TC Energy (TRP.TO)

(Top Pick Oct 20/14, Down 16.72%) He likes it for the dividend and their increases. The pipelines act like they are oil producers, which they are not. Keystone is priced out of the stock.

Likes this stock. It has had a brutal year in terms of share price with a decline of about 20%. In the meantime its business is increasing. Management has guided to about a 9% dividend annual increases for the next few years. Have a number of capital projects that are on the go. Tends to get a lot of negative press, but they have a lot of great growth projects. A good holding.

Down about 10%. There is a flaw in many people’s thinking. It is always dangerous to buy companies at historical highs and hope that it will push back up through the old high and continue from there.

He prefers Enbridge (ENB-T), but this one is fine. Shorter term oil prices are going to affect sentiment for both names, but he just thinks there is better growth in Enbridge. Valuations are somewhat similar, but in his view, the cash flow growth, dividend growth and earnings growth are more predictable.

The Keystone XL pipeline is almost a side issue. They have so many other things going. Doesn’t know the seasonality on this, but technicals show the trend is on the downside, which is not good. It seems to be forming a base which is encouraging. Thinks it has limited downside potential, probably due to the nice dividend that it has. It is also underperforming the TSE Composite, trading below its 20 day moving average, short-term momentum indicators are trending down. Wait until there is confirming evidence that the stock has actually hit a low, before adding to your position. Yield of 4.7%.

The fundamental case longer-term, (3-5 years) is very favourable. The gas distributors in Ontario and Québec have just dropped their opposition to Energy East, which is a huge plus going forward. The saviour for the Canadian energy business is twofold. Energy East will take our Western oil east and displace foreign oil. Also, something favourable will happen with Kinder Morgan or with the Northern Gateway pipeline so we can ship the other energy to the Pacific.

Trades at 20X earnings and has a 3.9% dividend yield. Has one of the great pipelines, but the issue is that there are a lot of other things happening. Volumes have gone down in Western Canada. Obama has issues with the XL pipeline. They have to diversify a lot more, which is a hard thing to do in the environment they are facing. He thinks the stock doesn’t do well over the next little while. If you own he would consider exiting. Enbridge (ENB-T) is a much better company.

(Past Top Pick, July 21 2014, down 9.13%) Stock was doing well until we had this crazy reversal. Using stop losses he got out of all 3 of his past top picks because of the oil crisis.. Now the stock is fighting and it is falling. If it can find support around the $47.00- 48.00 level and If Obama changes his mind it could be a stock with a new high. Buying it here you are doing a 50/50.

She prefers ENB-T. They have better visibility to projects in the pipelines. The dividend is safe.

It is likely that the Keystone project is not happening and TransCanada has a lot of money sunk into it. However, they have other projects that they are working on. He has owned this for at least 15 years or longer. Dividend keeps going up higher and higher. He is pretty happy with the stock. Not thinking about selling it. They buy it for income.

(A Top Pick March 12/14. Up 8.61%.) Pays a nice dividend and that business is not going to disappear. They do a very good job. When they are not moving oil/gas, they are generating power.

He invests private client money, and when you do that it is not about the next hot story or the next great simple return, it is about owning great companies and letting them work for you. This has been one of those. About a year ago, they had about $45 billion worth of CapX potential that could double their EBITDA in 6-7 years. Keystone could be taken off the list. Energy East may or may not go. These pipelines need to be built, but in the meantime they have $12 billion of expansion capacity that they can add. Dividend yield of 4.09% will continue to grow.

He is not that enthusiastic. The connection with the oil patch is pretty close. Has cut back on his positions although he still owns a considerable amount. Well-run company. They keep tripping over government regulations. There are hurdles in front of these companies. This will do fine in the long run.

Although down today, it was only marginally compared to the energy complex, which was down 3%. It has less growth than Enbridge (ENB-T), so he prefers that more. If he were going to sell something to reduce his exposure completely, it would be this. If it were to bump back up and was at $53, he would probably sell it.

Doesn’t think the Keystone XL pipeline will be approved, but doesn’t think the prospects of one are being built into the price of this company’s right now.