All the doubters on this MB needs to get a graph of the USA that shows KMP pipelines. It is huge, now overlay EP pipelines. Now it is really huge. Whats not to like about this company and the future? From here on out, every time it drops .10 cents, I'm buying 250 more shares and if it gets to $81 I'm selling my house and going all in.
The extraordinary circumstance that caused the AGNC low (happened twice in 2011) was precipitated by a hedge fund (or other large institution) dropping more than a million shares on the market in a single market-order trade, using computer programmed trading. That sort of thing isn't extraordinary anymore; it's become a common occurrence --- one that makes it difficult for the average investor to cope with.
Can't say what cause the low in KMP, but it could be the same such thing ... could happen to any stock.
Agnc low 22.84 oct. 4 2011. Do I believe it will happen again? No. Do I want it to? Yes. I will make a lot of money on that event, just like I would make a lot of money on kmp if it hits 60, but it will take the same type of extraordinary circumstances or a massive firm specific problem. In cidently, I made more money on line and agnc calls during period of time on a one day trade. As I said, I believe your theory, just can't trade it till it happens. I see nothing that would create that pressure. On oct. 4, kmp fell to 65.
First, the events, like the ones I mentioned, are not once in lifetime events, both of them just occured not too long ago. Other things can happen to, wars, middle east instability, etc.
Factually, the last time that KMP hit $60 was awhile ago, if 2 1/2 years is short for you, okay, but I guess you could be waiting awhile.
However, as your hypothesis goes, every 2 1/2 years sometnhing happens to every stock and creates lower values, so AGNC might hit $20.
So, I will accept your theory, which is a hypothesis, about the repeat of something your observed historically and that something was a price of $60.
I won't trade to it, but I really was just curious what got you to $60. So, I have given you the full value of your statement, but I won't trade it that way.
Thanks Al as always, but I am just someone that has a very short time scale.
Sorry, the all-in price is $60. Better yet, when the KMP price gets to $60, buy as many 2014 JanKMP$80 Call option contracts as you can; you'll get 14x leverage compared to buying KMP shares. For every dollar that KMP shares rise, you'll get $14 per contract (each contract is for 100 shares, so that $1,400 profit for an $8K investment --- that's 17.5% gain vs. 1.7% on the stock).
1st qtr 2010 was the last time it touched 60. Things, like the earnings, dividend and business plan have kind of moved on since then. You would be projecting a price that is lower than the lowest analysts price. Did you figure that price out on your own or is there a secret source that you know of? Either way I would like to see your maths.
I didn't get to buy as many shares as I wanted last week (used all my cash), but was able to add some. I believe it is still a great buy below 85. If it is still here come Apr 1, I will continue to be froggy.
I don't think it will be go to $81, but we certainly have a downward trending slope.
When you consider the totality of all of this, who know what and when as it relates to the EP deal.
First, there was no detected short interest, nor an unusualy put position in KMP.
Second, everyone know about the EP deal.
Third, it is normal that the MLPs pull back, albeit KMP pulled back way more than normal.
Fourth, Cramer wanted out of the deal, saying he had taken enough chances or something to that effect.
I think he knew what was coming down from the FTC and that these assets were going to have to be sold.
I just think that all of the selling that was done before today and today are related to the fact that was well known by some insiders.
It doesn't matter, because it is one brilliant opportunity.
Take care and good luck, but don't bet your house here.
If you look at what was sold you won't see a big dent in profits to the bottom line of KMP. It shouldn't have much impact. I think everyone knew they were going to have to sell something, they just didn't know what, now they know what any it ain't a big deal.