I agree wiz. Given the sector issues KMI would be a natural target as it has performed well. I look forward to rebuttals. Perhaps RK will have something to say on the subject.
I keep thinking that this is somehow associated with someone wanting to buy the whole thing.
Indeed, $62 billion wouldn't cover the price of creating the rights of way if you look at recent experience. Their perspective is sobering but I view KMI more as a utility with a growth component. If you believe that low oil prices will persist for long enough to reduce US production to 2 or 3 million barrels a day and that nat gas will not continue to grow as a primary fuel source in this country then KMI will likely see their backlog evaporate and their cash flows collapse. I happen to believe that this will not happen even if world supply remains ahead of demand in the next few years. Energy has a strategic component to it and I am sure Congress, with all the $ they extract from the industry will become protective. Beyond that, KMI's strength is in their size: There are many assets out there will become uneconomic as independent entities that would be better utilized as part of a larger system. At current prices none of the OPEC members are happy and several are experiencing unsustainable budgetary stresses. This is politically unsustainable for Saudi, who need friends in the world at this time. The royals are somewhat in a corner. There is considerable internal dissatisfaction and committed forces on their borders that are bent on their destruction as their territory is deemed central to the 'islamic state'.
Time will tell.
'5 figure profits' ... what a joke. No one doing that has enough time to spew the endless babble that you do.
To profile you: Late 20's to 30's. Live in mom's basement. Spend 20 hours a day playing video games and annoying people on line.
We all know what you're all about. We do things differently. The share price matters only when you buy and when you sell. In the mean time I am paid handsomely to sit tight.
There is no point responding or discussing your petty little irrelevancies. Short sighted, myopic people can sometimes be right in the short term, just as a stopped clock is routinely right twice every day.
Wiz and Garce are correct. KMI has more sensitivity to interest rates that commodity prices. Nevertheless it is necessary to look at all this in perspective:
It is extremely unlikely that interest rates will get much above 3% in the next 5 years. Indeed this will increase the hurdle rate on new projects which will likely change the mix of where they put their capital. We have seen this already as some items in the backlog are shelved while others are enhanced. The same will be true of acquisitions. Nevertheless, RK and his team have proved themselves to be very disciplined and that discipline will get us through this period. Fuels are a critical industry and if anyone thinks that pipelines and the necessary infrastructure are about to go out of business then they need to explain it to me.
Dollar strength looks to be entrenched for the foreseeable future. This alone will moderate the Fed as higher interest rates in this country with the environment we have in the world will drive the dollar to levels that would destroy our export sector and would certainly risk pushing us into recession.
Notwithstanding the talk, I still believe that it is unlikely that the Fed will act this year. Europe and IMF have made their concerns clear and I am sure that the Chair Yellen will listen. Their recovery and the need to straighten out the issues of Greece and southern Europe is as necessary for us as for them as the two economies are so tightly intertwined.
We have discussed this many times: As long as the dividend looks safe, the down side is limited. I am not going anywhere and will reinvest dividends. Let them grab their short term pennies long or short .... the only time that the price matters is when you buy and when you sell.
If we stick with RK and his team will all eventually make money. Don't get shaken out by BS!
I see the shorts are nervous again ......
There has been much frothing at the mouth around here.
You 'sell' almost weekly and report it as if you've held the stock for ages. You're a shorty, lier, creep and everyone on this board knows it.
YES, the great doggie! Who would clearly turn down a top 10 model because she had a zit on her cheek. The great magnifier of irrelevancies.
Our very own Don Quixote!
So absolutely certain or his own BS that I am sure he believes that Goldman would benefit greatly from his wisdom and insight.
You are a star play on this board and have convinced many of their folly.
HEIL THE GREAT DOGGIE!!!!!
Again you misconstrue what I said. Indeed, I am starting to question your analytical and interpretive abilities.
You spew garbage all over the place. You have no self respect at all. All you deserve is pity.
GS put out a report on high short position stocks. It was not their positions they were reporting. I told you this before but apparently such nuance doesn't suit your purposes. Your small minded crooked and deceptive analysis doesn't fool anyone that has been on this board very long.
This is a bear attack, plain and simple. If you're a short termer then you will feel insecure but those that know this company and management will sit tight and let our dividends buy more stock.
When the smoke clears longs will be rewarded .... unless you think that the transportation of liquid fuels will no longer be necessary.
When the hedge funds that propped up energy related companies get bored, RK will be buying us those assets at a discount. We know that he has always stood behind small shareholders as his interests are directly aligned with ours.
Run, baby, run. Go buy tesla or something like that. My overweight position will become more overweight long before $33. And I will continue to reinvest those dividends ...
Come take another look in 3 or 4 years .....
He's chasing high flyers in the tech and biotech space. KMI is essentially a utility and will be impacted by higher rates but not in any material way until they become a good deal higher than they're likely to be in the next 3 or 4 years.
Run if you like. I'll stick around for the dividend and wait.
America is not going anywhere and neither is our need for fuel. Markets will resolve themselves because the status quo will not be suitable for most large non-North American producers over the long term. They need more money to support their unproductive societies.
Yes, there is all sorts of wiz-bang stuff out there. Much of it looks more like 1999 than anyone would care to admit. I will buy into them, IBB perhaps a small group of others but not until the shake out .... its coming, everything will get hit. KMI will be just fine and will continue to pay us to wait.
See ya. I big drop would suit me fine. I have plenty of dry powder as I have been selling other stocks into recent strength. The market as a whole is nervous and for many good reasons. I am waiting for the short sighted and over leveraged to panic again ..... and then I will eat.
America is not going anywhere.
I agree unless for some reason we have a reason to question growth prospects. Cost of capital looks to be stable for at least another year so as long as revenues aren't impaired by something we should be okay.
I think today is just jitters over tomorrow's meeting and the jobs report.
Time will tell.
Doggie: Wiz is telling us about a REPORT. It is just a dissemination of information and has nothing to do with their OPINION, which is positive about KMI.
I know these nuances are a little tough for you to grasp and swallow but it is the truth.