Dykstra: Fall Classics

TC Pipelines also owns a 49% general partner interest in Tuscarora Gas Transmission, which in turn owns an interstate pipeline system that originates at an interconnection point with facilities of Gas Transmission Northwest in Oregon and runs southeast through northeastern California and northwestern Nevada. Now, here comes the best part: TC Pipelines is a master limited partnership that holds a large chunk of the U.S. assets of TransCanada, the largest Canadian pipeline company.

Fundamentally, TC fits my criteria: a forward P/E of 12.7, which is lower than its ROE of 17.40%, plus free cash flow over $30 million and a minuscule debt-to-equity ratio (less than 0.1). TC trades above its 50- and 200-day moving averages, a positive technical development.

And now, a quick word about some prior picks.

Yahoo! (YHOO) rose over 4% last week and I sold my position on the rally. Remember, I am a trader! I lock in profits when I feel the market is volatile, as it has been lately.

Pfizer is up a hair in the past week despite a lawsuit filed last Wednesday claiming that it oversold the benefits of Lipitor and a story in The New York Times outlining the company's recent woes. I'm still bullish on this name for reasons outlined last week.

Judging from some email, many readers were under the impression that I recommended buying Fannie Mae (FNM), whose shares fell hard last week on reports regulators have found more accounting fraud. In fact, I recommended deep-in-the-money calls -- the January 2007s, to be precise, after noting I didn't get filled on the January 2006s. I also wrote: "This is not the kind of stock or option I would chase, so if it doesn't come my way, so be it."

I don't make excuses and I am willing to take the heat when I'm wrong, but the vitriolic finger-pointing was misplaced in this instance.

Great Expectations, Reprise

October has arrived, and with it, baseball's regular season concludes and the post-season commences. The "Elite Eight," to borrow a label from college basketball, will compete for their respective pennants, and ultimately the World Series Championship.

Arriving in the postseason, while monumental, merely raises the expectations to a far greater level. Regardless of how unexpected your post-season arrival may or may not have been, you are expected, particularly by the hometown fans, to stay on course and complete the journey.

Expectations come in two forms: those that are thrust upon you by others, and those you put on yourself. The expectations you feel obligated to fulfill will invariably have a dramatic effect on your evaluation of self. Unrealistic expectations, prevalent amongst players and fans alike, can and often do cause undue pain and suffering. Witness the example of my former teammate, Darryl Strawberry, who was once anointed the next Ted Williams.

In the postseason, starting pitchers are expected to get to the set-up men; aces are expected to at least get to the closers. Table setters are expected to get on base; power hitters are expected to drive home runs. Managers are expected to make decisions that generate rallies offensively, and squash them defensively. Unfortunately, there is only one World Series Champion crowned each year. Hence, only one organization with its 25 players and fan base realizes its expectations.

Although there are similarities with investing, notable differences are evident. Legendary Green Bay Packers coach Vince Lombardi once said, "Winning isn't everything, it's the only thing!"

I can certainly relate to that as a ballplayer, as most people do not remember who came in second. However, "coming in second" as an investor may represent the difference between a $75,000 profit and a $100,000 profit. Unequivocally, we all want to be the guy who realizes the $100,000 profit, but I don't know many that would abandon the $75,000 profit. Remember, it's about making money!

In the event that we do not fulfill our expectations, we would be wise to pay attention to the words of Confucius: "The expectations of life depend upon diligence; the mechanic that would perfect his work must first sharpen his tools."

Life is a journey. Enjoy the ride!

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