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  • 28 Months Later: A Review Of The Infamous Hedgeye Kinder Morgan Report  [View article]
    Where to start. Individuals tend to see the small picture. Companies need to see the big picture. Oil $80 a barrel no conversation. We are all complaining that a company is doing the right thing for the right reasons. RK reputation damaged for some critics. This is out with his control. He has a plan which I think I identified before I investing, I have not lost any capital as I have sold none of my shares. The dividend cut hurts but it is going to a good cause. I might even buy more to reduce my cost.

    I started buying KMP and found I was paying 39.6% withholding Tax in my Pension Fund. So transferring to KMI saved me a lot of money. It also made KMI an international company that could borrow money anywhere.

    We tend to forget that ordinary shares once sold by the company are subject to Mr Market and the value is subjective. I get a great feeling of manipulation, talk it up talk it down someone is making money. Fear and greed.

    On the positive side should I die tomorrow The Inheritance Tax saving on the difference between $15 and $35 at 40% is not to be sneezed at, and the family still holding the shares.

    The KMI plan is simple extend what they do very well, transmission of goods, Process oil and gas for export. When these terminal get started the price of NG
    will rise. I think Europe alone may buy all that KMI can produce rather than being held over a barrel by the Russians. Then we have China, India, Africa and South America who have not even got off their knees with regard to energy use.
    You should note that the only real way to reduce energy consumption is Birth Control. No one can fix this, so they go for taxes. If there were no subsidy there would be very little green energy. They may be able to control the carbon but it will not be by reducing the volume. Oil and Gas will survive for a long time.

    No real thought has been given to the effect of low fuel cost to the US economy,
    every dollar saved goes to the bottom line, possible higher wages, expansion. You can now afford to travel to find work.

    Just a thought a long one though

    Bob
    Dec 22, 2015. 01:48 PM | 1 Like Like |Link to Comment
  • Scanning The SA Family For Alpha: WmHilger1  [View article]
    Hi RS glad to see you back. The answer is yes to all three questions, but I am an income investor rather than DGI. I have a 121 items. 34 mostly irredeemable fixed interest. 39 Investment Trusts (UK) 48 shares some UK DGI may be a few US. This also includes US Closed funds etc. Started buying US about 2 years ago now have about 20 items. At present market value my funds produce 6.5% income yield and I average about 33 payments a month. At least 80% of the income is reinvested. I have a lot of risk from Mr Market but I ignore this.

    Your way compared to mine is much safer and if I were younger I would follow it.
    Your views on reducing expenditure is spot on.

    Regards Bob
    Oct 10, 2015. 07:14 AM | 4 Likes Like |Link to Comment
  • My Third Quarter 2015 Portfolio Review - Doing Some Buying  [View article]
    Hi Bob
    Thanks for your reply. I think I did not give you enough information. Which capital sum are we trying to protect. I take it is the average cost price. Todays prices swing.
    I am down 7% this year, but the portfolio with income reinvested is up 118% from starting. The income is up 100%, and each year I reinvest the income which represents 15% of the starting capital sum and growing. This is why a Mr Market downturn is a buying opportunity which gets better and better with compounding.

    Regards
    Bob
    Oct 8, 2015. 09:40 AM | Likes Like |Link to Comment
  • My Third Quarter 2015 Portfolio Review - Doing Some Buying  [View article]
    Hi Bob
    Been following you for a few years now and support your principals. I am a income investor more than DGI. So my average is more like 6% yield per year on value at present. As yours is a new portfolio I thought I would let you know of my oldest which appears to be the worst. Running for about 13 years. During these years I had horrendus capital losses but ignored them just kept buying. A few years ago I had a Total return of about 9/10%. I am now back to about 7% loss. My income has increased greatly over the years. More income more buying, this is why Total Return has to be ignored on a yearly basis. Due to dollar cost averaging I think it is impossible for a portfolio such as yours to be judged on Total Return on the short term. The only way is, did more income come in this year compared to last.
    If the answer is yes forget the Capital Value. TR here today gone tomorrow.

    Regards
    Bob
    Oct 7, 2015. 01:47 PM | 1 Like Like |Link to Comment
  • ETN Showdown: Fed Chair Janet Yellen To MORL's Rescue  [View article]
    Congrats James you read the Feds right. We have3 the same situation in the uk. The Bank of England are playing the same game predicting an early rise. I think they worry about people not being able to handle extra intertest on their mortgage, so keep the loans low. Wages have certainly rising here, but material costs have breen dropping, so it kinds of balances out.

    great article as usual

    Bob
    Sep 22, 2015. 11:41 AM | 2 Likes Like |Link to Comment
  • Why Do You Own Kinder Morgan?  [View article]
    Regardless of US markets I think KMI are preparing for massive exports of LNG.
    Gas is cheap in the USA but expensive in europe .Pump it, freeze it and ship it. no one better to do this.
    Bob
    Sep 10, 2015. 05:07 PM | 3 Likes Like |Link to Comment
  • The September Jobs Report Does Not Support A Fed Rate Hike  [View article]
    James your logic is spot on and should apply. The problem is that governments are not always logical The rates are so low not to help industry but to allow the banks to recover at our expense. If they start to make too much profit a symbolic increase may be needed for all these people who prefer cash.This will be a big lobby, as they have either lost plenty or been forced into investing for dividends etc. Now that the banks have learned how to make mega bucks out of low interest rates they will apply the opposite pressure to keep them low. The illogical anticipation of this has produced these weird share valuations. My ETN's and Preference shares have been dropping for months now which is strange as bank rates could take years to come near the yields that they produce if ever.

