SOLD

I sold all my shares of Kinder Morgan today. As I mentioned in my older posts, I will be exiting many of my oil stocks that I picked up during the downturn.

I purchased KMI for $12.98 USD on Jan 15, 2016

I sold KMI for $19.97 USD on Jul, 12, 2016 for a 54.12% capital gain in 6 months not including dividends.

It crossed it’s 200 Day moving average so it might move higher on a technical level but whatever to that nonsense.

The reason I sold this today is two-fold.

1) It sold a jewel of an asset to finance debt on what I see as a bad deal.

2) The Dow, S&P hit new highs. Anytime I read headlines of new highs I start to prepare a bit more for the lows. This is not to say I expect the market to implode tomorrow but as Warren Buffet says “Cash combined with courage in a time of crisis is priceless”. According to Prof. Robert Shiller of Yale University, the market is historically over priced right now.

Shiller P/E: 26.7 (+ 0.76%) as of Jul,12 2016

Shiller P/E is 59.9% higher than the historical mean of 16.7
Implied future annual return: -0.5%
Historical low: 4.8
Historical high: 44.2
S&P 500: 2153.33

I would bet that having near zero interest rates plays a large part in this market but i’m not sure that tells the whole story.

Unfortunately I had very few shares of this. I was never comfortable with the amount of debt they carried and still am not. I bought this as well as another half dozen or so oil stocks that I figured could hold out in the low price environment for a sustained period of time and catch a better price when oil eventually recovered. I thought oil would stay lower for longer so I was only picking up $1000-$2000 per payday and didn’t want to leverage into it.

So far I have only unloaded 2 of my oil companies

Sold-

TSE:TCK.B (+43.23) Sold way too soon!

KMI (+54.12)

Holding and looking to sell-

TSE:ECA  (-36.44) Bought way too soon!

TSE:BTE (+182.91) Bought just right….

Holding and never plan on selling-

TSE:SU (+16.42)