Enbridge (ENB.TO)

Transferring their liquid gas business into their Enbridge Income Fund (ENF-T). Over 5 years, there has been a tremendous growth in liquids. The income fund is really more of a pure yield play, which is why it has done a little bit better. In both cases they are businesses that are tied to yields without a lot of volatility. Very richly valued. He would avoid these areas.

Stock vs. Stock. ENB-T vs. ENF-T. There was movement of assets between ENB-T and ENF-T and you saw that affect valuation. Prefers ENF-T right now.

They are dropping down their Canadian Liquids operation to their Enbridge Income Fund (ENF-T). She doesn’t have all the details. Thinks Enbridge Income Fund is going to have to raise some debt. She really likes management. Very good visibility in their backlog. Have indicated they are going to grow their earnings 10%-12% over the next few years, and their dividend in excess of that.

Will be transferring many of their pipeline assets down to their income trust. There is a little bit of tax arbitrage happening here. He is Short this. It is expensive, trading at 20X earnings. Management has done a phenomenal job of growing over the past 25-30 years and everyone loves it. When everyone loves something, that is the time to get out. There is a lot of risk with this company.

Stock vs. Stock. ENB-T vs. TRP-T. His preference is ENB-T. Seems like a better growth profile that is easier to predict. An easier way to make money going forward.

Income stock. The dividend keeps going up and there is no reason to not keep owning this stock. TRP-T is his preferred pipeline but he keeps ENB-T for clients who own it.

This fits into the energy infrastructure space. When a group goes out of favour, what you always want to do is look for the absolute leader in the group, the one that holds up better than the rest, the one with better fundamental characteristics, and he would probably make this one the leader in that space. This stock has held in remarkably well, it has very good sponsorship and a great history in their dividend. If he were going to own one, it would be this.

BCE (BCE-T) or Enbridge (ENB-T) for upside? BCE is the less expensive name and this one has the most growth going forward. This one would be her preference.

A good business and they have good projects. They are increasing their dividend at about 10%+ a year.

Likes the preferred, reset shares. If he was going to be in bonds it would be 1 to 2 year maturities so what he did was to get the yields up by taking high grade preferreds instead. He likes them in general.

Series 13 preferreds. What has made them fall below par so quickly after being issued in July? Current prices $23.38. The bank rate, plus falling global bond yields pushed the Canada 5 year yield to .7 today. It has been a sharp fall of over 1.7% from a year ago. Anything that is reset is reset from the five-year Government of Canada bond. It is probably too late to sell.

(A Top Pick Jan 3/14. Up 35.56%.) Started to get a little nervous in July. Sold his holdings via a trailing stop.

He has significant holdings in the pipeline sector. Sees continuing growth there. There is enough demand for transportation. It is not going to be affected by oil prices intermediate term. One of the better managed pipelines. The dividend looks safe and he expects increases in the future.

He owns TRP-T everywhere and this one in some accounts. It kind of got a little expensive and some projects are starting to become ‘iffy’. It is near its all time high and he would hold on to it. The company is well run and they are doing the right things here. As a bond or preferred share holder you are getting screwed, but the common is fine.

Pipelines. ENB-T is very expensive. It is the most expensive in 35 years. $ 35.62 model price, -35%. These things are very, very expensive.