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Rudester

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  • Kinder Morgan: Is The Merger Actually Bad News For KMP Unitholders? [View article]
    May the tax man have mercy.

    Long time KMP unit holder.
    Nov 20 02:20 PM | Likes Like |Link to Comment
  • Kinder Morgan investors approve merger [View news story]
    Read the merger agreement. KMI will be undertaking substantial debt and issue lots of new shares to accomplish the merger.
    Nov 20 02:19 PM | Likes Like |Link to Comment
  • Update: American Realty Capital Properties - Filing Issues Not Going To Help The Stock [View article]
    This article is a regurgitation of old news. Nothing new here. A case of textploitation.
    Nov 20 02:16 PM | 13 Likes Like |Link to Comment
  • Kinder Morgan investors approve merger [View news story]
    May the tax man have mercy.

    A KMP unit holder.
    Nov 20 02:12 PM | 9 Likes Like |Link to Comment
  • Dividend Aristocrats In Focus Part 39: AT&T [View article]
    RAS, I remember reading it. :-)
    Nov 20 11:51 AM | 1 Like Like |Link to Comment
  • Will Portfolio Returns Support Minimum Required Distributions? [View article]
    True enough. I would add that when doing the calculations for determining the best tax strategy, one should take a Time Value approach that accounts for an expected inflation rate. Paying Uncle Sam $1 today costs more than paying him $1 ten years from now.
    Nov 20 11:42 AM | Likes Like |Link to Comment
  • Dividend Aristocrats In Focus Part 39: AT&T [View article]
    Great for current income but its dividend growth, at best, barely keeps up with inflation, if at all.
    Nov 20 10:38 AM | Likes Like |Link to Comment
  • ConocoPhillips: Impressive Dividend, But Little Capital Appreciation Potential At Current Price [View article]
    "...a DRAG analysis demonstrates that the stock likely has minimal capital appreciation potential in the year ahead unless oil prices rebound."

    Can you name a company in this segment of the industry whose capital appreciation potential in the year ahead does not depend on a rebound in oil prices?
    Nov 19 11:04 PM | 4 Likes Like |Link to Comment
  • Kinder Morgan: Is The Merger Actually Bad News For KMP Unitholders? [View article]
    The mixed election is the default.
    Nov 19 10:54 PM | Likes Like |Link to Comment
  • Kinder Morgan: Is The Merger Actually Bad News For KMP Unitholders? [View article]
    You are correct Philip. The tax cost basis in your KMR stock becomes the tax cost basis of the KMI stock received. I don't know what I was thinking when I wrote that.
    Nov 19 10:53 PM | 3 Likes Like |Link to Comment
  • Kinder Morgan: Is The Merger Actually Bad News For KMP Unitholders? [View article]
    I bought KMP for the income, not capital appreciation, and my plan was to never sell it, and pass it on to my son.

    This deal could have been structured as a tax free conversion for unit holders, or by having KMP buy out the general partner, as was done by EPD a few years back. EPD's performance has been superb since they bought the General Partner.

    So, if the merger passes, long term KMP unit holders will see a large tax bill, a follow on larger Medicare insurance payment and likely the additional Obama care tax on income.

    Add to that a significant drop in income as the dividends from the KMI shares are much less than the distributions from KMP and even if the KMI dividend growth rate is as good as they say it will be, it will take at least four years to equal the income KMP provides today.
    Nov 19 05:04 PM | 2 Likes Like |Link to Comment
  • Kinder Morgan Partners gains ahead of merger vote [View news story]
    You are absolutely right EYE1, long time KMP unit holders are getting the shaft on this deal. I voted against the merger.
    Nov 19 04:52 PM | 4 Likes Like |Link to Comment
  • Kinder Morgan Partners gains ahead of merger vote [View news story]
    wedfabcor,

    You are correct in your worries about this. If you read through the voluminous merger agreement document that was sent, you will see a passage where it is stated that, for some time after the merger, a portion of the KMI dividends will actually be considered a return on capital because the dividend payout will exceed earnings.
    Nov 19 04:50 PM | Likes Like |Link to Comment
  • Kinder Morgan: Is The Merger Actually Bad News For KMP Unitholders? [View article]
    stvrob,

    Long term KMR holders do not have a tax liability on their forced conversion of KMR stock into KMI stock. It is a tax free event. If you sell the KMI stock received right after receiving it, the sale is tax free (as the market price will be just about your KMI cost basis). What a sweet deal you are getting!
    Nov 19 04:30 PM | 1 Like Like |Link to Comment
  • Kinder Morgan: Is The Merger Actually Bad News For KMP Unitholders? [View article]
    If you've held a significant stake for a long time in your IRA, you'll be in for a rude awakening. The depreciation recapture will give your UBTI a nice taxable boost this year.
    Nov 19 04:26 PM | 2 Likes Like |Link to Comment
COMMENTS STATS
2,365 Comments
3,658 Likes