Rich Kinder has always made me money and is not self-serving. He does his best by all of us. I voted yes on everything. I promise you, he would not do this if he didn't think it was the right thing to do.
Your tone is disrespectful to a man that deserves better. I wish there were more like him to put my money behind.
Your tax bill ..... that is a high class problem.
Please sell every share you have as soon as you can. I don't think someone like you should be in a stock like this given your feelings about Rich Kinder. Go buy a nice CD at your bank and get some rest. This is obviously too much for you.
Another good move! At 70 he can't have the same energy as in the past. Handing off day to day management is smart. Now he can focus himself of what I believe was the purpose of the consolidation: Taking km to the next level. I would not be shocked in the least to see him gobble up production and refining along with the pipelines.
I'll be along for the ride ....
Yes he was a biggie at Enron and Ken Lay selected Skilling and not him. Perhaps he wouldn't go along with his shenanigans. RK has always been straight with shareholders and most of us trust him and will stick to him. Please sell as soon as possible and take your whining and lying elsewhere.
I'm not sure if its a big deal given the size of KM. However it is just one more bolt-on project to feed the cf. I am sure this will be only the beginning of the gas export business and I am sure other refined product will be exported in larger quantities (condensate has been mentioned lately). KMI is well positioned to move any and all of these products all the way through the production chain. This is before you consider all the other opportunities around north America .... there are many areas that could benefit from access to NatGas, especially in the north east. Despite the opposition, it will eventually happen...
There is much that could explain all of this. The consolidation brought about all sorts of option activity and there are all sorts of funds, indexes and ETF's that will need to buy or sell shares based on the new structure and market cap. There are also those that still see this as a yield play while others who bought this in the mid 30's for a trade will be taking profits given the short term upheaval in the energy markets.
As soon as things settle down and the $2 yield next year becomes the focus we will likely settle down in the mid 40's. I've been in it and will remain.
KMI ... all North American ... no direct exposure to world political or currency issues and not highly leveraged to the commodity right in the middle of the most dynamic new oil and gas 'find' in decades and right in the middle of the world's largest market.
Okay .... Go with BP ... I'll stay home ...
It doesn't matter what they put in there. The only thing that will matter is what happens going forward. It will be a bit of instrument flying until then but if you were familiar with the parts then you have some idea of the assets and cash flows. Not much changes in most of the business. They put something in one end and take it out or redirect it on the other end. This goes on 24 hours a day for years, decades with very rare interruptions.
Relax, KMI is well positioned, has excellent management and has access to plenty of money. Before this current period of weak prices is over they will be munching away at assets that help the network. They will likely be able to refinance debt at lower rates and the stability of their cf and their dvd will make it the darling of the income crowd before too long. If oil stabilizes I would expect that KMI will settle down somewhere in the $45 to $48 range by this time next year and if it catches fire they could bit it up to a yield of 3.7 or 3.8 % which would take it into the low $50's. It would up from there if any real growth became evident ..... condensate exports ... LNG ...... gas to Mexico and south etc. ...... there are plenty of possibilities.
Rich Kinder would not have done this and would not have been so deliberate about it if he didn't see a massive opportunity. He has clearly 'sold' his vision to his management team and big investors. He has always made me money and has always been straight forward and forthright with his investors. So, I am comfortable putting a big chunk of my $ behind this.
Metrics are good but aren't everything. Relax .... this is a good one that you can hold for at least the next few years and perhaps much, much longer.
Yes, I see it. It's called ammunition. You know my views on KMI and why RK went down this road. He intends to grow KMI and will use this shelf stock as currency. He is cunning and experienced and has before him a smorgasbord of tastiness to snack on. Sit tight, enjoy the ride. He won't buy what won't strengthen and the distribution system. Perhaps NG properties to feed LNG .... who knows. His $ is right in there with ours. This is nothing to be alarmed about in fact it fits perfectly into what I have been saying all along.
KMI is consolidating. Longs aren't going to get shaken out over this. Most of us have cost bases in the teens and 20's. The shorts do fine catching a few bucks here and there. I would not be doing that with KMI. There are many excellent targets for such activities out there with $10 on the down side. Nevertheless the shorts bang away relentlessly .... and yes, it gets boring.
The truth is that much of the energy sector is down massively while KMI is solidly above the levels it was trading at only 9 months ago. The fat cats were selling everything energy but not KMI.
Don't go anywhere. Leave your shares there. You won't be asking these questions in 2 or 3 years.
It is just plain pathetic that you would think that RK doesn't know what he is buying. I guess that short of yours must me costing you sleep.
Things change but change more slowly for KMI. The truth is that even long term contracts get modified when not doing so is worse. There is too much change to get caught up in the minutia of specific projects. LNG is huge and great but pricing is uncertain as Russia can get into the game as well ... these are commodities and the associated services can become so as well.
KMI is a good bet 3, 5 years ahead. In the interim earnings may lag, dvd growth may lag .... if they do it will mean that their acquisition strategy will be cheaper and the money will come later. RK is not shy about paying when the $ is there. I'll hang around for that day and let him do his thing. For a dude with his background and the foundation of KMI and it's access to financing and capital this environment is perfect and he will take advantage on our behalf. If your entry point / cost basis is safe then leave it alone and worry about other things.
This is a winner!
If you buy it here your yield next year is north of 5% and they seem to be confident that the payout will grow at 10%. So, if interest rates remain calm this price should be secure. If they show any real growth or margin improvement that will be gravy.
In other words this is a Utility or a bond with an option attached.
Buy a little extra and if for some reason the stock runs up you can average down that way. It will become the 3rd largest energy company with arguably the most reliable cash flow. If it becomes a darling of the income crowd we could see $45 in a hurry.
Rich Kinder would not have done this unless there were good reasons for it. The reasons have been described to us in detail. I am excited to see what KMI will become in years to come. I hope you are all voting for it. A non vote is the same as saying no and this is necessary.
Sentiment: Strong Buy
Your CPA! Okay, so what's his beef? I have a finance background and went through everything. If there's something incongruent, I promise you, I find it.
So, put up or shut up. My guess is that you don't even have a CPA and maybe not even a brokerage account.
There are a lot of companies/ management that deserve scrutiny and distrust. RK and KM is not one of them.
Sell and go somewhere else. Might I suggest CD's. They offer the kind of certainty you apparently need.
I would like to add to your excellent analysis:
KM is all North American and thus is largely insulated from much of the nonsense going on in the world. The revenues are also largely immune from currency shifts even with the export infrastructure. Given that at some point world currency markets will moderate and the US$ will likely moderate which should prove a tail wind.
KM is a core long term hold as far as I am concerned.
Why are you playing here if you're looking for short term swings? I could think of 25 better candidates for that sort of thing. Build a position by averaging down and sit tight and reinvest dividends for the next 3 or 4 years and you will make money. Play your game and you will eventually be out when you should be in and then you either chase or lose the trade. What's the point in that. There are others that are trading in defined 20% channels if you're looking to clip quarters.