10-04-2013, 08:03 AM
(This post was last modified: 10-04-2013, 08:05 AM by hendi_alex.)
TK is general partner of TGP and TOO, but these two MLPs operate in totally different market segments. TOO is involved in the shuttle tanker business of transporting oil from the oil fields. They also provide storage and according to Yahoo have some involvement on the production end as well. They operate in the North Sea and Brazil. TGP represents a fairly pure play on the LNG market as they have 27 LNG carriers and 5 LPG/Multigas carriers.
So while TOO may represent a good investment, that perhaps offers stable income as well as opportunity for growth, it offers no exposure to LNG. As you point out, it also fits better in the confines of an IRA.
I had to look up a bit of this info as was unfamiliar with details of TOO. Info gotten from Yahoo as well as TK site.
For exposure to the LNG market, you may want to consider GLOG which is small and growing and seems to be doing very well in the current market environment. I own shares of both TGP and GLOG. While GLOG has a relatively low yield now, my bet is for sharp growth in both payout and share price over the next few years.
So while TOO may represent a good investment, that perhaps offers stable income as well as opportunity for growth, it offers no exposure to LNG. As you point out, it also fits better in the confines of an IRA.
I had to look up a bit of this info as was unfamiliar with details of TOO. Info gotten from Yahoo as well as TK site.
For exposure to the LNG market, you may want to consider GLOG which is small and growing and seems to be doing very well in the current market environment. I own shares of both TGP and GLOG. While GLOG has a relatively low yield now, my bet is for sharp growth in both payout and share price over the next few years.
Alex