Thursday, December 5, 2013

Stock to Buy

Kinder Morgan (KMI) is a Buy right now.

KMI announces 2014 financial expectations and expects to increase dividends ~8% Here

Morningstar: 4/5 with Fair Value of $40.00
Yahoo: Fair Target: $41.20

KMI took a big hit. It drop 7.09% in the last 5 days.

As you can see in the chart below, there is a strong support around $31-$33. Also the RSI tends to pick up at this level as well.



This chart shows that it is a little overvalue base on F.A.S.T. Graph.


 Here is a chart of the Estimated Earnings.


 Here is what a $10k investment would look in 10 years at current price.



I don't have fresh capital right now to buy, but I will be using my dividends to buy a few shares.



What do you think of KMI? Do you own shares?


15 comments:

  1. Thanks for the references, FFD.
    I noticed the stock drop 5% yesterday at open. Any idea why it is dropping - is it just the fear of rising interest rates or is there some other reason for it?

    regards
    R2R

    ReplyDelete
    Replies
    1. It has to do with El Paso Pipeline Partners (EPB)
      http://seekingalpha.com/article/1877381-kinder-morgan-inc-offers-a-5-yield-and-double-digit-dividend-growth

      check out the link.

      Delete
  2. Thanks for the heads up FFD. KMI is one company I don't understand all that well. I'm waiting for Richard Kinder, who owns/buys large stakes in it, to make another buy......then, I'm going in.
    -Bryan

    ReplyDelete
    Replies
    1. Bryan,

      He recent purchased $18 mill worth of shares. And that was at a higher price than you can get now.

      Delete
    2. PIP is right. here is the link with that info. http://www.gurufocus.com/insider/KMI

      Delete
  3. I'm not worried about the "low" growth in the distribution considering the amount of projects that are in the works. Plus where can you find 8% DG with a 5%+ starting yield. I reckon that's pretty hard to find. I still believe in this company in the long-term and have a limit order set to add to my position.

    ReplyDelete
    Replies
    1. agree. this company is going to be great long-term.

      Delete
  4. Nice looking charts!
    I almost bought KMI yesterday but went with something different :P Might have to take a slice out of it if it's still affordable mid month.

    ReplyDelete
    Replies
    1. I went with VGR(Vector Group). They sell cigarettes and e-cigs so i feel it's a safe bet. It has a lso a pretty high yield of 9.8%. As I'm starting out I'm more inclined to take on some risk. I also thought about some chinese companies but that felt too risky. KMI just had a little too high of a price for my taste, but I'm sure when I start getting more dividends to re-invest back I'll buy a slice of it :)

      Delete
  5. All three Kinder branches got hit a lot, great time for buying.

    Do you have a subscription to FAST graphs? Is it worth it?

    ReplyDelete
  6. Any idea why it is dropping - is it just the fear of rising interest rates or is there some other reason for it?

    Epic Research

    ReplyDelete
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    ReplyDelete
  8. Nice blog and content
    Equity Tips

    ReplyDelete