Dan Dicker, Energy contributor at TheStreet, recants his recommendation of Kinder Morgan (KMI) that he made last week at $21 a share. With the announced 75% reduction in the dividend, Kinder has chosen to restore confidence in their bond holders, but at the expense of their shareholders, who have been using KMI as a income vehicle. Despite the dividend cut which normally signal even lower share prices, Kinder shares have traded substantially higher today, based upon what Dicker believes is a short-covering rally. He now recommends using that rally to get out of short-term investments in the stock, as the nature of the company has changed from an income producer to a utility-like growth stock. He also wonders if other midstream MLP's will be forced to follow suit with substantial dividend cuts.
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