Veresen Inc (VSN.TO) Buy, Sell or Hold

Veresen Inc (VSN.TO)

Wealthica The ultimate 360° Tracker Your financial life in one place, automatically

0.00

-0.00 (0.00%)

61 watching

BUY

When he buys this, he takes it on as a package with Inter Pipeline (IPL.UN-T) and Pembina (PIF.UN-T). With these three, he gets a yield of 7% and feels the cash flow and distributions are quite stable.

BUY

Very bullish on this trust.

WATCH

Generally more affected by the movement of interest rates. It has some volatility. Since gas is trading at 7 dollars and oil is trading at 62 dollars. It's about a 9 to 1 ratio in favour of this company. Watch if gas prices are ahead or higher than crude oil prices, there may be a downside of earnings.

TOP PICK

This Top pick consists of a basket of pipeline trusts, Fort Chicago (FEC.UN-T), Inter Pipeline (IPL.UN-T) and Pembina Pipeline (PIF.UN-T). As more and more oil/gas is discovered, it will have to be shipped. Pipelines are going to be the next growth phase in energy. There is a choice between paying a hefty P/E ratio for a regular pipeline company and getting a much higher yield. You'll get modest capital appreciation plus steady and increasing distributions.

COMMENT

Just cut their distributions, largely because of a stronger Canadian$. Offsetting this is a new contract which should add stability which wasn't there before.

DON'T BUY

Pack of their assets is the Alliance pipeline which goes from Edmonton to Chicago. They also have the Aux Sable fractionation pliant in Chicago. This plant is being hurt by high natural gas prices. Prefers other pipeline trusts.

TOP PICK

If you believe in the growth of the energy business then you have to believe in the pipelines. Chose 3 pipeline trusts as a top pick, Fort Chicago (FCE.UN-T), Pembina (PIF.UN) and Inter Pipeline (IPL.UN-T). Should get continued modest growth. A good choice for conservative investors who want to participate in energy.

BUY

3 favourite pipelines he owns are Fort Chicago (FCE.UN-T), Inter Pipeline (IPL.UN-T) and Pembina (PIF.UN-T). This is probably the riskiest in that it has a gas processing plant in Chicago and if the ratio of oil to natural gas sinks below 6 to 1, then their gas operations are impacted. Expect thier distribution of $0.96 per share will continue. Prefers the other 2, but are buying all 3 for new accounts.

HOLD

A decent name. It falls in the area of a slow growth part of the business. Very contractually based. What is great abut it is that it is a franchise territory with limited competition. Nnot greatr in a rising interest rate period. OK to have in a a small proportion of thre portfolio. Wouldn't buy and might even sell.

BUY

Has been really been beaten up because of their exposure to frac spread risks, the difference between natural gas and the liquids they take out. As the heating season ends, gas prices should drop and the frac spreads should be better in the spring. At these levels, it is good value.

DON'T BUY

The decline in unit prices of all income trusts has pretty much all been the result of the uncertainty that has been generated. The possibility for distribution increases are probably limited over the next year or so. Their Aux Sable facilty (a natural gas stripping plant) is at a disadvantage because of the spread between natural gas and liquid.

DON'T BUY

It owns a pipeline, plus at the end of the pipeline it has a 43% interest in a natural gas liquids plant where they take the gas, refrigerate it and get butane propane condensate out of it. The company has been very confidant about what it can earn out of the Aux Sable natural gas plant, but he is more pessimistic. Prefers other trusts.

WEAK BUY

For sustainability of income, this is not a bad name. Has a 50% interest in the Alliance pipeline plus a big interest in an extraction plant in the US. The real upside in the story in the last few months has been the extraction side. Has more sensitivity to increased interest rates, so this is a part of the market you want to under weight.

BUY

Was hit by the Ottawa announcement like most trusts. Their Aux Sable gas plant in Chicago is losing money. Still buying for new accounts.

WEAK BUY

Haven't bought it recently. There are 2 parts to their business. Pipeline and their chemical side. Prospects are starting to improve for them. Not too bad.

Showing 196 to 210 of 245 entries

Most Recent Experts

Joe Terranova

Virtus Investment Partners

Stephen Weiss, Founder, Short Hills Capital Partners

Short Hills Capital Partners

Rob Sechan, Managing Partner, New Edge Capital

New Edge Capital

Gordon Reid

GoodReid Investment Counsel

Jim Cramer - Mad Money

CNBC

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : [email protected].

Summer Sale

Veresen Inc (VSN.TO)