Portfolio No 6.
Cheniere Energy Partners (CQP) is the leading US force for exporting Liquified Natural Gas. Currently planning its 5th facility, it has beaten all comers, made the huge capex required, successfully opened facilities, established large long term supply contracts to companies and nations and is the leader in supplying one of the US major power assets overseas. As such it is the first stock dependent on/ threatened by markets outside the US. But CQP is an environmantal step in the right direction, is in desperate and growing demand and is protected by long term contracts.
With a P/E of 16, the price has grown from $35 at the start of the year to $43 today. The Dividend stands at 5.6% and I have already taken some profits this year. I plan to watch its “hold” status closely through the China talks knowing CQP has a large market there. It has been trading sideways since February despite massively beating EPS expectations over three of the last four quarters.
6 out of 13 analysts rate CQP a “buy” or better, the rest are calling a “hold”. Fidelity is bearish at 1.9.
Buy/hold for the yield and the long term growth.