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

Serious Money: Six stocks paying over 6% yields: VZ, DUK, MO, KMP, BWP, NLY originally appeared on BloggingStocks on Tue, 07 Jul 2009 14:40:00 EST. Please see our terms for use of feeds.

"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

Kinder Morgan (KMP): Pipeline profits originally appeared on BloggingStocks on Thu, 16 Apr 2009 13:00:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• 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.

• JP Morgan initiated Eagle Rock Energy (NASDAQ: EROC), Kinder Morgan Energy Partners (NYSE: KMP), MarkWest Energy Partners (NYSE: MWE) and Plains All American Pipeline (NYSE: PAA) with Neutral ratings.
  
• Bernstein initiated Sprint Nextel Corporation (NYSE: S), AT&T (NYSE: T) and Verizon Communications (NYSE: VZ) with Market Perform ratings and targets of $21, $47 and $44, respectively.

Analyst initiations: MPEL, HELE, LHCG and OFG originally appeared on BloggingStocks on Thu, 18 Oct 2007 11:20:00 EST. Please see our terms for use of feeds.

Copano Energy (NASDAQ: CPNO) - Volatility Elevated into EPS & lower energy prices. CPNO is an energy company with natural gas gathering and intrastate transmission pipeline assets and natural gas processing facilities Oklahoma & Texas Gulf coast region. WTI Crude futures are down 3.56% to $72.79 according to Track Data. CPNO will announce EPS on 8/8. CPNO August option implied volatility of 41 is above its 12-week average of 20 according to Track Data, suggesting larger risk.

Enterprise Products (NYSE: EPD) - Implied volatility of 40 above 26-week average of 17. EPD transports natural gas, NGL's and crude oil through more than 35,000 miles of onshore and offshore pipelines. EPD September put implied volatility of 40 is above its 26-week average of 17 according to Track Data, suggesting larger risk.

Kinder Morgan Energy Partners (NYSE: KMP) - September volatility Elevated. KMP owns or operates 26,000 miles of pipelines and approximately 150 terminals. KMP September option implied volatility of 50 is above its 26-week average of 14 according to Track Data, suggesting larger risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update: Energy pipeline companies volatility Elevated originally appeared on BloggingStocks on Mon, 06 Aug 2007 17:45:00 EST. Please see our terms for use of feeds.

• Leap Wireless International Inc. (NASDAQ: LEAP) was initiated with an Outperform rating and $103 target at Pacific Crest, as the firm believes the company's long-term opportunity with new-market expansion is underappreciated.
• Pacific Crest also initiated shares of Ceragon Networks Ltd. (NASDAQ: CRNT) with an Outperform rating and $12 target, as the firm believes accelerating wireless data growth is driving backhaul demand.
• Cinemark Holdings Inc. (NYSE: CNK) was initiated with an Overweight rating at Morgan Stanley, a Buy rating and $21 target at Banc of America and a Buy rating at Merrill Lynch; Banc of America believes the current box office strength could drive upside to estimates.
• Morgan Stanley also initiated shares of Regal Entertainment Group (NYSE: RGC) with an Equal Weight rating.
• Ocean Power Technologies Inc. (NASDAQ: OPTT) was initiated with a Buy rating and $24 target at Banc of America and a Neutral rating at First Albany.

• Telanetix Inc. (NASDAQ: TNXI) was initiated with a Buy rating and $8.50 target at Kaufman Bros, as the firm believes the company's market opportunity is significant and thinks it could be an interesting acquisition target if the telepresence market development accelerates.
• Banc of America initiated shares of OceanFreight Inc. (NASDAQ: OCNF) with a Buy rating and $23 target.
• Goldman Sachs initiated shares of Kinder Morgan Energy Partners (NYSE: KMP) with a Neutral rating and $54 target and shares of Kinder Morgan Management (NYSE: KMR) with a Neutral rating and $53 target.
• Deutsche Bank initiated shares of Guess Inc. (NYSE: GES) with a Buy rating and $49 target.

