From Forbes: "And finally, there are the Kinder Morgan triplets, Kinder Morgan, Inc. (KMI) and Kinder Morgan Management (KMR) and Kinder Morgan Partners (KMP), which fell 6%, 4.7% and 3%, respectively today. The reason for the drop: a press release from Hedgeye Risk Management, which called Kinder Morgan “a house of cards,” and said to expect a report on Sept. 10, explaining why. Deutsche Bank came out with its own note today defending Kinder Morgan, but the damage was done. Considering that Hedgeye’s Kevin Kaiser (and our own Andrew Bary) got Linn Energy (LINE) right, you can see why."
Why wouldn't the Hedgeye analyst just come out with their reasoning today to back up their #$%$ertions? Hmmm, let's think... would it be simply to create selling pressure when there's nothing of significance to back it up? And, would they just come out with some lame #$%$ reason on Sept 10 which would create a big spike back in KMP? So, they shorted last week, came out with this BS news today and before Sept 10, they plan to cover - of course making a tidy profit without any real fundamental reasoning. SEC should clamp down on this kind of thing. It burns regular investors. Never the less, I did buy some short term protective puts just to cover my behind in the next couple weeks.
This is very simple pull up a copy of the Hedgeeye LINE report and insert Kinder-Morgan every where Linn Is mentioned . LINE does not have General Partners and were in a quite period due to pending merger and could not mount a defense . The SEC asking LINE for information and is not settled at this time. It's pretty easy for a weasel who knows some finance jargon to spread doubt with many retail investors. Hedgeeye as alluded to any dividend stocks to be Ponzi schemes. Hedgeeye can be expected to apply this template to one dividend stock after another. Ray Charles could see it coming.