This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Kinder Morgan Holds Steady After IPO

NEW YORK ( TheStreet) -- Shares of pipeline transportation and energy storage company Kinder Morgan (KMI - Get Report) have been ticking lower since its first-day closing price, but remains above its initial public offering price of $30.

Shares of the company were flat at $30.93 during afternoon trading.

"As new issues trade, there's a lot of dancing and courting by investors and the company," said financial modeling and valuation expert Scott Rostan, a principal and founder of training at Training The Street and Merrill Lynch alum. "There's a natural ebb and flow that often happens."

Rostan added that the weakness can also be attributable to a healthy run-up in the market in general -- and profit taking. That the stock continues to trade above its offering price is a good sign, he noted.

Kinder Morgan made its debut as one of the hottest IPOs so far this year. Last Friday, the day after its price offering was announced, shares of the company ended the trading session at $31.05, up 3.5%.

Morningstar analyst Jason Stevens noted in a report that he thinks Kinder Morgan will be able to raise dividend payments by nearly 11% annually, from the annualized $1.16 figure Morningstar expects for 2011. The analyst is impressed with Kinder Morgan's assets, which he describes as "attractive, consistent cash-flow generators."

Last Thursday, the company said its initial public offering of 95.5 million shares was priced at $30 -- above the expected range.

The company had expected to offer 80 million shares.

In total, the company raised $2.9 billion from the IPO.

If overallotments are exercised, the deal could raise up to $3.3 billion, making Kinder Morgan's IPO the largest energy IPO of the decade and the largest IPO this year, Stevens noted in his report.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ZA $0.46 0.00%
GS $166.18 1.26%
KMI $17.59 -0.96%
AAPL $93.64 -0.11%
FB $118.57 0.84%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs