SOLD

I sold all my shares of Kinder Morgan today. As I mentioned in my older posts, I will be exiting many of my oil stocks that I picked up during the downturn.

I purchased KMI for $12.98 USD on Jan 15, 2016

I sold KMI for $19.97 USD on Jul, 12, 2016 for a 54.12% capital gain in 6 months not including dividends.

It crossed it’s 200 Day moving average so it might move higher on a technical level but whatever to that nonsense.

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The reason I sold this today is two-fold.

1) It sold a jewel of an asset to finance debt on what I see as a bad deal.

2) The Dow, S&P hit new highs. Anytime I read headlines of new highs I start to prepare a bit more for the lows. This is not to say I expect the market to implode tomorrow but as Warren Buffet says “Cash combined with courage in a time of crisis is priceless”. According to Prof. Robert Shiller of Yale University, the market is historically over priced right now.

Shiller P/E: 26.7 (+ 0.76%) as of Jul,12 2016

Shiller P/E is 59.9% higher than the historical mean of 16.7
Implied future annual return: -0.5%
Historical low: 4.8
Historical high: 44.2
S&P 500: 2153.33

I would bet that having near zero interest rates plays a large part in this market but i’m not sure that tells the whole story.

Unfortunately I had very few shares of this. I was never comfortable with the amount of debt they carried and still am not. I bought this as well as another half dozen or so oil stocks that I figured could hold out in the low price environment for a sustained period of time and catch a better price when oil eventually recovered. I thought oil would stay lower for longer so I was only picking up $1000-$2000 per payday and didn’t want to leverage into it.

So far I have only unloaded 2 of my oil companies

Sold-

TSE:TCK.B (+43.23) Sold way too soon!

KMI (+54.12)

Holding and looking to sell-

TSE:ECA  (-36.44) Bought way too soon!

TSE:BTE (+182.91) Bought just right….

Holding and never plan on selling-

TSE:SU (+16.42)

2 thoughts on “SOLD”

    1. Thanks for reading Investment Hunting. I’m not sure where the market is headed right now, seems to me that everyone is saying mixed things. I’m going to keep moving to safety until the market corrects or the earnings go up.

      Steve

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