Enbridge (Symbol-ENB)..are we getting close to a buy???

Discuss your favourite picks, broker, and trading or investment style.
Dudsy
Contributor
Contributor
Posts: 187
Joined: 26 Jan 2009 10:39

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by Dudsy »

I was hoping the globe article might have an interesting analysis of the balance between growth and dividends. A valid discussion of whether Enbridge should throttle back the dividend when they are growing so aggressively? Unfortunately, it's hard to take the writer seriously as he degenerates to the sensationalism of "The missing billions" and "negative free cash flow in nearly every year"... without once mentioning the balance sheet.

Since 2008 ENB assets have grown from $25B to $163B. S/H Equity from $7B to $57B.

I find it harder and harder to read 'news' without feeling manipulated.
Dudsy
Contributor
Contributor
Posts: 187
Joined: 26 Jan 2009 10:39

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by Dudsy »

StuBee wrote: 04 Dec 2017 17:21 I am mulling over the idea of selling a loser in my spouses account and (by means of an identical purchase) transfering her loss to me and then selling off some of my ENB.
StuBee: Are you describing deliberately triggering the superficial loss rule to accomplish this? (I hadn't thought of that before)
BRIAN5000
Veteran Contributor
Veteran Contributor
Posts: 9064
Joined: 08 Jun 2007 23:27

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by BRIAN5000 »

Dudsy wrote: 04 Dec 2017 20:01
StuBee wrote: 04 Dec 2017 17:21 I am mulling over the idea of selling a loser in my spouses account and (by means of an identical purchase) transfering her loss to me and then selling off some of my ENB.
StuBee: Are you describing deliberately triggering the superficial loss rule to accomplish this? (I hadn't thought of that before)
This might be what he's referring to
Transferring Capital Losses to your Spouse
https://ca.rbcwealthmanagement.com/dele ... 03/content
This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed
User avatar
StuBee
Veteran Contributor
Veteran Contributor
Posts: 2944
Joined: 21 Sep 2010 11:08
Location: SW Quebec

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by StuBee »

Dudsy wrote: 04 Dec 2017 20:01
StuBee wrote: 04 Dec 2017 17:21 I am mulling over the idea of selling a loser in my spouses account and (by means of an identical purchase) transfering her loss to me and then selling off some of my ENB.
StuBee: Are you describing deliberately triggering the superficial loss rule to accomplish this? (I hadn't thought of that before)
Yes. The article linked by Brian5000 describes a variant of this strategy. What I was thinking of doing is simpler (I think) than what the link proposes. My spouse would sell her shares and I, within 30 days (though probably immediately), would purchase an identical position. I would then sell the position more than 30 days after my purchase.
"The term is over: the holidays have begun. The dream is ended: this is the morning."-C.S.Lewis, The Last Battle
beachcomber
Contributor
Contributor
Posts: 244
Joined: 08 Jan 2017 13:51

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by beachcomber »

Bought 500 ENB about two weeks ago when I thought it had bottomed, it hadn't! Anyway - after a depressing start all is well as it has recovered and is doing quite well (up 4.5% at today's close).

Then, had lunch with an RBC type yesterday who told me they had moved or were attempting to move all their client's ENB holdings inside RIFs, RRSPs and TFSAs from ENB to SU. No tax consequences! Cash/investment accounts were being evaluated on a case by case basis.

Am now tracking SU :-(
User avatar
AltaRed
Veteran Contributor
Veteran Contributor
Posts: 33399
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by AltaRed »

SU is about to enter a larger production phase, and lower capex spending phase, plus they stand to gain from both oil price AND lower differentials in event of Line 3 replacement and/or Keystone XL and/or TransMountain expansion. One of those pipelines is going to go....hopefully. Only a lower global oil price or a major facility calamity would impact SU very much.

I think this is a bet about the odds of more going right for SU than wrong, and ENB pretty much stuck with only its Line 3 replacement as something that would move the needle on its financials. Just a guess, but quite a shift from one sector to another.
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13271
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by Peculiar_Investor »

For those holding Enbridge preferred shares and/or debt, ENB Preferreds Downgraded to Ba2 by Moody’s « PrefBlog
Moody's Investor Services wrote:downgraded the senior unsecured ratings of Enbridge Inc. (ENB) to Baa3 from Baa2. In addition, Moody’s changed the short term commercial paper rating for Enbridge (US) Inc. to P-3 from P-2 and the subordinate ratings to Ba2 from Ba1. At the same time, Moody’s changed the rating outlook for Enbridge to stable from negative.

