Enbridge (ENB.TO)

Looks like this is going to be the top earnings grower in pipelines over the next few years. Not cheap but it has pulled back about $5 from its high. For now, pipelines are the things that people want. Thinks they will raise the dividend every year for the next 5 years.

This is a good entry point for this stock. Northern Gateway is getting a lot of publicity and the stock will probably react to this but this is pretty far out there. She is not buying thinking of this. Have projects and financing in place to really grow their earnings from 10% to 12% for the next 4 years at least. Can see $45 in the next 12 months.

This is always expensive. Have $35 billion of projects. $18 billion of projects that are commercially secure. They are guiding with a very high degree of visibility to 10%-12% earnings growth and 15% dividend growth over the next 5 years. Can see it at $45-$46 next year.

The hunt for 10%-type growth is there. They talked about 12% growth over 5 years. Great history of returning money to share holders. Yes, they had a leak, but you can't see it on the stock price.

(Market Call Minute.) This would be a Hold to more of a Sell. Thinks a lot of the Safe plays are way overvalued.

Thinks there is great growth in this. This is no longer a widows and orphans stock. Has tremendous growth. Doesn’t know of any area that has more visibility of growth than the pipelines and midstream infrastructure.

Pipeline returns have never been stronger and there is a more visible earnings growth thesis than any other sector that he has seen. Thinks it is suffering from fears about the Gateway and the leaks. People think it is expensive and it would be if interest rates suddenly shot up but they are not. They are comfortable growing their EPS 10% over the next 3 years and that is through $17 billion in secured projects. Low payout ratio a 39%. 3% dividend yield.

Since it has been under $40, he has been having a serious look at it. Had a lot of bad press lately for how they handled the spill they had last year. Has been extremely well managed over the years. Would prefer it at around $35. Yield of about 3%.

One of North America’s preeminent pipeline companies. You shouldn’t be concerned that the share price has stalled for the last 3 weeks. Has come off because of issues over Gateway, spills, negative publicity. Not too expensive at 8.4X next year’s cash flow. 2.96% dividend.

Part of development pipeline is focused on renewable energy. Ability to expand in Canada and US. Short term you will not see renewable replace any demand but could be a longer term trend.

This is your typical defensive stock with a low beta so the volatility against the TSX is low. You are getting a yield of 3%, which is probably growing.

Has been expensive for a long time and then they had headline issues. Overall, they are fine and there are good growth prospects.

You can see a little bit of breakdown. That isn’t enough in itself. It stopped at the congestion area of last year. He has raised his stop a bit. He would not doubt we see a little bit of pressure there. Likes it and would look at Feb. low and see if it breaks that and then get in.

He would be very careful with this one right now. Has had a really nice run. Hit $42 and is breaking down on a few bad days below the $40 level. This is a negative sign. Selling that has gone on is just beginning. If it breaks below $38, you will see the mid-$30’s really quickly. He’ll probably be getting out of this himself.

5 year Canada rates are 1.40% and in the US .68%. This is a negative return. Yield on this company is 2.9%.