Kinder Morgan is a buy today, as the shares are being sold in a panic.
First – let’s talk about panic. Because I’ve gotten more stressed messages on Kinder Morgan Inc. after my recommendation of the shares at $21 Wednesday than on just about anything else in my career.
If it helps you, whatever you’ve got in KMI or are down in KMI is likely much less than what I’ve got and what I’m down.
Now, take a breath (or a vodka shot) or whatever else you do to chill out and have a look.
Next, realize that panic is not logical. For me, I pick a number that’s stupid, take two dollars off of that and start buying. I know I’m not likely going to “pick a bottom” – I DO KNOW that I am going to be buying value.
Kinder Morgan is a $28 stock to me – all day. So, when it goes into panic mode, I say “OK, I’ll buy at $21, again at $18 and – if the world gets so stupid, again at $15”
Yes, I bought again this morning, if you’re asking.
The price of Kinder stock is now well below even the most pessimistic lower targets of any analyst I know of. We know that OPEC’s rumours of a quota RAISE was a supercharged knife in the heart of US and Canadian producers, adding to the MLP panic. And it will bring about the capitulation in production they were hoping to see already in non-OPEC players.
Because US production has managed to sidestep low prices for…