Gold. It will be interesting to see what happens if inflation becomes prevalent. He thinks, as a pension style investor, you need gold in your portfolio. You need to be very specific on the company stock you buy as some are making cash hand over fist. Smaller niche players may be better than dealing with the major gold producers.
TRP-T or ENB-T? At these prices, he thinks TRP-T is in fantastic shape and the mainline natural gas represents half of the company’s NAV. Within a short period of time he thinks this will decline to only about 10-15% of NAV. This signifies how the company is diversifying – although the stock is a little expensive right now. ENB-T is less dynamic, but he believes their infrastructure is advantaged (as there are few projects being approved) and the dividend continue to grow. You could own both and not be concerned.
TRP-T or ENB-T? At these prices, he thinks TRP-T is in fantastic shape and the mainline natural gas represents half of the company’s NAV. Within a short period of time he thinks this will decline to only about 10-15% of NAV. This signifies how the company is diversifying – although the stock is a little expensive right now. ENB-T is less dynamic, but he believes their infrastructure is advantaged (as there are few projects being approved) and the dividend continue to grow. You could own both and not be concerned.
He recently evaluated this space. As interest rates increase their long term liabilities should become more profitable. They are cleaning up their operational issues. He hopes there will be a market pullback, so they might be able to step back in. He actually prefers Manulife (MFC-T), but is watching both. He would love to buy both of these if the stock prices drop by $5.
If you want a company with the most stable contracts in the sector, this is one of the key players, with great connections to Fort McMurray. A great company with great returns. The stock has been sliding as interest rates have gone up and the company has no major growth plans outside of the major polypropylene project. They are spending $3.5 billion on the project and he believes they are on budget and on time. Yield 6%.
A well-run company. A $300 million royalty stream each year. They buy the gold streams of existing mines. They say they can go into energy and use the same multiples on valuation. He sold it a couple of years ago, when it was in the early $90 range. As soon as he sees a technical floor forming, it would be the first stock they would buy in the space.