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Jim Cramer chooses MLPs Kinder Morgan Partners (KMP) and Enterprise Products Partners (EPD) as...

Jim Cramer chooses MLPs Kinder Morgan Partners (KMP) and Enterprise Products Partners (EPD) as antidotes to potential froth in the broader stock market. Cramer likes KMP's strategic acquisitions during recent years and is bullish on its outlook. On EPD, Cramer praises the management team and likes its track record of executing growth projects and integrating acquisitions.
Comments (16)
  • Nice endorsement after the big run up. Where was he last fall and christmas when EPD was in the 40s? The time to back up the truck for MLPs was when everyone was dumping them pre-fiscal cliff on worries regarding loss of their favored tax status.

     

    There is a legitimate risk to MLPs if interest rates rise suddenly and their cost of capital jumps. That's what happens when you pay out 90% of your earnings.
    17 May 2013, 11:46 AM Reply Like
  • No kidding! Cramer is great but his timing tends to be off. Like suggesting buying right before earnings. (COST) and the MLP's like you mentioned.
    17 May 2013, 01:46 PM Reply Like
  • Even though I have lots of EPD @$36 - $40, I worry about the loss of tax favorability. Look what happened to the Canadian royalty trusts that lost tax advantages a few years ago.
    17 May 2013, 11:55 AM Reply Like
  • Sometimes Cramer is right. This is one of his gems.

     

    LONG: KMR and lovin it.
    17 May 2013, 11:58 AM Reply Like
  • I've owned EPD and KMP for nearly two decades. Mr. Cramer's a bit late to the party. Recently added some KMI.
    17 May 2013, 12:27 PM Reply Like
  • Mr. Cramer is always late to the party.
    17 May 2013, 05:14 PM Reply Like
  • I agree that sometimes he is late. However, I've been watching Cramer off and on since 2008 and he was pumping KMP when it was in the 40's.
    17 May 2013, 11:25 PM Reply Like
  • KMP has been a steady great investment for me for many years. I expect the same to continue in the future. It has excellent management, kis in an excellent business and still growing in an ever more demanding need for its services to assure the supply of oil etc. a commodity we depend on for an indefinite time to come. What can be better?
    17 May 2013, 01:17 PM Reply Like
  • I chose EPD because it has a broader base but with the LNG market exploding over the next years they both have to be winners!
    17 May 2013, 01:45 PM Reply Like
  • I was just wondering if it wasn't time to take some profits in EPD, ETP...got them in the low $30's...seems like the shoulder season is fairly predictable, but this extended run keeps going for now. My idea is to sell two-thirds of the position, and buy it back in the fall. I believe this rally is running on fumes anyway....thoughts?
    17 May 2013, 01:46 PM Reply Like
  • MLPs are not like regular stocks, and selling them can cause an unexpected tax liability that has to be considered. Personally, I would hold them as long as possibe. I own a ton of them, won't sell any of them, and yes, it is a questionable time to buy them. Be patient and buy more when they drop a lot. The business is sound.
    17 May 2013, 11:26 PM Reply Like
  • I have owned EPD for a few years, one of the few that I don't worry about. CVRR is my latest pick, great dividend and potential growth.
    17 May 2013, 01:46 PM Reply Like
  • The great thing about KMP is that if you have built up enough shares by age 70, you can sell 70 to 100 shares every quarter (AFTER dividend announcement but BEFORE ex-dividend date) and find later that the value of your portfolio hasn't really diminished. You can keep doing that until you are 90 or so.
    17 May 2013, 02:35 PM Reply Like
  • Cramer brought up two points of commonality between John D. Rockefeller and Richard Kinder. Oil as you know was discovered in Pennsylvania about the time Cochise was signing a treaty with Tom Jeffords. By the time of the gunfight at the OK corral in Tombstone, AZ. three railroads had been built out of the Oil Regions.

     

    Rockefeller created a big combination of companies that could bully the railroads because of the volume he commanded as compared to independents. A 100 car train might have 100 producers with one car each. Where John D. could not only fill the whole train, he could provide his own 100 cars!

     

    Because of his efficiencies (no profits for anyone, all profits to The Standard) he was able to gain control of the yard at the end of one of the railroads. He leveraged that into getting the terminal end of the second road. That gave Rockefeller two near the beginning. Richard Kinder and his partners have 180 terminals.

     

    Cramer said congress will not let the US export crude. This was because producers were trying to get around John D. because he would only let members of The Standard have access to refineries through the terminals he controlled.

     

    Cramer: http://bit.ly/12huvkk
    17 May 2013, 03:37 PM Reply Like
  • I cannot find any reason to hold KMP over KMR. I have owned KMR for many years, and by any measure It has outperformed KMP. Does anyone have any rationale for KMP instead of KMR?
    17 May 2013, 07:46 PM Reply Like
  • Unless you are a trader and not a long term holder, If its "questionable" to buy KMP, EPD or any other stock at its present price, it is equally "questionable" to not sell it, all or some, if you really expect it to fall soon and wish to buy it again at a lower price.

     

    In any case, no one should accept Cramer's or anyone else's recommendations at face value, and Cramer is always telling you this. You must do your own "homework", which is the way that all good performers on CNBC avoid blame and responsibility for their "recommendations".
    18 May 2013, 08:55 AM Reply Like
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