Keyera Corp

KEY-T

Likes the chart. After a downtrend in late-2018, it's had a strong uptrend since January. It's a safer energy play; expect insitutional money to flow into this name.

(A Top Pick May 31/18, Down 10%) Process oil/gas, don't produce anything. Frustrating to own because of market sentiment. Ones that are surviving are well run. Good dividend. Has owned it for a long, long time.

Good managers, but is in a touch sector, Alberta oil. KEY is picking up a little bit lately, relatively well. Oil may take a while to revive, but a few take-overs could have a huge impact.

(A Top Pick Feb 13/18, Up 4%) They have irreplaceable assets that are fundamental to an economy, expensive to replace. They clean impurities from gas before that's shipped for home use. Pays an attractive yield with only minor commodity exposure.

He likes this and the dividend is sustainable. He has been shying away from the energy sector. If you are looking for cash flow, probably not too bad. He is concerned with Canadian energy. Probably some upside to this name, and currently a good entry point. Has a $38 target.

It had a good quarter recently. He would put this lower in his rankings as there are others that are just a bit better. It yields less than ENB-T, where the risk is lower. Yield 5.7%

Energy infrastructure has bounced off the lows but is still an under-performer. They grew their dividend over 10% which is attractive but he would prefer to go more for market strength. Look at financials or apartment REITs. ENB-T would be better also.

For an RRSP (a stable stock)? He's been frustrated by it, not because of its managers who are very good, but because people are worried about the Canadian natural gas industry; that's why the stock has fallen. Investors are worried that Keyera's customers can't pay Keyera to process their nat gas. The sector is challenged, because of difficulties shipping gas products--and this obstacle effects KEY. He's very nervous.

He was negative on utilities with a rising interest environment. If you believe interest rates are not going higher, this could be a good buy. He likes the management and the dividend. Yield 6.4% (Analysts’ price target is $37.00)

It's a good time to get in now. Pays a decent dividend. They're influenced by both the oil and gas prices and interest rate moves. So, this will benefit from the rise in western Canadian oil price.

It dipped 15% in a few days in October and bottomed in December. Any oil and gas stocks are in the same position. It's a buying opportunity now with interesting volume that isn't fading. At a significant support level. I needs to get above resistance at $32. It looks good.

Brookfield Properties vs. Keyera Likes KEY very much. Yields 6.5%. Processes natural gas. BIP, he doesn't own. He's concerned, because BBY owns a lot of malls in the U.S., but he fears malls are--or will be--dead. He owns other Brookfield stocks, but not this one.

This would be a good entry point. They process natural gas, taking out hydrogen, water and methane. They have US operations and storage facilities. They have a conservative balance sheet and a history of raising their dividend. It is well run.

If you find the commodity price going up then investors feel the pipeline is worth more. He prefers IPL-T because they are building that plant and will diversify their assets. It may hurt until a little further down the road. They are both setting up well because the energy sector is positive from February going into April. (Analysts’ price target is $38.00)