Account Information

  • My Account

    Manage all your subscriptions, update your address, email preferences and change your password.

  • Help Center

    Get answers to common service questions, ask the analyst or contact our customer service department.

  • My Stock Talk Profile

    Update your stock talk name and/or picture.


Get rich from the world’s most BORING stocks

Get rich from the world's most BORING stocksWhen you buy these dependable Steady Eddies, you’ll see why “boring is beautiful.” You’ll fall in love with the 39 “stodgy” stocks currently in my portfolio… because they’ve racked up an average gain of 455%. That’s enough to turn $10,000 into a staggering $55,500! These “yawners” can slam the door on your money worries. Click here to get started now.


Magellan Charts Strong Gains

By Robert Rapier on July 7, 2016

At the start of the year, MoneyShow featured its annual Top Picks report asking leading advisors for their favorite investment ideas for 2016. In the report, 85 stocks and funds were recommended, and the stock picks that we submitted on behalf of The Energy Strategist have been among the top performers year-to-date.

Last week I was interviewed by The Money Show to talk about the picks I submitted, as well as the outlook for the rest of the year. Here is Part II of that interview.  

Steve Halpern:  Now at the start of the year you recommended a company called Magellan Midstream Partners (NYSE: MMP), which is up 12%, also strongly outperforming the market, as did your pick, EQT Corp. (NYSE: EQT).  Can you give us a little background on Magellan, and discuss whether or not you still recommend this stock?

Robert Rapier:  Yes, Magellan is one of the largest midstream master limited partnerships, so it’s involved in transportation of refined products and crude oil.  It has a large asset portfolio across the country, and it yields about 4.2%.  

Management is very conservative.  I added that as a conservative investment where I felt like the downside was fairly limited. However we are presently approaching the Buy limit we set for the company.    

Like energy stocks, MLPs bottomed out in February. Previously I talked about the price of natural gas as an indicator that suggested it was undervalued. Another such indicator is the yield of the Alerian MLP Index (AMZ).

Previously, the Alerian yield had gone over 10% two times in the last 20 years. It went over 10% for the third time in 20 years in December, and it’s since run up by 35% or so.  Magellan Midstream is a component of the Alerian, but the whole sector to me was undervalued.  

That indicator said the sector’s undervalued.  MMP hasn’t gone up as much as the overall midstream MLP sector, but again it’s very conservative so your downside is limited.  

For more aggressive investors I would have maybe recommended something different, but that was a conservative pick.  It remains a conservative pick.  For somebody looking for income, and limited downside risk it’s still a buy.  

Steve Halpern:  Before I let you go, given that EQT Corporation and Magellan are stocks you like for the long term, but you’re not particularly or overly bullish on them for the near term,  perhaps you’d be kind enough to highlight a name or two that you are particularly encouraged by for the second half of the year.

Robert Rapier:  Well, we recently sent out an alert for BP (NYSE: BP).  BP had gotten hit pretty hard by the British vote to exit the EU, and we felt like it was being unduly punished.  

I haven’t been bullish on BP over the years very often, but I think in the wake of the Gulf of Mexico disaster they may have sold off more than they should have. They finally got the deal with the government settled last year.  

I feel like they are undervalued, and I notice they’re up 5% today.  They yield nearly 7%, and are generating decent cash flow. We think all things considered BP has come out of the Gulf of Mexico disaster in pretty good shape.  It could have been a lot worse for them.  They’re trading at a fraction of where they were before the disaster.  

I just added SolarEdge Technologies (NASD: SEDG), a solar inverter company to my own portfolio about a week ago.  They are profitable and growing rapidly.  I think the solar sector is poised to do very well over the next five to ten years.

Then Enviva Partners LP (NYSE: EVA), outside the oil and gas sector. Enviva Partners makes wood pellets, and they sell them into the European market. They are growing by leaps and bounds. They yield nearly 10%, and they just had their IPO a year ago, and year over year now they are the number one MLP performer over the past 12 months.

The oil and gas MLP sector has gotten beaten up pretty badly, even though they recovered some since February. They bottomed out in February but are lagging a bit. Enviva Partners has done quite well throughout the oil and gas downturn, and we continue to recommend for the long-term.

(Follow Robert Rapier on Twitter, LinkedIn, or Facebook.)

You might also enjoy…


Here’s What’s Really Going to Crush the Market

Most folks understand the basic concept of inflation… things cost more money. But tragically, most don’t understand the real implications of what it means for their financial future. 

Or just how dangerous it’s becoming right now. Today.

And there are two reasons for that…

First, the U.S. government’s calculations barely take into account two of the things you and I are paying more and more for every day: energy and food.

Second, since inflation really hasn’t been an issue for the past 30 years here in the U.S., most analysts won’t dare to say it’s on the rise because they’ll suffer professionally. 

But I’ve made a name for myself by always saying what needs to be said. Which is why I’ve prepared a new special report that’ll give you simple instructions on how to protect yourself from the coming storm.

And better still…

It gives you the full story on the six types of investments that are destined to soar 275%… 375%… even up to 575% over the next few years as the winds of inflation flatten the U.S. economy.

You can get your free copy here.

Stock Talk — Post a comment Comment Guidelines

Our Stock Talk section is reserved for productive dialogue pertaining to the content and portfolio recommendations of this service. We reserve the right to remove any comments we feel do not benefit other readers. If you have a general investment comment not related to this article, please post to our Stock Talk page. If you have a personal question about your subscription or need technical help, please contact our customer service team. And if you have any success stories to share with our analysts, they’re always happy to hear them. Note that we may use your kind words in our promotional materials. Thank you.

You must be logged in to post to Stock Talk OR create an account.

Create a new Investing Daily account

  • - OR -

* Investing Daily will use any information you provide in a manner consistent with our Privacy Policy. Your email address is used for account verification and will remain private.