Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Inergy's Shares Popped

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares if Inergy (NYSE: NRGY  ) are up 17% today after the company agreed to sell its retail propane business to Suburban Propane (NYSE: SPH  ) for $1.8 billion.

So what: Inergy will get $200 million in cash, $600 million in common units, and up to $1 billion in senior notes for the business. Shareholders will get their corresponding share of 13.7 million common units of Suburban following their registration with regulators.

Now what: Inergy's market cap is still just $2.5 billion after the deal, and this will give the company a chance to pay down some debt if it chose to. I am also concerned about what the loss of 600,000 customers will mean to future earnings and the company's dividend payout. I'll take a wait-and-see approach to the stock because I would like to see what the direct impact will be and what management will do with the money.

Interested in more info on Inergy? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1872353, ~/Articles/ArticleHandler.aspx, 10/20/2016 3:40:11 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,182.42 -20.20 -0.11%
S&P 500 2,141.14 -3.15 -0.15%
NASD 5,243.71 -2.71 -0.05%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/20/2016 3:24 PM
CEQP $21.15 Up +0.40 +1.93%
Inergy CAPS Rating: ***
SPH $33.94 Up +0.04 +0.12%
Suburban Propane P… CAPS Rating: *****