Canada is not the place to drill at this time of year. Go look at rig counts from past years. Shorts are trying everything they can to push the stocks further .... don't you think most of it is priced in at this point?
Several months of sub $50 oil is one thing a dip is another. Sub $45 oil for any length of time would almost certainly break up OPEC as we know it. Are you sure that Saudi wants that when their supplies are now further away from the biggest markets? I don't think so. They need to be indispensable in the world and this is the only way they can be. If they weren't, who would be willing to protect them from the inevitable attacks on their way of life that are most certainly on the way in the form of ISIS and the like.
This is about discipline inside OPEC, punishing Russia for the Syrian mess and dampening production growth here. They know that all of those goals may achieve short term gains but that they will nevertheless continue.
Worried about a 10% pullback? In this environment? As for buying puts ... go ahead. Just know that one announcement from some fat cat or another taking a piece of KMI and you're at zero. This isn't a stock to play on the short side IMO.
MJXM is right. Sell. Go buy cd. You are plain ridiculous.
Disappointed shorts are my favorite kind. I think that is what we have here. There isn't anything real to bash with so you invent something and whine.
On the distillate export news .... it isn't new and and it isn't a big deal.
You see this as significant?
I'm long jan 16 calls but my objective is to convert the profits into common and hold them long term. Why would you not sell into strength and then buy any weakness with a portion of what you hold? Assuming that KMI has a good future (and I believe it does) a long position with reinvested dvds is a much better strategy. Your strategy is great for no dvd growth stocks.
The market is fully priced but there are positive drivers (in reduced energy prices) that change the cost structure of all consumers and enterprises. The world is also a mess and foreign money will continue to seek safe haven in our markets and economy.
Get a little protection .... sure ... but to liquidate seems silly to me .... you pay taxes on your gains and then hope to get in low enough to make up for it. I can't play that game. I always lose out.
That's my expectation. They'll bid it up to a yield of 3.8 or so which would put us about there. I think growth will be better than they project because of what could be bought cheap right now. We'll know better by 2018 or 19. Could be a sweet and profitable story.
The earlier responses are right. If we saw 50 cents next time around it would suggest more than $2 next year. Doubt that as there are better uses for the cash right now.
Okay, so when did distribution yield not qualify as a justifiable metric? Their coverage ratio suggests that they can afford it. If distribution yield were not relevant, how would one price bonds.
You sound like a disappointed short that is complaining that someone's bearish scenario didn't come to pass ...... shucks. Did you read their analysis? Disappointed shorts are my favorite kind.
Tax structure, financing profiles, metrics, ratios are all very nice things. We ultimately are talking about businesses and no two are alike.
Reach your conclusions and and apply your capital accordingly. We are clearly on opposite sides where KMI is concerned and from what I can see it is probably a profitable enterprise to take the other side of your trades.
Responding to stupidity is not a passtime I prefer so I will no longer do so.
I read them too. Yes, if the sky falls we will all be in trouble. Really? This is not a good short candidate. You will get severely burned.