Doggy: You clearly have no clue about the middle east and the assorted interrelationships. What you suggest proves that.
The Russian economy which is in recession at the moment and all their commodity businesses are in the toilet. Don't you think oil would already be at $80 if Vlad controlled it? His only impact would be to stop pumping all together or somehow inhibit Saudi from producing.
I think what we will discover is that Saudi is reducing supply on the DL. The payback to them of raising the prices into the $50's from the $30's is well worth a 10 - 15% production cut. They know there is more supply on it's way .... everyone needs money and if oil is allowed to fall too far their budget would be shot and limit their ability to do what is necessary to keep prices up.
When you allow the market to shake you out sometimes you need to justify that. It is true that we have been through a perfect storm but given that the transportation of these products is necessary and that pipelines are the cheapest and safest way to do that, cash flows are likely to continue. Plus we have one of the best in the business running it for nothing with his money in the same basket as all of us.
I haven't been reading or writing much on this board lately. There was just too much bull to wade through along with people with personality disorders getting attention because no one else in their lives will give it to them.
What a stupid statement to make .... if a company can employ capital (regardless of it's source) at a rate higher than it's cost then it should take it.
Internally funding growth limits growth to free cash flow .... stupid.
You are exactly right. Look how winners like Apple sold off. There's deleveraging and cash raising going on. More than that it the ETF tail wagging the market. I am always a buyer when this is going on.
Not sure it is completely over ... the next 3 weeks may offer a 2011 type opportunity.
The BS got old. Today was the first time I had read anything here for months ... and it may be months before I do so again. :)
Quite a change of heart, Wiz. I hedged a little and sold a little but have bought more. The thing you are missing is that this is necessary infrastructure and will have high capacity utilization throughout most of the system regardless of the circumstances. Yes, we have had a perfect storm and perhaps the expected dvd growth with not materialize and the current yield could conceivably get cut, nevertheless RK and KMI are a known entity to all of us, it has no foreign exposure and is not directly subject to much in the way of currency fluctuations. It also has several large projects in the works and transports 1/3 of the natgas in the country. So, whatever happens, happens. I will continue to own it and trade around my position in order to get my average cost down. KMI income is more sensitive to interest rates than it is to commodity prices. The Fed will likely raise rates some time in the next 6 month but there is nothing to suggest that rates will go up by very much at all in the next 3 years at least. Indeed the rest of the world are still cutting and if we push our up too high the US$ will strengthen further and clobber our exporters.
So, be negative if you choose to be but try to maintain some perspective.
Sentiment: Strong Buy
There are a lot of people with a lot more $ and knowledge than you that are buying. Perhaps your horizon is weeks ... smart money invest for years and decades.
You seem to like throwing the 'moron' word around. If you want to see one ... look in the mirror..
What he meant was that everyone else should stop using fossil fuels. We are 5% of the world's population and use north of 20% of the fossil fuels consumed.
Hypocrites always have the biggest mouths.
What you say is all correct. The world is awash in oil and the potential for over supply is almost guaranteed for the forseeable future. In terms of out local (N. American) market two things are true: Local NG will remain the lowest cost energy available to us and we will still be needing other fuels to be transported across the country.
Thus the outlook for producers looks difficult but there will always be a need for transportation, regardless of the source and that is the business that KMI is in.
We can't squeeze them alone and the sanctions regime was leaking and would have fallen apart quickly if we were perceived to be overstepping.
Iran is an indépendant country and we don't run the world.
Criticism and more criticism but no solutions offered. In case you don't remember when Mr.O came into office the country was at the point of collapse. By any measure you like we are all better off than we were. This has all been achieved swimming upstream against an opposition that preferred that we take a path more like what Europe took ... and look who is ahead ... by miles.
So where are your solutions or alternatives? We have all heard how unhappy you are but you haven't suggested a better path or any alternative path at all. This tells me that you are clueless and that this is all because you are either a dogmatic right winger or a bigot. I'm not sure which but I'm not sure that it really matters.
More than 3 decades without engagement and no more than a year away from a operational nuclear device.
That was the starting point that Mr. Obama had.
By any measure this is progress.
All achieved with a Congress that cares more about the party than the country and did their level best to sabotage the talks.
The ONLY other options are military and our military is exhausted and depleted.
You guys continue to criticize but offer no alternatives because you have none ... or at least none that have any operational merit.
Well, so what do you suggest? If you want to criticize then I would assume you know a better way to handle it. Remember .... the sanctions are starting to leak. If we can't convince the world to respect them then we will lose even more leverage in this situation.
We play the hand we are dealt.
So what is it you suggest? They can put one together in no time at all. So, should we invade them? Nuke them? Is that your suggestion?
We're talking and every day that we talk is one less day that they spend working on it. Things are suspended now and at least some monitoring is possible.
Criticize if you like but at least have the intellectual honesty to suggest a viable alternative.