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Kinder Morgan Energy (KMP): 'Paragon of consistency'

"Kinder Morgan Energy Partners L.P. (NYSE: KMP) is a paragon of consistency; the stock continues to rise and the company continues to deliver on its expectations," says Jack Adamo.

In his Insiders Plus newsletter, he explains, "The master limited partnership has made great strides in cost controls to compensate for the weak economic environment. When things turn around, it could really take off."

"KMP is one of the largest and most respected pipeline and energy storage LPs in North America. It operates or owns interests in more than 26,000 miles of pipelines and 170 terminals.

Continue reading Kinder Morgan Energy (KMP): 'Paragon of consistency'

Analyst upgrades, downgrades and initiations: BT, NVS, NOK, TXI, MTB ...

Analyst upgrades:
  • Canaccord upgraded Imperial Oil (NYSE: IMO) to Buy from Speculative Buy following an increase in crude oil forecast.
  • BT Group (NYSE: BT) was upgraded to Outperform from Market Perform at Bernstein.
  • Novartis (NYSE: NVS) was upgraded to Overweight from Neutral at JP Morgan.
  • CommVault (NASDAQ: CVLT) was upgraded to Neutral from Sell at Goldman.
  • AvalonBay (NYSE: AVB) was upgraded to Buy from Hold at Sandler O'Neill.

Continue reading Analyst upgrades, downgrades and initiations: BT, NVS, NOK, TXI, MTB ...

Serious Money: Six stocks paying over 6% yields: VZ, DUK, MO, KMP, BWP, NLY

The following list of solid dividend payers are not likely to get anyone excited about future growth prospects like some small cap tech company with a hot IPO, but in these uncertain times being able to diversify into a reliable dividend paying stock might work while you ride out the economic storm.

Bank money market accounts, CD's and treasuries are not all that compelling right now. While it is wise to keep some cash handy in these places, you need not put all your resources there.

Earlier today my colleague Steven Halpern posted a story on the safest dividend payer in the DJIA and
Verizon Communications (NYSE: VZ) paying 6.1% was his conclusion. I recently posted about this stock pointing out the benefits of the communications companies, see: Chasing Value: AT&T and VZ, high yield plus safety

It is to be expected that a utility would show up on the list, given the strong recurring revenue and cash-flow and
Duke Energy (NYSE: DUK) paying 6.39% is that company. I have written many positive posts about Duke and my view has not changed.

Continue reading Serious Money: Six stocks paying over 6% yields: VZ, DUK, MO, KMP, BWP, NLY

Kinder Morgan (KMP): Pipeline profits

"Throughout the credit crisis, we've focused on Kinder Morgan Energy Partners, LP (NYSE: KMP) -- and we've not been disappointed," says Keith Fitz-Gerald in The Money Map Report.

"With the economy in the toilet and prices in the hopper, the notion of going 'long' energy right now might seem like a move that will lower our portfolio returns over the long haul. Not true. In fact, now's precisely the time that you want to establish or add to an energy position.

"Energy is not only an ideal hedge against rough markets, but more importantly, as I have noted repeatedly in recent months, one of the most concentrated upside opportunities available today.

Continue reading Kinder Morgan (KMP): Pipeline profits

Cramer on BloggingStocks: Lots of ways to play sturdiness in natural gas

TheStreet.com's Jim Cramer says if the commodity were going to fall further, it would have done so by now.

Has natural gas hit bottom? One thing that has endlessly plagued this market is the belief that there is no bottom to oil or natural gas.

I think that we are seeing some stickiness in oil in the $50s. I am looking for that to be challenged and held today and tomorrow when inventories are broadcast. But more important, I think there is a place where natural gas is having trouble going down now because it is too cold. We are in the season where natural gas should have fallen more before it got here, because without some sort of unseasonably warm snap, we will now believe that nat gas is permanently above $5 and change, where a whole host of prudent companies, like Equitable (NYSE: EQT) (Cramer's Take) for yield and Ultra (NYSE: UPL) (Cramer's Take) for growth, make a lot of money.

We have more than a couple of ways to play this. Equitable has a decent dividend, one of the rare natural gas E&P companies with one of those. Equitable's finding costs are less than half the current pricing. The conservatives can play it with the Chesapeake (NYSE: CHK) (Cramer's Take) preferred; nice upside while you wait. Another way is Anadarko Pete (NYSE: APC) (Cramer's Take), run by industry stalwart Jim Hackett, who came on "Mad Money" recently and said that his company's oil and gas mixture is equal to about $10 a barrel but the stock is only at $37, and I suspect that it could go back to its $35 price if the oil futures stay this gloomy.

