Friday, November 15, 2013

Heather Ingrassia: Kinder Morgan Energy Partners: A Few More Reasons Why I'm Staying Bullish

One of our favorite energy writers is Heather Ingrassia. A 28 year old stay at home mom who writes on Seeking Alpha. Today she shares a great article on Kinder Morgan Energy Partners, and yes...we are long. Way long KMP.....

On Tuesday, November 12, a number of Deutsche Bank's MLP analysts pointed out several significant trends which indicate an improved outlook for the natural gas and MLP sectors. According to the analysts at Deutsche Bank, "the annualized rate of dividend growth among the natural gas companies rose to 13.9% from ~12% earlier this year, and the MLPs' annualized rate of distribution growth rose to 8.7% from a previous estimate of 7%".

In the wake of Deutsche Bank's findings, I wanted to highlight a number of the reasons why I remain long on shares of Kinder Morgan Energy Partners LP (KMP), especially since the MLP is considered to be a top pick at DB.

Recent Performance & Trend Behavior

On Wednesday shares of KMP, which currently possess a market cap of $35.09 billion, a beta of 0.39, a forward P/E ratio of 29.32, and a current dividend yield of 6.69% ($5.40), settled at a price of $80.67/share.

Based on their closing price of $80.67/share, shares of KMP are trading 0.56% below their 20 day simple moving average, 1.40% above their 50 day simple moving average, and 2.02% below their 200 day simple moving average. These numbers would normally indicate a short term and long term downtrend for the stock and generally translate into a moderate selling mode for most near term traders and some longer term investors.

That being said, and as a long term investor, I plan on highlighting a number of reasons why I think investors should buck the current trend and establish a long term position at current levels.....Read "A Few More Reasons Why I'm Staying Bullish"

 

How to Beat the Market Makers at Their Own game


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