  |
That's better than nearly 95% of stocks. And that's just the average for this overlooked sector that not one in 100 investors has a penny in. The best in this sector do even better. I'll give you 5 of my favorites – yielding an average of 7.6% – right now for free. Click here to learn more.
| | | 12/03/2014 By Igor Greenwald 
Looking for a big winner in the market? (Who isn't, right?)
Do yourself a favor and forget about stocks for a moment.
Instead, I want to take you to a corner of Wall Street few investors know about. In fact, I'll bet you that fewer than one in a hundred have ever put a penny into it.
But if you fish in this tiny pond, your chances of landing a whale of a return go up—way up. That's because for every 10-bagger in the S&P 500 over the past 10 years, there have been almost four times as many in this tiny niche of "non-stocks."
I won't keep you guessing. I'm talking about master limited partnerships.
If you've never heard of MLPs, don't feel bad. Most investors haven't. But if you've been looking for an asset that steadily rises in any market, you've found it.
Consider: - You're 25 times more likely to double your money in MLPs: Three out of four MLPs (76%) have more than doubled in the past five years, while just 3% of stocks have.
- They pay no corporate tax: MLPs' profit margins are fatter than those of regular corporations because they pay no corporate tax—in America, the country with the highest corporate tax rate in the world. Hard to believe, but true.
- They pay the highest yields out there: Precisely because they pay no tax, they have much more leftover free cash to deliver to investors like you. You can pocket $10,000 a year for every $100,000 you invest in these cash cows.
Despite what MLPs look like, they're not stocks. When you invest in an MLP, you become a partner in the business—but one that doesn't have to attend meetings, manage anyone or deal with all the other day-to-day hassles.
But you do get the profits. And they're considerable.
With their fat distributions and steady price gains, MLPs have made mincemeat out of stocks, returning 15.2% a year over 10 years running. That's better than 95% of all U.S.-based stocks.
What's more, your own personal taxes on that income are so low you'll think the IRS must be slipping up. That's because about 90% of the distribution you get from a typical MLP is tax-free until you sell.
Some let you pocket high yields for 10 years or more before you pay a single penny of tax. One of my favorites yields 11%, and you can defer taxes on 95% of your income—in some cases forever.
I know this all sounds too good to be true, but plenty of investors are banking big checks from these investments right now. Folks like 81-year-old Jim C., who just last month collected $19,174 from one MLP.
I can't wait to show you how to join them. To get you off to a flying start, I've put my five favorite MLPs in a new special report. It's called "Constant Cash Machines: 5 Choice MLPs Yielding 7.6% on Average."
In a moment, I'll show you how to get full details on all five—with yields as high as 12.0%—free. But before I get to that, I want to make sure you're armed with all the facts on MLPs.
Let's start with why I call them…
"The Only Free Lunch on Wall Street"
There are plenty of reasons why MLPs are better than stocks. But let's be honest—the one that matters most is they make you a lot more money.
Over the past 10 years, MLPs have crushed the S&P 500 by 314% to 116%. Go back even further and the drubbing is even more spectacular. Over the past 15 years, MLPs are up 613% to the S&P's 93%. That's six to one!
But here's the kicker: they do it while keeping your money safer than regular stocks.
You see, MLPs have an average beta rating of 0.72, which means they're 28% less "jumpy" than stocks—all while producing market-beating returns.
According to the "rules" of investing, that just isn't supposed to happen. Such dependable and steady investments aren't supposed to keep pace with the market, let alone beat it. But MLPs turn that outdated axiom on its head.
Why Most Investors Are Missing Out on MLPs
At this point you may be thinking: "Igor, if MLPs are so wonderful, why don't we hear more about them?"
Simple.
MLPs aren't institutional products. They're designed for the little guy, not the big boys … so Wall Street's hordes of salesmen have little reason to pay attention. And little Wall Street research is done on them, for the very same reason.
Here's something else most investors don't know about MLPs: they're spreading.
