We Have Hit the Jackpot with SUG

During the last three years SUG was mentioned on many occasions in this blog as a buy candidate.
Commented on 5/23/08 at 26.42.
Liked it even better on 1/29/09 to lower the average cost and buy it at 13.30.
Added to choice stocks on 7/25/09 at 19.80.
Featured on the watch list on 8/19/09 at 19.04.
Again included in the watch list on 8/22/09 at 20.85.

We have had several opportunities to load up on SUG. For those who took advantage of these observations, kudos to you!


Today, Energy Transfer Equity announced that it is buying Southern Union Co. (SUG) for 33.00 per share... JACKPOT!!!

Trading at this time for 33.15 on the news, I am glad to cash in on a long awaited result.
This transaction represents a 25.5% return from the original comment price, not including an average yield of about 2.5%.
Had those of you who followed this security bought into weakness, you may have realized a total profit of nearly 75% over the past three years while the S&P 500 experienced an 8% loss, nothing to sneeze at.
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Watch List for the Week of 8/31/09 - Last Week's Recap

Stocks to watch for the week of 8/31/09:
(Expecting a decline on Monday and then we will check these stocks and price them on Tuesday or Wednesday)
Okay, as of 9/1/09, let's keep an eye on:

EZPW 13.37
KBR 22.65
PFE 16.70
SEPR 18.15



Recap for the week of 8/24/09:

on 8/24-------------on 8/28

ATW 29.78 --------28.67(down 3.73%)
SEPR 18.35 -------18.59(up 1.31%)
SUG 20.85 --------20.06(down 3.79%)

That was not a good week.
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Watch List for the Week of 8/24/09 - Last Week's Recap

Stocks to watch for the week of 8/24/09 (same as last week):

ATW 29.78
SEPR 18.35
SUG 20.85


Recap for the week of 8/17/09:

on 8/19------------on 8/21

ATW 28.02-----------29.78 (up 6.28%)
SEPR 17.79-----------18.35 (up 3.15%)
SUG 19.04-----------20.85 (up 9.51%)

It's been a good week, we avoided a devastating Monday.
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Watch List for the Week of 8/17/09 (as of 8/19/09)

Stocks to watch for the week of 8/17/09 (as of the morning of 8/19/09):

ATW 28.02
SEPR 17.79
SUG 19.04

Have prosperous trades for the remainder of this week.
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Cost Averaging SUG

Experiencing a 50% "paper loss" on Southern Union Co. (SUG) over the last 8 months, this may be time to buy more (today at 13.30) and lower the average cost per share while increasing the position.
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Charting SUG

Southern Union Co. (SUG) has been rising from its lows of mid March and is forming a desirable chart pattern.

SUG, together with its subsidiaries, engages in the gathering, processing, transportation, storage, and distribution of natural gas in the United States.

The chart shows the stock price breaking above the 50 DMA (4/25/08), holding well with a fairly strong move towards the 200 DMA and a the long term declining tops line.

Some of the positive aspects are:

• Volume at 889,000 average shares/day
• Yield of 2.3%
• Reasonable book value
• P/E of just under 15

SUG, trading this morning at 26.42, could possibly add some sweetness to a portfolio.

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