Q: Hi, We have held a full position in ENB for many years and added a 1.5% position in TRP about a year ago, at $60-61, in a Non-Regd account, for Income/Growth.The investment, however, has been a huge disappointment. The endless cost issues with Coastal Link pipeline project and no clear timeline is now widely known. Are you aware of any catalysts in the near future ?
Over numerous comments, you have clearly indicated your preference for ENB and there being no particular need to own both companies. Based on the current scenario, would you support moving out of TRP ? Now or wait for the quarterly results ?
And, if we decide to sell the whole position ( and at least book the capital loss), what would be a reasonable price level you would use?
Thank You
Over numerous comments, you have clearly indicated your preference for ENB and there being no particular need to own both companies. Based on the current scenario, would you support moving out of TRP ? Now or wait for the quarterly results ?
And, if we decide to sell the whole position ( and at least book the capital loss), what would be a reasonable price level you would use?
Thank You
5i Research Answer:
The main catalyst for TRP will be the completion of the pipeline with no additional cost overrun news. But lower interest rates (if and when) should help the whole sector. We would still be fine switching, and would see little need to wait for results (we never like to base any decision on one quarter, anyway). Pricing is never perfect. In a portfolio switch like this we prefer just to proceed. This is a portfolio decision rather than a perfect pricing decision. The stock could stay weak; we think anything above $50.50 works.