Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (52521)	10/17/2013 10:28:30 AM
From: E_K_S	Read Replies (2) \| Respond to of 78753

Kinder Morgan, Inc. (KMI) - Doubled up original position w/ shares at $34.73/share Followed you in on this one as I wanted to increase my original position. I acquired my shares from the EP acquisition/merger (7/2003) which has a very low cost basis. This one will continue to be a good income producer and could see future distribution raises. Yield is 4.7% a bit on the low end but safe w/ future growth. My strategy for MLP's is to try to obtain a net 6% distribution yield and a 4% annual growth kicker from my MLP basket. The lower yielders should have better future growth prospects and less affected by potential distribution cuts from the higher yielders. With the current buy, position is still small at 0.8% of the portfolio. Therefore, I have room for another add at lower prices if/when the opportunity presents its self. EKS

To: Spekulatius who wrote (52521)	10/18/2013 1:38:43 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78753

KMI - some interesting bits from the CC: 1) the backlog of new projects has increased from 14B$ to 14.4B$ despite bringing 0.3B$ worth of projects online during the quarter. That is good news for KMI, because these projects will essentially be financed with EPB, KMR or KMP units and KMI will get the IDR's for these new units without spending anything itself, 2) KMI is buying the warrants at a pretty good clip. These warrants are essentially 2017 40$ calls and currently go for ~5$. So KMI's management obviously believe that these warrants are a good value, which also means that they expect the stock to be above 45$ By 2017. FWIW, these warrants resulted from the EP merger (equity kicker) and KMI is spending quite a bit to get rid of this source if future dilution. Overall, KMI looks pretty good to me and i think they can execute on their plan to generated mid teens distribution growth for the next couple if years, given the dropdown assets still owned by KMI directly as well as the 14.4B$ in growth projects in the pipeline. seekingalpha.com