The Bright Gleam of Victory from the Kinder Morgan Dividend Cut

Kinder Morgan dramatically cut its dividend after the bell today, by 75% in fact, in a move which smacks of a firm in financial distress.  Earlier today, we noted the stock was yielding more than 13%, rendering it either an irresistible bargain or, alternatively, a firm on the cusp of an imminent dividend cut. Clearly, we have our answer now, as the stock sold off below $15 after-hours in reaction to the cut. 

To circle back to the idea of whether the MLPs and indeed many of the seemingly distressed energy-related firms are now bargains, or if there is more dramatic pain to come first, Winton Churchill's famous,"The Bright Gleam of Victory" speech comes to mind, on November, 10, 1942 at Mansion House, London.

So where are we in the cycle of energy firms/MLPs slashing their eye-popping dividends and/or some going out of business, but eventually getting us closer to a lovely "buy the blood in the streets" moment? 

To quote Mr. Churchill in that speech:

"Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning."

Put another way, we are getting there. "There," meaning a terrific long-term entry buy point. But, we are not likely there yet, nor are we likely at the point where we should have our helmets on, ready to fly into battle at a moment's notice. Let's see a few more KMI-esque announcements, first. 

The end of the beginning, indeed.