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Strategies & Market Trends : Value Investing

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To: Grommit who wrote (56330)	12/4/2015 4:15:07 PM
From: E_K_S	of 78742

Have you considered their convertible preferred? KMIpA will convert at 1.81 shares of common (mandatory conversion @ $27.56/share) but you are guaranteed the dividends ($4.875/year) for 3 years (15% max tax rate too). I plan to pick up some of these shares on Monday. Hope there will be some forced selling in the common due to margin calls. The closing price was $34.97/share. The preferred is superior to the common up until the mandatory conversion, then they are equivalent. This may/could be the better value play. I own a lot of the common and already have one small buy in the preferred. Their core assets are very good and they have many different fixed fee revenue streams (so no direct impact on the commodity price) but volumes may/could be impacted if drillers shut off their wells to gathers if prices go too low. Overall, still very bullish on NG long term. It all has to get gathered and processed and transported. KMI is the No 1 service provider in this business. The assets are real (not paper like ENRON). EKS

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