Analyst initiations 6-4-07: Guess initiated with Buy originally appeared on BloggingStocks on Mon, 04 Jun 2007 11:53:00 EST. Please see our terms for use of feeds.

The massive $22 billion buyout of Kinder Morgan Inc. (NYSE:KMI) is certainly moving along -- despite the complexities. According to a piece in the Houston Chronicle, the company gained antitrust clearance from the Federal Trade Commission.

However, there were some interesting negotiations. You see, two of its private equity investors, The Carlyle Group and Riverstone Holdings, also have an ownership interest in a competitor to Kinder Morgan, Magellan Midstream Partners.

Interestingly enough, the private equity firms did not have to sell-off their stake in Magellan. Instead, the will have only a passive involvement with the company. This means no board representation and access to confidential information.

But, the fact remains that Carlyle and Riverstone will still have influence on Magellan because of its significant ownership. Yet, this does not appear to be a big deal for the FTC.

Tom Taulli is the author of various books, including the Compete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Private equity's growing entanglements originally appeared on BloggingStocks on Mon, 29 Jan 2007 11:10:00 EST. Please see our terms for use of feeds.

Private equity, in my opinion, is the juiciest of all the financial sectors. While venture capital is more baldly a gamble -- after all, something like 10% of investments actually pay out handsomely -- private equity is a quieter, stuffier, much, much larger gamble. It makes my blood gurgle with excitement.

Private equity firms have been gambling big, of late, and, according to the Wall Street Journal [subscription required] at this wee hour of the morning, they might do even more so by orchestrating an LBO of Harrah's Entertainment, Inc. (NYSE:HET). Naturally, the biggie of all private equity gamblers, Texas Pacific Group, is rumored to be involved in the talks to buy out Harrah's, which has a $12.34 billion market value and $10.2 billion in debt. Now there's some leverage.

While this would certainly be the biggest casino company ever bought out by a private equity group, it wouldn't be the first casino company -- Colony Capital, also rumored to be in on discussions, has bought several properties in Atlantic City and Las Vegas -- or the first huge gamble. After all, there's HCA Inc. ($21.3 billion), in my mind (and I was analyst on many a hospital deal in my time in investment banking) a huge hospital management company like HCA is a huge gamble. In hospitals you have two very egocentric, impossible-to-predict, and money-hungry groups pulling your cash flow this way and that: doctors and the U.S. government. Ick.

Continue reading Private equity is so totally a gamble: Harrah's LBO?

Private equity is so totally a gamble: Harrah's LBO? originally appeared on BloggingStocks on Mon, 02 Oct 2006 04:13:00 EST. Please see our terms for use of feeds.

GE after the bell 8/16/06: energy acquisitions driving the stock up? originally appeared on BloggingStocks on Wed, 16 Aug 2006 17:00:00 EST. Please see our terms for use of feeds.

The stock market is an amazing thing. On a macro level, it provides instant feedback on a myriad of things - such as inflation, interest rates and economic growth. And, as the stock market has globalized and become increasingly electronic, the responses can be brutally quick and deep - as we've seen lately.

What is an investor to do?  Well, in fast-changing markets, it's easy for emotions to take control. When markets boom, the temptation is to be greedy.  When markets tank, fear rules.

Actually, in bad markets, it's a good idea to see what smart people are doing. In fact, I think it's ironic that yesterday - when the Dow plunged 184 points - a super entrepreneur, Richard Kinder, announced he was going to buy his company, Kinder Morgan, for $100 per share and take it off the NYSE. It's a deal valued in excess of $13 billion.  Why do this unless he is bullish?

Continue reading In down markets, buy quality -- that's what the pros do

In down markets, buy quality -- that's what the pros do originally appeared on BloggingStocks on Wed, 31 May 2006 09:06:00 EST. Please see our terms for use of feeds.