Kinder Morgan Management (KMR): Today's Most Compelling Stock Buy

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SoTM Bull's Eye Report - Today's Most Compelling Buy
Wednesday, May 15, 2013

 

At StateoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.

 



Company


Symbol


Industry

Stock
Rating

YTD
% Gain
S.T.
Stop
Loss
Kinder Morgan Management KMR Oil & Gas Storage & Transportation 7.3 +14.49% $84.81

Why We Like The Stock:

Kinder Morgan Management (KMR) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Oil & Gas Storage & Transportation stocks have had a pretty good year so far, as evidenced in positive charts like Spectra Energy (SE), Targa Resources Group (TRGP), and Semgroup Corp (SEMG). KMR has posted gains mostly in line with the S&P 500, though that is not to say its correlated to the market. With a lot of recent chatter about sector rotation into energy, we think now would be a good time to hone in on some attractive energy stocks that have been having a sneaky good year, but also represent nice upside potential and a healthy technical set-up. KMR fits the bill perfectly. After pulling back from late April highs just north of $90, the stock bounced off of its 50-day moving average and has turned a corner. Currently, the stock has just crossed above all of its major short-term moving averages, a bullish indicator, and is gaining quickly. We like this energy stock for a run back to recent late-April highs, using its 50-day moving average as a guide higher. We would set a stop at May 8th intraday low, as any closing price below this level would break the positive set-up. KMR has a good deal of upside, and could be a great pick if you're looking for some energy exposure heading into the summer months. TRGP SE SEMG
We Would Be Buyers:

At the current price (~$86.87).

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Company Profile:

Kinder Morgan Management, LLC is a limited partner in Kinder Morgan Energy Partners, L.P (KMP), and manages and controls its business and affairs pursuant to a delegation of control agreement. Kinder Morgan G.P., Inc., of which Kinder Morgan, Inc. indirectly owns all of the outstanding common equity, is the general partner of Kinder Morgan Energy Partners, L.P. (KMP). Kinder Morgan G.P., Inc., pursuant to a delegation of control agreement among the Company, Kinder Morgan G.P., Inc. and KMP, has delegated to the Company, to the fullest extent permitted under Delaware law and KMP’s limited partnership agreement, all of its rights and powers to manage and control the business and affairs of KMP, subject to the general partner’s right to approve specified actions.

Stock Rating:

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.

Disclosure:

At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

  Kinder Morgan Management - Last 3 Months

  Kinder Morgan Management - Last 12 Months

  Kinder Morgan Management - Last 5 Years

 

 

 

The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.

Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.

The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.

Employees and affiliates of HCM and Ridge may at times have positions in the securities referred to and may make purchases or sales of these securities while publications are in circulation. Editors will indicate whether they or HCM has a position in stocks or other securities mentioned in any publication. The disclosures will be accurate as of the time of publication and may change thereafter without notice.

Index returns are price only and do not include the reinvestment of dividends. The S&P 500 is a stock market index containing the stocks of 500 large-cap corporations, most of which are US companies. The index is the most notable of the many indices owned and maintained by Standard & Poor's, a division of McGraw-Hill. S&P 500 is used in reference not only to the index but also to the 500 companies that have their common stock included in the index.

Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Commodities

Referenced Stocks: KMR

David Moenning


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