audreyh1
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Isn't today an options expiration Friday? That usually generates high volatility.
With the assumption the dividend will not be suspended KMI-A or KMIPA depending on what platform you look it up on has a minimum present value of $30.46 today, so your potential loss her is 7 points or 18.6 percent. If the price of KMI gets to 20 at the end of the conversion period - 3 years the total return would be 30 percent or a 9 percent annual gain, this is a very reasonable conservative expectation for KMI and a way to play the stock without much risk as you get almost twice as much upside as downside risk. This is why I purchased the preferred @32, anything in that area is a very good value unless upon quarterly earnings the possibility of dividend suspension becomes evident.I've done the same with XOM since the drop to $72 last Fall. If it goes further down, I'm buying again.
I have a very small position in KMI and was thinking about swapping it for the preferred issue that is around $40. Any thoughts on that strategy?
kmi just seems to have no bottom . 12.55 today
KMI/PA should trade between 41 and 45 and then you earn dividend of 12% on top of that. Looks like the opportunity to avoid any losses with purchase in low 30's on preferred is now gone.
KMI.PA has dropped back down again, to a low of $34.68 today. Maybe it will still go lower, but I felt OK about going in to pick up a few hundred shares at $35 midday.
mlpl is getting slaughtered . down almost 29% today
With earning announcement yesterday, investors are feeling better about Kinder Morgan and I think you made a profitable purchase for yourself yesterday, well done!
Today I purchased KMI, for the following reasons:
1) Richard Kinder has a horrible reputation among investors with most claiming they will never be burned by him again after believing his claims of dividend growth via borrowings.
2) The dividend is announced to go up 60% in January to $0.80 per share. When announced in October KMI could not have been sure a tax bill would be announced but the tax bill will more than fully pay for this dividend increase.
3) Budget is based on $53 West Texas Crude, with WTI now at $59.68 KMI should have upside on the income side and with the lower tax rates KMI gets to keep more. The new tax law makes this company much more valuable and due to #1 above it is not presently being recognized.
4) Cold winter weather should greatly increase natural gas volumes and increase KMI tolling services quite positively.
I am optimistic in a return to $25-$30 a share in price and can see where the dividend to be near $1.25 by 2020 as KMI is giving in forward projections, which is 6.9% on today's stock price.
Thanks for the info. Your argument was convincing so I bought some at 18.25 about the time of your post. Bought some more today when my ridiculously low limit order for 15.25 filled. Bargain time?