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Time To Dump Williams Companies


The Williams Companies buyout is on the rocks.

Activist Keith Meister is underwater, I’m almost underwater.

It’s time to take a hard look at whether to double down on Williams Companies.

I bought into the Energy Transfer Equity (NYSE:ETE) and Williams Companies (NYSE:WMB) deal a couple of months ago when things were dire. Energy Transfer Equity was trading below $5 a share and the stock has come back nicely thanks to the oil rebound.

Now, Williams Companies hasn't roared back as much given the lackluster performance in gas. So with shares of Williams Companies trading right around $20 I'm working through the process of dumping Williams Companies shares and redeploying to other areas of the energy market or double down.

Activist Investor To The Rescue?

Keith Meister, who runs Corvex Management and is the former right-hand man of Carl Icahn, has been an activist investor involved with Williams Companies since 2013. At the 13D Monitor Active-Passive Investor Summit, Meister noted that shares are well below where it invested. Thanks to the shale boom, he saw his investment take off - but with the oil collapse, Williams Companies' stock is now down 45% since Crovex went activist. It's still a major holding of Corvex, now its second largest holding. Granted, Crovex isn't the only fund that's gotten burned on Williams Companies.

With the landslide...