Inter Pipeline

IPL-T

Yields 8%, which is good for a pipeline given an uncertain pipeline backdrop. Their propane facility will come online in 2-3 years which will drive this stock, maybe up 30% for their cash flow and that should raise their dividend. It's on his radar.

This morning, he was looking at it. He likes it, but hasn't bought it yet. It's now consolidating after a long downtrend. It recently broke-out on a China deal announcement, but has fallen to a neckline--and entry point--around $20. He doubts there is much downside coming, so you can buy it now or very soon.

Produces quite a good yield. Operates in Alberta and BC. They're adding a significant chemical production process plant. Good for a longer term hold. There is good yield potential.

Seasonal strength of June - August is over. Recently it's fallen off a cliff. If it goes to the 200-day moving average, could be a good time to buy. Not on his list of go-to stocks over the next few months.

He gradually sold it years ago. It's a risk, because it's getting hard to get oil out of Alberta, given the lack of pipelines. He owns a little of it and still likes IPL a lot. How much support will Kenney get? Buy this only if you have a 3-year horizon. The 7.5% dividend is safe. The problem is people don't won't to touch fossil fuels, even good companies. Wait and see--reality may set in, meaning wouldn't it be better to ship our own oil than buy oil from places like Saudi Arabia.

We're in a secular bear market for commodities with investors shifting to pipelines. IPL has seen a long-term downtrend, so he prefers Transcanada and Enbridge which boast better charts.

The petrochemical plant (now in year 2) is costing them several billion, but will add $500 million in free cash flow. (Analysts’ price target is $25.38)

When oil prices were recovering from a decade ago, this was a phenomenal holding, but after oil hit $100, it has persistently made lower lows and lower highs. He likes IPL-T $20 and lower. But he would not touch it here.

He has been buying it. They are building a large petro chemical facility. It is a huge project that they went into without partners and so leveraged. There is a takeover offer but it is unlikely to happen. Their assets are desirable.

It's recovered from a takeover rumour. It pays a nice 7% dividend. He targets $30, which is 20% higher. That said, the stock won't move up much unless the energy space does. Buy below $20 and take profits above $27.

5 year time horizon? Over 5 years we will know how their petrochemical plant will play out? By 2022, it should be in operation. The company has great long term contracts in place for the base load of it non-petrochemical business already and he looks for them to the same for this new project. He hopes, as a large shareholder, the new business will add value to their business. In the meantime a good place to park your money and collect the dividend. Yield 6.9%

They probably rejected the offer since they believed it was low-balled and thinks the company is worth more. Probably will see a consolidation in the space. They are probably waiting for a better offer.

Took some profits earlier. Now, there's an offer around $30 for the company. The offer is probably too cheap. The company is under pressure with the big multi-billion dollar plant that could have things that don't work. The dividend is probably safe.

They received an unsolicited bid for the company, maybe around $30. A new plastics plants is suppoed to add to NAV, but this is cyclical. A speculative stock right now.