Opinions
Bill Harris, CFA
Veresen Inc
VSN-T
COMMENT
May 10, 2016
Stock price when the opinion was issued
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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.
(A Top Pick March 22, 2017. Up 39.87%). Last March, people were very concerned that the company was in trouble and might cut the dividend. He saw it as undervalued and a great takeover target, and loaded up the truck at $8-$9. He still sees it as a good target. Pembina has now bought the company.
The LNG landscape has changed so much in the last 6 months, and it is what you can sell your product for on the international market, so you start putting yellow flags beside some names. This company is in limbo in that category of investment, so he prefers Altagas (ALA-T), which cancelled their LNG project. Veresen is on Jordan Cove, and he can’t figure out if this is a good or bad idea economically. Also, have many environmental issues as to how to get the gas there. Too many question marks about their business plan.