TC Energy (TRP.TO)

Can’t see a stock split at $60, although it could happen. Have already increased their dividend this year. Expects the dividend increases over the next couple of years will be above the 4% average of the last 5 years. This is primarily because earnings and cash flow are going up at a better rate than in the last couple of years.

The reason behind the recent run is probably because of Kindor Morgan (KMI-N) doing a lot of consolidation and this company was rumoured as a possible takeover. He thinks this is unlikely. He has owned this for a long time for the income potential. If you own, consider taking some profits, but it is still a good holding.

A lot of people have been waiting for the KXL pipeline decision to come down. Thinks there will be a lot of rumours about Kinder Morgan (KMP-N) taking the company over. You should never buy a company on the basis that it might possibly be a takeover candidate, but on the basis of it being undervalued and a good business. This company has gone quite a ways up, and is now selling at around 25X earnings, 2.5X BV. Has a yield over 3%, but is not at a level where he would be comfortable buying it today. Somewhere around $50 would be a more comfortable point.

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%.