Good news for me as I want to buy more. I believe with all the fearful fiscal cliff selling from now until January 31 will drive the entire market down. If we go into recession, some have suggested drop in stock market prices of as much as 30%. If KMR follows market, you could buy as low as $50 sometime in next 6 months. I do not know if it will go that low, but I definitely think $60-$65 are likely. I said I would not buy more until drops under $73 and already fell below that.
Add to the mix that demand at many of the KM switching terminals is in decline as well as railroads (CSX) seeing less volumes and just about every man TOP LINE earnings misses....not to mention fiscal cliff plus any ongoing tax reform/issues MLP distributions might run into....cap gains going up...why on earth would any equity position be up? Investors are pulling what capital they have out and stashing it in tax advantaged investments until there's some clarity. Caps gains, better lock them in while you KNOW what they're going to be.
Not correct. We get the DCF and KMI get the IDR payments. If the income was equal to the distribution then KMP unitholders would be screaming foul. Those that hold in IRAs would be paying UBTI tax and everyone else would lose their tax deferral. MLPs are rated on DCF not $$ profit per share.