Keyera Corp (KEY.TO)

Great company. Nice yield. They don’t have to find the natural gas, they let somebody else find it for them and they’ll process it. There has been a bit of a pull back of late. Trading at 14X P/E. More of a cash flow type story rather than an earnings story.

Increased the dividend by about 10% early this year and the dividend is safe. Energy infrastructure space and is more of a niche player. Good company.

He had to pull back his weighting by a third, but this has been a fabulous group to be in. The cash flow growth and dividend growth should be 4-5 times the rate of growth of GDP. We have a shortage of energy infrastructure. He wouldn’t be concerned unless it broke $53. The US had the lowest oil imports in the last 6 months for the last 16 years.

(A Top Pick August 20/12. Up 27.04%.) Midstream processor tied to gas volumes, NGL pricing, differentials. Have done a great job this year and have a number of developments and expansions they can do, which will grow cash flow per unit going forward. Not a lot of upside left in this. Wait for the low $50’s before getting in.

(Market Call Minute.) Pipelines should continue to do well as there is a lot of oil/gas in North America.

Good stock. Part of the energy infrastructure trade that has taken it on the chin a little bit because of rising rates. Likes the way they are positioned long-term. Thinks we are going to see increasing natural gas. If the LNG comes to fruition, you are going to see natural gas working its way through Alberta.

Sold a bit of his holdings because it is not a cheap story. Dividend yield has fallen a fair bit since 2009ish. Well-run company. Grows the business in a very active but cautious way. Trading at a very high multiple. Ran-up because of the great dividend yield. He would wait for a further pullback before buying.

If you are in this one for the 3.6% dividend yield, you stay in the stock. This is an income oriented stock but is also a growth stock. Has been an acquirer and has been putting up new assets and its earnings have grown quite nicely. Have a history of increasing their dividend and should continue to do so.

He would avoid it because it is interest-sensitive. He tries to move out of these and into growth names. Take some profits.

Holding at around the $60 level. This could be a good entry point using around $57 as your Stop. What is interesting is that momentum is sort of giving up so it looks like if it broke the $57 range, the next support would be around $51.

One of the best run infrastructure companies out there. Strong management. Feels there is probably 10%-15% upside in the stock price. There is probably room for dividend expansion. 3.6% yield.

The company is no bargin here. The company continues to grow, but is too expensive now.

(Top Pick May 10/12, Up 53.53%)

(A Top Pick April 4/12. Up 25.66%.)

(Top Pick May 4/12, Up 62.72%)