Well with the overall market imploding we appear to be the only group showing higher prices as the Kinder Morgan deal lends support. Still if we had better market conditions overall we would probably be much higher. Kinder Morgan Partners is the biggest winner up 2 and change and we have 1 point plus gains in Plains All American and Energy Transfer Partners. Strong fractional plusses in a host of issues.
There always are a few not in the party mood and Crosstex LP is one of them down 25 cents, Regency Partners is down 50 cents and Hiland is also losing ground. DOW down 108 as we write here and i still think ultimately we are going to break down below 11k.
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- joewxman
- a meteorologist with a knack for trading and investing in MLPS! I also like horse racing, enjoy cigars and a good port wine.
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4 comments:
Joe,
So...what d'you think about the KMI/KMP/KMR situation? Good for KMP/KMR? It's really hard to get a clear answer...even from some of the "old reliables" in the message boards.
Lots of confusion among the troops.
Carlos
Leaving all the noise aside...I think Richard Kinder is a very smart man...shareholders of KMI were rewarded with a 39% annual return since 1999. I think the market voted today that KMP will be a winner here in this case. I see no evidence that MR Kinder will do anything negative to KMP. Longer term its his cash cow and it behooves him to make sure KMP stays in tip-top shape. I like the addition of assets in to KMP to grow cash flow going foward.
I am trying to find the negatives and i would just say that perhaps there will be a period of adjustment like when VLI swallowed KPP...those who took the swap are still under water. But that was a bit different. Kinder is putting his money where his mouth is and that is always a good place to be.
I think the KMI buyout says that the entire sector is undervalued. KMI didn't look cheap compared to other GPs in the sector, prior to the offer.
I agree. Magellan Holdings for exampl was a nice winner yesterday up nearly 5% as it is way under its offering price. Richard Kinder's message is a big bet on the sector longer term and i'd rather bet with a man whose company returned 40% a year for 7 years than anyone else i could think of.
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