I just watched the presentation on the Hedge Eye report with Kevin Kaiser. A used car salesman is what the reporter and Mr. Kaiser looked like. I don’t get it…maybe I’m dense, but what is the REAL problem with KMP replacing pipes with larger pipes and capitalizing it? What is the big deal with KMP actually replacing the pipes needing to be maintained, rather than just maintaining older pipes?
I think that’s a positive, and isn’t that the company’s choice? Am I in the dark on this one? GLTA.
In one of the recent KMP write-ups someone mentioned that the maintenance issues have already been raised in the past. This sounds like a young analyst who got some attention with LINE and wants to keep the momentum going by reciting previously raised issues as if it's his own original idea. You see this with Chinese stocks a lot. Everybody knows that 90% of Chinese companies listed on US exchanges are fraudulent to some degree, yet you will have young analysts young generic reports about staying out of China, as if nobody knew about the dangers. People invest in KMP for the dividend. As long as they can maintain the dividend it shouldn't collapse. If they continue growing the dividend then the pps should increase. 6-7% dividend is the norm for KMP.