TC Energy (TRP.TO)

(A Top Pick May 28/14. Up 10.46%.) A little worried about the long-term prospects. It is still in the process of improving the movement of oil, both south and east, and hopefully they will be able to do more to the west.

It is good for widows and orphans. It does not quite make the grade in his strategy. He would rather have IPL-T and others. It is fine but don’t expect large increase in the dividend going forward.

(Top Pick Jun 5/14, Up 11.09%) Of course Keystone matters. He is optimistic that at least some of their mega projects get built.

Continue to hold or transfer into a mutual fund? There is no question that you continue to hold. It will be cheaper for you.

Stock vs. Stock. ENB-T vs. TRP-T. TRP-T has challenging projects.

It is difficult to build a new pipeline now, even though they are demonstrably safer than rail for moving commodities. It is nuts to move oil by rail and eventually people should come to their senses. If you have a pipeline you have something worth protecting. TRP-T has a good record of raising their dividend year after year and there are great barriers to competitors.

It has been running up against very stiff technical resistance at $55. The fair market value is right at that point. Fundamentally the company needs the pipeline to go ahead. It will sit in your portfolio with the 4% yield and not make much more money.

She doesn't own TRP-T, but owns Inter Pipeline, Pembina Pipeline and Enbridge. She prefers ENB-T over TRP-T because it has a strong backlog of projects and expects to grow their dividend 12-16%.

Longer-term they are growing their dividend 5%-8% per year, which he likes. You are probably paying nothing for Keystone and maybe a little for Energy East. Growth over the next couple of years, is primarily infrastructure in Alberta.

On his radar screen, but he already has 3 pipelines. Thinks Keystone and East/West pipelines get built, but he would prefer to stick to the other three.

Pipelines are an essential part of the whole energy infrastructure and he doesn’t see the production side easing off that much. Part of the problem now is that we still have big oil sands projects coming on, and they are going to keep on coming simply because we have already expended $1-$2 billion. This is going to be in business for a while. Dividend is okay and is likely to grow.

A great, long term play and a nice dividend payer. However it is very, very expensive because it is an over owned stock. This is not something he would be putting money into at these levels.

(A Top Pick Dec 20/13. Up 13.14%.) Doesn’t think Keystone matters anymore. If it happens, that will be gravy. What is more important is the pipeline that they finish building between Oklahoma and the Texas coast. Pipelines are a monopoly. No one is building them any more and there are a lot of restrictions.

His problem with this is its valuation. Trading around 23 or 24 times earnings. Looks like it has some earnings growth built in at about 5% and some dividend growth which is good, but the valuation just astounds him. They still need a lot of capital.

Thinks this is fully valued. There are a couple of hedge funds running around trying to agitate for some change and do some financial engineering by spinning off some of the assets into some MLPs, juice up the yield, borrow some money and sell it to investors so the hedge fund can make a bunch of money. If this sold some of its power assets, that would be a positive. Very interest-rate sensitive.