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Author: RustyModem Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 27  
Subject: Re: What is wrong with this Company? Date: 4/21/2000 1:32 PM
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I think the "problem" is also part of the conservitive stragity for KAB.

1.) They are listed as an "oil pipeline services" company. BUT they are more than that.

2.) They are the General Partner in KPP (THE pipeline) and KPP seems to outperform (in price movement) over KAB.

3.) KAB pays no dividends, offers no splits, BUT puts back all available revenue for growth and acquisitions. This is sometimes percieved by investors as negitive since there are faster gains to be made elsewhere.

My take on KAB is that you will never loose. You may not get three stock splits per year but you will get a larger peice of this company per share than you will anywhere else I have seen. (except perhaps for Berkshire)

By owning KAB you have, not only one of the largest pipeline/terminaling companies in North America in KPP, but you also have one of the largest and most trusted companies in pipline services Furmanite:
http://www.furmanite.com/noflash.html

But wait it doesn't stop here....

You also have IT services! Yes that's right KAB holds Ellsworth: http://www.eainet.com/
and Informa Tech: http://www.informatech.net/
And it seems that we are still growing money to make future acquisitions.

I would suggest anyone interested in KAB go to the company web site: http://www.kaneb.com/index.htm and take the online roadshow.

What is _my_ concern about KAB? Well I like to invest in companies that have such good products or services that anyone could run them without effecting profitability. However I believe that the group of people on the BOD at KAB are responsible for the FANTASTIC GROWTH of KAB and if there were any significant change in the BOD I would worry. These guys have taken a very boring buisness, pipline services, and turned it into a cash cow. This couldn't be done by the average joe IMHO.

BTW Please keep this quiet. I still want to buy more at these levels.

Good Luck,
RustyModem
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