KMI thoughts

[felixbocharov]

What do you think about divindend cut? Is it reasonable in a long-term.

http://seekingalpha.com/article/3741046-is-kinder-morgan-a-falling-knife

http://seekingalpha.com/article/373...roblem-may-be-bigger-than-the-individual-case

 

[Michael J. Fletcher]

I don't know why investors are screaming. KMI really needs to lower its debt and I don't see anything bad here for a long-term investors.

 

[Covertibility]

The bonds look interesting, the common not so much given the uncertainties of both the management of the company and the price of oil. Although they're a pipeline, the price of oil has been mentioned as having some effects on their business.

As long as the Russians are invading the Asian markets, the Saudi's are not going to cut production. Throw in Iran coming online next year, although initial estimates are only between 500,000 to 1 M barrels/day, oil could very well be in the $20 range. So take that into consideration.

 

[newwurldmn]

Just on the tape. Cutting div to 12.5 cents/share/quarter.

 

[Covertibility]

Now Libya wants help in producing moar oil ! Don't bet against oil hitting the teens.
As for KMI, for a 5% yield, the stock has to be at $10. Given the debt load and the uncertainty of the effects of oil on the business, the yield should be higher, hence this stock should be a single digit midget.