This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks That Could Be Trampled

Stocks in this article: HCA KMI BKU DNKN KOS

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player


4. Kinder Morgan (KMI)  

Like HCA, Kinder Morgan has had multiple stints as a private and public company, with its most recent buyout occurring in a 2006 management-led buyout valued at $22 billion that included a consortium of private equity investors.  On Feb. 11, 2011, Kinder Morgan returned to public markets in a $2.86 billion initial public offering of 95 million shares, according to Bloomberg data  

Since its February initial public offering, Kinder Morgan has been the most aggressive player in the pipeline space, cutting a $21.1 billion deal for competitor El Paso (EP) that will help to make the company the largest transporter of gas in the U.S. Earlier in 2012, Kinder Morgan sold El Paso's oil and gas exploration unit to Apollo Global Management for over $7 billion, in one of the biggest post-crisis private equity investments. However, the merger faced scrutiny on potential conflicts of interest. Still, Kinder Morgan's ascendance into a pipeline powerhouse has been rewarded by a 20% stock gain since the company's IPO.  

On Tuesday Bank of America Merrill Lynch analyst Gabriel Moreen downgraded the Kinder Morgan shares to "underperform," while lifting his price target to $33 a share, 10% below Tuesday trading prices, on the company's growth prospects and a big overhang of private equity shareholdings. "We see the $12bn in private equity ownership in Kinder Morgan as an overhang," noted Moreen in his report.  

Overall, Kinder Morgan is expected to earn $9.2 billion in 2012 revenue and $885 million in profit, according to analysts polled by Bloomberg who give shares an average price target of $35.50 -- below Tuesday's close of $36.75.  Six analysts rate Kinder Morgan shares a "buy," while five rate the company a "hold" and two rate shares a "sell."  

Company Chairman and Chief Executive Richard Kinder retains a 33.67% stake in Kinder Morgan after its IPO, or 238 million shares. Kinder and a consortium of private equity investors that includes Goldman Sachs (GS) and The Carlyle Group, among others, owns over 80% of the company's outstanding shares according to Bloomberg data.

3 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,360.30 +291.43 1.71%
S&P 500 2,003.79 +31.05 1.57%
NASDAQ 4,622.6380 +74.8040 1.64%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs