Enbridge (ENB.TO)

(Market Call Minute.) Pulled back because of the rising interest rates. There is still very good visibility in cash flow growth as well as dividend growth.

(A Top Pick Oct 1/12. Up 21.77%.) $37 billion of mostly secured growth projects over the next 4 years. Not much interest-rate sensitivity. Expect you will see more dividend growth and capital appreciation over time.

(A Top Pick June 27/12. Up 18.11%.) He added to his holdings during the pullback of the interest sensitives. Extremely attractive. Have $26 billion of committed projects over the next 5 years. Great growth.

Which ratio is better to assess the value: Price-Earning or Price-Cash Flow? What is a good entry price for this stock? Price to Earnings is better than Price to Cash Flow. He feels it is good value when it gets to 20X or below on a PE basis. They are very susceptible to multiple expansion if long-term interest rates head up significantly from here. (Sold down his holdings in the last 6 months out of fear of the impact of higher longer-term interest rates might have on the valuations.)

(A Top Pick July 7/12. Up 12.63%.) Still likes. Have lots of projects in their pipeline that is going to ensure cash flow growth of 10%-12% and there is evidence that this will continue that same pace if not a little bit more until 2015-2016 area. Still a Buy.

This has pulled back and does seem to be touching a trend line. For a long-term investor’s point of view, this one is probably not a bad idea. There is resistance coming in at around $43. Watch that level because you don’t want to see it broken. A lot of these stocks have been oversold.

One of the premier companies in Canada, rock solid. Always been very expensive. Dividends are perfectly safe. Golden buying opportunity for interest sensitive stocks.

Interest rates have risen and so this one has declined in value. They have a lot of debt on their balance sheet, so are interest sensitive. Prefers PPL.

Valuations got very stretched but the quality is there. Being touted as a dividend stock, but it is really a growth stock. Have $37 billion, mostly in secured projects, coming in over the next 3 years. Sees 2012-2014 earnings per share growth of about 17.3%. Not that expensive given that we are still in a relatively low interest-rate environment.

He is looking for 6 to 10 years of 10% earnings growth and increasing dividends. Cheapest it’s been in 10 years versus the corporate bond yield. Good entry point. Yield of 2.86%.

(A Top Pick June 12/12. Up 15.3%.) Would definitely buy at this price. Very good earnings growth visibility of 10%-12% over the next 4 years. Also expects dividends to grow in line if not stronger.

Sold about half his holdings last week when it started to drop. Chart shows a long upward trend line, which seems to be holding. There is support at around the $43 level and if this holds, he would want to increase his position again. Risk/reward at $43 is pretty good but you might be stuck in this band. This is one you want to look at very seriously at around the $43 mark.

Everybody owns this for the yield. Most of the time, this company traded at 8-12 times earnings but is now trading at 20 times earnings. When money started coming out of the yield sector, these stocks dropped. Still a safe stock and will continue to pay a dividend and it has some growth.

RSI is down but the stock has not done anything positive. People are moving from here to bonds for safety. If we get down to $43, the 200 day moving average and you see support then you could start nibbling.

Obviously pipelines have a pretty bright future. You can buy them on pullbacks, but he is not sure the current 4% is enough. Perhaps the summer would be a better time. Yields are okay, but they are getting a little skinny now because the stocks have run so much.