Please have 2K shares, not concerned when I can buy more than 31 plus shares every three months, but we must have broken through some key support!
KMP has been under liquidation pressure since late April.--I do not know why this is so, but "price is the best indicator".---I note that this is also true of several other large pipeline operators. I recently bot a very small position In KMP and sold at a loss today..---I failed to follow my basic rules and tried to "catch a falling knife". I paid the price for this foolish act.--- Todays volume is already far above the daily average.-- As I said, I do not KNOW the reasons for todays sharp decline BUT I suggest the onset of the decline seemed to coincide with the expectation and then actual "fast" rise in the interest rate for the 10yyr note.---This could have significant consequences for all pipeline operators because all of them carry huge debt loads much (if not all) of which are based on the going prime or Libor rate plus points.--Thus the rates are probably variable and would rise with inflation--Obviously this would impact their ability to increase if not maintain the distribution. Of course this is just speculation but I suspect some large holders are taking no chances.
I note that almost ALL pipeline operators (including EPD) are down though KMP is extreme.-It really is a "sea of red". -It appears that resource providers, though down somewhat, have been impacted less than pipelines.. I have re-examined my charts and I can say that the top for KMP coincides perfectly with the onset of the rise in the rates for the 10yr Treasury Note (the end of April '13).--The decline was interrupted by a couple of weak rallies but the decline then resumed. The further rates rose, the further KMP declined. -- Accordingly if rates continue to rise (and I believe they will) I would be hesitant to hold any pipeline stocks.
I think a large institution put in a huge sell order in the beginning of trading because volume has been HUGE this morning! Doesn't really make sense since this stock pays over a 6% dividend. Where else will you earn 6% guaranteed today?
Sentiment: Strong Buy
Cramer pushed this stock up and now some of his insider hedge fund friends went short. Now we see the manipulation! This stock will be fine closer to distribution. Next few weeks will be bumpy. always is when the funds manipulate and try and shake longs out of their shares. Who wouldn't want KMP cheaper with a higher payout?
Well my best guess is that the high volume is in KMI and that is off the most. So someone who owns KMI is selling and the other shares KMP & KMR are following the KMI sell off. KMI volume is already over 8 mil. shares which is double the avg. 3 mon. vol. and the day still has several more hours of trading.
Yes, Kevin Kaiser ( Hockey Boy ) at Hedgeye said this morning that short KMP and KMI are his best new idea. The guy is insane, he is the same guy that trashed LINE. Notice LINE is higher today now that everyone has confirmation that Kevin is Crazy!!
Actually, it was Keith McCullough at Hedgeye who led the raid on Linn, back in April. And LINE is still down 35% since then. That being said, however, Kinder-Morgan is a very different kind of company, so Hedgeye's history with Linn may not be relevant, in this case.
Thanks for the information as I did not see the news. Kaiser may be insane but he helped bring Line down from high 30's to mid 20's and instigate a fed investigation. Can you copy the article for us I'd like to see why he's shorting KMP?
It looks like the decline is specific to Kinder Morgan. Bonds aren't dropping and other dividend paying entities are not dropping. Perhaps there is a reduction in distributions coming or perhaps there has been some sort of pipeline accident that will cost the company. Another possibility is that a large mutual fund or large individual holder has decided to dump it. The people that have the inside information are clearly dumping it today.