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   Technology StocksKMI- a fallen high dividend yielder - for how long?


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To: robert b furman who wrote (33)2/20/2018 3:06:24 PM
From: miraje
   of 156
 
Hi Bob,

Next years dividend (if done as stated) will yield 5.11 %

Couple of clichés come to mind..

Fool me once, shame on you.
Fool me twice, shame on me.

Or..

Once bitten, twice shy..

Think I'll hold on to my shares, for now, and take a wait and see attitude on the divi increase. If they do come though as promised, that will kick start the share price upwards for sure. Really don't think it will go much lower from here..

Regards, JB

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To: miraje who wrote (34)2/20/2018 3:19:30 PM
From: robert b furman
   of 156
 
Hi JB,

Believe me - I've thought of that before I typed what my bet is.

We'll know in less than 90 days.

I took my position after RSI dipped below 30 for a day and has gone sides since and some farther back.Usually do it in 3;s - last 3 ready to go but has to be a new low - final shakeout.

I hope it happens either way..

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To: robert b furman who wrote (35)2/21/2018 6:45:52 AM
From: robert b furman
   of 156
 
A good write up of what KMI is in the middle of :

US Ethane Consumption Expected to Boom
Feb. 20--The U.S. Department of Energy projects that during the next two years, domestic growth in ethane consumption in the burgeoning petrochemicals industry will surpass that of all other petroleum and liquid products combined as ethylene crackers and plastics plants expand along the Gulf Coast.Ethane is a natural gas liquid used as a feedstock for ethylene, which is the building block for most plastics. Last year, three new Gulf Coast ethylene crackers boosted domestic ethane consumption to 1.2 billion barrels a day(do they even bother to proof read?), the agency reported.

The ethylene surge comes amid a Gulf Coast petrochemicals boom driven by an abundance of cheap natural gas flowing from West Texas shale fields such as the prolific Permian basin. By 2019, the agency expects ethylene crackers now under construction to boost ethane consumption to 1.6 million barrels a day.

Other major projects are underway. French oil major Total SA, for example, affirmed this week plans to build a $1.7 billion ethane steam cracker alongside its Port Arthur refinery as part of a joint venture with Austrian and Canadian companies Borealis AG and NOVA Chemicals Corp.

The Energy Department also anticipates ethane exports to increase to 310,000 barrels a day in 2019, up from from 180,000 barrels a day last year. Kinder Morgan's Utopia pipeline, which last month began transporting ethane products to Canada from Ohio's Utica shale play, is expected to drive part of that growth."

Thanks to Ditchdigger for the link.

Bob

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From: Alejandroo Green2/26/2018 9:09:33 AM
1 Recommendation   of 156
 
bullish crossover in MACD and Stochastic oscillator. Technically, a potential good entry point here.

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To: Alejandroo Green who wrote (37)2/26/2018 9:32:15 AM
From: robert b furman
   of 156
 
Hi alejandro,

Thanks for the great chart and post!!!

Bob

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To: robert b furman who wrote (38)4/19/2018 11:31:06 AM
From: robert b furman
1 Recommendation   of 156
 
Earnings out this morning and stockholders geta 60 % bump in next years dividend (50 cents to 80 cents) :

finance.yahoo.com

finance.yahoo.com

Very solid report.

Looks like the turn is in with pipelines full and making more money that expected (100 million more aimed at new Capex (high margin) projects.

AFTER BUMPING THE DIVIDEND and BUYING BACK 250 million in stock!!

The turn is done!!

This should put us in the 20's.

If this future commitment of dividend increases is maintained through 2020 any stock bought today will be yielding 7.47 %

Does anyone think that natural gas will be used less in the future? NOT ME !!!

Bob

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To: robert b furman who wrote (39)4/19/2018 11:43:31 AM
From: E_K_S
1 Recommendation   of 156
 
Any chance we see the previous high of $40/share buy 2020?

Seems like the table is set.

Good investing

EKS

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To: E_K_S who wrote (40)4/19/2018 12:36:39 PM
From: robert b furman
1 Recommendation   of 156
 
I think so.

Daily chart :

screencast.com

Weekly :

screencast.com

Kinder was very proud of his shareholder friendly dividend - he is the largest shareholder and pays himself $1.00 a year for being CEO - I like that.

The largest natural gas pipeline in the country and they have reduced debt and only take on high margin Capex.

They were one of the few and first that converted from an MLP to a Corporation. That required huge debt to be embraced. So much so that their credit ranking became threatened.

They sold off some big pipeline interests (but still run them) and have reduced debt.

Their cash flow is monstrous!

I think what gets very little coverage is their "Tall Grass" experimental field, where they inject never drilled shale formations with CO2 and then frac it. It has a great supplemental value to fracing epecially where they are strongest (Permian and Eagle Ford).

For me this was a long term buy and hold as they shore up their balance sheet.

I have no doubt that natural gas is a long term megatrend.

This decline in KMI's stock price was a great gift that the energy crisis ( manufactured by the Saudi's which is a false market event) gave us.

Like semiconductors represent a long term growth prospect - so does natural gas and the future greater use and export of it - all of which must utilize pipelines.

KMI is the biggest but caught with too much debt.

They have the conversion from a MLP behind them and can now resume their growth.

Just in time for the corporate tax rate reductions - perfect!!

I've been adding KMI to an already large position by selling puts 16's and 18's.

I was actually surprised how cheap KMI got this year. What I had not researched properly was the promised dividend bump was labeled a 2018 increase, but the first dividend of calendar year 2018 was still at the 50 cent rate - I think this created an unusual level of doubt.

At any rate - Ive been sitting on some puts that were slightly underwater (the 16's (june) - which are now out of the money and hopefully they will expire to 00.00 which will help me buy the 18's (januarys) - assuming I get them put to me.

If not I'll have to get along with my current position and some more darn money.<smile>

$40.00 would be a double and a 7% plus yield dividend on cost - I can sleep very well with that kind of an investment. LOL

Good to see you here posting , this place has been a sleepy spot to post.

Bob

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To: robert b furman who wrote (41)4/19/2018 1:01:54 PM
From: Jerome
   of 156
 
Hi Bob, I opened a position on KMI this morning. I have read about the future increased demand for NG, from Japan, China and India.

I also held on to my CHK stock for the same reason. I keep looking for NG to break out (for the past two years).

Those export terminals....how far are they from completion?

Are there some new ships being built to transport LNG?

Because the rest of my portfolio is having a great year I can sit on my KMI shares until NG beaks out.

Jerome.

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To: Jerome who wrote (42)4/19/2018 3:18:16 PM
From: robert b furman
1 Recommendation   of 156
 
Hi Jerome,

The biggest LNG ships are so efficient they will make the smaller ships obsolete.

en.wikipedia.org

One or two caveats to that.
1) the big ships require a deeper harbor in which to load and unload.
2) don't think they can fit in Panama Canal

So far there are two LNG export ports actually in operation :
Chenierre in La.

Dominion in East Coast located on the Hudson River.

Several others in building stage on East Coast (From Marcelles shale) and Houston ship Channel from Permian and Eagle Ford shale deposits in TX.

Quite a large export business from Texas to Mexico as well.
Good business with long term run just beginning.

bbc.com (australia bound)

Bob

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