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Strategies & Market Trends : Value Investing
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To: robert b furman who wrote (56356)12/7/2015 3:21:48 PM
From: E_K_S  Read Replies (1) of 78701
 
A lot can happen in 90 days let alone 3 years (36 months). KMI is my 3rd largest position in the taxable portfolio and now have the preferred in both the taxable portfolio and IRA. I think I even have KMI common in the ROTH.

KMI management stated that they have a lot of growth projects out to 2020. I expect them to push that out maybe 5 years and if they need to, self finance the next three years of projects w/ a common div cut. (worse case).

As NG demand picks up w/ more utilities converting to NG (from coal), Supply/Demand for NG s/d stabilize higher and all that product will need to be gathered, processed and transported. Also, by 2018, there will be more NG export terminals on line.

There are still a lot of moving parts w/ debt/leverage making it difficult for all of these midstream companies even the big ones.

Watch what Buffet does as he usually is a good indicator of a sector bottom and/or value buys. His company was rumored to have been one of the bidders for NGLP (50% bought by KMI and 50% by BIP). This was the most recent event that caused KMI to sell off since that purchase Moody's issued their debt downgrade.

Just stay diversified and keep evaluating KMI and sector in 30 days and then again in 6 months. I suspect, end of year tax loss selling is accelerating the sell off so let's see where KMI & the preferred is priced say January 11, 2016.

I believe that both the common and the preferred goes xdiv around that time.

EKS
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