Wrong (as KMI longs typically are); I close out my short today - for a HUGE gain. I'm still an interested follower of the stock, but after riding this house of cards down from over 40 to under 20, I felt that it was time to officially enjoy the fruits of my analysis. The risk/reward is not as compelling as it used to be, but if KMI can sucker enough new money into bringing the price back up over 20, I may consider a new short.
KMI is off more than 55% since I started this subject. Richard Kinder continues to act like an irresponsible lunatic. Anything less than a 100% cut to the dividend will result in further pain to shareholders. The company is too distressed to distribute so much cash.
Eventually, Richard Kinder might see prison time. After all, these huge dividends were issued as way for him to essentially steal money from the company. It doesn't matter if his 200+ million shares become worthless, because he'll have escaped with hundreds of millions of dollars in quarterly payouts. Quite a nice little moral hazard scheme he arranged for himself.
Too bad Cramer and all of you couldn't identify this scheme, and join me on the right side of the trade.