Quote:
Originally Posted by fleury
I only have a couple stocks right now. BNS and just recently ENB. ENB specifically has such a nice yield and being a blue chipper I can’t see them cutting the dividend in the near future. What am I missing here?
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Risks to ENB that is causing it to trade at a cheap valuation
1) they have metric crapload of debt.
2) people are worried about various pipeline restrictions (ie losing the line under the lake by Michigan)
3) if AB oil production doesn't grow and transmountain and KXL both get built, the mainline might not be full any more
Anyway, those are the big risks imo, but its definitely cheap. I think the mainline will remain full enough to keep earning its tolls, and their gas utility in ON is a great business.