Continue reading Cramer on BloggingStocks: Lots of ways to play sturdiness in natural gas

Cramer on BloggingStocks: Sentiment can't measure this broken market

All my career, the sentiment indicators have worked. When you get anything near minus 10 on the oscillator, you have to be silly not to buy. When you get anything approximating 35% bulls on the Investors Intelligence survey, you have to buy.

We have almost double that negative on the oscillator and half as many bulls as that pathetic number.

Sentiment has become meaningless. It is incredible.

If we are going into a severe recession, some of the selling makes sense, but not all of it. As we pull back to 8500 on the Dow, we will be looking at stocks that are yielding 6% to 7% that are solid and can't be shaken. We will be finding stocks at prices that we will look back and think it was impossible to believe.

And then there will be another cohort where we will buy and then watch them go down again, because business is so soft.

I want to reiterate that the stock market for now is just plain broken. You can't have Occidental Petroleum (NYSE: OXY) down 15% like it is nothing. The company should be losing money with that kind of decline. Remember when I said on Monday that you can't have ExxonMobil (NYSE:XOM) ) go up 10 because it can go down 10 just as easily?

Well, here we go.

Continue reading Cramer on BloggingStocks: Sentiment can't measure this broken market

Election bets: Advisors vote on McCain and Obama stocks

This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.

Which stocks would benefit from a victory by either Senator John McCain or Senator Barack Obama? To help investors sort through the sectors and stocks best positioned to benefit in a post-election environment, we posed this question to some of the nation's leading financial newsletter advisors.

Importantly, this is not a partisan report; each participating advisor has provided a favorite stock for both candidates, focused not on political preferences but unbiased stock analysis. Below we feature those stocks and ETFs that the advisors believe will be the winners depending on which candidate prevails.

McCain Stocks:

Roger Conrad - Comcast (NYSE: CCW)
Gregg Early - Elbit Systems (NASDAQ: ESLT)
Elliott Gue - Paladin Resources (Toronto: PDN)
Doug Fabian - Market Vectors Nuclear Energy (NYSE: NLR)
Vivian Lewis - Barclays (NYSE: BCS)
Bill Martin - CGG Veritas (NYSE: CGV)'
Yiannis Mostrous - Lonking Holdings (OTC: CIMHF)
Carla Pasternak - Eaton Vance Tax-Advantaged Dividend Income Fund (NYSE: EVT)
Nate Pile - SPDR Gold Trust (NYSE: GLD)
John Reese - General Dynamics (NYSE: GD)
Nathan Slaughter - USEC (NYSE: USU)
Paul Tracy - Shaw Group (NYSE: SGR)
Kelley Wright - CenturyTel (NYSE: CTL)
Tom Vass - Molex (NASDAQ: MOLX)
Martin Hutchinson - Northrop Grumman (NYSE: NOC), Merck & Co. (NYSE: MRK), EOG Resources (NYSE: EOG)

Obama Stocks:

Roger Conrad - SunPower (NASDAQ: SPWR)
Gregg Early - AeroVironment (NASDAQ: AVAV)
Elliott Gue - SunPower (NASDAQ: SPWR)
Doug Fabian - Industrial Select Sector SPDR (NYSE: XLI)
Vivian Lewis - Cosan (NYSE: CZZ)
Bill Martin - Geron (NASDAQ: GERN)
Yiannis Mostrous - Dr. Reddy's (NYSE: RDY)
Carla Pasternak - Kinder Morgan Energy Partners (NYSE: KMP)
Nate Pile - Apple (NASDAQ: AAPL)
John Reese - American Eagle (NYSE: AEO)
Nathan Slaughter - Fluor (NYSE: FLR)
Paul Tracy - Market Vectors Global Alternative Energy (NYSE: GEX)
Kelley Wright - Cardinal Health (NYSE: CAH)
Tom Vass - Ingersoll Rand (NYSE: IR)
Martin Hutchinson - Microsoft (NASDAQ: MSFT), Time Warner Inc. (NYSE: TWX), First Solar (NASDAQ: FSLR)

'Kinder' income: Partnerships for steady dividends

"The operations of many energy partnerships have nothing to do with the price of crude and natural gas; they only need to have demand to move and process crude oil and natural gas rather than to pump it out of the ground," explains Neil George.

In his specialized advisory services, The Partnership, he looks at Kinder Morgan Energy Partners (NYSE: KMP) and Kinder Morgan Management (NYSE: KMR).

"Midstream partnerships--those that operate pipelines or storage and processing facilities segments as well as those that invest in these segments--are among the most stable distribution payers.

"And, more importantly right now, they're among the most stable investments in what's become a treacherous stock market.

