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  • Congratulations Covidien: You Escaped In Time [View article]
    Why is it never considered greedy to expropriate the property of others to direct for your own satisfaction? Do what you want with your money and property. Let others direct what happens to theirs.
    Feb 12, 2015. 09:18 AM | 1 Like Like |Link to Comment
  • Kinder Morgan Is An 'Aircraft Carrier', Not A 'Dingy' [View article]
    I cannot give trading advice, just my personal take. I am heavily invested in the warrants because I find it hard to believe that KMI (currently trading around $41) is going to be worth less than $45 in May 2017. KMI expects to raise its dividend 10% a year. If this comes to pass the dividend will be 21% higher. If the stock price tracked the dividend, the warrant value would be more than double today's price.

    There are many risks, however. If interest rates rise, KMI debt may become more costly, projects may be deferred, dividend growth may taper. Also, if higher yields in the future can be had from safer bonds, why invest in riskier KMI for a dividend that is not that much higher? The stock price could suffer. These (and other) risks are likely what is keeping the warrant price low at this point.

    And for many KMI watchers/investors, we still recall the price slump one year ago when KMI was subject to an unwarranted bear attack (suggestions that it was scrimping on its pipeline maintenance budget). Much has happened since then, but even profitable companies can get slammed. I am kind of happy that I picked up a truckload of warrants back then at under $2.
    Feb 4, 2015. 12:31 PM | 2 Likes Like |Link to Comment
  • Kinder Morgan Is An 'Aircraft Carrier', Not A 'Dingy' [View article]
    The flip side though is that when it's cheap to borrow, it is irresponsible not to take advantage of that (so long as the purchases are well-valued and accretive).
    Jan 29, 2015. 06:26 PM | 3 Likes Like |Link to Comment
  • Kinder Morgan Bringing Efficiency To The Bakken [View article]
    I do not think they are the same company. PIONEER ENERGY, INC. is privately held (so far as I can tell). Distinct from PES.
    Jan 26, 2015. 04:58 PM | Likes Like |Link to Comment
  • Kinder Morgan Bringing Efficiency To The Bakken [View article]
    Here is another alternative to flaring natural gas. Pioneer Energy has an onsite system for separating NGLs from methane. It uses the methane to generate electricity, making it easier to power rigs at remote sites, and produces NGLs to sell to market. Transport is still an issue. But this eliminates waste through flaring.
    Jan 23, 2015. 12:51 PM | 2 Likes Like |Link to Comment
  • Saudi Arabia: Do The Math [View article]
    I am amused by people who write as if they know the "real reason" the Saudis are doing what they are doing. It just might be primarily for the reasons they say (to protect market share from North American encroachment) and some of the side effects (weakening Iran and Russia) are just a bonus. Is it also a bonus that OPEC is no longer functioning as a cartel? The Saudis, by not supporting the price, are throwing the other OPEC members under the bus.

    People who claim to know the "real reasons" for things, generally are speculating, having not been in any of the meetings where decisions are made. This is how myths get started, like the myth that Saddam was doing US bidding. The US sold Saddam less military equipment than Denmark. His main supplier was France.
    Dec 23, 2014. 07:27 AM | 2 Likes Like |Link to Comment
  • Saudi Arabia: Do The Math [View article]
    One would think such prices would be a boon to refineries, and yet it seems even they are down (not as much as the producers, but still down). One would think the likes of ALDW and NTI, refineries that exploit proximity to domestic sources, would see higher profits as a result of the drop in crude.
    Dec 23, 2014. 07:21 AM | Likes Like |Link to Comment
  • How Low Can You Go? [View article]
    It was not a vacuous response. As she stated elsewhere, Alaska has military bases. She visited those bases as governor. Any state governor with a foreign border takes into account relations with the other country. I don't think it was meant to imply that she is a foreign policy or military expert, just that any state governor has meetings with foreign gov'ts and foreign interests (in her case, primarily with Canadian oil interests - she negotiated with companies interested in North Slope oil to get a better deal for Alaskans than her predecessor had).

