TC Energy (TRP.TO)

(A Top Pick Dec 20/13. Up 20.83%.) Has been adding to his holdings in the last week, just on speculation of the Keystone project.

A republican senate is positive for TRP-T, but there are plenty of home grown opportunities. Keystone would be an added benefit.

Thought this one got a little bit overdone on the news flow that they would be able to split the company. He owns it and likes it. It is a great company, but he would prefer Enbridge (ENB-T).

Keystone XL does not matter anymore. Growth of the company will happen inside Canada. They may spin out their power generating assets and release value. This is a dividend grower.

Pipelines are massively overvalued and could remain so for quite some time. He has a fundamental value for this one at $38.94, a negative 28%.

If you are going to own pipelines for a long period of time, he would give the edge to Enbridge (ENB-T). This company has had a correction, but what has been holding them up is the worry about the XL pipeline. Over the next several years, he sees their cash flow going up to the $6 range, so he feels you are paying a fair price for it today, but it is not a bargain.

Prefers ENB-T as TRP-T is more fully valued. He would take money off the table, but you can’t go wrong owning this.

Owned for some time. There has been some punchiness based on activism south of the boarder, Does not think that is well founded and was trimming his position when it was high. His is now holding. Fundamentals of the company are quite good, however.

(Top Pick Nov 21/13, Up 26.49%) It is rumoured that there are activist investors that have taken a position in the company. It could be broken into the power and pipeline parts of the company.

Stays away from the larger pipelines. They have keystone XL which is going on 6 years trying to get approval. They may reverse a pipeline to sell oil on the East coast. She does not think it will be broken up, nor taken over. There are certain assets the government may see as crown jewels and so block a takeover. She would prefer a KEY-T, which could get taken out.

You have a proliferation of pipelines and they will do well.

This is a real core holding, not only for its pipelines, but also its power generation. There was some speculation last week that activists were looking at this as an under performer and they could break it into pieces. He thinks this is a company that the Canadian government would protect and would not let it get taken over.

Doesn’t think they have any publicly traded subsidiaries. The stock has had a beautiful run. Keystone? – who cares. People are paying for certainty of cash flows. Have great assets. Would not buy at this level, but he holds it. He has to provide income for his clients and does not want to own bonds so he has these.

Amongst the best performers in the bull market we have had in the last 6 years. It looks like Keystone won’t get approved this year. However it is doing very nicely. Decent yield. Might well be worth looking at.

(Market Call Minute) 20+ multiple when it used to be 12 and for the same growth rate.