Share This Article
Get Money Morning's top stories delivered straight to your inbox - every morning!
Vietnam's "Shadow Plan" for a Fight in the South China Sea
When U.S. President Barack Obama visited Vietnam earlier this week, he became the third American head of state to do so.
But I’m going to let you in on a little secret.
How would you like to put an extra $125,000 in your nest egg? You can potentially do it this year - and you'll only have to risk $20 to learn how. Click here.
Email this Article
On June 6, I identified El Paso Corp. (NYSE: EP) as a "Buy." The stock at the time was trading at $20.40 share.
Well, on Sunday (Oct. 16), Kinder Morgan Energy Partners LP (NYSE: KMP) said it would buy El Paso for $26.87 a share. That's a 32% premium to the price the stock was trading at at the time of my recommendation. EP stock yesterday (Monday) rose more than 24% to close at $24.45.
The Standard & Poor's 500 Index has slumped nearly 8% since June 6, so readers who followed my advice would have enjoyed a nice rate of return over the last four months, compared to the overall market.
The case that I made for El Paso back in June was a simple one: The company's assets were valued at less than the equivalent assets held by its peers. El Paso at the time was in the process of breaking itself into two parts, so it could unlock some of the trapped value.
Kinder Morgan recognized that, as well, and acted.