Enbridge (ENB.TO)

(A Top Pick Jan 3/14. Up 25.19%.) He got out of all of his energy holdings at the end of June, early July. It looked like we were starting to get into issues of demand. The supply kind of hit him in the summer.

Has just recently gone to a new high which is a very good sign. Typically most energy stocks do very well from the end of January right through until May of each year. We are not into a period of seasonal strength yet, but are getting close so you want to continue to hold this. Technicals are also good. Look to buy on any kind of weakness in the next month or so.

How can this company take money out of Enbridge stocks and put it into the income fund, and how does that affect shareholders? He understands that they are going to put it into a private Corp first and then merge that with the income fund, which is an existing listed company. There is no rush to make a quick decision. Just sit back and wait for more clarity on how this is going to work out. The market liked the news initially.

ENB-T vs. ENF-T. Owns some of ENB in some client accounts. It will be a dividend and income story. Look at TRP-T also.

(A Top Pick Oct 17/13. Up 27.11%.) Still one of his core names. Have a great ability to raise the dividend nicely over 5-10 years. He likes that they do a great job of returning money. Big pipelines get all the headlines, but this is able to do 100 million here, 150 million there and they just keep adding, adding, adding, which ends up to cash flow for shareholders.

(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.