SE: Large, moaty, has long-term contracts, increasing dividends every year and future expected also. Several firms raised targets for Enbridge as result of the buyout offer:
247wallst.com
SE revenue hasn't risen much in past nine years. Ok, there's a moat, but if SE isn't raising revenue because locked-in long-term contracts, that sort of means (to me) that stockholders maybe can't lose, but they won't necessarily win either just because there's a moat, especially with the stock at such a relatively high level (compared to past years).
Apparently "Spectra is focused mostly on natural gas pipelines and Enbridge...mostly...on oil-related assets". If there's a synergy, I don't see it. -- I don't see what Enbridge is going to do so much better with SE assets than what SE management is already doing or not-doing pre-merger. Otoh, I'm old and don't see so well anyway, so if you're confident of SE/ENB prospects and/or pro formas then I defer to you. But for me, I'll stay out for now. |
