it doesn't look all that enticing to me as a short, but
i bought some August 35 Puts on it today, just in case..;-)
here's another one:
NEW Put Play, Sunday, 06/23/2002
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KMI - Kinder Morgan $40.20 (-0.56 last week)
Kinder Morgan, Inc. is an energy storage and transportation company in the United States, operating, either for itself or on behalf of Kinder Morgan Energy Partners, L.P., more than 30,000 miles of natural gas and products pipelines. The Company owns and operates Natural Gas Pipeline Company of America, a major interstate natural gas pipeline system with approximately 10,000 miles of pipelines and associated storage facilities. The Company owns and operates a retail natural gas distribution business serving approximately 233,000 customers in Colorado, Nebraska and Wyoming. The Company constructs, operates and, in some cases, owns natural gas-fired electric generation facilities.
Try as they might, the natural gas stocks can't get any respect. Managements of these companies are trying all that they can to restore confidence. For instance, KMI reaffirmed guidance in late May saying that they were comfortable with this year's numbers as they continued to realize strong gains in each of the businesses. Yet the market didn't take notice, which goes to show just how negative the sentiment in the energy sector has become surrounding the Enron debacle, and the events surrounding other so called energy merchants such as Williams and Dynergy. With the negativity growing by the day, and more skeletons to come out of the closet, KMI appears to be heading back down to its lows traced in late February down near the $37 level. The stock traced a small relief rally last week, which saw it trade as high as the $42 level before reversing lower and ultimately failing in Friday's session with the trade back down to the $40 level. As early as next week, the stock could retest its near term lows down around the $39 level, which is the mark that we're watching to act as potential support. Look for that level to fail and offer a momentum based entry point into weakness on further selling in the energy sector and the broader market. If the stock does by chance try to rebound again, look for another failed rally attempt near the 10-dma overhead just below the $41 level, or slightly higher just below the $42 area near term congestion. Our stop is just above that short term congestion at the $42.50 level.
BUY PUT JUL-40*KMI-SH OI=1393 at $2.05 SL=1.25
BUY PUT AUG-40 KMI-TH OI=1556 at $2.90 SL=1.75
Average Daily Volume = 743 K |
