Monday, October 11, 2010

Bookkeeping: Starting Kinder Morgan Energy Partners (KMP)

I am going the low(er) risk route into the energy space with one of the country's largest master limited partnerships (MLPs), Kinder Morgan Energy Partners (KMP).  The valuation seems extreme to me, but it pays a yield of 6.3% in a world where Bernanke has destroyed all safe havens for yield.

Technically, after basing for the entire months of August and September, it has caught a bid as traders dump much of the hot technology stocks post quarter end window dressing and have moved into energy related stocks.  This is not a fast money type of stock, so I've started with a 3.1% exposure.  As long as it holds the 50 day moving average - I'll stick with the stock.

Kinder Morgan Energy Partners, L.P. owns and manages energy transportation and storage assets in North America.

Long Kinder Morgan Energy Partners in fund; no personal position


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