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

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

Post by AltaRed »

JaydoubleU wrote: 11 Nov 2017 16:32 My parent's recently switched from an oil furnace to an electric system. They commented that they would have considered natural gas had a pipeline been available, but there is none (a suburb of Montreal). Why isn't Enbridge there?
Because Quebec has to do things their way and only when the politicians feel it is in their interest. Can't have the English invade.... https://www.gazmetro.com/en/
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

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Gazmetro isn't in my parent's town. There are NO gas pipelines in the town (to my knowledge).
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by JaydoubleU »

I doubt very much that in the coming decades demand for energy is going to decrease. ENB simply needs to find new ways to get its market share. But I'm quite sure management knows more about the energy markets than I do.

Nor does there seem to be a shortage of projects: http://www.enbridge.com/projects-and-in ... e/projects
My ignorance is evident. As an ENB shareholder, I should know more about ENB's businesses. I took a look at the projects in the link above, and I can see that ENB has all kinds of things going on, large and small. Some are coming into service in the very near future; others are projected for next year or the coming years. It would take a lot more time to figure out how much all these projects will "move the needle."
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by AltaRed »

Enterprise value of ENB is about $130 Billion so that gives you perspective of perhaps what it takes to move the needle. Most of their growth, ex Line 3 replacement will be ex-Canada.

Take a look at https://www.enbridge.com/~/media/Enb/Do ... on_ENB.pdf to give you perspective. They claim $31 Billion in Secured Projects but some, like Line 3, are not a slam dunk. YMMV
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by JaydoubleU »

Boggles the mind. Informative, though. Thanks. It does seem as though they are pulling out all the stops in all directions. Now can they reign in that debt . . .
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by jay »

Getting very oversold with an RSI reading around 15.
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by Dudsy »

What is this symbol "ENB" in green on my screen?
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

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I am a stock holder. Would be reluctant to buy until tax loss selling season is over. Mid December? they are saying they will provide guidance around that time.
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by JaydoubleU »

Headline on Globeinvestor, but the article is behind a wall:

BMO sees ‘once in a multi-year buying opportunity’ for Enbridge
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by Shakespeare »

Some quotes from https://www.theglobeandmail.com/globe-i ... e37015852/
"With the recent material stock correction, we believe that not only is the market not appreciating the $31-billion secured project backlog, it is also discounting the existing asset base, which we view as high quality (less than 5-per-cent commodity exposure)," said Mr. Pham ....

We see strong rationale for ENB to reaffirm the 10-12-per-cent dividend growth guidance....

Mr. Pham has given Enbridge shares an "outperform" rating and a Street-high 12-month target price of $70. The average target price is currently $58.59, according to Bloomberg data.
IMO target prices are useless, but their ya go.

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

Post by JaydoubleU »

Yet another Enbridge leading headline on gloveinvestor.com. This time, Gordon Pape chimes in:

This is what I think you should do with your Enbridge shares right now


Here's the sum:
My advice at this point is to hold your positions and enjoy the healthy yield. It will likely take a while for the share price to recover but you are receiving excellent cash flow while you wait.
Yawn.

Hard to tell how much the media may be manipulating investor sentiment, but ENB had a good day Friday, and it is up nicely right now.
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by Shakespeare »

Well, I added another 50 first thing this morning. Now I'll sit.
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by JaydoubleU »

I added 100 last week, before ex-dividend. The div. doesn't make up for the subsequent decline, but it's nice to see ENB now showing some strength. Up over 2% at the moment.
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

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Hopefully TRP doesn't steal all the limelight, as per your other post Shakes,

https://www.theglobeandmail.com/report- ... e37028478/
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by Spidey »

Shakespeare wrote: 20 Nov 2017 11:27 Well, I added another 50 first thing this morning. Now I'll sit.
Me too.
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

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Me 3 ....$44 and change last week
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by shellybear »

Thought i had a few more weeks until the very bottom, but perhaps not. Tax loss selling is usually most aggressive late nov and early december. Maybe folks are gathering up the bargain basement deals early.... some of these were very oversold.
Still worth buying at these levels imo...
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by AltaRed »

I'd argue that now is a better time to buy than a week ago when it was still fallilng. It could have gone all the way to $40 or so to it's 3? year low. It is better to leave something on the table and be more confident of an upward trend than throwing the dice. Anyone into TA would tell you the same thing. While I don't believe in the flashing lights of TA, there are aspects of it that seem common sense.

P.S. I think the uptick is more ENB getting caught up in the 'limited' euphoria of the Keystone XL Nebraska outcome than because tax loss selling is over.
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by gobsmack »

I have not heard anyone question the safety of the dividend so I assume it is safe. Wouldn't the dividend alone entice buyers if it were to go much lower? If it were to hit $40, the stock would yield a juicy 6.10% dividend!
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by AltaRed »

I don't think there is any doubt the dividend is safe. IMO, ENB's problem right now is two fold: 1) anxiety/distrust in their aggressive dividend policy presumably to be addressed at their December Investor Day, and 2) the need to show EPS growth. As I understand it, their EPS trend has been lacking. EPS growth is ultimately the measure of investor reward.
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

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A commentator today said Enbridge has a debt of 65 billion and for the last two quarters it's FCF was insufficient to cover the dividend. concerning info?
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by Thegipper »

just read RBC's latest report on Enbridge. They are very bullish with a 33% upside on the stock price. They also see 10% dividend increases to 2022.
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by Taggart »

I've always read these analyst reports with a grain of salt. These guys are a heck of a lot smarter than me, but as I've learned over many years their reports are not worth much more to an investor than a coin toss.

I'll probably purchase ENB fairly soon, but not because of what some analyst has said. I've already got a decent allocation of TRP and IPL in the Energy/Pipelines sector in the portfolio, but could definitely add some more shares of ENB. So far, ENB has continued over the last few years to increase it's dividend faster than the inflation rate and the yield today is quite decent. As long as the company management doesn't cut the dividend in future years, I'll continue to hold. Simple as that.
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by Thegipper »

Taggart wrote: 25 Nov 2017 17:55 I've always read these analyst reports with a grain of salt. These guys are a heck of a lot smarter than me, but as I've learned over many years their reports are not worth much more to an investor than a coin toss.

I'll probably purchase ENB fairly soon, but not because of what some analyst has said. I've already got a decent allocation of TRP and IPL in the Energy/Pipelines sector in the portfolio, but could definitely add some more shares of ENB. So far, ENB has continued over the last few years to increase it's dividend faster than the inflation rate and the yield today is quite decent. As long as the company management doesn't cut the dividend in future years, I'll continue to hold. Simple as that.
Yes I understand. Basically they are in a conflict of interest. How does their employer do the merger, acquisition and equity issue work if they don't give these companies positive reports. It's very difficult to ever find a sell recommendation for any stock they cover.
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Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Post by StuBee »

Enbridge has just announced a 10% increase to its dividend (from the current 0.61$ to 0.671$...exactly 10%). As recently as end of September they guided to a range of 10-12% until at least 2020. Well now they have reduced this number to 10%... Furthermore, 1.5B$ of additional common are being added to the market... more dilution.

I am content with this increase. However this news adds to my conviction that ENB's future is not as rosy as its past. I also fear that downward risk on this company is not yet over...

It will be interesting to see the markets reeaction tomorrow.
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