<snip>

The change in rating outlook to stable from negative reflects Enbridge’s predictable cash flow generation and large, low business risk asset base. The stable outlook reflects an expectation that Enbridge will follow through on its announced strategic plans, which include some non-core asset divestitures and financing plans that encompasses a balanced mix of both debt and equity. The stable outlook also incorporates a view that Enbridge’s key financial credit metrics, including a ratio of debt to EBITDA, will decline towards 5.5x during 2018, setting a path for further improvements to financial metrics in 2019 and 2020.
and then
James Hymas wrote:Affected issues are (deep breath) ENB.PF.A, ENB.PF.C, ENB.PF.E, ENB.PF.G, ENB.PF.I, ENB.PF.K, ENB.PR.A, ENB.PR.B, ENB.PR.C, ENB.PR.D, ENB.PR.F, ENB.PR.H, ENB.PR.J, ENB.PR.N, ENB.PR.P, ENB.PR.T and ENB.PR.Y
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
User avatar
AltaRed
Veteran Contributor
Veteran Contributor
Posts: 33399
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by AltaRed »

I have one small holding in a ENB pref with a reset date in 2020. Capital value has definitely under performed for the last year or two vis-a-vis TRP offerings as ENB credit ratings have been under pressure. I am assuming credit ratings will improve by mid-2020, as a result of Line 3 replacement nearing completion, and then I will get out of ENB pref assuming a price boost.
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom
JaydoubleU
Veteran Contributor
Veteran Contributor
Posts: 3103
Joined: 13 Sep 2007 22:52

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by JaydoubleU »

Speaking of ENB, it has made a nice move off the bottom, a little over $43 just 6 weeks ago. Not sure if the rise in oil to $61 is the only reason, or if this will last, but we are hopeful ENB puts in a better year this than last.
thedude99
Contributor
Contributor
Posts: 28
Joined: 28 Sep 2017 14:29

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by thedude99 »

Looks like this is once again plummeting while US markets soar forward. WTI nearing $70 too. WTF is going on here? You keep hearing about pipeline capacity constraints....Econ 101 tells me there should be enormous pricing power for all the pipeline companies but yet we keep seeing pathetic performance in them
User avatar
AltaRed
Veteran Contributor
Veteran Contributor
Posts: 33399
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by AltaRed »

Tolls and tariffs are regulated. For example, ENB has to go through public hearings with the NEB for toll increases which have to be justified.
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom
gobsmack
Contributor
Contributor
Posts: 447
Joined: 04 Sep 2015 13:16

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by gobsmack »

TRP dropped by a quite a bit in the last few days as well. Oil is going up though. What is putting pressure on them?
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13271
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by Peculiar_Investor »

gobsmack wrote: 26 Jan 2018 19:54 TRP dropped by a quite a bit in the last few days as well. Oil is going up though. What is putting pressure on them?
As utilities and pipelines, aren't ENB and TRP considered interest-rate sensitive? What's finally happening with interest rates, which puts pressure on their relative dividend yield?
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
User avatar
AltaRed
Veteran Contributor
Veteran Contributor
Posts: 33399
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by AltaRed »

as I mentioned previous, most of the pipelines' business is regulated, like electrical utilities. Only a portion of their business Is in non-regulated growth areas.

With increasing interest rates, there is little reason for EPS to grow at a significant rate. ENB needs to get Line 3 replacement done and TRP needs to get Keystone XL done for meaningful EPS growth. In the meantime, the original TRP Keystone throughput has been throttled back by US authorities due to their recent spill. That decreased flow comes right off the bottom line. It can be tough being a pipeline!
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom
rharvey199
Contributor
Contributor
Posts: 228
Joined: 23 Feb 2017 15:15

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by rharvey199 »

ENB is now yielding over 6% if you take the estimated declared dividend for Q1 2018 and extrapolate for the FY 2018. Anyone tempted?
newin96
Contributor
Contributor
Posts: 272
Joined: 31 Mar 2013 16:47

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by newin96 »

Very tempted to open a position... just questioning the debt level.
Irwin
Contributor
Contributor
Posts: 177
Joined: 10 Apr 2014 08:31

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by Irwin »

I will be tempted at $41 if it gets there, and pauses for a few days.
Also would use a tight mental stop loss of no more than 5%.
Just two weeks 'till next earnings. Prob wise to wait.

