by David Kranzler
Investment Research Dynamics
Kinder Morgan has amassed the largest midstream gas transporation asset base in the United States. It did this primarily through the aggressive use of debt issuance to fund acquistions. In order to fund its dividend and related dividend growth rate policy, Kinder issued even more debt rather than pay out a dividend using internally generated funds. This is not unlike a standard Ponzi scheme. It is the view of IRD that Richard Kinder has managed KMI for his personal benefit rather than for the benefit of long term shareholders. IRD recommends selling this stock if you own it and finding other investment ideas if you are considering buying it.