Enbridge (ENB.TO)

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.

(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.