Q: The splitting into gas and liquids components is not impressing the market, seems more like shuffling the deck chairs. I've owned TRP for many years at a good profit which has now become a small loss and am considering selling. Any sage advice?
5i Research Answer:
We think there will probably be some investor apathy here between share performance and this news. Markets don't seem to be a big fan of the announcement. We don't think it needs to be sold at 11X earnings and with a high yield but it will likely be in the doghouse for a little bit, so investors can probably reduce their exposure and wait/assess the announcement/spin-off wihtout missing out on a whole lot of share price movement.