A CEO and A Board Member Bought 5.3% Yield Access Midstream

Page 1 of 2

Filings with the SEC have disclosed that two insiders at Access Midstream Partners LP (NYSE:ACMP) bought the stock on December 24th. CEO Michael Stice bought 9,000 shares at an average price of $33.60 per share- increasing his direct stake in the company by about 50% to a little over 27,000 shares- while Board member David Daberko now owns a little over 14,000 shares after buying 6,000 shares of the stock at a slightly lower price. Access Midstream currently trades at $32.70, down just a bit from where these insiders bought. Studies show that stocks bought by insiders tend to beat the market- though not always- and this makes sense to us as insiders should prefer to diversify their investments unless they are particularly confident in the stock (read more about studies on insider trading). Our reading of academic work on insider trading has convinced us that seeing multiple insiders buy, as has happened here, is a particularly interesting signal. Learn more about consensus insider purchases.

Access Midstream logo

Access Midstream, unsurprisingly, operates gathering and other midstream services for natural gas in the onshore U.S., where a boom in natural gas production has somewhat outpaced available infrastructure. Access Midstream recently purchased substantial midstream assets from Chesapeake Energy Corporation (NYSE:CHK); the company itself was a Chesapeake spinout in 2008, and was known as Chesapeake Midstream Partners until this past July. The most recent 10-Q showed revenue up 11% from the third quarter of 2011, though earnings growth was more modest and earnings per share actually declined slightly.

Access Midstream has increased its dividend payment each quarter since it began paying dividends in November 2010. That’s not a particularly long history of paying dividends, of course, but it is a good sign that the company has had enough cash to keep that streak going (though cash balances were low at the end of September, we can hope that if the company can buy assets it can make dividend payments). If we assume that it halts its dividend increases, the yield at current prices is 5.3%. That’s certainly high enough to merit consideration as an income stock even ignoring the potential for dividends to increase further. The beta is 0.3, so the stock would seem to have some downside protection from poor economic conditions as well. Valuation isn’t great with Access Midstream trading at 20 times consensus earnings for 2013, but we think that there are enough opportunities in its industry to at least protect its financials from deteriorating too much.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!