By
Anand Chokkavelu, CFA
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More Articles
August 3, 2011
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If you're aiming to "buy low and sell high," then it makes infinite sense to start your search with bargain-priced stocks. Regularly reviewing a list of stocks trading near their 52-week lows can be a great first step.
Here, I'll try to do the initial legwork for you. To prevent us from being inundated with scores of disparate companies, I'll conduct my search by industry. This will allow us to make some initial comparisons among semi-related companies.
Today, let's look at stocks that are in oil and/or natural gas pipeline field. Below are the 10 largest companies in this space that are within 20% of their 52-week lows.
|
Company
|
Recent Price
|
52-Week Low
|
52-Week High
|
Trailing P/E Ratio
|
Dividend Yield
|
| TransCanada (NYSE: TRP ) |
$40.37
|
$34.23
|
$45.09
|
19.0
|
4.1%
|
| Kinder Morgan Energy Partners LP (NYSE: KMP ) |
$68.89
|
$66.01
|
$78.00
|
119.6
|
6.5%
|
| Kinder Morgan, (NYSE: KMI ) |
$27.50
|
$26.87
|
$32.14
|
53.9
|
4.3%
|
| Enbridge Energy Partners LP (NYSE: EEP ) |
$28.73
|
$26.13
|
$34.58
|
NM
|
6.9%
|
| El Paso Pipeline Partners, L.P. (NYSE: EPB ) |
$34.39
|
$30.10
|
$38.00
|
14.7
|
5.5%
|
| Kinder Morgan Management LLC (NYSE: KMR ) |
$59.65
|
$57.85
|
$68.74
|
60.9
|
N/A
|
| Boardwalk Pipeline Partners, LP (NYSE: BWP ) |
$28.27
|
$27.01
|
$34.23
|
21.2
|
7.3%
|
| Regency Energy Partners LP (Nasdaq: RGNC ) |
$25.14
|
$23.02
|
$28.35
|
NM
|
7%
|
| TC Pipelines LP (Nasdaq: TCLP ) |
$43.77
|
$39.87
|
$54.95
|
13.7
|
6.9%
|
| Niska Gas Storage Partners LLC (NYSE: NKA ) |
$16.07
|
$15.81
|
$22.21
|
51.8
|
8.6%
|
Sources: Capital IQ, a division of Standard & Poor's, and Yahoo! Finance.
Many of the companies above are organized as master limited partnerships to capitalize on the tax efficiencies of the structure. The upshot for investors is large dividend yields resulting from distributions from cash flow. You can see the effect above as most of these companies pay two and three times market-average dividend yields.
As with most stocks, trolling the 52-week lows list is a good way to identify mispriced stocks. And for the companies above that operate pipelines, the steady tolls they collect especially reward buying on temporary blips.
If you are interested in continuing your research on a stock mentioned here, add it to My Watchlist to stay abreast of all of our Foolish analysis.
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