Enbridge Inc

Fluidsdoc on Seeking Alpha reviews Enbridge Inc. He thinks that the 8% yield will not last long. You will have to sign up to Seeking Alpha to see this entry, but you can sign up for their free version.

The Summary of what he says is:

• Enbridge is selling at a substantial discount to recent highs thanks to COVID-19 fears.
• The company has affirmed adjusted guidance and should see strong cash flows for the rest of the year.
• There are a few warts on a mostly squeaky clean image in the regulatory bin.
• All things considered: the company is strong buy at current levels.

He thinks that this is the company to buy in this space. He thinks this sector of pipelines, which is basically a delivery service is boring. It is quite dull compared to upstream companies. But by comparison to upstream companies, the pipeline companies are relatively unscathed. They are down but none are nearing bankruptcy. He talks about the impossibility of building any oil or gas infrastructure at present. Bottom line is that he thinks that Enbridge is selling at a discount that completely offsets any marginal risk the company might have.

On my other blog I wrote yesterday about Alimentation Couche-Tard Inc (TSX-ATD.B, OTC-ANCUF) ... learn more. Next, I will write about Genworth MI Canada Inc (TSX-MIC, OTC- GMICF) ... learn more on Wednesday, August 26, 2020 around 5 pm.

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