Inter Pipeline Ltd (Symbol-IPL) (formerly IPL.UN)

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Thegipper
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Re: Inter Pipeline Ltd (Symbol-IPL) (formerly IPL.UN)

Post by Thegipper » 11 Aug 2017 21:22

newin96 wrote:
11 Aug 2017 20:37
If they truly are being dragged down because of ETF related energy groupings, and the fundamentals remained solid it would be a buying opportunity - is this a chink in the efficient market hypothesis brought on by the emergence of ETFs?

As an aside I'm not proud of my run-on sentence.... :roll:
That's okay. I do that all the time and I was a product of the public education system. I don't like the language cops . The language cops like using this technique when they want to change the discussion.

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IdOp
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Re: Inter Pipeline Ltd (Symbol-IPL) (formerly IPL.UN)

Post by IdOp » 11 Aug 2017 23:11

If there is a problem with energy grouping, that's really a problem with the slice-and-dice sector sprawl that ETFs have morphed towards, and it's reflective of active management as opposed to total market indexing.

I disagree that the EMH was brought on by ETFs, it was there long before ETFs showed up. And, Sharpe's arithmetic does not rely on EMH either.

Thegipper
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Re: Inter Pipeline Ltd (Symbol-IPL) (formerly IPL.UN)

Post by Thegipper » 12 Aug 2017 09:04

IdOp wrote:
11 Aug 2017 23:11
If there is a problem with energy grouping, that's really a problem with the slice-and-dice sector sprawl that ETFs have morphed towards, and it's reflective of active management as opposed to total market indexing.

I disagree that the EMH was brought on by ETFs, it was there long before ETFs showed up. And, Sharpe's arithmetic does not rely on EMH either.
The oil ands sector has a bad day Enbridge and other pipelines have a bad day. Coincidence ? If they were not lumped in as energy companies and were put in with transportation, industrials or utilities I believe this tendency would be mitigated. I have avoided oil nd gas stocks for at least 4 years. I have owned Enbridge and just seems to track oil and gas. It shouldn't because it basically transports a product for a toll or shipping charges. Not unlike CN or CP.

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Re: Inter Pipeline Ltd (Symbol-IPL) (formerly IPL.UN)

Post by IdOp » 12 Aug 2017 15:37

Thegipper wrote:
12 Aug 2017 09:04

The oil ands sector has a bad day Enbridge and other pipelines have a bad day. Coincidence ? If they were not lumped in as energy companies and were put in with transportation, industrials or utilities I believe this tendency would be mitigated. I have avoided oil nd gas stocks for at least 4 years. I have owned Enbridge and just seems to track oil and gas. It shouldn't because it basically transports a product for a toll or shipping charges. Not unlike CN or CP.
Well, IPL's earnings came out Thursday, so maybe the market (for pipelines) was reacting to that as well.

But that aside, I wasn't actually trying to disagree with you, maybe there is some inappropriate categorization there. I was trying to say that the existence of these sector ETFs and the actions of those who (perhaps sometimes indiscriminately) buy and then dump them are the result of active management and the sales machine. These things to me are the "bad part of ETFs", but don't apply to all ETFs. Upon re-reading newin96's post I think now he was trying to point out a possible inefficiency mechanism related to some ETFs only. At first I had read "the emergence of ETFs" as referring to the early ones which tended to be broad-market ETFs. That was probably my fault for not reading carefully enough. :oops:

To help cure the off-topic I created, my IPL story is that I bought some in late 2015 around Friday's price. I do recall when I bought it IPL seemed to have pretty good dividend coverage (low payout) so that swung me towards it. It went all the way up to $30 and now it's back here again. Maybe it's a buying opportunity again, but sometimes these downdrafts have follow-through, so who knows. Rising rates might not be so kind to the sector either. Think I'll watch and wait a bit before deciding to buy any more.

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Re: Inter Pipeline Ltd (Symbol-IPL) (formerly IPL.UN)

Post by Londoncalling » 12 Aug 2017 18:05

I have been a relatively long time holder of IPL (5 +years) at a price of $16.xx. At the time of purchase it was in the high 6% distribution range as IPL.UN. It has treated me well with growing dividends and share price appreciation. I even trimmed a few years ago in the mid 20s. I am still over weight. Am I interested in buying after such a huge pullback? yes. will I act on that interest. not likely. I am overweight the stock but feel it is oversold. However, what do I know it could stay low for quite some time or fall even further on a full market correction. That being said sometimes I get silly and make an swing trade.

Cheers

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