At times like this, the only sure way to get perspective is to focus on the facts. Not the fear mongering by media, the forced sales by ETFs, or the bantering of so-called analysts. Here are some facts:
1 - KMI has confirmed they will have DCF of $5B in 2016 - yes that's $5 BILLION. This is enough to cover their projected dividends growth.
2 - KMI recently picked up, at fire-sale prices, from NPGL and CLR
3 - Moody's put the Company on a negative credit watch
4 - KMI has stated they will review their dividend policy to avoid a credit downgrade
5 - Insiders have been recently buying KMI shares
6 - MLPs are under pressure because of the "rising rates environment"
7 - Rich Kinder is the most astute energy investor of the past 30 years - he side-stepped Enron, devised MLP structure and has consistently made profits and distributions for investors
8 - AMZN is not a competitor to KMI!!!!
The point is, look at the real facts and ask yourselves this: Is KMI a good value now compared with 6 months ago? And would it be higher in 12 months compared to S&P 500? I say YES and YES.
Yes he did. He loved the stock at around $40. Cramer is consistently pushing and praising stocks at 52 week highs and then hates them after they've fallen to 52 week lows. KMI is no exception. He'll wait until the stock shoots back up to $35 or more before "liking it". Just watch.
You mean a company which burns thru $2B a year and with a stock price doubling in a week on some pie-in-the-sky ITC news will actually sell off?
When and who is going to call out Cramer for his irresponsible rantings on TV? He shouldn't give advice! Please let me know the last time he said anything of value. ETP is yet another example of his antics. He has said time and time again that ETP is the only MLP he endorses! Yet no one calls him out that it's also the weakest one in this current indiscriminate sell off!
Also $80B of assets, $5+ Billion of cash flows next year, enough to meet cash flow needs and still the largest pipeline infrastructure in the US.
Hang in there. This Company is not in distress. It is just caught in a storm of sentiment. Make sure you are not in margin and you'll be OK. I am adding to my shares every 30 days at a clip of $5K per month. So if it stays down here, I will pick up more shares per $5K and will be happy.
President just signed it minutes ago. This would be extremely bullish for oil pipelines. Perhaps explains why EPD and MMP are up on such a horrible day. But they should be up a lot more! I guess we have to wait until the radars are turned on by the analysts and then ETF redemptions stop.
Agree. He simply manipulated the market on a day that MNK had marginal bad news. He tweeted a message designed to #$%$ the market and I'm sure personally benefited from the huge intra-day drop, at the cost of some of us long holders. His message included "...more to come". However, today he revealed NOTHING new. So how can he get away with his "Fire in the theatre" tweet then not be able to back it up? Hello, SEC? Anyone home?
Unfortunately Tim missed school on the day they taught charisma, but nevertheless, good info - most importantly he said they do not need any additional acquisitions to hit their lofty targets.
If so, then definitely a buy now. Cramer is a precise contrarian to stock movements. Don't forget, he was yelling buy buy buy when KMI was above $40.
How is this legal. And if not legal, is CNBC collaborating with Citron by broadcasting his messages??
Those guys are momentum traders with zero clue on fundamentals or investing thesis longer than 5 minutes. They just push anything that's shooting up or poo poo anything going down. Like Cramer. CNBC quality is poor with regards to real investment advice. Just do your own DD and you'll see SUNE is not filing BK although it's trading like it just did!!
Einhorn still kept 75% of shares! Unless this is a BK story (which isn't likely at this point), it's a good risk/reward long holding here.
So Dicker was wrong to say the bottom was at $20. Why should anyone think he is right now? And as for Cramer, his ranting about KMI being a disaster is exactly the advice a so-called expert in his position should have pounded out 3 or 4 months ago when KMI was acting horribly technically NOT NOW after it's already fallen to 30% of it's value of 6 months ago, and after they've addressed the current and future cash flow issues. So here's what I say: Cramer is a disaster!!!
The midstream sector has sold off sharply, and continued volatility in oil prices and rising interest rates could provide headwinds this year. That said, analyst Peggy Connerty notes that Enterprise Products Partners is a top pick in this sector, and we expect it to outperform its midstream peers. She writes:
"Enterprise Products Partners is one of the premier pipeline partnerships in the master limited partnership sector, with best-in-class assets that are positioned to monetize every link of the midstream value chain. While negative natural gas liquids fundamentals affect the partnership's commodity-sensitive gas processing and NGL marketing, overall the natural gas and NGL supply build has been a boon for Enterprise's fee-based businesses. EPD is poised over the long term to take advantage of the low-cost domestic NGL growth by aggregating natural gas supply and funneling it through its fully integrated gathering, transportation, processing, and fractionation systems and then transporting these products to domestic end user markets or exporting the products to international markets."
Are these your best reasons to short HZNP?! Boy you need to re-visit your investment thesis. What does oil prices or interest rates have to do with HZNP's drug consumption? Or their strategy to smartly buy additional companies to expand their drug portfolio? And, B Sanders? You really think he has a chance? Much more on point are the following:
1 - HZNP handily beat last 3 earnings targets
2 - They just raised top and bottom lines for 2016
3 - CEO said they do not need to buy any further companies to meet or exceed their growth projections - not to deduce that they won't purchase, just that they don't have to. If they do purchase, that's icing on the cake.
4 - HZNP has been held back due to some tweet from Hillary and silly practices from Turing Pharma and VRX. HZNP is no Turing Pharma and no VRX.
5 - The huge market-wide selloff, the worst first 2 weeks of January ever, has brought down all ships with the tide. This selloff will reverse and once it does, HZNP will be on top of the list of many professionals, insiders and funds.
Since EPD has long-term contracts with cash flowing at 130% of distribution rate, barring an outright fraud by EPD, they will be fine.