Seeking Alpha

Newest Hedgeye report on Kinder companies making little impact

  • Hedgeye's follow-up report on Kinder Morgan (KMI -0.1%) isn't moving shares this time around, unlike the firestorm generated three weeks ago when young Kevin Kaiser called the Kinder companies a "house of cards."
  • In today’s report rebutting Richard Kinder's rebuttal, Kaiser corrects some of the math in his first report but maintains the pipeline operator is "defending the indefensible” and can’t justify its maintenance capital spending policies.
  • The policy creates "an enormous wealth transfer" from Kinder Morgan Partners (KMP +0.3%) to KMI "that should not be taking place," Kaiser says, a "materially misleading" policy that results in KMI "taking hundreds of millions of dollars from KMP every year that it should not."
  • Also, KMR +0.2%, EPD +1.3%.
Comments (28)
  • bigbenorr
    , contributor
    Comments (775) | Send Message
     
    aaaaaand your 15 minutes are up....
    26 Sep 2013, 02:18 PM Reply Like
  • grox01
    , contributor
    Comments (714) | Send Message
     
    Well if true, he should buy KMI.
    26 Sep 2013, 02:20 PM Reply Like
  • Charles A. Smith
    , contributor
    Comments (1118) | Send Message
     
    Sounds like a buy rec on KMI to me...
    26 Sep 2013, 02:20 PM Reply Like
  • Clayton Rulli
    , contributor
    Comments (2656) | Send Message
     
    well technically speaking KMP would not have the assets it does if it weren't for KMI dropping them down to KMP to begin with.
    26 Sep 2013, 02:36 PM Reply Like
  • bspear
    , contributor
    Comments (9) | Send Message
     
    These are the exact same allegations made in the early 2000's by Kurt Wulff - McDep.com. Too much going to KMI and not enough spent on pipeline maintenance. He had a "Strong Sell" on all three: KMI, KMP and KMR, until KMI went private in 2006 after a 100% increase or so. Then he quit covering them - probably out of embarrassment.

     

    Here's one of his calls on Kinder from 2003: http://bit.ly/1ajUIY2
    26 Sep 2013, 02:37 PM Reply Like
  • eddieojr
    , contributor
    Comments (53) | Send Message
     
    Hedgeye and Kaiser are "the house of cards".
    26 Sep 2013, 02:41 PM Reply Like
  • Chancer
    , contributor
    Comments (2922) | Send Message
     
    One eyed jacks.
    26 Sep 2013, 04:28 PM Reply Like
  • linkdonald
    , contributor
    Comments (604) | Send Message
     
    It sounds like Hedgeye would be well advised to check with their legal counsel regarding their possible liability in the event KMI/KMP initiates a "put up or shut up" legal action accompanied by a triple damages request.
    26 Sep 2013, 02:43 PM Reply Like
  • Sumflow
    , contributor
    Comments (3641) | Send Message
     
    > linkdonald :> It sounds like Hedgeye would be well advised to check with their legal counsel<

     

    What rules do you think they have broken?
    26 Sep 2013, 02:53 PM Reply Like
  • Charles A. Smith
    , contributor
    Comments (1118) | Send Message
     
    Why bother with the expense and effort of a lawsuit when simply continuing to build value will grind the shorts into the ground anyway?
    26 Sep 2013, 02:57 PM Reply Like
  • fredj
    , contributor
    Comments (150) | Send Message
     
    You don't need to break any rules in this Country to get sued.
    26 Sep 2013, 03:29 PM Reply Like
  • Chancer
    , contributor
    Comments (2922) | Send Message
     
    I do not like lawsuits. However, in this case, Kevin Kaiser and Hedgeye have demonstrated a pattern of false attacks against companies for the purpose of driving down share prices. They have specifically targeted the complex financial reporting of MLP/energy companies.

