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

To: Elroy who wrote (56347)	12/7/2015 12:17:43 PM
From: E_K_S	Respond to of 78753

Can't say I understand KMI all that well. KMI is a fee based business and makes their money transporting product through their pipelines. FWIW, I picked up some of their KMIpA issue today. Their pipeline assets have a useful life of 20 years or more so those assets are not going anywhere. Grahm No calculated at $14.31/share but not too sure how accurate that value is but it does say we are closer to the bottom than the top. BV according to Yahoo is $ 15.94/share but debt is about $20.00/share. Therefore, value may be in those assets (& replacement costs) rather than what the future revenue streams are that those assets can generate. Replacement costs do not figure the land/lease right-of-ways the company owns. These are very difficult to obtain and take time rather than money to secure. That alone has a lot of hidden value. In fact, KMI has such coverage in the pipeline infrastructure, they could run fiber optic cable through their right-of-way and morph into a profitable telecommunication company. I believe Sprint did this when they acquired Southern Pacific right-of-way of their train tracks to bury their cable lines for their phone business. EKS