    There is a presumption that all intelligent people must go to Ivy League schools or talk with a particular accent. Hers is a rustic, sing-songy accent. That disqualifies her in the minds of certain people -- those disinclined to consider the meaning of her words. It was used to great but cruel comic effect by Fey, who portrayed the gov't as stupid.

    But I do not defend her suitability as a candidate in general, nor would I expect you to support her political philosophy (conservative). I was just amused that she came early to the conclusion that others are only now admitting to: North American oil production would lower the cost of oil and weaken regimes in the Middle East and Russia whose interests do not coincide with ours (e.g. who do not support freedom, democracy and individual rights).
    Dec 15, 2014. 12:57 PM | 1 Like Like |Link to Comment
  • Saudi Arabia: Do The Math [View article]
    "So it is the 600,000 bpd supply/demand imbalance that is causing all the chaos in the oil markets - a mere 0.7% of total global oil demand."

    The argument against increased domestic drilling by environmentalists has been that 0.7% increase in supply is too small to make a difference so why bother? But allow your bathtub to fill up just 0.7% more than the brim of the tub and see what difference it will make.
    Dec 14, 2014. 01:13 PM | 2 Likes Like |Link to Comment
  • How Low Can You Go? [View article]
    The former vice presidential did not say "I can see Russia from my house." That was Tina Fey pretending to be a dumb Sarah Palin in order to make fun of her.

    We now know that her advocacy of domestic drilling was prescient and those who claimed she was dumb and that her proposal was stupid have been proved wrong. Stubborn people continue to insist on her stupidity despite the evidence to the contrary. That is not rational.
    Dec 14, 2014. 01:06 PM | 2 Likes Like |Link to Comment
  • How Low Can You Go? [View article]
    "When considering the amount of evil introduced into the world as a result of oil profits supporting nefarious activities and various political agendas in countries many of us never even knew existed, the idea that energy self-reliance is paramount strategically becomes tangible. It also should make us wonder why we've essentially ignored doing anything for the past 40 years and why we would delay, even for another second, the ability to break free from a position of submissiveness."

    I remember a certain politician who boiled this down to "Drill, baby, drill!", and got plenty of derision for it. Without cataloging her various foibles, faults and flaws, she was right and gets the last laugh.
    Dec 13, 2014. 07:51 AM | 2 Likes Like |Link to Comment
  • Intel: The Personal Computer Is A Growth Story [View article]
    Windows 8 was a problem, and yet Microsoft shot up farther and faster than Intel.
    Dec 13, 2014. 07:40 AM | 4 Likes Like |Link to Comment
  • Kinder Morgan: Don't Throw Out The Baby With The Bathwater [View article]
    The bid/ask spread on PAA has narrowed, but only because the price dropped even more. My guess is that this is because PAA carries much more oil, both by pipeline and rail.
    Dec 1, 2014. 10:45 AM | Likes Like |Link to Comment
  • Kinder Morgan: Don't Throw Out The Baby With The Bathwater [View article]
    The time to buy KMI/KMR/KMP/EPB was mid-October when the oil scare was peaking and stock prices were plummeting.

    A more intriguing mystery is the persistent decline of PAA, also a pipeline company. It's gotten hammered of late. And there is a $4 bid/ask spread on the near the money Jan 16 options. It's a stock that can't seem to find a rational price.

    But the rationale that supports KMI as a pipeline company somewhat protected from oil price slumps should apply nearly as well to PAA. Why hasn't it?
    Nov 29, 2014. 08:54 PM | 1 Like Like |Link to Comment
  • Ethanol makers cheer as EPA punts on renewable fuel mandate decision [View news story]
    Not many solar jet airplanes either.
    Nov 26, 2014. 01:31 AM | Likes Like |Link to Comment