Hey Phil: Looks like KMI finally took off and is trading in sync with EPD and AMLP. Glad to see it!! I think the worst is over, especially if the stock can push above $30 over the next week.
What a joke for a post!! Can't you bring something new to the table?? LOL
1) The CFO has already stated there will be negative coverage in Q3.
2) However, coverage is expected to be $400+ million for the year.
3) Q4 and Q1 are the strongest quarters.
4) GAAP is irrelevant. Dividend yield is everything.
5) With the 10-year Treasury below 2% again, look for dividend stocks to cop a bid in the near term.
If you follow KMI trading closely, there seems to be an ominous pattern of selling into rallies. While the MLP group is running hard off the lows, KMI is still being held back. It could be that hedge funds are using KMI as a source of funds. Not sure but I don't like the trading action.
Pitiful trading today. KMI is giving up the gains while EPD is up over 2%. Investors should be jumping on the dividend yield with the 10-year Treasury back below 2%. This action makes little sense to me as KMI should be matching the moves in the MLP group.
Not really. Think about it. If KMI is trading over $40 when the warrants expire in May 2017, the company gets $40 cash in the till and they don't have to sell shares in the open market like they routinely do. Therefore, no serious dilution unless the stock is north of $50, which is highly unlikely. IMO
It's nice to see the bounce off Wednesday's low BUT KMI is severely underperforming after the brutal drubbing. Let's compare how KMI, the competitor EPD and the largest MLP ETF closed today after Wednesday's multi-year lows...
KMI up 9.0%
EPD up 19.5%
AMLP up 13.3%
Not a good showing for KMI. What are the buyer's waiting for?
I don't know why this Brian Nelson continues the negative diatribe on KMI and the MLPs unless he has or his clients still have a big short position.
His statements that companies should be financing huge infrastructure projects using internally generated cash flow is not only ignorant and laughable but practically IMPOSSIBLE!! There are NO companies on the face of the planet with sufficient cash flow to build these projects. Period!!
Investors should also realize that the bear case on KMI based on GAAP metrics vs. DCF has no merit. Huge oil & gas infrastructure projects could never be financed by ANY company's internally generated cash flows, whether C-corp or MLP. New debt and equity must be raised to finance these new projects. However, the key is that cash flows generated by the projects are certain to exceed the cost of the projects or they wouldn't be part of the backlog. This is simple math, folks. Let the KMI rally begin!!
1) KMI has a history of strong rallies from the Q3 lows. Reviewing a 5-year KMI chart shows that in 2012 and 2013 the stock had big gains from Q4 thru Q1. Note the following KMI historical stock moves...
Oct 3-11 $26 Apr 2-12 $40
Nov 12-12 $32 May 20-13 $41
History clearly shows that KMI is capable of big moves off the lows over fairly short periods of time. Those strong rallies make total sense in that KMI’s business is seasonally strongest in Q4 and Q1. The decline in early 2014 was an aberration as the MLP structure was at it’s limits. RK then decided to rollup all the LPs into the parent corporation which eventually drove the stock to $44+.
2) For those who question KMI's future prospects based on the recent sp -- think twice. KMI was merely caught up in the MLP selling vortex as hedge funds liquidated positions regardless of underlying value and other funds sold out with end of quarter "window dressing". Look for KMI to rally as Q4 unfolds. IMO
What difference would it make to KMI?
1) Keystone Phase IV ain't never going to fly with a Democrat president.
2) The proposed Phase IV is owned by TransCanada, which already owns the operational P/L .
"Buy low, sell high."
"Be greedy when others are fearful"
Yes, if you are EVER going to buy KMI, now is the time while it's still under $30.
Come on, Flim-Flam Man, release the BAD news on the Iris chips. The stock is now tanking on bigger volume so SOMEBODY KNOWS SOMTHING that we don't!!
I don't think any single project will impact the long term growth of the KMI dividend. RK wouldn't make the 10% dividend growth assumption if it was hanging entirely on one project, unless it was disclosed as such.
Frankly, I don't think Trans Mountain will fly, particularly if the liberals get the upper hand in Canada.
There's a real foul STINK in the air. Get a whiff of it ??
When will Walicek, the "Flim-Flam Man", release the bad news that a few so-called "investors" already know??
It doesn't get any worse than this hype and pump job, folks!!
Phil: I'm thinking that Trans Mountain will continue to meet resistance and the fate of the project will rest on the party majority in government when the final decision is rendered.
BTW -- How did the TVA get away with not compensating for the private lands they took for the dam project? That seems un-American, even for the 1930's.
This turkey just broke down below $4. Somebody knew in advance to get out. When does Walicek, the "Flim-Flam Man", break the bad news??
It's pretty obvious that somebody out there has non-public negative news on PXLW. In 3 1/2 trading days, PXLW has tanked from $4.77 to $4.05 on low volume. That's a 15% loss on NO news, folks!!
Walicek, the "Flim-Flam Man, just can't keep the stock elevated any longer on empty hype.
rocket_moron: It's not bashing, pal. It's called FACT!!
Oh, BTW, PXLW is now tanking to $4.15.
Phil: I had forgotten that RIG got that high back in '07 (matter of fact, the stock hit $185). The last time I played RIG was in early 2014 when it dipped below $40. I bought some calls and sold for a double when it rallied back to $45. I was sure glad I didn't hold them longer as it was all downhill from there.