     

    If they have done anything illegal, I would like to see them pursued and stopped. No one can believe this will stop with Linn and Kinder Morgan. I am certain they have identified other targets.
    26 Sep 2013, 04:36 PM Reply Like
  • Sumflow
    , contributor
    Comments (3641) | Send Message
     
    I thought they were building a subscription base.

     

    Chancer :> against companies for the purpose of driving down share prices. <

     

    I thought they were building a subscription base. Aren't they doing it to sell newsletter subscriptions. Once the costs are covered, new followers go straight to the bottom line.
    26 Sep 2013, 07:20 PM Reply Like
  • linkdonald
    , contributor
    Comments (604) | Send Message
     
    That's the whole point of checkng with their legal counsel. The way the SEC enforces their rules these days, it's not terribly difficult to be in violation of some provision if you are foolish enough to put a statement of dubious accuracy in writing and the use it to profit. Don't forget, Hedgeye had to "correct" some of their numbers already.
    27 Sep 2013, 10:39 AM Reply Like
  • roy schick
    , contributor
    Comments (30) | Send Message
     
    There is a famous quote about lawyers, when they have no facts, they get louder and louder, or something. I am too busy spending my dividends and distributions from the Kinder companies to look it up. roy
    26 Sep 2013, 02:44 PM Reply Like
  • Disturber
    , contributor
    Comments (178) | Send Message
     
    "If the law is on your side, argue the law. If the facts are on your side, argue the facts. And if neither the facts or the law are on your side, pound the table."

     

    Disturber
    26 Sep 2013, 04:02 PM Reply Like
  • Chancer
    , contributor
    Comments (2922) | Send Message
     
    Kevin Kaiser obviously intends to keep on pounding. He has nothing else.
    26 Sep 2013, 04:31 PM Reply Like
  • Sumflow
    , contributor
    Comments (3641) | Send Message
     
    Time is on his side.
    26 Sep 2013, 07:21 PM Reply Like
  • lmagrish
    , contributor
    Comments (4) | Send Message
     
    What are you trying to do? Another Linn and Linnco short selling profit?
    26 Sep 2013, 03:04 PM Reply Like
  • mydogmoe
    , contributor
    Comments (455) | Send Message
     
    This Kaiser kid needs to try his hand at acting. He's pretty funny...
    26 Sep 2013, 03:19 PM Reply Like
  • virtalex
    , contributor
    Comments (263) | Send Message
     
    Nakedeye is hedged in the fudge ...
    26 Sep 2013, 03:23 PM Reply Like
  • fredj
    , contributor
    Comments (150) | Send Message
     
    Oh boy, his SHORT is not going well. Better drop this one and short FACEBOOK or something. lol.
    26 Sep 2013, 03:30 PM Reply Like
  • dhunter3759sa
    , contributor
    Comments (242) | Send Message
     
    short LNKD or SHLD instead
    26 Sep 2013, 03:52 PM Reply Like
  • jrpah
    , contributor
    Comments (218) | Send Message
     
    KMI shorts are .97% of outstanding shares. I guess shorting KMI was only Kaiser's best idea.
    26 Sep 2013, 03:56 PM Reply Like
  • Sumflow
    , contributor
    Comments (3641) | Send Message
     
    NHtrading from New Hampshire reported Hedgeye's website covered on September 16th.

     

    http://bit.ly/1baPv1V
    26 Sep 2013, 07:30 PM Reply Like
  • juluku
    , contributor
    Comments (16) | Send Message
     
    The short interest in KMR went from 10.8 DTC to 2.5 DTC around same time
    27 Sep 2013, 10:17 AM Reply Like
  • roy schick
    , contributor
    Comments (30) | Send Message
     
    Disturber, Thank you very much for finding the quote. roy
    28 Sep 2013, 05:49 AM Reply Like
  • Disturber
    , contributor
    Comments (178) | Send Message
     
    Roy, I learned it in law school!!

     

    Disturber
    28 Sep 2013, 12:45 PM Reply Like
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