TC Energy (TRP.TO)

This is her least favourite pipeline. Doesn't feel there is any more money to be made in the stock over the next year.

(Market Call Minute.) There is some value that could be created with this company and Canadian Utilities to spin off and try to compete with Pentium (?) pipelines of the world.

He doesn’t get the pipeline stocks and their valuations right now. They always traded at 10 to 12 times earnings multiples, and now they are trading at around 20 times. Doesn’t feel the growth is that much faster. Multiples are way too high.

(A Top Pick July 29/13. Up 21.4%.) Had hoped we would get the Keystone, which has now been put back earliest to Q1 of 2015. Wouldn’t be buying this today.

A lot of political issues with keystone XL. We have a spike up and so there is a potential for a pullback which is where you want to accumulate. It’s hard for him to buy it after this breakout.

Good yield, coming out of a big base last summer. It is looking good with Keystone XL.

There has been an increase in food inflation, and he thinks that is going to spell a rise in interest rates eventually. Wait for a better time on this. Sees their catalyst as the mainline reversal through Eastern Canada, but the valuation is rich. To add to his holdings, he would probably look at something under $50.

Chart shows a very nice move in July. Loves the pipelines. This pipeline has the one issue of Keystone in front of it. Obviously the news has been good recently. It could be temporarily a little overbought. The bigger picture on the pipelines is still pretty good.

He would buy this under $48 and sell at about $57. Has been the unfortunate victim of a political hot potato, but you have to look out to 2017-2018, if 1) the Eastern asset comes on-line and 2) they can build out their West Coast LNG. Has exposure in Mexico to the infrastructure space. Have very large projects that are long dated.

Chart showed an upward growth channel from 2012, with the stock currently being at the top of the channel. If you are a trader, you want to reduce at the top of the channel and acquire at the bottom of the channel. However, if you are a long-term investor, you stay with the trend and Hold.

When the US shifts the flow of oil from North to South and South to East, that is going to transfer about 1 million barrels a day, which will be quite accretive. 3.7% yield.

What matters is the general direction of energy infrastructure in North America. When they first came out with the Keystone XL approval it was a $1-$10 billion project they were going to build. They’ve already built the southern leg from Houston to the Gulf coast. Now they have almost $35 billion in projects on the books, and Keystone is only $5 billion of that. This company has $12 billion of LNG gas pipelines contracted in BC alone. Yield of 3.82%.

Took quite a hit when Keystone got cancelled. In the meantime, he feels the company has discounted that. They have all sorts of other irons in the fire. This is utility with a good dividend, and he sees continued growth.

Preferreds. Was trading about its call price last year, then we had the interest rate spike and it traded down. It has a call date a year from now. Interest rates have to go down about 100 basis points in order for this share to get called. It resets every 5 years, but he is not sure how much higher interest rates will be next year. He expects the yield to be 2.9% next year instead of the 4.75 this year.

(A Top Pick March 15/13. Up 4.01%.) Preferred 4% Series 7. Has held its value fairly well. Most people would expect that it is going to be called.