These middlemen, in between the producers and the consumers, are perhaps the best hedge for your portfolio as they continue to generate hefty cash flows for investors.

"Whether the broad energy market is up or down, these partnerships continue to be all-around successes. Kinder Morgan Energy Partners and Kinder Morgan Management, are Foundation holdings in our portfolio.

Continue reading 'Kinder' income: Partnerships for steady dividends

Gushing gains: Income and growth at Kinder Morgan (KMP)

"Despite sharp intermediate setbacks, the bull market in energy is far from over," says Martin Weiss, editor of the Safe Money Report. Here, he looks at Kinder Morgan Energy Partners LP (NYSE: KMP).

"Earlier, there was some concern that a U.S. recession would dampen worldwide demand for oil, and that could still happen. But right now, the rapidly increasing consumption of crude oil by emerging markets is actually exceeding any declines in industrial nations.

"Kinder Morgan is an energy partnership that transports more than 2 million barrels of energy products every day - gasoline, jet fuel, natural gas liquids and more. It has two additional profit centers: Mammoth oil and gas storage facilities and a business supplying carbon dioxide, which is used to boost production from aging oilfields.

"All three of these businesses can be extremely lucrative in a rising oil market like this one. That's how KMP generated a record profit of $347 million in the first quarter - a big swing from a year-earlier loss of
$150 million.

"Partnerships like Kinder pay out quarterly dividends to 'unit holders' - the equivalent of shareholders in traditional public corporations. And KMP's latest payout is 96 cents per unit, up from 92 cents in the prior quarter and 83 cents a year earlier. The indicated yield is a hefty 6.5%.

"As much as we like KMP, we recognize that energy shares may be extended and could pull back in the near term. So here's what we suggest you do: Buy a half-position in KMP this month. Then hold back an equivalent amount of cash earmarked for a possible second bite at the apple later."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

Cramer on BloggingStocks: Oil's not the widespread tax it used to be

TheStreet.com's Jim Cramer says lots of companies now thrive with crude up here.

Oil's not a tax on everything -- it's a tax on the consumer. That's what I come down to when I see the charts this weekend and ponder what's happening in so much of industrial America.

Company after company that I examine -- the new techs, as I call them -- actually benefit from higher oil prices. Or they can pass them on with ease, because of the worldwide demand being so strong.

Take all of the companies involved with making a Boeing (NYSE: BA) (Cramer's Take): Boeing itself, Alcoa (NYSE: AA) (Cramer's Take), Honeywell (NYSE: HON) (Cramer's Take) and Precision Castparts (NYSE: PCP) (Cramer's Take) being good examples. Each of these is necessary because the new Dreamliner burns lots less fuel, and with fuel the biggest airline cost, it stands to reason that higher energy prices make the plane more desirable even at a higher price point.

Or how about all of the companies involved with process and flow control and efficient motors: Parker-Hannifin (NYSE: PH) (Cramer's Take), Emerson (NYSE: EMR) (Cramer's Take), Eaton (NYSE: ETN) (Cramer's Take) and Flowserve (NYSE: FLS) (Cramer's Take). Those work higher with higher energy prices. CSX (NYSE: CSX) (Cramer's Take), Burlington Northern (NYSE: BNI) (Cramer's Take), Kansas City Southern (NYSE: KSU) (Cramer's Take), Union Pacific (NYSE: UNP) (Cramer's Take) and Norfolk Southern (NYSE: NSC) (Cramer's Take) are smaller energy users than trucks, and they ship plenty of ethanol and fertilizer.

Continue reading Cramer on BloggingStocks: Oil's not the widespread tax it used to be

Income expert focuses on 'partnership' profits in energy

"We don't have to leave the US to find plenty of bargain buys in partnerships and pass-throughs," says Neil George in his new specialty service designed for income investors, The Partnership Letter.

In his search for "solid, heavy-cash-generating assets," the advisor takes a look at two of his new portfolio holdings, Kinder Morgan Energy Partners (NYSE: KMP) and Kinder Morgan Management (NYSE: KMR).

"Right now plenty of partnerships and pass-through entities in the US and around the world are down in price. The real work comes in finding and buying partnerships that have solid, heavy-cash-generating assets that make for bargains.

"And they need to pass two other tests. The first is that they need to be financially sustainable. With the ongoing credit crunch, partnerships we own need to be able to carry themselves without having to face a cash crunch.

"The second test is one of business sustainability: Can the operation behind the partnership keep running and expanding even if the global economy slows? are widely held by investors. And though neither has been relegated to the bargain, both represent solid deals.

