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I have it too, been watching it go down and wondering the same thing. In contrast, I also own UNP which is a major transporter of fossil fuels, and chart is quite the opposite. I've taken some profits twice this year in UNP , and its still one of my best performers. Let us know if you gain some insight into KMP's performance of late, don't see it in any news blurbs or ratings,
Some 26-year-old analyst goes to twitter to hype up a report (report wasn't even out yet, he was making a real dramatic case) he's doing about Kinder Morgan (the fact that that caused the initial drop, which you can see above, says a lot about the market.) Stock drops.
Richard Kinder bought $18M in shares. Report came out on the 10th and stock went up that day. However, while most have regarded this as a buying opportunity, report has probably caused a bit of negative sentiment for the time being. I had no interest in buying more for long-term, but I did flip the warrants and made a few bucks during this whole thing.
As Scott noted an analyst at Hedgeye Risk Management tweeted that Kinder Morgan is tweaking their accounting books much like LINE, Linn Energy, has been accused of by the same firm. (By the way Hedgeye advises their clients to be short the stocks.) The shares of KMP-KMR-KMI have all taken a hit while this gets sorted out. Some detail can be found here:
As a side note, shares of LINE lost roughly 25-30% of their value when Hedgeyes report came out initially but have since recovered much of that. As a long time holder of KMR, KMI and LINE I found the reports presented me with a buying opportunity. Added to the KM warrants as well (thanks Scott). As the old Chinese proverb says "When the winds of change blow, some people build walls and other people build windmills."
Reply to @Mark: What a racket. What a market. Sell short, then Twitter the world bad news. Close position. Make quick gain. I'm really starting to dislike day trading and HFT.
Reply to @Charles: I believe hedgeye does not even make investments. They 'sell research'.
So some 26-year old in some ridiculous "research" firm can go on his twitter and make a bunch of dramatic statements to hype up a report, stock goes down and the report isn't even out yet. Invest accordingly.
Kinder is an enormous, complex company, but I did not find concern with the report (agree w/M*) and continue to consider it a long-term holding. I don't particularly want to add more (I'm not really very interested in adding to anything right now, although I have a few things in mind - CAG would be kinda interesting if it got to about $30ish), but not selling and continuing to reinvest divs.
Reply to @Mark: Thanks for posting those links, didnt see them when I did a quick search late at night. Long term hold for me . I hate it when some twerp can post something and create a change in direction for an investment just because he/she can.
Reply to @scott: "I believe hedgeye does not even make investments. They 'sell research'." That's the official line and as a company that may be true but I'm not believing for a minute that the humans behind the sludge they shovel don't make investments(?). Pond scum at best.
Also, like you, I'm not really interested in adding much of anything right now but like any good Warren Buffett molded shopper I couldn't resist a sale.
Reply to @slick: Me too, but with our digital world the way it is today that's how we've got to play it. If nothing else these events show me how important it is to know and understand what one is invested in and having a plan for how you will react to them when they occur. It also never hurts to see the big guy, Richard Kinder, investing right along side of me in this case.
Reply to @Charles: For what Its worth, S&P in a 9/7/13 stock report, recommends a 5 Star, the highest, Strong Buy on KMP with a 12-mo. target price of $99.00 Regards, Ted
Comments
Richard Kinder bought $18M in shares. Report came out on the 10th and stock went up that day. However, while most have regarded this as a buying opportunity, report has probably caused a bit of negative sentiment for the time being. I had no interest in buying more for long-term, but I did flip the warrants and made a few bucks during this whole thing.
Kinder Quibbles No Cause for Concern
http://seekingalpha.com/article/1686072-hedgeye-report-on-kinder-morgan-fails-to-impress?source=email_rt_article_readmore
and here:
http://seekingalpha.com/article/1674712-bears-attack-kinder-morgan
As a side note, shares of LINE lost roughly 25-30% of their value when Hedgeyes report came out initially but have since recovered much of that. As a long time holder of KMR, KMI and LINE I found the reports presented me with a buying opportunity. Added to the KM warrants as well (thanks Scott). As the old Chinese proverb says "When the winds of change blow, some people build walls and other people build windmills."
So some 26-year old in some ridiculous "research" firm can go on his twitter and make a bunch of dramatic statements to hype up a report, stock goes down and the report isn't even out yet. Invest accordingly.
Kinder is an enormous, complex company, but I did not find concern with the report (agree w/M*) and continue to consider it a long-term holding. I don't particularly want to add more (I'm not really very interested in adding to anything right now, although I have a few things in mind - CAG would be kinda interesting if it got to about $30ish), but not selling and continuing to reinvest divs.
Thanks for posting those links, didnt see them when I did a quick search late at night
Also, like you, I'm not really interested in adding much of anything right now but like any good Warren Buffett molded shopper I couldn't resist a sale.
Regards,
Ted