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Kinder Morgan, Inc. Message Board

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  • enronbuddy enronbuddy May 10, 2012 1:36 PM Flag

    Forward P/E - still a bit too high!!

    But… But…But…. Rich has made me a lot of money. Just look at the 10 year returns? True… I will grant that Rich Kinder is really good at one thing…and it’s not running pipelines. Nobody, not even Ken Lay or Bernie Madoff has been more successful at finding idiots to spend billions of dollars on what appears to be worthless and unprofitable securities. Again…yes, I am talking about you…. Anybody who owns this stock clearly lacks the ability to read a financial statement, or even do elementary school level math. Don’t be too ashamed….very few can do both.
    I have no doubt that this insanity can continue for at least a few more years, but it will collapse in the end (when is Rich retiring??). Shares outstanding and debt continue an upward trajectory, and yet profits are elusive. Simply put, there is no mathematical reason for KMP to exist. You have no rights, protections, or recourse against the GP’s blatant conflicts of interest, and only half of the cash flow from assets, even though you pay 98% of the cost…. All nicely divulged in the annual report you have never bothered to read. You couldn’t stop these dropdowns from happening even if you wanted to any more than you could have stopped the construction of REX, or any of the other terrible investments your beloved GP has made on your behalf. He could force you to buy the same pipeline for $150…$200…$1000…. regardless of its value (maybe $40). Some day…when the market runs out of morons willing to soak up the $billions of new shares issued each year to keep this crap box afloat, it will sink like a rock. Then….. Rich’s buddies at the bank….you know the ones who you owe $16.7 Billion as of 1Q2012…. (and billions more as you overpay for dropdowns over the coming years) Those guys will be the new owners of your unprofitable pipelines. Fortunately for them you put up 50% equity….they might not even lose a dime. Wanna guess who they will hire to run them? Probably the same guy who helped them rack up billions in fees skimming profits off gullible and powerless MLP owners. KMP/KMR owners…welcome to MATH…it’s a kinda great invention!!

20.86-0.36(-1.70%)4:02 PMEDT