TGA and this Friday's luncheon

[dan_s]

I had two meetings today. One with a group of MBA's from Wharton (people much smarter than me) and one with Vanguard Natural Resources (VNR); one of our top five picks on the new MLP Watch List.

VNR's CEO will be the speaker at this Friday's EPG luncheon in Houston. I hope you can all make it.

I will be opening the presentation with "Master Limited Partnerships 101, The Basics".

Where: The Hess Club, 5430 Westheimer
When: Doors open at 11:00 and lunch is served at 11:30
Who can come?: EPG Members are FREE. Guest are welcome put they need to register (go to the Home Page)

In the last six months over $5 Billion of new investment has made its way into MLPs. High tax deferred yields are the primary reason plus this asset class is getting a lot more respect. About 70% of the publicly traded MLPs are in the energy sector, about 2/3 in the midstream space and 1/3 in upstream (E&P). Check out our September 7 Newsletter (on the Home Page) for more details.

Oil closed over $77/bbl and it appears to be heading higher. I believe a Republican route in November will send oil prices much higher. Gridlock is good. All Obama has to do to make the voters think he has a grain of common sense is extend the tax cuts for two more years but he cannot bear to admit the Republicans are right. Just think of the lift it would give to the Democrats running for re-election if he extended the tax cuts and sent 20,000 National Guard troops to secure the southern boarder. Illegals coming to the U.S. for work is one thing but allowing drug and weapons trafficing to go on day-after-day is insane. Who are the American citizens that think all the drugs coming in and weapons going to Mexico is wise?

At the Wharton luncheon a gentleman started talking to me about investing in alternative energy. I immediately told him that any investment in a company that relied on tax credits to survive was not for me. Wind and Solar have no chance with natural gas under $6/mcf. The same guy said he had a start-up that was working on the distribution of marijuana for medical reasons (of course). I told him he might have better luck finding investors outside of Texas.

Dan

[dan_s]

I wanted to memtion that TGA will be the featured article in my next newsletter.

Dan