Kinder Morgan Detractor Says Pipeline Owner Is `Falling Knife'
- Hedgeye says Kinder Morgan's value is less than $10 a share
- Analyst Kevin Kaiser has urged investors to sell for 2 years
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The Hedgeye Risk Management stock analyst whose criticism wiped $2 billion off Kinder Morgan Inc.’s value two years ago said shares in the largest North American pipeline operator are still more than 40 percent overvalued.
Kevin Kaiser, an analyst at Stamford, Connecticut-based Hedgeye, said Kinder Morgan’s 29 percent plunge so far this month may not have run its course. The company slashed its dividend by 74 percent this week amid concern that future cash flows may not be sufficient to finance growth and service a $41 billion debt load that exceeds the entire economic output of nations such as Bolivia or Bahrain.