Enbridge (ENB.TO)

(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%.

Preferred H 4%. Good quality company. Likes that the reset time is in 2018.

Has been a great stock. A Trend is higher highs and lower lows and there has not been a breach of that rule here. It may be consolidating a bit, but he would not panic and sell unless it takes out a last low. That would be a top. Until the June low is broken for a week, it is okay.

This is technically an energy company, but a lot of utilities are a little bit above historical averages and PE’s so are a little expensive at this point. Trading at around 24X PE. Long-term historical average is 18X earnings. Has a decent dividend yield of 2.9% so if you are looking for a dividend, this is a pretty good company. Has a projected 3 year annual growth rate, in terms of the dividend, of about 11.5%. He would rather stick with the staples, telecoms or healthcare areas for a defensive position.

Management is the best of all the comparables. They are having their troubles with leaks in pipelines just in the middle of trying to get approvals. You are going see a fair amount of negative press so give it a rest right now. If you saw significant pressure because of negative news then that is when she would buy. She is expecting more bad news. But they are the one pipeline company with the most projects ahead of them so it should be quite exciting, but negative headlines short term. Stock is expensive short term. She would pick $35 as how much it would have to fall.