Enbridge Income Fund Holdings (ENF.TO)

WEAK BUY
A pipeline trust moving oil across western Canada. Very low growth rate but very stable distributions. A very good trust, but there are better trusts out there.
BUY
This is in the proper area of income trusts, i.e. the stable, slow-growing part. He would not be buying the highly cyclical trusts because he is worried about an economic slowdown coming.
BUY
A quality name. Distribution stream is very stable. Excellent management. Have the ability to grow through acquisition. Priced expensively at this point, but probably deservedly so.
HOLD
If you are a long time holder and can set it up on a DRIP plan, you'll do fine with it. A very safe trust. Valued pretty high versus some of the other pipelines.
TRADE
First rate company and management. Yield slipped below 7% and that is their threshold, so they sold their holdings.
DON'T BUY
Pipelines and power trusts are the most sensitive to changes in interest rates. This is a good quality trust, but pretty expensive at these levels.
SELL
Power and pipeline industries in general have fixed contracts, so revenues are generally fixed even if the economy fluctuates. Very little growth in this. Expects interest rates will rise.
DON'T BUY
Super quality but the yield is too low for his tastes.
TRADE
Of the 4 pipeline trust, Fort Chicago, Pembina and Interpipeline, this one has the lowest yield. Mainly natural gas and owns 50% of the Alliance Nat. Gas pipeline. (Fort Chicago owns the other half.)
BUY ON WEAKNESS
Near the higher end of their shorter term valuation.
BUY
May only give a return of 6/7% since it is a pipeline trust and growth is limited, except through acquisitions. However, if they increase distribution at some point, it will be a good return.
HOLD
The attractiveness behind the pipeline portion of the trust is that 100% of their revenues are backed by "ship or pay" contracts. A lower risk trust. Yield is under 7%. Fully valued at this level.
BUY
A nice stable trust. Owns 50% of the Alliance pipeline.
BUY
A natural gas pipeline fund. For the conservative investor. Targeting yields are about 7% for next year. Interest rates would be the risk in this fund.
STRONG BUY
Down about 16% from its high because of the fear of higher interest rates. A screaming buy.
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