Enbridge (ENB.TO)

Has been a little frustrating. Despite the slow incline, it has been pretty orderly and not choppy. We are getting close to a place where some interest will come in, but it might have to go a little lower. The action in late 2015 and early 2016 was pretty significant, and we are not that far away from it. You might be in the ballpark right where it is. There might be a 10% risk from now to the downside, which might be a little higher than what he would like. Prefers Inter Pipeline (IPL-T).

Trying to get producers to market, and the producers have amalgamated and improved things, but the overall effect is not really helping. A very inventive and innovative company. It’s the most aggressive of the Canadian pipeline companies. 5.5% dividend yield.

One of the world’s largest pipeline companies, and a leader in North America in oil transportation. A great, long term company. Has a fair bit of growth projects coming at them. Part of the issue is debt. People are worried they are going to have to raise more equity. There is a chance we could see an equity issue in the next year. With that overhang, the stock may just be going sideways. At these levels, it looks like reasonable value, but don’t expect much upward movement until there is more clarity. If you already own this, you are probably safe in just sitting tight. Dividend yield of 5.5%.

There’ve been negative estimate revisions recently. Ranks 210 out of 700 stocks. Sales were down 39% year-over-year, when they reported on Nov 2. Earnings were down 22%, and estimates have been shaved by 3%. PE is 18X for 2018. Thinks you can find other stocks with rising earnings and free cash flow giving you a better return.

A stock people want to stick in their portfolios in the hope that the price will gradually go up. In the meantime, they are getting the dividend. It had some performance issues lately and the stock suffered. He would prefer something like Fortis (FTS-T), Canadian Utilities (CU-T), Pembina Pipeline (PPL-T) or Keyera (KEY-T), which have good dividends. Dividend yield of 5.5%.

An energy stock, and energy has gone from $100 down to $50. Pipelines, because of the stability of their business models, tend not to get immediate reaction. They’re expanding their heavy oil pipelines into the US, which is good. The company is heavily indebted and requires contracts. Believes the dividend will be increased. If you are going to be energy sector, this is as good a way to play as any. Dividend yield of 5.3%.

Hitting new multiyear lows. When they recently reported 3^rd quarter earnings, they were asked about their dividend policy, where they had indicated they can grow their dividend 10%-12% annually to 2024. That’s been their stance for a number of quarters. The company said they were finalizing plans and would be addressing this at their investors day mid December. Feels this affected the stock. The market does not like uncertainty.

Hasn't liked this for a while. It's not a problem with the company as much as it is with the valuation. All utilities had valuations of around 20X earnings. That was because of the dividend yield. This one has a 225 estimate of earnings, and they pay a dividend of 225. They are paying out all their earnings as dividends. On top of that, when they did the recent US acquisition, they really levered up the balance sheet. The Debt to Operating Cash Flow ratios is about 6 or 7 times. There's not much organic growth.

Thinks a lot of people were buying this at around $49, its 52-week lows, which is usually a bad sign when too many people are too complacent. People are concerned about its debt level. They have normally been telegraphing 10%-12% growth, and have backed away from that and are waiting until Dec 12. This is cheap at 17X. Still has very brisk growth, however, they’ve maintained their guidance. Thinks they have lots of funding abilities through drop downs, asset sales, etc. He would be picking away at this right now.

The Dividend went to 5.1%, which is the highest yield in 10 years, given today’s sell off. They missed by about 3 cents. They confirmed the business for the year. It is really just a postponement until the next quarter so he is not worried about the results. He quite likes it. He is surprised at the reaction. If you miss right now, you get punished.

A great company. Numbers came out yesterday, and were a little light compared to what the Street was expecting, so the stock dropped. Made a large acquisition, which is a bad one, and it has to be integrated. That is straining the company a little. Management is very strong and have executed very well. They are good at buying assets cheaply and integrating them.

If interest rates move up and don’t have the growth, these are not going to participate. Chart is showing an overall downtrend, which hasn’t been broken yet. Until it demonstrates more growth potential, he would wait. Once it breaks the downward trend line, it indicates investors are switching their conception.

A utility and a well run company. There is no particular reason to be super negative on this. There will be dividend increases in the future, and has enough expansion going on that you needn’t be concerned. Dividend yield of 5%.

Pipeline infrastructure. Over the last week or 2, it has pulled back significantly, and he hasn’t seen any rhyme or reason for it. The US acquisition of Spectra Energy gives them a viable pass for growth over the next 5-6 years. Pays a good dividend yield.

They seem to be executing fairly well to increase their capital base. They are going to have more sources of income going forward with a target of significant compound growth rate in earnings and dividends over the next 3 to 5 years. Recent setbacks were more of an opportunity than a sign of worst things to come. If they continue executing well he thinks we could see an appreciation in the 20-25% range in the next 5 years.