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Bull’s Eye Report: Kinder Morgan Management (KMR)

KMR is at a great buy price today


At, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T. Stop Loss
Kinder Morgan Management KMR Oil & Gas Storage & Transportation 7.3 +14.49% $84.81

Why We Like The Stock:

Kinder Morgan Management (NYSE:KMR) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Oil and gas storage and transportation stocks have had a pretty good year so far, as evidenced in positive charts like Spectra Energy (NYSE:SE), Targa Resources Group (NYSE:TRGP), and SemGroup (NYSE:SEMG).

KMR has posted gains mostly in line with the S&P 500, though that is not to say it’s correlated to the market. With a lot of recent chatter about sector rotation into energy, we think now would be a good time to hone in on some attractive energy stocks that have been having a sneaky good year, but also represent nice upside potential and a healthy technical set-up. KMR fits the bill perfectly.

After pulling back from late April highs just north of $90, the stock bounced off of its 50-day moving average and has turned a corner. Currently, the stock has just crossed above all of its major short-term moving averages, a bullish indicator, and is gaining quickly. We like this energy stock for a run back to recent late-April highs, using its 50-day moving average as a guide higher. We would set a stop at May 8 intraday low, as any closing price below this level would break the positive set-up. KMR has a good deal of upside, and could be a great pick if you’re looking for some energy exposure heading into the summer months.

We Would Be Buyers:

At the current price (~$86.87).

Company Profile:

Kinder Morgan Management, LLC is a limited partner in Kinder Morgan Energy Partners, L.P (KMP), and manages and controls its business and affairs pursuant to a delegation of control agreement. Kinder Morgan G.P., Inc., of which Kinder Morgan, Inc. indirectly owns all of the outstanding common equity, is the general partner of Kinder Morgan Energy Partners, L.P. (KMP). Kinder Morgan G.P., Inc., pursuant to a delegation of control agreement among the Company, Kinder Morgan G.P., Inc. and KMP, has delegated to the company, to the fullest extent permitted under Delaware law and KMP’s limited partnership agreement, all of its rights and powers to manage and control the business and affairs of KMP, subject to the general partner’s right to approve specified actions.

Stock Rating: 7.3

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Kinder Morgan Management – Last Three Months


Kinder Morgan Management – Last 12 Months


Kinder Morgan Management – Last Five Years


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At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

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