How long until Dewey, Cheatum & How start subscribing for clients for a Class Action Suit. After all - In a sharp reversal from just a few days ago when Kinder Morgan (KMI) said it would generate sufficient “distributable cash flow” to fund dividend growth of 6%-10% in 2016, the executive team opted to cut its dividend December 8 by ~75% etc.
Could be. The AH market is a real place for fools to get shafted.
Argus slashed its price target for the company from $50 to $35 and while it maintained its buy rating, it expects Kinder Morgan's business environment to be much more challenging than originally expected.
The genius' at ML are the reason (bah humbug) that I bought in the in first place. Nothing but down ever since.
Kinder Morgan, Inc. (KMI)
Our $42 per share PO is based on a 5.25% target dividend rate on our annualized 4Q16E
dividend of $2.16 per share. We are comfortable with a lower target yield as KMI has
relatively muted commodity exposure and equity funding needs. It also does not have an
IDR burden after the 2014 Kinder consolidation. M&A provide upside to our
estimates.Downside risks include unfavorable capital markets which could hinder KMI's
ability to execute through its capex program, higher than expected cash tax incidence at
KMI and a decline in crude oil production and/or pricing at KMI's CO2 segment