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KSAccountant

KSAccountant
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  • A Closer Look At Kinder Morgan's Response To Barron's [View article]
    Sadly, audited financials really would not put the charge to rest. The auditor's task for KMP, KMR, and KMI is to assure you, the investor, that KMP, KMR, and KMI have reported to you properly according to GAAP their earnings, expenses, and changes in owner's equity. Accountants normally test the financials using the estimates and models used by the company to make sure the earnings and expenses are properly reported on the financials. Therefore, how Kinder Morgan reports its maintenance and repair expenses versus capital expenditures is a matter of argument that stems out of accounting lingo. Is a $4 million replacement of a pipeline a repair (for standard maintenance of the pipe and thus an operating expense) or is it a capital expenditure (and reported separately on the financial)? One pipeline company might add that $4 million to capital expenditures while another will add the expense to repair/maintenance (i.e. operating expenses). Who is right? Frankly, who cares....operating expenses verses capitalization is merely an accounting trick. Yes, GAAP (Generally Accepted Accounting Principals) do have requirements for reporting capital transactions versus operating transactions...but much gray still exists. Hedge Eye merely exploited that gray area with their short-attack on Kinder Morgan.

    When I research the Kinder Morgan matter, I take into account my workings with an individual who works for a pipeline monitoring company here in Kansas tasked with inspecting and assisting Oneok, Kinder Morgan, Northern Natural, Koch, et el in identifying maintenance points for their pipelines. He has told me the pipeline companies all have VERY STRICT operating orders of how they maintain their pipelines and are required by the EPA to keep maintenance logs and schedules for frequent inspection. He told me his company normally inspects pipelines as little as once a month up to once a day (for some higher volume lines)...and even inspects "dead" pipelines (i.e. those no longer in use). So, why would Koch Industries or Kinder Morgan pay this company to inspect "dead" pipelines? The EPA requires such inspection. Yes...requires! Additionally, any leaks or spillages are met with hefty fines...so much so that it remains in Kinder Morgan's, Oneok's, et el's best interest to properly maintain their pipelines. Therefore, an investor wanting to put to rest the claim by short-sellers that Kinder Morgan is scrimping on maintenance should dig deeper into EPA filings against pipeline companies, in addition to examining the audited financials of each company.
    Feb 26 02:46 PM | 11 Likes Like |Link to Comment
  • 1993's '100 Best Stocks': How They Fared [View article]
    Great article!
    Nov 12 01:03 PM | Likes Like |Link to Comment
  • Hedgeye Report On Kinder Morgan Fails To Impress [View article]
    But from a legal standpoint, the GP assumes 100% of the risk of lawsuits or government action. So if a pipeline blows up a whole town, Kinder Morgan Inc. and all its assets are on the hook for whatever the lawyers or government can get. The LP only loses his/her investment and the lawyers cannot come after their personal assets. I am willing to allow the GP to take more of the money so I have no personal risk other than my investment.
    Sep 18 01:38 PM | Likes Like |Link to Comment
  • The 1 Investment Everyone Should Own [View article]
    DBA, love the name! I share a similar mix of skills (albeit not on as high a level as you). Oh and your comment is spot on too!
    May 20 11:53 AM | 1 Like Like |Link to Comment
  • This New Budget Proposal May Limit Your Annual Retirement Income [View article]
    The ACLU has a political agenda?! Say it ain't so Robert!! I thought they had the best interests of ALL Americans in mind!! :)
    Apr 17 12:33 PM | 1 Like Like |Link to Comment
  • This New Budget Proposal May Limit Your Annual Retirement Income [View article]
    205427, some people arrive at the 30% by including payroll taxes. If one includes such numbers, my effective tax rate is over 30% and I make less than $100,000. Whereas, depending on how a company calculates stock options, most of the time an executive can include those options as capital gain rather than ordinary income and take advantage of the preferential capital gain tax rates.

    However, my main dislike of Buffet is that he is attempting to change the very processes that allowed him to become very rich! I compare such actions to John D Rockefeller siding with the government to pass anti-trust laws!! I used to like Buffet. Now I see him as nothing more than an elitist.
    Apr 14 03:34 AM | 2 Likes Like |Link to Comment
  • This New Budget Proposal May Limit Your Annual Retirement Income [View article]
    Totally agree! But the 15th is so close I can taste it and I am so ready to be out of this office and doing work other than tax returns...it tends to cloud my judgment! :)
    Apr 13 03:45 PM | 1 Like Like |Link to Comment
  • This New Budget Proposal May Limit Your Annual Retirement Income [View article]
    Dave...your financial envy or your..oh never mind! :)
    Apr 13 01:14 PM | 2 Likes Like |Link to Comment
  • This New Budget Proposal May Limit Your Annual Retirement Income [View article]
    David...I do feel sorry for your CPA...you do realize what day Monday is right? Poor guy... :) He, he, he... And...Robert...that was funny. :)

    Going back to David...you have no idea. You sent documents three times. So did I. I had a client whose issue I fixed with one fax and phone call to the SSA but it took one year, multiple calls, and finally the involvement of the Taxpayer Advocate Service to resolve the other side of the issue! So...good luck with that all. :)
    Apr 13 01:11 PM | 1 Like Like |Link to Comment
  • This New Budget Proposal May Limit Your Annual Retirement Income [View article]
    I wish you luck Dave! Only those with something to hide should fear an IRS audit. If you get a nice IRS auditor...you will be just fine.
    Apr 12 05:44 PM | Likes Like |Link to Comment
  • This New Budget Proposal May Limit Your Annual Retirement Income [View article]
    heglimp, yes, it is MUCH leaner...but I think that is because they are much meaner to get to! He, he, he...never turn your back on one...they will get you!

    Dave...sooo...DAD, when can I come over?! :) He, he, he...
    Apr 12 05:34 PM | 1 Like Like |Link to Comment
  • This New Budget Proposal May Limit Your Annual Retirement Income [View article]
    But...if you all think Angus are mean...try buffalo! Yeah...he, he, he...
    Apr 12 12:49 PM | 1 Like Like |Link to Comment
  • This New Budget Proposal May Limit Your Annual Retirement Income [View article]
    heglimp, amen to everything you said! But thanks for making me think of steak just before lunch... :)
    Apr 12 12:48 PM | 1 Like Like |Link to Comment
  • This New Budget Proposal May Limit Your Annual Retirement Income [View article]
    Thanks Dave...now I am hungry!!

    HM...and watching the sun go down and have a small fire crackling at your feet is exactly why I still live in Kansas! :)
    Apr 11 10:24 PM | 3 Likes Like |Link to Comment
  • This New Budget Proposal May Limit Your Annual Retirement Income [View article]
    heglimp, mmmmmmmmm....Angus.... :) Time to fire up the grill for some good 'ole grass fed Kansas beef!!!
    Apr 11 06:35 PM | 1 Like Like |Link to Comment
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