Seeking Alpha

21thomas99

21thomas99
Send Message
View as an RSS Feed
View 21thomas99's Comments BY TICKER:
Latest  |  Highest rated
  • Rich Kinder: 'The Kinder Morgan Game Plan Is Still On Track' [View article]
    Hello, Ry1982.

    I know you did not direct this question to me; however, I would be able to give you a better response than Pie.

    Given the nature of KMI's business (i.e., pipelines and other such infrastructure), the p/e ratio is not a valuable metric in evaluating KMI. This applies to all midstream companies, not just KMI.

    KMI, as a pipeline and storage company, generates lots of DD&A every fiscal period. Such high amounts of depreciation and amortization will always reduce its paper earnings, resulting in a skewed P/E.

    I say "paper" earnings only because of the accounting mechanics of DD&A. Looking at the Statement of Cash Flow, you will see DD&A does not reduce any money coming into, or increasing any money leaving, KMI.

    To smooth out this skewness, simply add DD&A back in and then recalculate the P/E.

    I hope this helps!
    Apr 18, 2015. 04:53 PM | 2 Likes Like |Link to Comment
  • Rich Kinder: 'The Kinder Morgan Game Plan Is Still On Track' [View article]
    'And, yes, KMI is priced like a REIT or an MLP inasmuch as they pay no corporate taxes and the share price is purely a function of the dividend.' 'Something to be considered when comparing it [KMI] another company with a 4.8% dividend which has more traditional and conservative financial ratios.'
    --Aren't these two statements at odds with each other? Why compare the metrics of a company in one industry to a company in a different industry? After all, different indutries have different dynamics, leading to an apples to oranges comparison.
    '...has a levered balance sheet, and retains none of its earnings...'. 'and it pays out virtually all of its "funds available for distribution".' --While you were discussing KMI, the above-reference from your comment also describes virtually any REIT. In short, do you go on such campaigns against REITs as well, or just against KMI?
    Apr 18, 2015. 04:36 PM | 1 Like Like |Link to Comment
  • Rich Kinder: 'The Kinder Morgan Game Plan Is Still On Track' [View article]
    Pie,

    Where is your admittance in how you should have been in any other security but KMR? All you do is cry about your tax bill from an investment you made.
    Apr 18, 2015. 04:25 PM | 6 Likes Like |Link to Comment
  • Kinder Morgan posts mixed quarter, hikes dividend [View news story]
    A large part of the share dilution came from the merging of all the KM entities into KMI.
    Apr 18, 2015. 12:02 PM | Likes Like |Link to Comment
  • Part 2: Money Making Lessons From The 2014 Data For Midstream MLP Investing [View article]
    KMR was never an MLP. KMR was setup for institutional investors to invest in KMP. KMRs assets consisted only of KMP units.
    Feb 7, 2015. 10:01 AM | Likes Like |Link to Comment
  • Peering Through The KMI Dividend Crystal Ball [View article]
    Uncle,

    A quick question: Will you please explain what you mean by "tax shenanigans"?
    Jan 24, 2015. 09:29 AM | 4 Likes Like |Link to Comment
  • Peering Through The KMI Dividend Crystal Ball [View article]
    Uncle,

    If these other companies are so much "better," then why is it KMI still gets all the attention?
    Jan 24, 2015. 09:27 AM | 2 Likes Like |Link to Comment
  • Peering Through The KMI Dividend Crystal Ball [View article]
    Rado,

    Richard Kinder was not fired from Enron. Kinder was told he was not a part of the succession plan, after Lay told Kinder he was. Thus, Kinder quit.
    Jan 24, 2015. 09:25 AM | 7 Likes Like |Link to Comment
  • Wall Street Breakfast: China Posts Slowest Growth In Decades [View article]
    Aren't Capital Gains in an IRA excluded from taxes?
    Jan 20, 2015. 09:32 AM | 7 Likes Like |Link to Comment
  • The Most Predictable REITs In 2015 [View article]
    Ripen beat Gerhig's record for Co seductive games played.
    Dec 29, 2014. 04:35 PM | Likes Like |Link to Comment
  • 3M Likely To See Continued Growth In Coming Years [View article]
    Tomm H,

    You must be living the dream: You never make mistakes or are careless with anything. If you have been guilty of either, you definitely would not attack others for doing the same. Or, would you?
    Dec 6, 2014. 09:42 AM | 1 Like Like |Link to Comment
  • The REIT Way To Feast On Dividends And Sleep Well At Night [View article]
    Anonymous2,

    mREITs usually are not included in Brad's articles as he tends to shun these types of securities on account of their fundamentals.

    Brad has written why he shies away from mREITs, it's just a matter of looking through his articles to find the one(s) covering these particular holdings.
    Nov 26, 2014. 05:02 PM | Likes Like |Link to Comment
  • Kinder Morgan: Another Domino Falls Into Place [View article]
    Simply only as an addendum, David, these pipeline assets were left unused by Enron. Enron, at that time, was leaving behind this part of the business and going into energy trading.
    Nov 17, 2014. 05:28 PM | Likes Like |Link to Comment
  • REITs Are Prime-Time Players, Baby! [View article]
    ClubRob,

    You need to revisit the definition of a "ponzi scheme."

    Make sure it is the actual definition, as opposed to some contrived meaning.
    Nov 14, 2014. 07:55 PM | 1 Like Like |Link to Comment
  • We've Become Very Interested In Kinder Morgan [View article]
    As an update, this lawsuit was dismissed by in Delaware court. As the judge said to the plaintiff(s?),
    You have no case.'
    Nov 6, 2014. 03:59 PM | 5 Likes Like |Link to Comment
COMMENTS STATS
412 Comments
645 Likes