Stockchase Opinions

Michael Simpson, CFA Taylor NGL LP Fund TAY.UN-T TOP PICK Jul 04, 2007

Natural gas processing and liquid extraction. Recently acquired some hydro assets in B.C. Very creative management. Paying down debt.
$9.200

Stock price when the opinion was issued

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TOP PICK
Runs a natural gas processing plant. Derive their product from industry flow of natural gas in major pipelines. Extremely well managed. They're incentivized to make distributions per unit grow. Trades at a cash return of about 8.5%. Acquisition minded, so should see distributions grow.
BUY
90% payout ratio and a 7.4% yield. Likes the business. Comfortable with gas at $8/9.
BUY
As a mid stream facility, they actually don't take a lot of risks on. A relatively steady business. Less dependent on the commodity price and the direct ownership in a well or a producing facility. Good risk/reward
TOP PICK
Have 2 extraction natural gas plants. Have 2 liquid natural gas pipelines. Well-run company. Long-term contracts. Very little commodity risk.
HOLD
A thinly traded stock, so not one he was able to own. Fundamentals suggest it as a great long-term hold.
PAST TOP PICK
(A Top Pick July 4/07. Up 26%.) Acquired by Altagas (ALA.UN-T).