Inter Pipeline (IPL.TO)

(Top Pick May 9/12, Up 25.56%) Pipelines are under some pressure from fear of higher interest rates, but this one has a growth partner in the cold lake expansion. Would still own it.

Loves pipelines. 4.7% yield. Has continually grown. Pipelines are great companies because we have a massive overproduction of oil but it has to be transported. He has a $26 target on this one.

Has done well and thinks it will continue to do so. Recently announced a deal with Cenovus (CVE-T) and Conoco Phillips (COP-N) for a major expansion of diluent and bitumen pipelines, so he thinks there is very good growth ahead of it and it is well financed. Expects there will be increasing dividends over time. Pays a very good yield. Total return calculations suggest 10% over the next 3 years.

(Top Pick Apr 25/12, Up 31.75%) Signed two basic contracts that will contribute significantly to cash flow per share. Question is how high the dividend will be in 4-5 years. Great long term story.

This is the one pipeline that he is not adding. His company has it ranked as an outperform.

Very solid yield at 4.8%. Great conventional pipeline and oil sands pipeline growth. Companies that move oil is a safe way to play the oils.

Likes it because the dividend has been maintained and increased. Also, likes the business they are in. Not facing the same problems that some of the big pipeline companies are, in terms of getting approvals to lay pipe. Have tied itself into the oil sands expansion which is continuing. Doing all the right things. Expect it will move higher sometime this year.

He is looking for mid to high single digit growth in his portfolios. Also, sees the current dividend of 4.8% being increased over the years.

Stock has been pulling back. Expanding oil sands in Cold Lake and are supposed to have some transportation agreements signed which have not been finalized, so maybe the market is waiting for this. Also, have some midstream operations where they do natural gas and extractions including a lot of ethane. Ethane prices are quite low right now. They do hedge a lot of their margin exposure. Very attractive yield.

(Market Call Minute.) Getting very close to a Buy. Attractive yield and pipeline capacity is in demand.

We are seeing it roll over a little bit. The trend has broken here. If you are nervous about stocks that are falling, then perhaps take half your money off the table or write a call on the stock.

This is the pipeline that he likes the best. Have been quick to take advantage of the heavy oil sector. Have built new pipelines and are still adding to their capacity. He is still adding to portfolios on any weakness. 4.77% dividend is okay.

Names like this have gotten up to such high valuations. Feels there are better opportunities elsewhere where you can limit your downside by buying a stock that is not trading at 25X earnings but buying one that is trading at 10 or 12 times earnings.

Getting really pricey. Trading at around 16X EBITDA but their EBITDA is looking to grow at about 30% over the next couple of years. Doesn’t see too much more capital appreciation at this stage but the dividend is safe and you can expect more dividend growth going forward.

Well managed company. It has increased its dividends over the last 3 to 4 years and he thinks that will continue.