Suddenly I'm concerned about the short term price the long term future for the warrants.
KMI announces OWNING, LEASING, ACQUIRING natural resource lands.
Read those verbs again, they sound like more dollars are needed and like more debt will build up.
From my experience with real estate you need deep pockets to OWN and ACQUIRE land.
(Projects where the deal is done by acquiring then instantly leasing are fine)
I have said all along that I'll hold the warrants for 3 more years putting them at year 4 of 5.
UNLESS: there is a significant impact (shot across the bow) on the business plan.
Folks, here's where your advice and analysis is truly appreciated.
My ratio f warrants to stock ownership is 10-1.
Whoops, I misread the news story. It's not about land real estate. It is about mineral and natural resource rights to land. Feeling much better. Hey I had open heart 4bypass surgery just last week. GLTA
Actually, still a concern:
1) This sounds like commodity speculation. Pipelines are nice in that the revenue does not rise/fall with the price of gas/oil. Higher risk on commodity price fluctuations could push up company's borrowing cost if positions become material.
2) Generally be wary when a company spreads into areas outside its original expertise. No manager, no matter how good can keep full focus across too many markets. If company can not keep growing in its main area of expertise, it may be getting too big. This company has had a great run, but all good runs eventually end.