Inter Pipeline (IPL.TO)

A little expensive. Prefers ZWU-T, which is 80% Telcos in Canada and the rest in the US.

On a multiple basis, it looks fairly expensive, but they always seem to have a lot of projects and are getting better results in the oil sands and their NGL projects right now. Had some interesting possibilities with the expansion in Cold Lake. Thinks they will have a continually expanding rate base from here. Feels the dividend is safe.

The outlook for midstream and conventional pipeline business is just fantastic. There is a huge amount of money being spent on projects on all of the pipelines. Over a 3-5 year basis, they all represent good, long-term value.

(Top Pick Apr 22/13, Up 25.71%) Given the nature of its business, all the pipelines are fully priced. He has been buying some. Growth is unlikely to be what it was in the past.

Still adding this to his accounts. Pays a reasonable dividend. They are in the sweet spot in Alberta in terms of the big projects being developed, which need diluents and this company is the one that puts all the infrastructure in place. Company has increased their dividends when the earnings are there.

A sector that will be vetting cash in. Dividend is strong. The one negative is in terms of bigger projects due to come on line. You need to see those in the door. You could hold this one longer. Lots of future growth, although it is a little expensive here. He has three holdings including KEY and ENB.

Recently did an equity issue at $28.90. It wasn’t really expected for them to do the issue as they have a very nice pipeline project in place for the next few years and there is leverage for them to fill up the excess capacity on those pipelines. The equity issue saves them on interest costs, but it doesn’t really affect future cash flow forecasts. Doesn’t like to buy this above $30.

As a midstream pipeline manager, you have a fairly stable flow of revenues. It is really a question of, can they build up the network. Have done exceptionally well over the last 5 years because they have been linking up to some of the new oilfields coming. You are paying a fairly high price, mid-teens price to cash flow but you get a reasonable yield.

Chart shows a distinct upward trend, outperforming the Canadian market and is currently trading above its 20 day moving average. That’s a score of 3 of the 3. Seasonally historically the energy sector does very well from around the 3^rd week in January right through until the 1^st week in May. Looks very attractive. Any weakness you see in the next little while would be a classic opportunity to accumulate.

Great stock, but in the early part of the summer there can be a bit of a pullback, but if you are a long term investor it's probably ok.

(Market Call Minute) excess of 4% yield, but you could wait for it to pull back to $28 to build a position.

(Top Pick Mar 4/13, Up 33.06% Total Return) Chart looks great. We are developing our oil sands. You are seeing a doubling of production there. He has seen a move into these defensive plays this year.

He rates it as a sector perform. Owns Pembina. They have all done well.

(Top Pick Feb 25/13, Up 31.91% Total Return) You won’t see the same capital appreciation over the next year. It is a superb business model, and superb management. There is room for further growth and further increase in the dividends. Has liked it forever because of the business model. Two pipelines they have are underutilized so there is opportunity to leverage earnings by increasing utilization. Additionally they can win new business.

Technicals are very good. Chart shows a nice upper trend and it just broke above a key resistant level. Stock is outperforming the market and it is above its 20 day moving average. There is a downside risk down to the breakout level, but if anything it would provide an opportunity to be a buyer for a possible move to new highs.