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Timothy Smith

01/13/13 8:39 AM

#81 RE: Penny Roger$ #78

$APL is good income addition at $32 a share:

APL yields over 7% (7.2%) and has a series of nice distribution hikes over the past two years. The additional cash flow from the Cardinal acquisition should be positive for future distribution payment hikes.

One of the best ways to evaluate this type of play is to look at how it has done in growing operational cash flow. Atlas has almost tripled this metric over the past three years.

The five analysts that cover the stock have a median price target of $40 a share in a tight range (low target: $39 a share, high target: $42 a share). Good potential capital appreciation potential on top of the 7% yield.

With the Cardinal purchase, revenues should increase more than 50% in FY2013.