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Technology Stocks : KMI- a fallen high dividend yielder - for how long? -- Ignore unavailable to you. Want to Upgrade?


To: robert b furman who wrote (47)6/11/2018 6:40:47 PM
From: Jerome1 Recommendation

Recommended By
fred woodall

  Respond to of 160
 
Hi Bob,......two dates that are important for KMI are June 22, which is the next OPEC meeting. There is already resentment toward Trump for trying to push OPEC to higher production.

Over half of the Opec countries are capacity strained....in that they are facing anticipated production declines.

Natural gas utilization by the five biggest consumers (Importers) is increasing. Japan, China, S. Korea, Pakistan and India are upping imports to combat air pollution

KMI and Cheniere Energy.( LNG) will be two of the biggest Us beneficiaries of the increased international demand. This not years off into the future....its this year.

The second important date is about Aug 2, when CHK reports earnings and gas volumes shipped.

For the speculative investor there is very little time premium attached to CHK or KMI.....I would look for slightly in the money options dated about July 20. The CHK 4's at $1.00 and the KMI 16's. at $1.30 ...This one of the few times options could be better than the stock.

Mathematicians have proved that the most profitable options are those that are slightly in the money. If the stock stays flat you get most of your money back, and if it goes up even slightly you have a winning trade.




To: robert b furman who wrote (47)6/17/2018 6:26:35 PM
From: Jerome  Read Replies (1) | Respond to of 160
 
Hey Bob, I have read in the last few days that oil and gas pipelines are maxed out in capacity.

The discount on crude being transported by rail or truck is at $10.00 a barrel.

Is this bullish or bearish for pipeline companies?

Its bullish because the companies are generating maximum, revenue possible from existing pipelines.

Its bearish because revenue is capped at current levels.

This will change as new pipelines are built. but it puts a shadow on this sector for now.

What is your take on this outlook?

Are you considering buying some refinery stock?... Because refiners are running at almost full capacity. MRO comes to mind as a refiner to consider.