Kinder Morgan, Inc. : The correction could continue
Entry price | Target | Stop-loss | Potential |
---|
US$23.46 |
US$22 |
US$25 |
+6.22% |
---|
With -45% ytd, the share Kinder Morgan, specializing in operating pipelines and terminals transporting natural gas, crude oil, carbon dioxide, continues to fall in direction of new lowest levels.
The company remains fragile. The group is in a difficult situation with a leverage amounted to 6 for the previous year. In 2015, sales are expected to decline by 9% to USD 14.7 billion. Moreover, forecasts are downgraded by analysts (USD 0.74 for 2015) concerning earnings per share.
Graphically, we see that the stock Kinder Morgan is in a bearish momentum, confirmed by its misguided moving averages. The share seems to fall towards 22 USD, the next support area.
Investors could take a short position with a target around the USD 22 support for a potential gain of 7%. A stop loss will be placed above the USD 25 threshold that would invalidate the bearish strategy.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.