Sep 23 2008
Grab now: Targa Resources (NGLS)
I had a different article today for the readers of this blog, but came across an stock that excited me, and let me tell you- the last few days have been so tough on Wall Street that it was nice to get excited about investing again. Still, our portfolio was up today, so I know we are on the right track.
Whenever I recommend to invest in a value stock, I like to see a hefty dividend. This one is only running under 7%, but I like so much about what I see that I’m still going to buy it. First, let’s talk about the fact that the dividend for this stock has steadily increased. Then let’s talk about how natural gas has been down a bit this past year. Sooner or later, whether we like it or not, natural gas will go up. That means more revenue for Targa. Not only that, but winter is on its way, and the almanac says it will be severe. Increased usage in natural gas is expected, even if the majority of us wonder how on earth we are going to pay for it. And local municipalities are concerned about the cost; I know our city was unable for the first time to secure a fixed price on the gas it has to buy. Plus the clerk reports that the price of our fuel is going up double digits!
Like I’ve always said, if you can’t beat ‘em, join ‘em. That where Targa comes in. First, the financials look excellent. And the insiders are buying like crazy. They see good times coming. And if you act tomorrow, you can get in under the share price of what the insiders bought in. Next, the stock is trading just a little above the 52 week low. The price had dropped because of Ike, but their operations were unscathed by the hurricane. The turmoil on Wall Street pulled the prices down a bit, too. Yesterday, however, it began to come back. I recommend a market order today, and then after today, a buy in at anything under $18/share.
I know that one other financial guru has recently recommended them. When I read that and gave it a glance I wasn’t impressed. Then it turned up on my own evaluation run last night, and I looked into it more closely. If you want to play this one even tighter, watch the markets today! If the Dow is down and this stock is up, grab at market. The price went up well yesterday and might take a brief correction, thereby allowing you pennies off the initial price.
On a final note: precious metals are sure on a tear. Watch the yellow metal and if you have gobs of it, consider if you want to take some profits at $1000. Right now palladium and platinum are both undervalued. Look to almost double your profits, possibly, with platinum, and even if you hold it long enough, you could triple the profits eventually on palladium. You should hold gold, but it will be a long time before it doubles. That’s probably not that true of the other metals. Good luck and enjoy the profits.
How do you buy platinum and palladium? Are there stock or funds in it that I can buy or do I have to know (a lot) more than I know about commodities?
Is TELOZ going up because everyone else is pulling money out of the market into dividend payers?
David
Palladium and platinum are available through your reputable coin shops. Find a good reputable company to deal with, and build a quiet relationship with them. Be careful for firms that try to sell you specific minted coins. You could just buy bars. Most shops follow the kitco.com all metals quotes to determine spot price, though mine follows one other site like that. Since both metals are more abundant right now, you should have no difficulty buying them. Throw them in a safety deposit box for cashout later.
Palladium will probably go into the mid to late $3oo zone and at one time was more than platinum. Prlatinum is not only a jewely item, but it is also used in catalytic converters. Palladium is a cheaper alternative to platinum, and sometime if there is a perceived shortage, palladium goes nuts.
There’s a distinct advantage to owning these two right now. If our government finds itself going completely broke, it could call in all gold coins. It’s happened before here in the states and most recently in a far eastern county. If my memory fails me then I could be wrong. But I do believe it was in Thailand where the government called in all gold to help shore up its currency. They don’t always think of palladium and platinum..
Teloz will go up as oil rises and as everyone who follows it realizes that the hurricanes missed it. But it is true that many people are looking for the hedge that high yield dividend stocks provide in these rough waters. That’s why BPT has been going just wild!
Thanks for stopping by. Hope this helps!