Enbridge (ENB.TO)

(A Top Pick Nov 14/13. Up 19.59%.) Chart shows it had a very good upward trend. It could come down further. Didn’t like when he started to see a demand issue in later August-September. This is one of the 1^st places investors will go back to, when the energy picture starts to improve.

Probably the cleanest pipeline with the best rate of growth. Sees about 12% free cash flow growth for the next number of years. Moreover, they are trading at levels in line with their peers. Better assets and better earning visibility, but at peer average valuation.

Has a little of this in some accounts, but only from a legacy position. Has been an extremely well run company, but always sold at somewhat of a premium multiple. His problem is that a lot of the pipelines, at over 20X earnings, look expensive at current levels. The price you are paying today is anticipating a lot of future dividend increases. People should be concerned about how much debt is going to be financed for pipeline growth.

Series ‘F’ preferred share at 4%. (Top Pick Nov 22/13, Up 5.22%) 4.25% rate reset preferred share. He would hold it.

These stocks are extremely overvalued as people look for yield they can’t get in bonds. Thinks this will continue for a decade or more. It is a fine company that is overvalued and could stay so for a long, long time.

(A Top Pick Nov 14/13. Up 21.04%.) In July he had a feeling future earnings might be impacted by the low oil prices, so he exited his position.

The view was that falling oil would mean less Alberta production. To really impact their growth visibility you're going to have to have enormous change in Alberta production. For that you probably need $60 oil. He sees EPS growth of 12% for the next 5 years. Low payout ratio of 43%, so they have plenty of room to revisit their dividend policy, which they might. There is a lot of growth coming from drop-downs. Their earnings are exceptionally high quality. Yield of 2.67%.

Got hit hard today, and he is suspicious that there are starting to be concerns in the marketplace that producers are going to be cutting back their growth projections. This one has a real growth profile over the next couple of years and it is not cheap.

Got hit hard today, and he is suspicious that there are starting to be concerns in the marketplace that producers are going to be cutting back their growth projections. This one has a real growth profile over the next couple of years and it is not cheap.

Pipelines. Are these coming down because the whole market is, or is it more specifically because there is less demand for oil? It is just a general drag by the whole market and the whole market is re-pricing to a lower level. Feels there is going to be continued demand for oil. We have a lot of oil and we have great pipelines. If you can get this at a lower level, that would be great. Historically it has been a very, very good performer.

Getting very close to levels where he would consider buying. If you can get this under $50 and are a long-term holder, you are going to do well with this well managed company.

Long-term hold and is the dividend safe? Doesn’t own this because it is large and when they do have growth projects, it is harder to move the needle relative to some of the smaller companies. They do have some pretty good visible long-term growth and it is looking quite attractive here. He would suggest that you nibble away and leave yourself some room in case it does get cheaper.

Stock has pulled back by about 8%. They have very good earnings visibility on projects that they have in their $33 billion secured backlog with long-term contracts in place. With that backlog, they have now extended their 10%-12% compounded annual growth EPS out to 2018. Along with that, dividend increases, at a minimum, are going to be at the same pace.

In the future (about 2018), earnings growth will go up to 25% according to their investor day recently. It could double by 2020-21. They will probably raise the dividend by December. It will be a safe place to be.

(Top Pick Sep 23/13, Up 24.59%) Bought the IPO in 1952 and still holds it. Has been a 10% total return story for a very long time. Probably has never had the kind of growth ahead of them that they do right now.