Kinder Morgan has amassed the largest midstream gas transporation asset base in the United States. It did this primarily through the aggressive use of debt issuance to fund acquistions. In order to fund its dividend and related dividend growth rate policy, Kinder issued even more debt rather than pay out a dividend using internally generated funds. This is not unlike a standard Ponzi scheme. It is the view of IRD that Richard Kinder has managed KMI for his personal benefit rather than for the benefit of long term shareholders. IRD recommends selling this stock if you own it and finding other investment ideas if you are considering buying it.
Click here for access to this report: IRD’s Kinder Morgan Report
Off topic, but:
Has your friend Paul Craig Roberts gone off the deep end? I already mentioned about one of his article before in which he slammed Judge Scalia, claiming that he HATED the US Constitution & was the architect of US Police State.
Now in the last few days, he has written articles praising Karl Marx, Vladimir Lenin, Pol Pot, Nicolas Maduro (of Venezuela), Che Guevara & few others. I’ve great respect for Paul Craig Roberts, especially his economic & historical knowledge. For example, some of his work about Dulles Brothers as architects of CIA & its evil global plots, J Edgar Hoover as architect of FBI etc have been fantastic. So have been his inputs on fascist trade deals like TPP, NAFTA etc., as well as gold price manipulation articles you published along with him. And tons and tons of his great body of work, of categories too numerous to mention.
But something with his recent communist – socialist – collectivist worship makes me wonder if he was really in Ronald Reagan’s cabinet OR if old age senility has gotten hold of him & sadly he is beginning to lose it very fast.