I feel this is still a buy. Held mid $70's like a champ and i feel the analysts are using a div discount model on this puppy.I think Kinder said 5% increases for next 5 years @ KMP and $4.98 in divvys this yearso (1.05)(4.98)= $5.23 (next years expected div). and if we want an 11% returnthen (5.23)/(.11-.05) = $87.16 share and Spot price = $81.64which suggests its trading at almost a 7% discount to fair value. Thoughts?
Wow i was way off!!!