"Throughout the credit crisis, we've focused on Kinder Morgan Energy Partners, LP (NYSE: KMP) -- and we've not been disappointed," says Keith Fitz-Gerald in The Money Map Report.
"With the economy in the toilet and prices in the hopper, the notion of going 'long' energy right now might seem like a move that will lower our portfolio returns over the long haul. Not true.
"In fact, now's precisely the time that you want to establish or add to an energy position.
"Energy is not only an ideal hedge against rough markets, but more importantly, as I have noted repeatedly in recent months, one of the most concentrated upside opportunities available today.
"Further, energy has been cheap enough for long enough that most people have lost track of it. And anytime that happens, there are incredible bargains to be had. Like now.
"Kinder Morgan has not only proven to be far more stable than the broader markets, but it's also been growing at a time when lesser choices are worried about survival.
"The Houston, Texas-based MLP owns and manages energy transportation and storage assets in North America including gasoline, diesel fuel, jet fuel and other natural gas liquids. It's a really simple business in that they take 'stuff' into their pipelines and charge a fee for moving it.
"Because KMP derives the bulk of its revenues from transportation, it's not very sensitive to underlying energy prices.
"Which means, ironically enough, that KMP is not only in a position to increase the prices when the world recovers, but they'll be in a position to push their already healthy 9.40% yield even higher. And that, naturally, is a recipe for continued capital appreciation."
The Stock Advisors
www.thestockadvisors.com
"With the economy in the toilet and prices in the hopper, the notion of going 'long' energy right now might seem like a move that will lower our portfolio returns over the long haul. Not true.
"In fact, now's precisely the time that you want to establish or add to an energy position.
"Energy is not only an ideal hedge against rough markets, but more importantly, as I have noted repeatedly in recent months, one of the most concentrated upside opportunities available today.
"Further, energy has been cheap enough for long enough that most people have lost track of it. And anytime that happens, there are incredible bargains to be had. Like now.
"Kinder Morgan has not only proven to be far more stable than the broader markets, but it's also been growing at a time when lesser choices are worried about survival.
"The Houston, Texas-based MLP owns and manages energy transportation and storage assets in North America including gasoline, diesel fuel, jet fuel and other natural gas liquids. It's a really simple business in that they take 'stuff' into their pipelines and charge a fee for moving it.
"Because KMP derives the bulk of its revenues from transportation, it's not very sensitive to underlying energy prices.
"Which means, ironically enough, that KMP is not only in a position to increase the prices when the world recovers, but they'll be in a position to push their already healthy 9.40% yield even higher. And that, naturally, is a recipe for continued capital appreciation."
The Stock Advisors
www.thestockadvisors.com