MLPs' tax breaks have proven so irresistible that all sorts of corporations are converting to partnerships. They're spreading from the energy patch—where MLPs got their start in 1986—to real estate, orchards, toll roads, amusement parks, even cemeteries!
Last year, Emerge Energy Services went public as an MLP. It supplies the "fracking sand" drillers need to blast through rocks. Emerge earned a bit over $27 million and paid just $160,000 in taxes, for a rate of just 0.6%.
Wouldn't you rather own a company that could ignore Uncle Sam at tax time, instead of an identical one that had to fork over 30% every year?
Of course you would.
And the best place to start is with that special report I mentioned earlier.
How to Start Your Own "Constant Cash Machine" Now
My new report gives you our complete guidance on each of my five favorite MLP picks. It's called "Constant Cash Machines: 5 Choice MLPs Yielding 7.6% on Average," and it's yours free just for sampling my MLP Profits advisory risk-free for 90 days.
One of the MLPs you'll read about is Constant Cash Machine #1: the pipeline that doubled our money.
This industry standout owns 18,000 miles of pipelines, including the only one connecting natural gas drillers to Lake Charles, Louisiana—home to half of America's liquefied natural gas plants.
This is a straightforward volume-based business. The more oil and gasoline that travels through its lines, the more money it makes. There's zero commodity risk.
With low volatility and predictable cash flows, this is one of the cheapest pipeline MLPs out there, trading at just 1.7 times book value and yielding almost 7%.
I'll take you inside this cash-generating machine and my other 4 top MLPs in this brand new special report.
Don't miss this opportunity to start 2015 on the right foot.
Go here to get instant access to "Constant Cash Machines."
Editor's Note: There's simply no better way to make your money grow through thick and thin than with a careful selection of MLPs.
While run-of-the-mill partnerships pay about 6%, the jewels in Igor's new report yield up to 12.0%. AND they're fattening their payouts by up to 15% a year! Just imagine what a steadily rising income stream like that could do for your portfolio.
I urge you to check out this eye-opening free report today. With our no-risk trial, there's no reason not to. | | |
Looking for a big winner in the market? Do yourself a favor and forget about stocks. You're far more likely to hit it big in an overlooked corner of Wall Street that not one in 100 investors has ever put a penny into. That's because for every 10-bagger in the S&P 500 over the past 10 years, there were almost four times as many in this tiny niche of "non-stocks." Click here to learn more.
| | | 12/03/2014 By Chad Fraser 
Call it the Thanksgiving Oil Massacre.
While most Americans were wolfing down turkey, catching up with family or chasing Black Friday deals, crude was facing the biggest beat-down it's seen in years.
The catalyst: OPEC's Thanksgiving Day decision to keep the taps open, holding the bloc's output at 30 million barrels a day despite weaker demand and a surge of new oil from the U.S. shale boom.
When the dust settled on November 28, a barrel of West Texas Intermediate had plunged more than 10%, closing at $66.15. It's now down more than 35% since late June.
Shale Producers Feel the Pinch
OPEC's move ups the pressure on U.S. shale drillers, who also seem happy to keep the pedal down, at least for now, according to Robert Rapier, chief strategist at our Energy Strategist service.
"[Shale] companies are on a shorter leash than the state-owned OPEC producers, but their hedges, falling production costs and considerable debt have so far encouraged them to keep on drilling while reviewing their capital spending plans," he wrote in a November 28 article in response to the plunge.
"These are now highly likely to be curtailed. But in the meantime, an oversupplied market that saw no change in supply/demand dynamics after a 20% discount is seeing if 35% might do the trick."
Rapier thinks oil and oil stocks are near a bottom. However, he warns that markets could still overshoot further to the downside and recommends that investors make sure they're properly diversified beyond the sector.
Drillers' Pain Is Consumers' Gain
Beyond the energy sector, pretty well everyone is a winner.
According to figures from gasbuddy.com, regular gasoline is averaging around $2.75 a gallon around the nation, down about 25% since late June. In some parts of the country, it's below $2.50.
