Maybe Ditch the Kinder Waiting Game

 | Apr 18, 2013 | 6:53 PM EDT  | Comments
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Kinder Morgan Energy Partners (KMP) is one of those stocks that you keep thinking "when it comes in I will buy it." But it never comes in. Not even when so many of these MLPs are doing secondaries does it sell off and you know they are total birds of a feather.

And if you saw my interview with Rich Kinder on "Mad Money" you would see why. It's because he anticipates demand like no other. He knows where the oil and gas is and recognizes where it has to be. That's why he always has more money-making projects to do which then allows him to keep raising his distribution which then, of course, drives the stock up, which matters intently to him because he only paid a dollar a share and he has NEVER sold a share!

Kinder's been busy buying the stocks of companies that everyone keeps fretting about because they worry about oil coming down. He bought El Paso and then followed it up immediately with a buy of Copano that hasn't closed yet. He's using Copano to get more lucrative Eagle Ford access because he knows, like Mark Papa from EOG (EOG), that the Eagle Ford is as big as the Bakken, where he had rail lines, or maybe even bigger.

But the two projects that are most exciting for shareholders right now are the Freedom and the Trans Mountain build outs. The former will take cheap oil from the Permian Basin to California, which is starved for domestic crude. The latter could allow Canadian oil to be refined and then sent to California by pipe. Can you imagine how fabulous that would be? New refined product to a state where you can't build a new refinery. It will be a gold mine.

Kinder's the smartest guy in the patch. He has a vision and a killer instinct. He's also now sure that nat gas will be the fuel of the future, which was something he seemed more hesitant about the last times I interviewed him.

Maybe you just have to stop waiting for it to come in and instead just pull the trigger.

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