some earnings and news on some stocks I have mentioned previously.
Enbridge
Enbridge transferred some assets to the Enbridge energy partners (EEP/have it in the trades section) for $929 million. The pipeline assets are mainly in Texas. These are good assets and should help out the partnership (they have to raise the money) and Enbridge by reducing the companies debt.
Enbridge owns 12.9% interest in Enbridge partners, the company will receive 25% increase in distriubutions up to $3.96, this will increase to 50% in each increase beyond this. Distribution of the partnership is $3.60 and should grow by single digits going forward.
Enbridge yield around 3%and should trade at 17-15X in 2003. the pipeline has increasing dividends and earnings, (cannot be said for most stocks). trades on the Cdn./US exchanges.
currently trades around $48 my one year target is $50. would consider buying some more in the $42.50-$45 range (or 5-10% pullback). almost fully valued but would buy some on weakness, well run, good(great) company). (own a position in the stock, also lost some on a May $45 call which looked like a good trade at the time)
also own some Enbridge energy partners mainly for income in US $$.
Royal Bank of Canada
is one of the big five Cdn. banks and one of the few that grew earnings this quarter yr/yr. anyways should make $4 cdn. $2.60US in 2002 and roughly $4.55 $2.95 US. stock yields over 2.5% and the div will probably be raised in 2003 and going forward.
since banking mergers were not allowed in Canada among the big 5 Royal Bank, CIBC, BNS, TD, BMO, (the Big 5 in Canada on world terms they are considered small, maybe bigger the US regional banks, Many large world banks would be bigger than all 5.)
Royal Bank is looking to expand down in the US. They have been slowly buying up regional banks and insurance, brokerages. Well run bank and not a bad bank to look at.
The banks are trading closer to their highs (in historic terms) and they are a sector that has held up well as Cdns. have rushed into the banks as a safe haven. still Royal Bank is worth a look would look at accumalating it here, but would be more interested at $52.50/$55cdn. currently around $56
also a good bank to consider for US investors as well as Cdn. They will have growing revenues from the US. also the cdn. economy will have the best growth this year of the G7 and the only country in that group that will have a surplus, so the Cdn. banks should fair well going forward.
have a puts oct $47.50cnd. and oct $50 (wrote when the stock was trading around $51.) also have covered calls on half of the position at $55cdn. oct calls got $1.50 each which seemed like a good trade at the time
still may work out.
finally some Cdn. Junior oils
Keywest has finished $12 million equity financing at $2.05 a share. Keywest plans to spend $48 million up from $36 million in 2002. 30%/70% gas/oil in 2002.
Keywest trades at around 4.5X 2002 cash flow and 3.8X 2003
Real Resources is another company to watch as they should increase their production through drilling, stock worth watching at below $4 cdn.
thanks
selkirk
Enbridge
Enbridge transferred some assets to the Enbridge energy partners (EEP/have it in the trades section) for $929 million. The pipeline assets are mainly in Texas. These are good assets and should help out the partnership (they have to raise the money) and Enbridge by reducing the companies debt.
Enbridge owns 12.9% interest in Enbridge partners, the company will receive 25% increase in distriubutions up to $3.96, this will increase to 50% in each increase beyond this. Distribution of the partnership is $3.60 and should grow by single digits going forward.
Enbridge yield around 3%and should trade at 17-15X in 2003. the pipeline has increasing dividends and earnings, (cannot be said for most stocks). trades on the Cdn./US exchanges.
currently trades around $48 my one year target is $50. would consider buying some more in the $42.50-$45 range (or 5-10% pullback). almost fully valued but would buy some on weakness, well run, good(great) company). (own a position in the stock, also lost some on a May $45 call which looked like a good trade at the time)
also own some Enbridge energy partners mainly for income in US $$.
Royal Bank of Canada
is one of the big five Cdn. banks and one of the few that grew earnings this quarter yr/yr. anyways should make $4 cdn. $2.60US in 2002 and roughly $4.55 $2.95 US. stock yields over 2.5% and the div will probably be raised in 2003 and going forward.
since banking mergers were not allowed in Canada among the big 5 Royal Bank, CIBC, BNS, TD, BMO, (the Big 5 in Canada on world terms they are considered small, maybe bigger the US regional banks, Many large world banks would be bigger than all 5.)
Royal Bank is looking to expand down in the US. They have been slowly buying up regional banks and insurance, brokerages. Well run bank and not a bad bank to look at.
The banks are trading closer to their highs (in historic terms) and they are a sector that has held up well as Cdns. have rushed into the banks as a safe haven. still Royal Bank is worth a look would look at accumalating it here, but would be more interested at $52.50/$55cdn. currently around $56
also a good bank to consider for US investors as well as Cdn. They will have growing revenues from the US. also the cdn. economy will have the best growth this year of the G7 and the only country in that group that will have a surplus, so the Cdn. banks should fair well going forward.
have a puts oct $47.50cnd. and oct $50 (wrote when the stock was trading around $51.) also have covered calls on half of the position at $55cdn. oct calls got $1.50 each which seemed like a good trade at the time
still may work out.finally some Cdn. Junior oils
Keywest has finished $12 million equity financing at $2.05 a share. Keywest plans to spend $48 million up from $36 million in 2002. 30%/70% gas/oil in 2002.
Keywest trades at around 4.5X 2002 cash flow and 3.8X 2003
Real Resources is another company to watch as they should increase their production through drilling, stock worth watching at below $4 cdn.
thanks
selkirk
