In a recent presentation at VALUEx Vail 2018, Tomas Stone of Newstone Investments, L.L.C discussed the investment potential of Kinder Morgan (KMI), an energy toll road company. Stone’s analysis highlighted KMI’s potential value as a result of several factors.
Despite being well-covered by sell-side analysts and having a current market cap of 38 billion, KMI has been undervalued due to past management actions that have deterred investors. However, Stone outlined a number of unfolding events that could create an opportunity for value investors. These events include the end of dilutive share issuance, deleveraging, increasing dividends at a 25% compound rate, and 2 billion in stock buybacks.
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