enbridge

ENBRIDGE INC., $56.48, Toronto symbol ENB, plans to transfer its 66.7% stake in the U.S. portion of its Alberta Clipper pipeline to its American affiliate, Enbridge Energy Partners, L.P. (New York symbol EEP). Alberta Clipper pumps crude from Alberta’s oil sands to Superior, Wisconsin. Enbridge will receive $300 million U.S. in cash and $600 million U.S. worth of Enbridge Energy Partners units. The $900-million U.S. total is equal to 2% of Enbridge’s $47.8-billion (Canadian) market cap....

Enbridge has jumped 175% in the past five years, largely because low interest rates have prompted income-seeking investors to buy high-yielding utility stocks. The company is also aggressively adding pipelines to profit from rising oil sands production and new fields like the Bakken shale oil region. The stock now trades at over 25 times earnings. That’s a high multiple for a regulated pipeline operator, but it’s still reasonable in light of Enbridge’s improving growth prospects. ENBRIDGE INC. $56 (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 846.4 million; Market cap: $47.4 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.enbridge.com) gets 90% of its revenue from pipelines that pump oil and natural gas from Western Canada to customers in Eastern Canada and the U.S. The remaining 10% mainly comes from distributing gas to 2.1 million consumers in Ontario, Quebec, New Brunswick and New York State....

Every Monday we feature “A Stock to Sell” as our daily post. With every stock we recommend as a sell, we give you a full explanation of why we advise against investing in the stock at this time. Keyera Corp. (symbol KEY on Toronto; www.keyera.com), provides a number of services to the oil and gas industry, including gathering, processing, storage and transportation....

NEWMONT MINING $26.31 (New York symbol NEM; Shares outstanding: 498.8 million; Market cap: $13.3 billion; TSINetwork Rating: Average; Dividend yield: 0.4%; www.newmont.com) recently shut down its 48.5%-owned Batu Hijau copper/gold mine in Indonesia. The move was in response to the Indonesian government’s ban on raw material exports, which is aimed at pushing miners to process more ore in the country. Newmont has now agreed to develop a new smelter with Freeport-McMoRan Inc. (New York symbol FCX), which also operates a copper mine in Indonesia. In addition, Batu Hijau has signed new deals to supply copper to two Indonesian companies that plan to build their own smelters. These developments should let Batu Hijau comply with the new regulations. The mine will probably reopen in the next few weeks....

Keyera Corp. $97.75, symbol KEY on Toronto (Shares outstanding: 83.9 million; Market cap: $8.2 billion; www.keyera.com), provides a number of services to the oil and gas industry, including gathering, processing, storage and transportation. In the three months ended June 30, 2014, the company reported cash flow of $1.04 a share, up 3.0% from $1.01 a year earlier. Keyera raised its monthly dividend by 7.5%, to $0.215 a share from $0.20, beginning with the June 2014 payment. The stock now yields 2.6%....

ENBRIDGE INC. $53.46 (Toronto symbol ENB; Shares outstanding: 834.8 million; Market cap: $45.2 billion; TSINetwork Rating: Above Average; Dividendyield: 2.6%; www.enbridge.com) recently won Ottawa’s approval for its Northern Gateway pipeline.

The project faces strong opposition from environmentalists and First Nations. As well, the Supreme Court recently issued a ruling that makes it easier for aboriginal groups to claim title to their traditional lands.

However, Enbridge does not expect the ruling to block Northern Gateway. There are no land claims along the pipeline’s route, and the company has signed equity-sharing deals with 26 First Nations.

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CAE INC. $13.45, Toronto symbol CAE, plans to sell its mining operations, which make simulators for training workers to operate underground trucks, loaders and drills. This business supplies just 2% of the company’s revenue. The mining operations were part of CAE’s New Core Markets division, which applies the company’s flight simulator expertise to other industries. This division, now called Healthcare, will focus on medical-simulation products, such as mannequins for training nurses and medical students. In its fiscal 2015 first quarter, which ended June 30, 2014, CAE’s earnings from ongoing operations fell 2.0%, to $43.6 million from $44.5 million a year earlier. Earnings per share were unchanged at $0.17, missing the consensus estimate of $0.19. Lower earnings from the company’s military-related businesses offset strong gains from its commercial division....

ENBRIDGE INC. $53.46 (Toronto symbol ENB; Shares outstanding: 834.8 million; Market cap: $45.2 billion; TSINetwork Rating: Above Average; Dividendyield: 2.6%; www.enbridge.com) recently won Ottawa’s approval for its Northern Gateway pipeline. The project faces strong opposition from environmentalists and First Nations. As well, the Supreme Court recently issued a ruling that makes it easier for aboriginal groups to claim title to their traditional lands. However, Enbridge does not expect the ruling to block Northern Gateway. There are no land claims along the pipeline’s route, and the company has signed equity-sharing deals with 26 First Nations....

ENBRIDGE INC. $50.81 (Toronto symbol ENB; Shares outstanding: 834.8 million; Market cap: $4242 billion; TSINetwork Rating: Above Average; Dividend yield: 2.8%; www.enbridge.com) has won approval from Ottawa for its Northern Gateway pipeline.

The line will pump crude from Alberta’s oil sands to Kitimat, B.C. From there, tankers would ship the oil to customers in Asia.

It will cost $7.9 billion to build this project. However, that estimate is sure to rise as other oil sands and pipeline projects drive up labour and material costs.

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The index’s top holdings are Royal Bank, 8.1%; TD Bank, 7.4%; Bank of Nova Scotia, 6.4%; Suncor Energy, 4.8%; CN Railway, 4.2%; Canadian Natural Resources, 3.9%; Bank of Montreal, 3.7%; Enbridge, 3.1%; Valeant Pharmaceuticals, 3.0%; Manulife Financial, 2.9%; CIBC, 2.8%; BCE, 2.7%; TransCanada Corp., 2.6%; Potash Corp., 2.5%; CP Rail, 2.2%; and Cenovus, 1.9%.

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