50% off Premium Yearly
Veresen IncVSN.TODON'T BUYJan 19, 2015Stock price when the opinion was issued
Pembina Pipeline (PPL-T) acquired the company. Keep the stock or Sell and take profits? Pembina is not just a pure pipeline, but does have some oil interests as well. Chart shows a little bit of overhead that we have seen since 2015. There are a number of people that remember what they paid and will want their money back. We are getting close to that level. The chart is taking a slightly rounded look to it. Between the fact that it definitely has some technical resistance in the low $40 he would be tempted to take the cash. On the other hand, if you are interested in the dividend, it is a perfectly fine income stock. He wouldn't buy any new stock.
This was a Top Pick March 24/17. It has had a pretty big move in the last month or so, and is currently at a level where he doesn’t see much upside as there was. They are looking to increase the Alliance pipeline by 30%, which could be very accretive. Pays a good distribution that is getting safer. Try to add to this on a bit of a pullback.
The LNG plant in Oregon is a positive acquisition. The question is, can they afford to do it, and the answer is No. They are going to have to bring on some other partner. These midstream type companies are dependent on other producers’ cash flows, and you are going to see them react to the low price in oil. He feels there is more uncertainty on this company because of the project size, which is really big, without any clear answer on how they are going to pay for it. There are other, better midstream companies.