Seeking Alpha

Albert Alfonso

View as an RSS Feed
View Albert Alfonso's Comments BY TICKER:
Latest  |  Highest rated
  • Is Kinder Morgan Too Large To Restructure? [View article]
    95isuzu,

    KMI is simply a highly levered play on the success of KMP. KMI cannot grow without KMP growing.
    Apr 11 05:57 PM | 1 Like Like |Link to Comment
  • Is Kinder Morgan Too Large To Restructure? [View article]
    Sumflow,

    For evidence, just look at KMP's valuation based on DCF compared to MMP/EPD. The only major difference between them are the IDRs payments.

    Does KMP really deserve a 40%~ discount or is the market just plain wrong?
    Apr 11 05:55 PM | 1 Like Like |Link to Comment
  • Is Kinder Morgan Too Large To Restructure? [View article]
    Bruce,

    Unlikely, but there is precedent.

    (EPD) did exactly that when bought its GP.

    "In connection with this transaction, certain affiliates of EPCO that own approximately 76 percent of the total number of outstanding EPE units have executed a support agreement pursuant to which they have agreed to vote their EPE units in favor of the merger. In addition, an affiliate of EPCO has agreed to waive the distributions that it would otherwise be entitled to receive on certain EPD common units for the first five years after the closing of the merger."
    Apr 11 05:50 PM | 1 Like Like |Link to Comment
  • Is Kinder Morgan Too Large To Restructure? [View article]
    Sumflow,

    KMR/KMP are two sides of the same coin...
    Apr 11 05:46 PM | Likes Like |Link to Comment
  • Kinder Morgan: A Merger Is Very Much A Possibility [View article]
    George,

    If any merger occurs, you would likely not receive KMP units directly for KMI shares. KMI is simply too large for KMP to swallow wholesale.
    Apr 8 01:12 PM | Likes Like |Link to Comment
  • Kinder Morgan: A Merger Is Very Much A Possibility [View article]
    Chancer,

    KMR will follow KMP up and or down. However, KMR may be used as a "currency" for the merger if it even happens.
    Apr 7 10:37 PM | Likes Like |Link to Comment
  • Kinder Morgan: A Merger Is Very Much A Possibility [View article]
    The premium to KMI shareholders would need to be fairly large to make any deal work. However, something needs to be done. KMP has been languishing at under $80 for awhile now. It already trades as if the market is fully discounting the IDR payments.

    As for which is better, I prefer KMI over KMR, over KMP. Depending on your tax situation and level of income needed, each offers a different compelling reason to own.

    KMI (5.10% yield, cash dividends, 8% growth),
    KMR (7.55% yield, stock dividends, 5% growth),
    KMP (7.20% yield, cash distributions, 5% growth)
    Apr 7 06:01 PM | 6 Likes Like |Link to Comment
  • Kinder Morgan: A Merger Is Very Much A Possibility [View article]
    KMI was around way before 2011. It was taken private back in 2006. http://on.mktw.net/1hx...
    Apr 7 01:22 PM | 2 Likes Like |Link to Comment
  • Kinder Morgan: A Merger Is Very Much A Possibility [View article]
    The EPB GP could be spun off via a distribution. Or EPB could buy it from KMP via EPB units.

    The warrants are a much larger issue and beyond my pay grade. However, just to speculate, they could be redeemed at a nominal rate if KMI only sells/merges its GP interest
    Apr 7 12:23 PM | Likes Like |Link to Comment
  • A Kinder Morgan Merger Is Not Feasible [View article]
    Sumflow,

    I believe KMP's annual return has been over 20% when reinvesting distributions since the IPO. However, the growth rate for both the yield and price has stalled since 2010.

    KMP/KMR are dirt cheap compared to MMP/MWE/EPD. The stocks trade at a ~40% discount, almost nearly inline with the amount KMI takes via the GP interest.
    Apr 7 11:10 AM | 3 Likes Like |Link to Comment
  • Kinder Morgan: Is It Time For A Merger? [View article]
    Sumflow,

    I agree. The issue with IDRs is more of a PR problem. However, KMP may have issues with raising equity if its unit price remains depressed.
    Apr 4 10:16 AM | 4 Likes Like |Link to Comment
  • Has Frontier Communications Gone Up Too Far, Too Fast? [View article]
    A merger with who? FTR has been a buyer in recent years, taking on wireline assets from both (T) and (VZ).

    FTR's valuation is clearly stretched. The only question is if we are going to be seeing a "short squeeze".
    Apr 3 06:33 PM | Likes Like |Link to Comment
  • Has Frontier Communications Gone Up Too Far, Too Fast? [View article]
    We may be seeing a short squeeze in the works. It will be interesting to see if the move higher continues or if the stock pulls back.
    Apr 3 02:47 PM | Likes Like |Link to Comment
  • Has Frontier Communications Gone Up Too Far, Too Fast? [View article]
    I am not saying FTR has not shown improvements with its revenue trend. However, a 40% move based on zero EBITDA growth and Y/Y FCF declines is not sustainable.
    Apr 3 02:44 PM | 3 Likes Like |Link to Comment
  • A Record Quarter For Prospect Capital [View article]
    I have a policy of only owning dividend paying stocks. However, one BDC without a dividend worth a look is (ACAS). They are buying back stock like crazy and may spin off a dividend paying subsidiary.
    Apr 2 12:24 PM | Likes Like |Link to Comment
COMMENTS STATS
1,088 Comments
1,163 Likes