Scott had asked for a comparison of three stocks operating under the Kinder Morgan banner. On June 16, 2014 an analysis of Kinder Morgan Inc. (KMI NYSE) was published followed on June 18 with an analysis of Kinder Morgan Energy Partners L.P. (KMP NYSE) . Today we will conclude the assignment with an examination of Kinder Morgan Management LLC. (KMR NYSE).
KMR is a limited partner in Kinder Morgan Energy Partners L.P (KMP NYSE). What should be evident is that Kinder Morgan Inc. (KMI NYSE) weaves a series of relationships with the entities that it controls. When I see these sorts of intertwined entities I always advise that you need to be comfortable with the arrangement. KMR does not issue distributions in cash but rather in the form of additional shares in the company.
An inspection of the charts for KMR will help in comparing it against the other two stocks already profiled.
The three- year chart portrays a stock that topped out in May of 2013 near $90.00 and then began a ten month long retreat. In March of 2014 the shares retested support at $69.50 and caught a bounce taking it through resistance along the 50 and 200-day moving averages. The move higher has breached the downtrend line and now KMR needs to break above resistance at $77.50 to continue the advance.
The six-month chart depicts the buy and sell signals generated by the MACD and the RSI in the period of March through June. What is also evident is that we are the verge of a golden cross but are not quite there yet.
Over the course of conducting the analysis on these three stocks and which proved to be the most advantageous the research indicates that from a total return over an extended period that KMP is the winner. The compounded average total return since inception is 23%. The average return for KMR since inception is 14 % while KMI clocks in at 8%.
Make it a profitable day and happy capitalism!