Investment Q&A

Q: Please let us know what you find out about ENB as far as it being involved with master limited partnerships. My quick search tells me Enbridge is a normal corporation rather than an MLP. Enbridge Energy Partners, EEP, is an MLP. My information concerns the U.S. stocks. I don't know if there would be different considerations for Canadian shares of ENB. Thank you for your ongoing information, education, and guidance.

Q: Rates dropping by 5-9% is going to make ENB's debt worse, of course. Is that getting to be a worry? When does it come into effect? Thank you.

Q: OK so if the ruling is enforced what is the implication for ENB?

Q: Good morning. Looking to add a few stocks (services, financial, utilities) for 5+yr hold with growth and income. EFN, AD & ENB are my front runners, respectively. Could you suggest one other alternative to each of those three that you would recommend? especially interested in your opinion on EFN today with their earnings news. And what is EFN payout ratio? great service thx. I am 35 years of age with higher-risk tolerance.

Q: Never mind my question as I have the reason for the decline:
FERC Revises Polices, Will Disallow Income Tax Allowance Cost Recovery in MLP Pipeline Rates

The Federal Energy Regulatory Commission (FERC) today responded to a federal court remand by stating it no longer will allow master limited partnership (MLP) interstate natural gas and oil pipelines to recover an income tax allowance in cost of service rates.

The U.S. Court of Appeals for the District of Columbia Circuit in United Airlines, Inc. v. FERC, (827 F.3d 122 (D.C. Cir. 2016) held that FERC failed to demonstrate there was no double recovery of income tax costs when permitting SFPP, L.P., an MLP, to recover both an income tax allowance and a return on equity determined by the discounted cash flow methodology.

The Commission today acted in response both to the court remand and comments filed in response to an inquiry issued after the court ruling. FERC will now revise its 2005 Policy Statement for Recovery of Income Tax Costs so that it no longer will allow MLPs to recover an income tax allowance in the cost of service.

The revised policy statement explains that, while all partnerships seeking to recover an income tax allowance will need to address the double-recovery concern, the application of the United Airlines court case to non-MLP partnerships will be addressed as those issues arise in subsequent proceedings.

Q: Any idea why enb is down 5% today?

Thanks
Mike

Q: My portfolio has gotten very International over the past several years and I was wondering if you could give me a number of non resource names that you would consider Canadian core holdings - stocks that everyone should own. I already own BAM.a, NTR, AQN, ATD.b, TRP, SHOP, BIP.un, DOL and CNR. Thank you

Q: Enb is recovering nicely from $40.50 on 3/7.Did U hear rumour of a financing coming soon.Txs for U usual great services & views

Q: Hi, 5I
On march 13 William asked you about Enbridge and the possibility of increasing his position. You mentionned ''positive momentum'' as a trigger for adding to the investment.
I am not familiar with what positive momentum entails, so I would like to take the Enbridge situation as a ''REAL'' example.
Enbridge reached a low of 40.38 on march 02, the stock is now at 42.45 (12-03 at 12.43)
Does this increase constitute ''positive momentum'' or would you wait more and particularily at what price would you consider any increase would be a positive momentum.
Thanks
CDJ

Q: amongst CU,EMA, ENB AND ACO,
A.please rank in order, best value buy and what metric is most appropriate for them in terms of assessing "value".
B. Also could you please give me some historical perspective on their value (always hard to decide on when to buy in given all of the recent drop.)

Q: I have a 1/2 position in ENB that is down 21%. Would it be ok to raise my position back up to a half position or up to a 3/4 position.

Thanks for all your advice.

Q: what caused the recent stock price drop?

Q: Purely, on the basis of which company has the best prospects for capital gains going forward, should I buy Enbridge or Fortis at these levels. Or should I take a position in both? Why?
As always, thanks for your valued opinion!

Q: Hello, just want to ckeck with you if my calculations of the debt / cash flow ratio of Enb is exact? I obtain a ratio of 9.2 and here is how I get it using data from Tmx Money: Long term debt of 60.8 B / Net cash from continuing operations of 6.6 B = 9.2 ratio. If that is what you have, are we in dangerous territory? Thanks, Gervais

Q: Good morning 5i team,

I was wondering what your view would be on the changes that the drop in a utility like enbridge might be finished or whether there is more to come. It is an attractive price at the moment. But, there are a number of rate hikes coming in the coming year. Would these already be written in, or is there more carnage to come? Just looking for an educated guess.
thanks

Q: At what point do you take enbridge out behind the barn and shoot it? Or is the flip side true and its becoming a screaming buy to be averaged into? I thought it was a steal at 48. Less than keen to watch it slide even further.

Q: i have roughly more than 100 thousand investment room in rrsp resp and TFSA. i am thinking buy some reit or stock?

pls help me>

appreciate.

Q: Current price $40.57(5yr low),6.62% yield(mainly due to drop in price,partly div.growth)& high $66b debt.A rising interest rate environment,which will be further aggravated if Trump impose tariffs.New York Fed Governor W Dudley stated"raising trade barriers would risk setting off a trade war,which could damage economic growth prospects around the world".Recently filed for potential mixed shelf offering.Will be dilutive & negative if sell shares @ such low price(remember CPG which keeps on issuing shares).However it does have $10b non core assets,of which $3/4b are to be sold In 2018.Have not heard of any sale,maybe not getting the desired price. I have 1/2 position @ $49,so add,hold or sell.Txs for u usual great services & views.

Q: How Spectra/ ENB issues of recently announced debentures impact the stock price and dividend of ENB in the short term (3 months) and long term (5 years).
Do you recommend ENB purchase at $40-41? Thank you,
Kam

Q: Hi 5i,
I have a pretty balanced RRSP with these stocks and FUND. I am only up with the FUND and BEP.UN. I have about $10, 000 to add to the mix. Should I buy in to any of the losing stocks, add a new one or wait and see . Possibly ranking the "losers" might help me.
Many thanks. I enjoy the Q & A daily.
Great coverage.
Cheers
Paul