A Word to the Wise, and The Sweat Smell of Nat Gas Yielding 6 Percent

Sandra Ward's interview in Barrons' of head hedge fund honcho Ray Dalio, of Bridgewater Associates, just up the Merritt Parkway, leaves one a little cold about chasing high yields. It's worth picking up or logging on for his forward view of high yield. After all, when a guy who trades 160 billion in other people's money speaks, it might mean something. He suggests trouble for high yield 2 years out, so it may be a good time to review exit strategies (stop loss orders) because it's important to begin with the end in sight, as they say.

Nevertheless, speaking of natural gas, we find Markwest's yield (symbol MWE), and other measures almost TGTBT. At a price of 2.4 times price to sales, a modest P/E of 16.81, a very low Beta, an above par operating margins 17.60 against its competitors at 10, and an estimated 56% five year forward growth rate, MWE's 6 percent yield has the sweat smell of say, a natural gas partnership.

Put another way: "MarkWest Energy Partners, L.P. engages in the gathering, transportation, and processing of natural gas in the United States. It also transports natural gas liquids (NGLs), as well as engages in the gathering and transportation of crude oil. The company primarily operates in east Texas, Oklahoma, Gulf Coast, Appalachia, other southwest, and Michigan. MarkWest Energy GP, L.L.C. serves as the general partner of the company. The company was founded in 1988 and is based in Denver, Colorado."

Although it trades well above its 200 day moving average right now, its trading a lot closer to its lower Bollenger band than its upper band, suggesting a good time to plough in for a little greater gain.

However, further inquiries may be in order on, based on MWE's look against its competitors, DYN, WMP and DPM. MWE is showing an over sized PEG ratio (4+).