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Veresen IncVSN.TODON'T BUYJun 18, 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.
Cash flows have been tracking above the dividend level which, in this environment of crack spreads, has been good. Have a lot of accretive developments coming on including Jordan Cove, construction on a gas plant. He is modelling a 90% cash flow per share growth. Feels the name has a lot of risks at these levels. Too expensive relative to its peers. Dividend this year is not a sure thing.