The troubles at General Motors Company (NYSE:GM) with authorities over recalls looks to have reached fever pitch for “Fast Money Halftime Report” trader, Mike Murphy, on CNBC, who said he has sold his investments in General Motors Company (NYSE:GM) & Cabot Oil & Gas Corporation (NYSE:COG). Mr. Murphy focus has shifted to the energy sector with Boardwalk Pipeline Partners, LP (NYSE:BWP) remaining his best play at the moment.
Investing in Boardwalk Pipeline Partners, LP (NYSE:BWP) for Mr. Murphy comes as a surprise considering the company’s stock was smashed back in February from highs of $33 and is currently trading at between $18 and $19. “Coming out of GM and coming out of Cabot, I want to stay in the energy space, so I look to Boardwalk, which is a pipeline company.”
Mr. Murphy said trading with Boardwalk Pipeline Partners, LP (NYSE:BWP)’s stock is the best way to reap good returns in the booming natural gas industry that is heading down to the Louisiana area. Initially, there were concerns with the company’s debt levels that seem to have cast its future into doubts. Boardwalk management looks to have sorted out the mess by reducing its dividends and distribution enough, something that is no longer of concern to the investor.
“There were concerns with the debt for this company but they cut their dividends their distribution enough to where I think it is no longer a concern”. Mr. Murphy now thinks Boardwalk Pipeline Partners, LP (NYSE:BWP) distribution will increase, with the company showing signs of growing from the $19 mark to the highs $20.
Mr. Murphy also reiterated the fact that he wants some exposure in the financial area although he thinks he is not yet ready to add a Citigroup Inc. (NYSE:C) or Bank of America Corp (NYSE:BAC). Mr. Murphy has also made an investment on KKR where he remains excited over dividend levels as well as having the opportunity to get access to great banking investment deals and asset management benefits.
KKR & Co. L.P. (NYSE:KKR) remains a safe play for Mr. Murphy in the event the market experiences a 10% pullback with great potential of growing in the market going forward.