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Qniform

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  • Occidental Petroleum - Time To Close Pandora's Box [View article]
    I think that the legal climate is moving toward claw backs for spins that go wrong in hindsight. The question is what fact set will be included in the question. Offloading future liability is already in precedent, e.g. http://tinyurl.com/nvs.... I'm sure lawyers are lining up plaintiffs.

    Will a debt load be considered similarly when viewed after the fact? Inquiring minds will want to watch out...
    Aug 31, 2015. 12:57 AM | Likes Like |Link to Comment
  • Conversation With Kinder Morgan's Management Re: Distributable Cash Flow [View article]
    In the context of a discussion board that may be a distinction without a difference, counselor. It certainly doesn't read that way. In any case, good luck Steve.
    Aug 30, 2015. 12:10 PM | Likes Like |Link to Comment
  • Conversation With Kinder Morgan's Management Re: Distributable Cash Flow [View article]
    I don't think you are at all harsh, shermantr. Nor irrational. :)

    Helpful perspective, IMO.
    Aug 30, 2015. 11:24 AM | Likes Like |Link to Comment
  • Conversation With Kinder Morgan's Management Re: Distributable Cash Flow [View article]
    Mike, Steve - maybe you'll point out the irrational comments? Or does disagreement = irrational?
    Aug 30, 2015. 12:11 AM | Likes Like |Link to Comment
  • Valley National: 4.74% Yield And Near-Term Visible EPS Expansion [View article]
    Yes TK, good point. Given the metrics, it isn't cheap enough even yet.
    Aug 29, 2015. 09:58 AM | Likes Like |Link to Comment
  • Conversation With Kinder Morgan's Management Re: Distributable Cash Flow [View article]
    Well let's see... if I own a ton of an asset I might be interested in maintaining a perception that maximizes the value of my holding, right?

    And incidentally, folks make much of the fact that he spent about $15.3mm on shares in the past year but that is significantly less than 5% of the dividends received.
    Aug 29, 2015. 12:08 AM | 3 Likes Like |Link to Comment
  • Conversation With Kinder Morgan's Management Re: Distributable Cash Flow [View article]
    Quite a long answer, and I'd say that anyone who invests in the space ought to understand the basic fundamentals you described. Since you didn't do so, I'll provide the tax figure for the quarter ended 6/30/15 (after the assimilation of KMP). It was $189mm. This was slightly more than the year ago (6/30/14) tax of $178mm. I'd venture to say that the run rate of corporate tax will be at least $680mm. You seem to think that is immaterial, but it is in addition to what the shareholders will pay individually, which as you pointed out, would likely have been far less under the "legal structure" of KMP.
    Aug 28, 2015. 07:41 PM | Likes Like |Link to Comment
  • Conversation With Kinder Morgan's Management Re: Distributable Cash Flow [View article]
    Steve, since you always use the phrase "operation of a pipeline..." I grant you that operationally they will be the same. But perhaps you will answer why a tax advantaged structure (i.e. MLP) makes no difference? That structure was specifically created by congress to encourage investment in energy infrastructure.

    How much corporate tax does KMI pay? How much corporate tax did KMP ever pay? Maybe you will share why that has no impact on DCF?
    Aug 28, 2015. 05:34 PM | Likes Like |Link to Comment
  • Conversation With Kinder Morgan's Management Re: Distributable Cash Flow [View article]
    That is what I have been saying as well RLP. Is it a moot point since they have tax benefits that will negate the distinction? I don't think so. After all they don't have NOLs (so zero tax), just adjustments to basis, right? Whatever the amount of tax that is paid, it is more than an MLP pays.

    Is KMI management relying on investors' desire to believe their point of view? I think the answer is 'yes' based on the unsolicited Investor Relations input to this article. Is that misleading? Probably not in a legal sense, but I'm not buying KMI now anyway.

    The really big question is, if they will massage the presentation of reality in this regard, what would they do about the allocation of capex (i.e. maintenance vs. expansion)? That is a temptation to the entire industry, I think (not to mention other similar industries). It will undoubtedly blow someone up at some point.
    Aug 28, 2015. 10:30 AM | 2 Likes Like |Link to Comment
  • Conversation With Kinder Morgan's Management Re: Distributable Cash Flow [View article]
    Sorry RH, I missed the 9 month label. So, the correct dividend payout amount was $3.0 billion. BTW, very nice work.

    A rhetorical question for all - should it be expected that the current commodity environment will produce stronger cash flows in time to meet the projected payout growth?
    Aug 28, 2015. 10:02 AM | 1 Like Like |Link to Comment
  • Conversation With Kinder Morgan's Management Re: Distributable Cash Flow [View article]
    TTM dividends were $3.959 billion. That's more than either the "reported" or the author's "sustainable" calculation. Management's numbers show they pay about 110% of DCF, and the author's figure shows more like 135%.
    Aug 28, 2015. 01:13 AM | 1 Like Like |Link to Comment
  • Get Your Smart Beta Here! Dividend Growth Stocks As 'Strategic Beta' Investments [View article]
    Ckent, I don't think that is a fair assessment of the what happened with the discourse. If you look at the first comment here http://seekingalpha.co... you might agree that it didn't deserve the reply here http://seekingalpha.co....

    Of course, the piling on (so common among those involved) resulted in an admittedly lamentable trajectory. No surprise to those who see the same thing repeated again and again.
    Aug 26, 2015. 09:23 PM | 2 Likes Like |Link to Comment
  • Investors Should Expect A Bid Of At Least $70 For Williams Companies [View article]
    indy, I've been long WMB for several years. I am not selling, since my thesis is based on the transport capacity from the NE shale they control. Based on the planned roll up of the MLP into WMB I added WPZ. I have been using the extreme weakness to write OTM puts on both - essentially committing to get longer if they reach the strike prices. I'm not buying shares directly yet since if this is actually a larger market correction this sector, already showing relative weakness, will go lower. Make no mistake - the "toll road" argument for WMB and similar companies is clearly discounted by the market. What happens to Williams if their customers slow? Do some DD on this list http://bit.ly/1MSFfAJ. Nevertheless, I like the assets a lot.

    That is only my thinking, but you should ask yourself what your risk tolerance is. If you buy now could you handle WMB going to $35 or lower? If they ultimately cut their dividend that is not such a remote outcome at this point. Maybe you could take your desired position increase in 25% increments.
    Aug 26, 2015. 12:09 AM | Likes Like |Link to Comment
  • Technicals Say The Worst Is Not Yet Over - Cramer's Mad Money (8/24/15) [View article]
    Wow. Technical analysis AND Cramer...

    I am almost prostrate before such credibility.
    Aug 25, 2015. 11:30 AM | 1 Like Like |Link to Comment
  • Why I Sold These 4 Slow-Growing REITs [View article]
    Of course, this article and the comments (in general) focus on share price and yield without any regard to the fundamental business prospects of any of the companies discussed. What are the sectors represented? Geographic and currency diversification? Catalysts for share price appreciation? What are the reasons for growth or lack of same? Without thinking about these (and other) factors, this is simply an arrangement of numbers untethered to investment rationale.
    Aug 25, 2015. 11:23 AM | 1 Like Like |Link to Comment
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