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Veresen Inc (VSN.TO)

BUY
Boring and there’s nothing wrong with it. Will have to convert into a corporation. Assumes they have tax protection for from 2 to 4 years.
TOP PICK
Still has over 9.5% yield. It’s three years before this one is fully taxable. Equals a 6.5% dividend.
BUY
(Market Call Minute) will continue to payout at 10%. Great asset. It’s a tollbooth business.
BUY
Things are looking good for them. It looks more like a sustainable bond.
BUY ON WEAKNESS
Energy infrastructure. Has interest in Alliance Pipeline, which ships gas from Western Canada. Also has a natural gas liquids extraction facility. Yields about 9%. Fully valued. Try to buy in the $9 range.
TOP PICK
Current interest rates are so low it changes all capital costs assumptions. This trust has a 10% yield compared to government bonds of about 3% so when it converts it should go to fair value, and could possibly overshoot on the upside next year.
BUY
Many of these mid-stream pipelines have so much depreciation and tax pools that they can keep their distribution the same as a dividend for 3-5 years. Don’t hope for much capital appreciation. More upside with TRP.
COMMENT
(Market Call Minute.) Would prefer Inter Pipeline (IPL.UN-T)
BUY
Gas transportation company. One of the undiscovered trusts that is throwing off good cash flow. Should continue to do very well.
DON'T BUY
Likes operations. There is always upside, but there is a lot of US$ exposure. Not sure if there could be a distribution cut.
BUY
Screens very well for him.
TOP PICK
Strategy is to have a big part of the portfolio throwing off income. Distribution of 8.3%. A lot of the earnings come from natural gas prices and we are in the low part of the cycle. Can't see the stock going much lower and he can lock in this rate of return.
BUY
Very stable cash flow and is recession resistant. Dividends on income trusts right now are very attractive in relation to bond prices.
PAST TOP PICK
(A Top Pick Dec 4/07. Down 18.8%.) Had been looking for more defensive picks in order to get paid while you wait. Feels distribution is safe.
BUY
(Market Call Minute.) Good quality name. Business is intact and you have good visibility from the power side and pipeline. Some good upside here.
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