Enbridge (ENB.TO)

They have been hurt because they are interest sensitive. They were a market darling until they bought a US company to be more diversified. Their balance sheet got bloated. It got way overdone on the downside. All they did was bring down the expectations. He bought more this month. (Analysts’ target: $52.85).

Pipelines have been suffering the past year, because they are less economically sensitive stocks during an accelerating economy. So, investors are shifting money into other sectors that are accelerating. Enbridge isn't benefitting from the oil rally. (Buy Suncor or CNQ for that.) You'll get your dividend and this is a well-run company, but ENB is a good house in a bad neighbourhood.

Investors have not been ganging up to buy it. It has had considerable downside pressure. He does not agree it is in any worse shape than competitors. He thinks it is over sold right now and reflects nice value.

He thinks the resource space if very good value. Controversial now, but the cash flow is very stable if you are patient. Yield 6.6%. (Analysts’ price target is $52.85 )

One of the most widely held names in Canada and disappointing to many. They bought Spectra, and there are concerns about their debt level. Enbridge has some enticing value now, but has a dividend near 7%, which gives him pause. He needs to see the price fix itself, then he'll pounce on it.

They introduced this into the portfolio a couple of quarters ago and admits it has been underwhelming so far. He is drawn to the irreplaceable nature of the assets that move about 2/3 of the oil out of Western Canada. The dividend was increased in February by 10% and the company has committed to a 10% annual increase in the dividend until 2021. The Line 3 expansion should get regulatory approval by the Public Utilities Commission of Minnesota sometime in Q2. They have placed $10 billion of Spectra assets up for sale. Yield 7%.

Has a $52 target and has added to his holdings recently. It's solid on an ongoing basis. Likes how they've diversified across North America. Solid dividend payer.

They tried to raise $1.5 billion to fund growth this year, but raised only half. He hopes they work this out. They've tapped out the institutional market. Be careful. Fears they have to sell things to pay down debt, yet still must pay their dividend. Could lead to a slippery slope. Dividend of 6.8%.

It is symptomatic of the Canadian Market. They have a 7% dividend. Maybe the market is seeing this properly and it is down for a reason. It is possible. More probably is that interest rates are low long enough that it should not be trading at this level. He thinks the dividend can grow over the next 7 years There is value all over this name.

There is a lot of debt but pretty stable assets. It is becoming increasingly difficult to build pipelines and they have them. They own pretty good franchises. Maybe a little overleveraged but it will be largely taken care of. Many US and international investors are taking money off Canada because of the stupid things our Government is doing.

Pipelines and utilities have been hit with rising interest rates, as well as an pessimistic Canadian oil outlook. He believes ENB will come online on-time in March 2019 with their big pipeline expansion project. This will boost its earnings and cash flow and lessen its leverage level. Current yield and multiple presents an opportunity. He sees upside down the road. Be patient for the next 12 months.

He thinks the threat of higher interest rates is hurting this. The potential tax on LLPs in the US is also impacting value. He thinks there is negative sentiment on big Canadian companies looking to do bid projects in the US. He thinks management is doing a fine job and the dividend is not at risk.

This is a name he has been looking at to see how far a defensive stock can fall. It has come back to previous support and he sees $40 as a key point. He saw a 50% chance of a further push down towards $35, so they have not bought in -- yet. Yield 6.9%.

(A Top Pick June 20/17, Down 19%) The global investor has left the Canadian market. ENB has raised a lot of money to make acquisitions and have big projects underway. He's bought a little more and sees a $57-60 target.

They are working through several issues, especially deleveraging their balance sheet. Enbridge was seen as a rock-solid company but he is not comfortable with it at this time because of its debt.