TC Energy (TRP.TO)

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.

Likes this longer-term. Increased their dividend by about 8% so far, and expects good dividend growth of 5%-10% over the next number of years. There is still growth in the company and it is primarily in the gathering systems in Alberta and Western Canada.

Doesn’t think there is any rush to buy the pipes as they are sort of considered yield plays. Pipeline companies are having a heck of a time getting anything approved.

Most analysts would consider this as a Buy. The market is starting to favour growth, and he doesn’t see a tremendous amount of growth in this. Trading at 20X forward earnings, so relative to the market it is expensive. There is an opportunity to drop down assets into the MLP (Master Limited Partnership?). Certain pipeline catalysts could be Keystone XL approval, but doesn’t think that is going to happen any time soon. Opportunities to take liquids and gas to the West Coast are another possible catalyst. Not a screaming Buy for him though.

Has been out of this for awhile. Found valuations really excessive. This and Enbridge (ENB-T) were trading with 20+ earnings multiple. In the past they have always traded at 10 or 15. Growth is about the same where it has always been, single digit. If you are a long-term investor, he would be inclined to hang onto it because there is some growth going forward. Good dividend yield.

He just recently sold it. His clients did very well. He is starting to reduce his exposure to these companies that benefited from interest rates going down and the flight for yield.