Kinder Morgan: More Downside Risk Than Upside Potential

By 2015, KMI had become a personal cash piggy bank for Richard Kinder. Kinder owns 234 million shares. Before the dividend was cut 75% in late 2015, he was raking in dividend payments at a rate of $468 million per year. Basically he was running the Company like a Ponzi scheme in order to fund his massive personal dividend payout. – Excerpt from IRD’s Kinder Morgan Report

I started working on this Kinder Morgan report in early January.  I have taken my time in assessing the Company’s financials and I wanted to make sure that my thesis about the Company was credible because it is very rare to find anyone who is willing to issue contrarian analysis on KMI

One of the first big red flags for me was raised after I had sent several emails to the Company over the first four weeks of the year in my effort to gather as much information as possible. I also left several voicemails for the investor relations representative. Neither my emails nor my voicemails were returned. There is simply no excuse for this and reflects poorly on the Company. In close to thirty years of involvement in the financial markets, my investor inquiries to a company were ignored only one other time.

I wrote this research report “piece-meal” over time. Interestingly, every time dug deeper into the financials and related available public information, I discovered more problematic aspects than I would have had I written this report in a couple of marathon sessions. Similar to Amazon.com, this Company is complex maze of accounting, propaganda and hype. Each time I peel away a layer of veneer, I find more cracks in the facade.

I’m not necessarily recommending shorting KMI, although I think there’s money to be made on the downside if the price of oil continues lower, which I believe it will. This report explains why you should not buy KMI if you are thinking about it and it explains why you should sell it you still own it. This stock could easily go a lot lower.  Click on image to access this report.  Short Seller Journal subscribers will receive a 66% discount – contact me about this.

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6 thoughts on “Kinder Morgan: More Downside Risk Than Upside Potential

    1. Rickards isn’t exactly discovering plutonium there with that realization. I’ve been saying that for a decade

  1. Gold Keeping The Fed Solvent …

    The Federal Reserve is insolvent at times, and one of the major factors keeping it afloat may just be gold, this according to one best-selling author.

    In his latest book, The New Case for Gold, Jim Rickards shared some key evidence he found in the Fed’s balance sheet that may suggest the yellow metal is a lot more important than the central bank makes it out to be.

    Gold is actually propping up the Fed but nobody wants to talk about it,’ he told Kitco News on the day of his book’s release…

    http://www.kitco.com/news/2016-04-06/Gold-is-Helping-The-Fed-Stay-Solvent-Jim-Rickards-New-Book-Suggests.html

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