Continue reading Income expert focuses on 'partnership' profits in energy

Best Stocks for 2008: Pipeline profits from Kinder Morgan Partners (KMP)

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"My favorite conservative recommendation for 2008 is Kinder Morgan Energy Partners (NYSE: KMP)," says Elliott Gue, editor of The Energy Strategist.

"Kinder has four basic business lines: oil pipelines and terminals, carbon dioxide (CO2) pipelines, natural gas pipelines and refined products pipes.

"Refined products pipelines are among the most stable assets a firm can own. Typically, they're dedicated to servicing a particular group of refineries, and volumes tend to grow at a slow but predictable rate over time. In Kinder's case, this is a simple, fee-based business. The company owns the valuable Plantation Pipeline that carries refined products from Gulf Coast refineries to the Mid-Atlantic.

"And the company's Pacific Pipeline carries refined products west to California. The West Coast is one area of the US that's chronically short of refining capacity. Pipelines carrying refined products from the Gulf are the only way California keeps moving.

Continue reading Best Stocks for 2008: Pipeline profits from Kinder Morgan Partners (KMP)

Best energy ideas: High yields from Kinder Morgan (KMP)

"More than two years after selling Kinder Morgan Energy Partners (NYSE: KMP) for a 60% gain, we are once again buying the shares," says Bill Martin in his FindProfit advisory newsletter.

He explains, "A heavily diversified operator of pipeline and other energy-related assets and the largest master limited partnership (MLP) in the U.S., KMP currently has a 6.85% yield that we think will grow to 7.5% or greater in 2008 based on the current stock price.

"This growth will be powered by a deep portfolio of new growth projects, most notably the company's Rockies Express pipeline, Mid-Continent Express Pipeline, and Trans Mountain pipeline.

"KMP is extremely well positioned to benefit from the prime sources of North American energy supply growth over the next several years, including the Barnett Shale in Texas, the Rocky Mountains, the oil sands of Canada, and the new LNG import facilities in Texas and Louisiana.

"KMP also should benefit from higher oil prices over the next two years in its CO2 segment. Together, these projects should enable KMP to grow its distribution payout rate by 7-9% per year over the next several years.

Continue reading Best energy ideas: High yields from Kinder Morgan (KMP)

Best energy ideas: Favorites from the newsletter advisors

What are the best energy investments for long-term investors? To answer this question, I surveyed 20 of the nation's leading financial newsletter advisors to find their current favorite ideas in the energy sector.

Interestingly, the advisors see the best opportunities in areas well beyond traditional oil firms; indeed, no one included in this report chose a major integrated oil company. Rather, the advisors have shown a preference for various oil services sectors, non-oil energy sources, and developing alternative technologies.

Some focus on areas such as deep-sea operations with Diamond Offshore Drilling Inc. (NYSE: DO), Transocean Inc. (NYSE: RIG) and Oceaneering International (NYSE: OII), while others look toward oil shippers such as Nordic American Tanker Shipping (NYSE: NAT) and refiners such as Valero Energy Corp. (NYSE: VLO).

Others chose companies that make specific products needed by the oil & gas industries such as NATCO Group Inc. (NYSE: NTG), which makes a wide range of oil & gas processing systems; Dresser-Rand Group Inc. (NYSE: DRC), a maker of control systems; Gardner Denver Inc. (NYSE: GDI), which makes compressor and fluid transfer systems; Tenaris (NYSE: TS), a maker of pipes and tublar products and Schlumberger Ltd. (NYSE: SLB), the largest and most diversified of the oil services companies.

Continue reading Best energy ideas: Favorites from the newsletter advisors

Analyst initiations: MPEL, HELE, LHCG and OFG

MOST NOTEWORTHY: Melco PBL Entertainment, Helen of Troy, LHC Group and Oriental Financial were today's noteworthy initiations:
  • Jefferies initiated shares of Melco PBL Entertainment (NASDAQ: MPEL) with a Buy rating and $21 target, as they believe the possibility of A-Max, a VIP junket consolidator, moving up to 10 junkets to the Crown Casino could lead to short-term gains and notes that MPEL is the only Macau pure play in the U.S. stock market.
  • Jefferies also started shares of Helen of Troy (NASDAQ: HELE) with a Hold rating and $21 target, as they sees risks to near-term EPS from soft consumer demand and gross margin pressures.
  • Credit Suisse expects LHC Group's (NASDAQ: LHCG) rural-focused strategy and joint venture partnerships to drive organic growth and started shares off with an Outperform rating and $26 target.
  • Oriental Financial Group (NYSE: OFG) was initiated at B. Riley with a Neutral rating and $12.50 target. The firm does not expect significant multiple expansion from current levels given the slow Puerto Rican economy.
OTHER INITIATIONS:

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Last updated: November 27, 2009: 04:04 AM

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