Pembina Pipeline Corp (PPL.TO)

Not sensitive to the price of oil, it is more of a volume game. They have booked a lot of new projects which all depend on energy prices. He can sleep a night owning a company like this or a Keyera (KEY-T), given their irreplaceable assets and their good growth. Valuations were a little high, and maybe that is why it has pulled back.

Which pipelines should he buy? His favourites have been in the juniors, Pembina (PPL-T) and Inter Pipeline (IPL-T). Likes these because they operate virtually all in Alberta and somewhat in Saskatchewan and BC. They don’t face the kind of political problems that the larger ones do. Will probably show better growth in a reasonable market and he would say either of these 2. They give reasonable dividends and good growth potential.

Upward trend is still there. Technicals are mixed, below its 20 day moving average and performing as is the market. Seasonally it is strong January to May of each year. It is okay. Hold and there should be another opportunity for it to move early next year.

(Top Pick Oct 2/13, Up 11.94%) He thought pipelines were getting a little ahead of themselves. This one is still on the trend line. The longer term picture on this one is good.

Another company pulled out of the area and an analyst thought it would affect PPL-T. Great balance sheet and management. It is worth holding right here for the yield. Thinks the worst is over.

Is a core holding. Don’t sell it here. It is going to get harder and harder to move the dial relative to the others. They have very stable assets. Dividend growth has not been as fast as the others. She prefers the smaller mid-streams. She owns all of them.

(Top Pick Sep 16/13, Up 69.97%) They have a lot of committed capital in terms of expansion. It has gone pretty far, pretty fast so don’t put any new money into it. They will continue to increase the dividend if you hold on to it.

Possible takeover target? There is a possibility of consolidation because some of the mid-streamers have more growth opportunity with great longevity in their projects. The problem is, they are not inexpensive, so it would be an expensive acquisition.

This is a midstream operator. The acquisition they announced last week is positive for the company. She does see cash flow growing. They have a lot of projects in place and they are in the right space. Sees mid-single digit dividend growth for the next few years.

He sold too early. It is a very good company and very well run. If he owned it from a low price he would take some off the table because eventually the search for yield will end. You could hold it for the dividend currently. He has TRP-T.

Convertible preferred. You still get the yield and there is the option value. He would not sell unless you had a negative view of the company.

(A Top Pick Aug 15/13. Up 68.29%.) This is a core position for him.

Reported earnings recently and beat the average consensus by 10%. It is in the right space of energy infrastructure. A quasi-utility. Expecting distributions to rise through 2015. Have $5 billion in secured growth and another $2 million that is expected. Dividend yield of 3.51%.

Pipe lines will never collapse. They are expensive, though. He thinks we will stay with long term low interest rates so these guys will remain expensive. Prefers TRP-T.

Stay with it. It has done well, yield of 3.5%. Don’t buy here, but wait for a pullback. They are well positioned as a pipeline and as a mid stream operator. There is a need for their services.