A couple weeks ago, we came up with a buy list in After Hours with Option Addict that included Kinder Morgan. After looking over Appaloosa’s 13F, it made sense to really look at this idea a little closer.
According to the fund’s latest 13-F filing made on Friday, Tepper bought 9.4 million shares of energy company Kinder Morgan, whose shares are roughly flat this year even as commodity prices have fallen. The fund bought 4.3 million shares of natural gas and oil exploration company Southwestern Energy Co. who’s shares have climbed 25 percent this year.
He also bought 2.3 million shares of Williams Partners LP, which has tumbled 50 percent, and added 3.5 million shares of natural resource company Freeport-McMoRan, whose stock has dropped 18 percent this year.
The stock has built a multi-month base down here, and did not follow many energy stocks to low lows as of late. I’m a big fan of that type of relative strength.
What intrigues me most about so many plays in this space, is the profiles that have been made with these sharp moves lower over the years. Fast moves down leave very little history in terms of price and volume, and technical analysis focuses a lot on the memory of price.
This stock has very little price history going all the way up to $20, should it decide to break out of this range it’s been in.
Disclaimer: I nibbled in March 15 calls today.
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My cost basis including divies, put buys, & call sales against this 2% position is around 24.50.
Expecting them to do well once /NG exports show up in the weekly injection numbers.
Oh, & the “He-Man” wink bump is always a help.
This is not only a great trade but also a great investment. The 2 Motley Fool brothers have recommended and recommended KMI 3 times in the last 2 months. I’m currently loading the boat on any pullbacks$$$. Target $28-30.
I’m deciding between KMI & TRN.
TRN undoubtedly more stable & has more cash.
KMI better upside with good dividend.