Author Topic: Anyone have thoughts about Kinder Morgan (KMI)  (Read 1533 times)

myhotrs

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Anyone have thoughts about Kinder Morgan (KMI)
« on: August 26, 2015, 10:57:45 PM »
I've been watching them and talking to some buddies I have at a hedge fund and mutual fund. Now that KMI is down a bit and may go down further if oil stays low for a bit (or falls further) I'm very interested in locking in a 6%+ div in a fairly stable, well run company.

Anyone here have thoughts on them?

mrpercentage

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Re: Anyone have thoughts about Kinder Morgan (KMI)
« Reply #1 on: August 27, 2015, 02:22:48 AM »
They move the comodities. Piplines and such. I believe they are levered to coal somewhat. Hence the fear but they are in a lot of different things. I haven't looked deep.

Some of these companies are perfectly fine but XLE (and equivalents) are oversold because the sector itself is in trouble. In a few years people will look back and say. How could I not see that? Isnt that always the case though.

Good luck. No hurry. at 5% yield is still 3% better than the S&P500. Know what you are getting into. Go to there website. Call somebody. The market is crazy enough that you will have a chance to grab at or near 6% again.

We always want to catch the bottom but better to know what you are getting. Black Friday mobs can kill you.

Financial.Velociraptor

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Re: Anyone have thoughts about Kinder Morgan (KMI)
« Reply #2 on: August 27, 2015, 11:33:20 AM »
I own a little.  The market, IMO is over reacting to their (limited) exposure to commodities.  Their revenue primarily comes from transportation of storage which earns fixed fees.  The make the same to move 40 dollar oil from A to B that they did to move it at 95...  Not selling...

Thinkum

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Re: Anyone have thoughts about Kinder Morgan (KMI)
« Reply #3 on: August 27, 2015, 12:22:52 PM »
I've owned some shares since late last year and they've done very well for me. If you do your due diligence on them you'll see they are actually in a pretty good position. Everyone just panics because of the whole oil thing. I'm not selling, nor am I worried. I just collect those nice dividends.

hodedofome

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Re: Anyone have thoughts about Kinder Morgan (KMI)
« Reply #4 on: August 27, 2015, 02:34:12 PM »
I own a little.  The market, IMO is over reacting to their (limited) exposure to commodities.  Their revenue primarily comes from transportation of storage which earns fixed fees.  The make the same to move 40 dollar oil from A to B that they did to move it at 95...  Not selling...

They may not be tied to be price of oil and gas, but they are certainly tied to the amount of oil and gas people are pushing through their pipes. If the shale slows down considerably, their business should be hurt. Perhaps that's what people are thinking.