Enbridge (ENB.TO)

Chart shows a nice run up into early 2013 followed by a corrective period and it held its level of around $41. In a really good space and has the potential to break out. He has a $60 target.

Great company. More recently he has preferred the smaller pipelines. This is getting some traction on Northern Gateway but it is far from certain that it will go ahead. They are more vulnerable because of their low dividend yield to an interest-rate increase than some of the others. You won’t go far wrong by holding this, but if you have made a profit, he would recommend lightening your position a little, and perhaps buying some other pipelines in order to diversify the risk.

Likes but doesn’t know if he would add to his holdings at this price and at this time. Have long-term growth prospects. Should be able to grow its dividend by 10%+. Have just cut guidance a little for 2014. Feels this is just a project timing issue. It will be fine over time. A higher multiple stock and will get hurt when interest rates go up.

Pipeline industry has a very bright future in North America, with all the production that is growing in the US and the Western part of Canada but this is not a super attractive stock. Has done really well, but it’s big and earnings are not going to multiply. Dividend is decent, but not great. If you are going to hold it for a long time, you are probably fine. Better opportunities elsewhere if you want dividends. It may be held back a little bit by US taper talks. Smaller plays that are more nimble could include Keyera (KEY-T) or AltaGas (ALA-T).

Preferred F. 4%. Has had some soft performance over the last couple of months, but there are $7.2 billion preferred shares that are most likely going to get called, in the next 12 months. That represents 13% of the overall preferred share market, and more importantly, over 20% of the rate reset preferred shares that are outstanding. As these get taken out, they have to find a home and he thinks this is one that is going to get a lot of capital going to it.

Right now the politics of everything in terms of new capacity is getting very strained. His view is that long-term, the story is attractive, but if there are any announcements of delays or problems, the stock could be weathering some downside.

Chart shows some support at around $43.50. Really good assets. Thinks the potential is really good. Good risk/reward.

The yield of 2.75% is low but they have tremendously strong committed capital projects over the next 5 years, something like $30 billion.

(Market Call Minute.) Fairly valued and nothing too exciting, but he would Hold.

(Top Pick Oct 4/12, Up 9.81%) Does not give you very many buying opportunities. Stock continues to chug along. Good entry point. They can talk comfortably at investor days about what they are doing for the next 5 to 10 years because they have long term contracts. They have a simple model and do their business incredible well. Can grow dividend 10% a year. They can grow into their price. You are buying it on sale.

Enbridge (ENB-T) or Fortis (FTS-T)? There is no growth in Fortis from an earnings basis. The last 2 acquisitions they did were not accretive at all. Feels that this one has more earnings growth. Big financing obligations over time. An increasingly complicated structure because of all the drop-down entities that they do. If he had to pick one of the 2, it would be this.

Great company and shares have traded off significantly. If you currently own, he isn’t sure you should Sell right now. Likes the growth aspects associated with them. About $26 billion of growth projects over the next 4-6 years that they can tap into. Pretty stable, steady dividend.

Likes it. One of the leaders in terms of new projects. A large part has already been funded. 3% yield and 19% gain.

(A Top Pick October 1/12. Up 13.4%.) Looking for 15% share growth over the next 3 years. Trading at 19X, so given that growth visibility and the rising dividend, it is a pretty good place to be parking capital given the pullback it has had.

(A Top Pick August 27/12. Down 3.79%.) 4% Series H. All 3 picks are down because over the summer, there was a perfect storm of events including 1) the tapering, 2) index rebalances in preferred shares (ETFs must exchange their holdings), which drove prices down and 3) in August there was a program trade go through which drove them down even further. Still likes this one.