Added:
After a quick read through Vanguard's new ETFs offerings, I may just quit buying individual stocks completely.
Stock markets are correcting nicely, and the lower they go, the more interesting VBAL will be (for me).
https://www.vanguardcanada.ca/individua ... w-etfs.htm
User avatar
shmenge
Contributor
Contributor
Posts: 295
Joined: 28 Jun 2008 06:17
Location: Ontario

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by shmenge »

Irwin wrote: 02 Feb 2018 07:05 After a quick read through Vanguard's new ETFs offerings, I may just quit buying individual stocks completely.
Stock markets are correcting nicely, and the lower they go, the more interesting VBAL will be (for me).
I'm giving this strategy a lot of thought too. You are not alone in thinking that this is a great value play at $41. It might be but nobody knows anything. Good Luck, I own 172 shares of ENB bought at much higher prices :oops:
If you want to buy stocks why would you want them to rise in price? - Warren Buffett
The Stock Market Speculator
Taggart
Veteran Contributor
Veteran Contributor
Posts: 6893
Joined: 05 Dec 2005 07:34

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by Taggart »

Well, somebody out there seems to think Enbridge, amongst other Canadian dividend growth stocks may be a bargain.

Six dividend deals in the market rubble
Wednesday, February 7, 2018

JOHN HEINZL

https://secure.globeadvisor.com/servlet ... GIYIELDHOG
Irwin
Contributor
Contributor
Posts: 177
Joined: 10 Apr 2014 08:31

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by Irwin »

shmenge wrote: 03 Feb 2018 06:50 I'm giving this strategy a lot of thought too. You are not alone in thinking that this is a great value play at $41. It might be but nobody knows anything. Good Luck, I own 172 shares of ENB bought at much higher prices :oops:

I put all extra cash into Vanguard Growth, so ENB will have to carry on without me.
User avatar
brad911
Veteran Contributor
Veteran Contributor
Posts: 1150
Joined: 29 Jan 2007 16:45
Location: London ON
Contact:

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by brad911 »

~6% decline in the TSX is now "rubble"?
Triage Investing Blog - A Source for Value & Dividend Investing and Business Fundamentals
thedude99
Contributor
Contributor
Posts: 28
Joined: 28 Sep 2017 14:29

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by thedude99 »

brad911 wrote: 07 Feb 2018 20:49 ~6% decline in the TSX is now "rubble"?
Have we forgotten the massive under-performance to basically everything in the last five years as well? Among my relatively young age cohort noone is touching anything to do with Canada with a ten foot pole. That's a problem. I would sell this stinker but the tax tail is wagging the very smelly dog on this one. Kinder Morgan 2.0 here. One of the worst charts i've ever seen too
jay
Contributor
Contributor
Posts: 547
Joined: 19 Feb 2008 21:13

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by jay »

brad911 wrote: 07 Feb 2018 20:49 ~6% decline in the TSX is now "rubble"?
At some point this week, half of my holdings were down 15% or more from their highs (ENB, SAP, FTS, RCI.B to name a few).
User avatar
AltaRed
Veteran Contributor
Veteran Contributor
Posts: 33399
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by AltaRed »

How individual holdings are doing is much less important than how the overall portfolio is doing. You are diversified, are you not?
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom
nisser
Veteran Contributor
Veteran Contributor
Posts: 2079
Joined: 11 Nov 2007 21:24

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by nisser »

thedude99 wrote: 08 Feb 2018 01:21
brad911 wrote: 07 Feb 2018 20:49 ~6% decline in the TSX is now "rubble"?
Have we forgotten the massive under-performance to basically everything in the last five years as well? Among my relatively young age cohort noone is touching anything to do with Canada with a ten foot pole. That's a problem. I would sell this stinker but the tax tail is wagging the very smelly dog on this one. Kinder Morgan 2.0 here. One of the worst charts i've ever seen too
I'm trying to compare Kinder morgan to Enb to see if there's any similarities here and I'm struggling to find them. According to TTM figures, dividends paid for Enbridge is about 50% of it's operating cash flow. This is still while the spectra assets are not fully integrated yet so it will likely look even better. I may have mentioned it before but I owned Spectra and was very pleased with their operations right up until Enbridge bought them out.

The year that KMI cut it's dividend, their dividends paid out was nearly 200% of operating cash flow. If I took the best operating year for KMI (2014) it was still 100% of the cash flow.
Unless I'm missing something, they're not in the same boat.

I'm conflicted as ENB is now about ~6% of my portfolio because I'm following the dogs of the tsx strategy but I would really like to load up a bit more at these levels.
Post Reply