 150 miles northwest of New York City; an NGL business in Bakersfield, California, which includes natural gas processing, NGL fractionation, NGL rail and truck terminals, bulk storage, trucking, and marketing operations; and the Bath Storage Facility, a liquefied petroleum gas storage facility with a 1.4 million barrel salt cavern storage facility located near Bath, New York. Inergy GP, LLC serves as the managing general partner to Inergy, L.P. The company was founded in 2001 and is headquartered in Kansas City, Missouri. Inergy, L.P. operates as a subsidiary of Inergy Holdings, L.P.

Huge insider ownership and one of the few agressiv expanding gas businesses. Big dividends.

Inergy Corp is growing its customer base by buying up smaller gas distributors throughout the US. Its stock price has taken a dip as of late but has otherwise has been stable. Its pays a 9% dividend to keep you hanging on for years to come.

supercycle

time to head up