KMI - On the road to disaster?

[alaska55]

Mathjac107 wrote kmi just took another hit . 13.02 . irt was 60 bucks 1 year ago

I pretty sure it top out at about 44 bucks.

http://finance.yahoo.com/echarts?s=KMI+Interactive#{"range":"2y","allowChartStacking":true}

 

[Running_Man]

Buffet apparently is nibbling on oil now.... Buffett finds value as oil sinks Buffett finds value in oil wreckage

I like how CNBC calls it picking from the wreckage when Philips 66 would actually be a beneficiary of continued low oil prices, not a play on recovering oil prices. Though most likely it is the natural gas that he equally is liking as coal is falling out of favor for natural gas amongst the crowd he runs with that create laws. But it sounds a lot better to say he is picking a winner amongst the carnage for a stock that is up 16 % over the last year outperforming the S&P500 (why didn't he buy a year ago_ versus the average decline for the XLE of 28 percent.

What I don't like about the article is it leaves the impression that Buffet thinks oil is at a bottom which this purchase does not really indicate, it is rather lazy reporting.

 

[mathjak107]

Mathjac107 wrote kmi just took another hit . 13.02 . irt was 60 bucks 1 year ago

I pretty sure it top out at about 44 bucks.

http://finance.yahoo.com/echarts?s=KMI+Interactive#{"range":"2y","allowChartStacking":true}

my memory is failing ha ha ha .

but even so 44 to 13.00 is a pretty nasty fall considering this was high on almost every stocks you must own list . it is starting to fall in to real trouble .

 

[hesperus]

Any others here that took part in that $27.5M award to investors from the KMP Capex litigation suit? I sent in my paperwork before the deadline in December, and it was rather onerous to pull together all the K1's from previous years. On December 22, 2015, the Court entered a Final Order and Judgment approving the Settlement and a new plan of allocation for the distribution of the Settlement proceeds. The new plan now says that claim forms are no longer required for the calculation of payments! Payments were to be made to eligible Class Members based on the number of KMP common units that they held as of the Merger between KMI and KMP. I've had a few thousand shares over various periods during those years, so it seemed to be worth the trouble, but we'll see.

 

[mathjak107]

i wouldn't be surprised to see kmi a 10 buck stock before things end .

 

[Lakedog]

i wouldn't be surprised to see kmi a 10 buck stock before things end .

That's only a couple of days trading in the current market where all energy/oil related stocks are deemed to be worthless.

 

[mathjak107]

exactly , and at these levels of oil pricing that is all they are worth . perhaps less if financing and cash flow become issues .


don't forget these stocks are still selling for many multiples of current earnings . unless prices pick up in oil by a lot they are not even worth this much .

 

[Lakedog]

exactly , and at these levels of oil pricing that is all they are worth . perhaps less if financing and cash flow become issues .


don't forget these stocks are still selling for many multiples of current earnings . unless prices pick up in oil by a lot they are not even worth this much .

You do realize that less that 20% of KMI business is oil related with nat gas being the majority of what they transport? They do have oil storage facilities which should be a booming business currently. Earnings/cash flow has not been the issue with KMI but that they had been financing growth via the debt market. The div was cut so they could continue the growth but pay for it from cash flow. Most of their income is at rates set by FERC so that income is based on flow volume through their pipes, not market price of the commodity. I think the earnings report report next week will be a positive so time will tell.

 

[mathjak107]

they still took on lots of debt and can be subject to financing issues and the markets are recognizing that fact .

 

[papadad111]

I am in it solely for a few trades. Bulls and bears are what make a market.

 

[papadad111]

Long 100 March 15 strike calls at 0.72

 

[papadad111]

Closed 100 March 15 strike calls at 0.84

 

[audreyh1]

1 minute? That was fast!

 

[Fermion]

papadad doesn't need no stinkin HFT computer!

 

[papadad111]

Volatility can be our friend. Don't ever touch the long term stuff.

1200 bucks a minute. I'll take it ! Total luck. Seldom happens ...

 

[aja8888]

Volatility can be our friend. Don't ever touch the long term stuff.

1200 bucks a minute. I'll take it ! Total luck. Seldom happens ...

Do you have a hip holster for your IPad so you can make these trades in a flash?

 

[papadad111]

Ha ha
Nope. But a few silver bullets now and then wouldn't be so bad !!!

I actually avoid using tablet or phones for trading as its "too easy" to do and can become counter productive when emotion starts to overrule discipline.
Having to fire up the PC seems to be the pause that refreshes and helps set emotions to the side for me.

 

[mathjak107]

oil is down almost 6% this morning and the premarkets are plunging .

kmi may be a 10 buck stock faster then i thought .

 

[aja8888]

oil is down almost 6% this morning and the premarkets are plunging .

kmi may be a 10 buck stock faster then i thought .

Oil won't go to zero but KMI might.

Exxon/Mobil under $70 is interesting for a long term hold.

 

[mathjak107]

i have been using xom as a quick flip the last 4 months .

i let it roll back , go up a few points and repeat .

it has been trading up and down in a narrow range . so far so good , no losses and quite a few gains .

i was doing the same with kmi until it recently started its path just down but hey around 10 or 11 i may try again .

 

[aja8888]

i have been using xom as a quick flip the last 4 months .

i let it roll back , go up a few points and repeat .

it has been trading up and down in a narrow range . so far so good , no losses and quite a few gains .

i was doing the same with kmi until it recently started its path just down but hey around 10 or 11 i may try again .

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?

 

[mathjak107]

the preferred does seem to be holding up better .

 

[aja8888]

the preferred does seem to be holding up better .

Higher dividend and converts to KMI stock after two years from what I can recall without looking anything up.

 

[papadad111]

It will be a washout today -- doom and pessimism to talk about on the weekend network media shows, but I will be in the market re-opening some positions today.

This volatility screams opportunity. Plus Monday USA holiday MLK... Some markets closed so no one will want to be long into the weekend. Watch fireworks into the last hour today too.

Mark Haines would have had his yellow hard hat on today.

Will post trades here - first will be Long 100 KMI @15 June strike calls @0.56

 

[Fermion]

It is looking like it will be a Friday morning bloodbath.

I want to wade in here somewhere but my boots only come up to my knees.

I might just sit here stunned if the market drops 600 points today.