Here's what that works out to, according to a bevy of estimates out Monday: - A $75-billion "tax cut": According to Goldman Sachs (NYSE: GS) analyst Kris Dawsey, that's what the plunge at the pump has amounted to for consumers;
- $1,100 per household: Over at MarketWatch, reporter Jeffry Bartash ran some numbers and found that this is how much a typical family will save if gas prices average $2.50 a gallon next year.
- A 0.3% GDP boost: That's how much of an annual lift the U.S. economy could see if lower oil prices persist. In the third quarter, the economy grew at an annualized rate of 3.9%.
So where should investors be looking as the oil drama plays out?
Obviously, you shouldn't base investment decisions solely on oil prices, which could easily snap back at the drop of a hat, but here's a closer look at two sectors our Investing Daily experts are watching now, as well as some stocks that stand to gain from a prolonged price slump.
Automakers: Back to 1994?
The global auto business was already on cruise control before the oil rout started.
On November 27, while OPEC was announcing its decision, economists at Bank of Nova Scotia (NYSE: BNS, TSX: BNS) were releasing their monthly auto sales report, which showed that volumes zoomed ahead 3% in October, to new record highs, mainly supported by growth in China, the U.S. and Western Europe.
Falling gas prices are an obvious plus for vehicle sales, and this latest plunge could set up a situation like we last saw in 1994, when auto sales jumped 9%, according to the bank.
"We believe the current environment is most similar to 1994, with the North American economy beginning to build momentum and providing a boost to global activity," reads the report. "In both periods, interest rates had remained low for an extended period and labor markets---the key economic driver of new vehicle sales---were finally recovering following a long period of sub-par performance."
To top it off, despite the volatility of fuel prices, some drivers still can't resist the lure of SUVs, crossovers, big pickups---and yes, even Hummers---in times like these.
That's good news for automakers, because these vehicles are more profitable than cars. It's a particular benefit to Ford (NYSE: F), General Motors (NYSE: GM) and Chrysler, which dominate the U.S. pickup market with a combined 90% share.
Rising auto sales are also welcome news for component makers like Canada's Magna International (NYSE: MGA, TSX: MG), which counts Ford, GM and Chrysler among its customers. The company's sales and profits have gained along with global auto production.
Gas Station Operators: Fill 'Er Up!
Meanwhile over at our MLP Profits advisory, chief strategist Igor Greenwald has been on the hunt for a direct way for readers to profit from the plunge at the pump, and he thinks he's found it right at the source: gas stations.
"When pump prices are high and rising, filling stations inevitably get squeezed by suppliers jacking up their costs, while motorists fume, hunt for the cheapest gas in town and skip that soda from the station's convenience store," he explains in a November 17 article.
"But when prices are falling, an entirely different dynamic takes hold. Pump prices decline slower than wholesale gasoline, because drivers stop being so picky. They might drive more, and definitely spend more on sundries at the mart. More sales at fatter margins would make any business owner happy."
The drop comes as travelers gear up for the busy holiday season. According to the U.S. Department of Transportation, Americans take 54% more long-distance trips than average over Thanksgiving and 23% more between Christmas and New Year's. About 91% of these journeys are by car.
Three Fuel Retailers to Watch
There aren't many pure-play fuel retailers open to investors, as integrated oil majors and refiners own many. One is CST Brands Inc. (NYSE: CST), a chain of filling stations and associated stores recently spun off by refiner Valero Energy Corp. (NYSE: VLO). The company has 1,900 locations in the U.S.
Another is Canada's Alimentation Couche-Tard (TSX: ATD.B), the corporate parent of the Circle K chain. Couche-Tard operates 4,445 stores in the U.S., 1,900 in Canada and 2,250 across Scandinavia, Poland and Russia.
Another player is Global Partners LP (NYSE: GLP), a Northeast fuel dealer with a growing presence in the gas station market.
Following a series of acquisitions in recent years, the master limited partnership now supplies a billion gallons of gasoline annually to more than 1,000 gas stations, including 126 it owns and operates and 415 leased out or managed on commission.
