Company executives and board members might sell some of their shares for any number of reasons. But there’s really only one reason they buy more: an expectation that the stock will deliver gains. That’s why insider buying can be more telling than insider selling. Nobody knows High-Yield Investing portfolio holding Kinder Morgan (NYSE: KMI) better than the firm’s Chairman and co-founder Richard Kinder. It speaks volumes that Kinder has been gobbling up huge blocks of KMI shares all year. And he has stepped it up the past couple of months, buying 300,000 shares on October 29, another 300,000 on October 31, another 300,000… Read More
Company executives and board members might sell some of their shares for any number of reasons. But there’s really only one reason they buy more: an expectation that the stock will deliver gains. That’s why insider buying can be more telling than insider selling. Nobody knows High-Yield Investing portfolio holding Kinder Morgan (NYSE: KMI) better than the firm’s Chairman and co-founder Richard Kinder. It speaks volumes that Kinder has been gobbling up huge blocks of KMI shares all year. And he has stepped it up the past couple of months, buying 300,000 shares on October 29, another 300,000 on October 31, another 300,000 on November 11, and then 300,000 more on November 26. He’s not the only bull in the Kinder Morgan executive lounge. On November 20, director Sarofim Fayez put up $4 million of this own money to buy 200,000 shares near $20 per share. This enthusiastic insider buying is a reassuring vote of confidence. Management continues to “eat its own cooking” and now owns about 15% of the outstanding shares. And I share their optimism wholeheartedly. The Case For KMI Record U.S. natural gas production is playing right into Kinder Morgan’s strength. After all, the firm’s vast pipeline system handles roughly… Read More