EnerCare Inc (ECI-T)

The takeover just went through at $29 a share. He sold it in 2017 and wishes he had held it longer. He does not know if Brookfield got a bargain at the price they took it over at. It delisted last Wednesday.

(Past Top Pick, May 25, 2017, Up 64%) They're getting taken out by Brookfield Infrastructure. Had grown their dividend, too. Very happy with this.

Shareholders are having to decide to wait for the BIP-T shares after the recent acquisition or sell near the $29 offering price – should they wait? He thinks the market is clearly expecting the deal to proceed. This offers investors less downside and more upside. He would recommending waiting for the conversion and taking the BIP-T shares.

Being taken over by BIP.UN-T. He sold it last year at a 499%+ gain. He would look to take all cash in the deal. Taking BIP.UN-T would not trigger capital gains, however.

He has been very interested in it based on the news today of Brookfield acquiring it. Brookfield are an astute buyer. There is a 53% premium attached to this transaction based on yesterday’s close which is roughly the gain today. The strategic process has been open for a few months. Brookfield normally make an offer at a lower price and hope the target management team takes it. Are there likely other buyers? He does not think there are. Brookfield may be the only game in town. If hold stock, will hold to see if Brookfield sweetens the pot but once gets close to offer price, would be selling.

He does not see anything in it. The valuation is so high that it would make wonderful currency for an acquisition. It is on a steady and slow downward swing. It has a falling balance sheet and low fair market value.

They have a very stable business. They rent their water heaters to consumers and when the heaters fail people normally rent another one. This stability allows Enercare to pay a high dividend. Rising interest rates are the enemy of yield stocks, including Enercare but the dividend is likely to rise and the stock has gone down too much. (Analysts' price target is $24)

He shorted this a little bit. It's a business that's hard to like: renting and sevicing water heaters. In February, they reported weak earnings in recent quarters. Also, new laws forbidding door-to-door sales may be a headwind.

It had been struggling and pulled back to the point where it is attractive again. The dividend is attractive. They have been expanding in the area of home service. (Analysts’ target: $24.36).

He sold after the most recent quarterly earnings report. Their earnings seem to be stalled. There are complaints about the company from customers. When you buy a house, then if there is a hot water heater contract, then you, the buyer, are tied to it. He is not comfortable owning it any more. It has a nice dividend yield, though.

Doesn't look good now. It's had many down days recently. People buy it for the yield, but you still lose if the stock price falls. The next support is $15.45 with minor support at $16.30. Look at the 30-day moving average--if it breaks above that, then it's worth looking at. Been volatile lately and its volume declining is a negative. Don't buy now, just watch it.

This is cheaper than its peers and its 5 year average. 64% payout ratio so the dividend is safeish. They have nice growth. The only problem is the balance sheet. The debt is not bad but there is not a lot of wiggle room.

He likes the company. They have long term sustainable cash flows. The yield is over 5% and they just raised the dividend a token amount. Over time the cap-X will go down and cash flow will go up. It is a great hold for a steady dividend investor.