In the first quarter of 2015, Global expects to close its acquisition of a filling station and convenience store chain from Warren Equities. At that point, the MLP would be supplying gas to more than 1,500 stations and would own roughly half that total.
Discover Our 5 Favorite MLPs FREE
MLP expert Igor Greenwald's top 5 picks throw off an average yield of 7.6%---four times more than the misers of the S&P 500! How do they do it? MLPs pay zero corporate tax, and they pass the savings on to you!
These often-misunderstood investments used to be limited to the energy sector, but no more. Thanks to their unbeatable tax benefits, they're spreading to a wide variety of industries, from amusement parks to cemeteries.
Our readers are up 489% on one, we're close to a triple-bagger on another ... and there are still plenty of gains ahead.
Get the full story here. | | |
You may know about their tax advantages, but did you know there are 7 more reasons that MLPs crush most stocks and have outperformed the market by 3 to 1 over the past 10 years? Click here to learn more.
| | | 12/03/2014 By Robert Rapier 
A meeting last week of the Organization of Petroleum Exporting Countries (OPEC) concluded with a decision not to cut the organization's production quotas. Crude oil prices slumped as a result and many MLPs went on sale as well. While the oil gloom discounted MLPs across the board, those associated with hydraulic fracturing were especially hard hit. Two high-flying MLPs that specialize in sand used in hydraulic fracturing -- Hi-Crush Partners (NYSE: HCLP), and Emerge Energy (NYSE: EMES) -- both saw declines exceeding 25% over the two trading sessions following the OPEC meeting. Hit just as hard were the upstream MLPs. "Upstream" refers to oil and gas producers, and even though many of them hedge their output against falling prices, they are much more exposed to longer-term commodity fluctuations than are the more traditional midstream MLPs. The National Association of Publicly Traded Partnerships currently classifies 16 partnerships as upstream businesses: 
A sampling of these names shows the carnage that took place following the OPEC meeting: 
So what's an MLP investor to do at this point? Assuming you have the risk tolerance for upstream MLPs, does this sell-off make the sector a buy? Not necessarily. Not all upstream MLPs are equal. Those that are predominantly natural gas producers also sold off, but natural gas prices have actually held up nicely this year, and have spent most of the year above their 2013 levels: 
So, if an MLP is weighted toward natural gas and still sold off sharply, it will probably turn out to be the better bargain in the near term than those that are predominantly tied to oil production. Of great interest at the end of the year will be the annual reporting required by the U.S. Securities and Exchange Commission (SEC). The SEC requires upstream producers to provide what is known as a Standardized Measure (SM). This measure is included in the annual 10-K filing, and is the present value of the future cash flows from proved oil, natural gas liquids (NGLs), and natural gas reserves, minus development costs, income taxes and existing exploration costs, discounted at a 10% annual rate. All oil and gas producers traded on a US stock exchange must provide the Standardized Measure in filings with the SEC, and they must calculate these numbers in a specific way. The prices used in these calculations are typically the average commodity price that was received over the previous 12 months. What that means in light of the oil price collapse is that you will see the SM value for oil-oriented upstream MLPs decline relative to last year's figure (unless they have a reserves increase large enough to offset the price decline), while gas-oriented upstream MLPs should maintain their value. As these 10-K filings start to be released, we will be closely scrutinizing them to determine which upstream MLPs are traded at the lowest multiples relative to their expected cash flow. What I expect we will see is that the natural gas producers have gotten relatively cheaper since natural gas values have held up well under the sell-off. This article originally appeared in the MLP Investing Insider column. Never miss an issue. Sign up to receive MLP Investing Insider by email. | | |
What if there were an investment that was exempt from the highest corporate tax burden in the world? And even better, what if it passed those tax savings on to you, the investor?
It's not a dream. I've got 125 companies that do exactly that. I'll show you 5 of my favorites for free right now. Go here for more.
| | | | | |
0 comments:
Post a Comment