    Bob
    Sep 7, 2015. 05:33 AM | 1 Like Like |Link to Comment
  • Verizon: One Dow Dog That's Fallen Too Far  [View article]
    The only logic involved, is Holiday Pay Season. The market makers,Brokers advisers
    get most from buying and selling. They grasp at any reason to buy or sell. Interest rate change, Oil and now china. The majority of companies through out the world will benefit from low energy cost, but not a sign of it any where. The next holiday Christmas. If Nov up Dec down Nov down Dec up Santa needs paid. This is why Buy and Hold with Dividend Growth is how to beat them.

    Bob
    Sep 2, 2015. 10:56 AM | 3 Likes Like |Link to Comment
  • How Dividend Reinvestments Will Increase My Cash Flow Over The Coming Year  [View article]
    Another great article. I think compounding is ignored because it is impossible to determine the price you will pay or the yield that you will get over a 0/40 year period. With TR you pick a target percentage and hope for the best. Much easier to sell. Wonder how the TR's felt last week.

    Bob
    Aug 31, 2015. 03:14 PM | 1 Like Like |Link to Comment
  • Kinder Morgan to boost U.S. Jones Act tanker fleet  [View news story]
    US NG very cheap European NG very expensive. KMI ships cheap Gas to Ports from non pipeline areas. KMI becomes major exporter. Gas price rises. KMI Win Win Win.
    Simples.

    Bob
    Aug 10, 2015. 05:35 PM | 2 Likes Like |Link to Comment
  • States ask Obama administration to put power plant rules on hold  [View news story]
    President Obama is trying to leave his mark in history. This would be the wrong way to do it. There is no doubt that mankind is effecting the atmosphere, but no one knows by how much to say that they do is pure arrogance. Global Warming did not fly so they moved onto Climate Change. Now this is a winner as the climate changes every day. So if an earthquake throws hundreds of thousand of tonnes into the air with high temperatures, is this good, bad or man made. Forrest fires do not mention them.

    There are two ways of drastically reducing energy use without closing coal fired
    generators. Energy conservation and efficiency. Population Control. Which no one wishes to think about.

    Three generators 2 running 1 being serviced.
    Demand reduced as described. 1 running 1 standby 1 being serviced massive cut back in pollution.
    America cuts back. India,China, Africa and South America start to motor. They have millions of people who have not had the power to consume that we have, and they will not be denied.

    Bob
    Aug 6, 2015. 12:07 PM | 3 Likes Like |Link to Comment
  • How Much Kinder Morgan Is Too Much For A Dividend Growth Investor?  [View article]
    I have just purchased my last 250 KMI giving me a total of 1500. I am in the UK
    and I have been following KMI for the past year or so. What I see is a company
    preparing themselves for the future. They are going to be very big in energy
    exporting. This energy has to flow to the ports. Europe would rather buy US than Russian or Middle East.

    As for you, slicing off part and spreading the load is probably the right route.

    Interesting article.

    Bob
    Jul 28, 2015. 06:09 AM | 11 Likes Like |Link to Comment
  • Kinder Morgan to buy out Shell's stake in Georgia JV  [View news story]
    I think KMI is really smart. The natural gas and fracking gas is dirt cheap in the US.
    they are going to freeze it and ship it round the world. Europe has been buying from Russia and have been held to ransome on price.

    Shell are building a rig that sits over gas wellheads they will freeze the gas and ship it. No pipelines. It appears there are gas pockets all over the oceans that are to far from land.

    The US will continue to increase their use of NG. I think these are two of the reasons KMI is so confident about their dividend growth.

    I also think that they will get more international investors now that they have consolidated into KMI. I am in the UK and bought KMP. I had to pay 39.6% withholding tax even though it was a pension fund. Now I pay no tax.

    Bob
    Jul 15, 2015. 06:09 PM | 6 Likes Like |Link to Comment
  • Why I Like High-Yield ETFs And ETNs  [View article]
    Hi JB
    First class article. Interestingly when talking about Dividends and Total return they always seem to be talking about individual shares and not portfolio's. No one could predict the buying power of high yield income over a 5,10,15,20,25,30 or 40 year periods. So this is ignored. When I joined SA I had 50/60 items none in the US.

    I now have 117 (19 US) all produce income. Four of my 5 portfolio's are all tax free so this has helped the compounding. I have CEFL BDCL and MORL. I have now bought enough of these and moving on to UTF and UTG. I try to obtain 1000 units of each before I move on.

    Thanks for your contributions very helpful

    Bob
    Jul 15, 2015. 03:14 PM | 2 Likes Like |Link to Comment
  • Happy Birthday! My Dividend Growth Portfolio's 7th Birthday Report  [View article]
    DVK
    I got a batch of uk version of South32. Thought about keeping them until
    I realised no dividend at present. Even worse large holdings in Africa. I sold last week.
    Billiton may have made a very smart risk reduction move.

    Just a thought Bob
    Jun 17, 2015. 12:40 PM | 1 Like Like |Link to Comment
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