Enbridge (ENB.TO)

Enbridge (ENB-T) or Kinder Morgan (KMI-N)? Likes both. The move in the energy infrastructure stocks has been extremely durable. You have a long-term secular increase in volumes and those companies that provide infrastructure will be beneficiaries.

Good time to be staying in pipeline stocks or stay in REITs instead? First of all, you should have a diversified portfolio. The quarter they just reported was a little bit light and had to do with volumes through their systems. However, they reiterated their guidance for annual 12% earnings growth out to 2015 and this is backstopped by a portfolio of about $15 billion in growth projects. Not cheap on a historical basis.

Reduced his position in it because it is not a cheap stock. Well run company with great assets. Would be surprised if he sold it in the next little while. It should be in everyone’s portfolio.

Valuations on this, TransCanada (TRP-T) and Fortis (FTS-T) are incredibly nosebleed high. Because of its valuation, he considers it a high risk. Trading at 25X forward earnings. Nice dividend and the dividend yield is going to grow but he is not attracted to the valuation.

Great company, he continues to like. Good strong earnings growth with projects in their pipeline. A dividend grower. Sees 10-15% increases through 2016. 2.8% yield.

Great company. Has got $20 billion of development pipeline that it is going to execute in the next 5-10 years. Should continue to be able to grow earnings at 10% a year as well as increasing their dividends. Valuation is a little bit lofty but if it corrected 10%-15%, he would start picking away at it.

(Top Pick Jan 19/12, Up 23.22%) Trend looks really good. It is a great name on a long term basis. New clients would buy this today.

(Market Call Minute.) Would switch out of this one at the present time. Extremely expensive at 4.5X its BV.

World is going oil rather than gas. There is a shortage of oil pipe lines, which is why railcars are being used for transport. Clearly pipelines are the solution. This is the most expensive pipeline operation in North America trading at 27X estimated earnings but one of the few companies that has been able to demonstrate 10% or more double-digit growth for the last 5 years and projected to have 10% or more for the next 5. Easily $48-$49 over 12 months.

Priced to perfection. Trimmed back his holdings as he felt it was getting a little strongly priced. Richly valued here. As long as this trend continues to be your friend, it’s a great Hold. Put a stop underneath it.

Owns some in his clients accounts even though it is expensive. All higher yielding stock are expensive. Recently came out with better earnings and increased their dividends.

(A Top Pick Dec 9/11. Up 18.01%.) Has reduced his position at levels over $40. He can really see problems with the Northern Gateway. They have laid out a program of growth that he is impressed with.

He is one of the few bears on this stock. You are paying about 22X forward earnings for single digit growth. If he owned it he would be selling it.

(A Top Pick Dec 15/11. Up 12.59%.)

Doesn’t think it is a great buy. Wait for a pullback. This stock suffers from what a lot of yield stocks suffer from – they are a little over done as people piled into the income story. She wants to see another 3 months of base building. A pullback on negative news would be a good entry point.