Inter Pipeline (IPL.TO) Buy, Sell or Hold

Home

Daily Stock Opinions and Ratings

Inter Pipeline (IPL.TO)

19.12

+0.28 (1.49%)

as of Nov 1, 2021, 8:00:00 pm Market Open.

714 watching

WEAK BUY

It's under pressure. It's not a trade, but neither a sell. He's leaning to a buy with modest upside.

HOLD

Their Alberta pipeline is under pressure because of weak oil production and competing pipelines, but a new propane facility should come online in two years and boost cash flow by 25-30% . The 7% dividend is in a waiting period until then. Generally, politics on both sides of the border have frustrated all pipelines. He expects approvals will eventually come.

DON'T BUY

Yield up above 8% right now. He has a very negative sentiment when it comes to pipelines. Thinks they have become hugely politicize. Don't know if Inter Pipeline is trying to build a new pipeline, but looking at Trans Canada, TC Energy etc. are having a very hard time trying to get new pipelines through. New laws are going to be quite strict. Long term doesn't see the ability for much growth.

BUY

It is a Canadian infrastructure pipeline company. They are creating plastics that will go into the US and create a lot of revenue. He is taking a look at it.

PAST TOP PICK

(A Top Pick Dec 10/18, Up 3%) He was saved by the dividend. It has not participated in the rally because it had a weak first half. They were all transitory issues. The main attraction is the Heartland Petrochemical Complex coming online in 2021. It should add 30% value to the company with no stock dilution expected.

BUY

He feels the dividend is safe. They have enough expansion over the next few years that their cash flows should increase. It is reflecting fairly good value at this level.

COMMENT

He likes the midstreams. IPL used to be his biggest oil stock until they started buying storage tanks abroad which he felt distracted from their core business. He didn't like that they went outside Canada to ramp up their earnings. IPL pays an 8.6% dividend which is safe, because they have long-term take-or-pay contracts. He may re-buy this later.

BUY

Core position. Stable, really likes it. Reserves will be there for a long time. Has best long-term contracts for ancillary pipelines in the oil sands. You're getting their new plastics plant for nothing. Oil sands revenue underpins the dividend. In 2022, should get a 25% hike in dividend and earnings. Part of Alberta is being given away right now.

DON'T BUY

They sold it because they are involved in a $3.5B mega project in Alberta that will take 3-4 years to finalize and start generating the $500M expected.

HOLD

Stable dividend? A good solid pipeline and the dividend is safe. She does not own this however. The stock price will be swayed by the oil price, but the company is well run. It is a safe long term hold. The petrochemical plant is keeping her from stepping in to buy until they can demonstrate long term sign up of customers. Yield 8.4%

BUY

He would be looking to add it for a long term hold. They will be building out a lot of their assets, so the cash flow will be taxed for the next couple of years. They will not likely increase the dividend during this time. Compared to its peers, it is cheap.

BUY

Would begin taking a position, or in any of the other pipelines. But be strategic. Don't put all your money in right now. Whatever's going to happen in the next year, the yield will increase because the stock price will come down. When the market gets hit, the funds sell whatever is liquid and the dividend yield gets pushed up because everyone is selling, and that's a great time to buy.

DON'T BUY

Their build out was focused on the oil sands and that could hurt them. He thinks the dividend is safe, but does not see investors coming back to trade the stock at the multiples of the past.

WEAK BUY

Now that it has under performed so much, it might be a buy. The dividend is safe. For sure it is a hold. Enbridge is still his preferred in the sector.

DON'T BUY

Be careful. Looks like the dividend is going up, but it's because the price is going down. You want close to the 10% dividend growth. If you want yield, think about Pembina, as it has more consistent contracts. IPL is more volatile, and not something you'd want to hold.

Showing 106 to 120 of 808 entries

Most Recent Experts

The Weekly Buzzing Stocks by Billy Kawasaki

Stockchase

Joe Terranova

Virtus Investment Partners

Stephen Weiss, Founder, Short Hills Capital Partners

Short Hills Capital Partners

Bryn Talkington

Requisite Capital Management

Shannon Saccocia, CIO, Boston Private

Boston Private

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : [email protected].

Inter Pipeline (IPL.TO)