Merry Christmas Tocco
Would you consider adding either ENB.to (NYSE: ENB ) or PPL.to (NYSE: PBA) into either the Canadian or U.S. portfolio? I will show a complete analysis for each of these stocks...but are excellent choices though I would lean to one over the other based on my past experience.
In these fantasy portfolios I have a limited amount of money available to start with....ie, $100,000.00 and I like to have at least 1000 shares of any stock I purchase.
I like 1000 shares because you don't really make money on less shares. I see a lot of people buy 100 shares of something worth $50.00/share....the shares rise 10% and now they are worth $55.00....but they make $500.00 on the deal...nice gain but not really a money maker.
if they bought 1000 shares at $50.00 and it rose to $55.00 now they make $5,000... a gain that you can really do something with.
In my portfolios in this thread, You see that I will typically invest in 1000 - 3000 or more shares of any stock. In fact this mirrors my real trading habits. I will typically invest with $15,000 - $30,000 per initial transaction.
If I purchased 1000 shares of either of those stocks I would be risking 1/2 my initial investment and this is too much of a risk at this stage.
Now in my fantasy American portfolio I could almost make a 1000 share buy but to do so I would need to sell one of my existing stocks and each one is still a winner....so I am reluctant to do so.
In my fantasy Canadian I am not so successful... I have stagnated at a 5% loss... not disastrous but not flush enough to risk a 1000 share purchase.
So...that is why I have not been looking at stocks over $30/share
But that does not mean I am not interested in the two stocks you have proposed here for my real Canadian portfolios. So let's take a look at their TA
Enbridge Inc. [TSX:ENB] [NYSE:ENB]
Enbridge is not new to me I have owned this stock in the past mainly in the 2016's when it had a short run for one year... after 2017 the oil patch in Canada fell in steady decline and it dropped off my radar. Let us see if it deserves attention again.
Enbridge is an energy generation, distribution, and transportation company in the U.S. and Canada. Its pipeline network consists of the Canadian Mainline system, regional oil sands pipelines, and natural gas pipelines. The company also owns and operates a regulated natural gas utility and Canada's largest natural gas distribution company. Financials: ENB FINANCIALS
Net Revenue: Declining net revenue since Mar 19 from $1.9 billion to $0.95 billion
Debt
Current: Rising slowly to $5.6Billion
Long Term: Stable at about $60 Billion
Dividend: $0.81cdn/share quarterly
TA
P&F and Trigger charts
I see some mixed messages in these two charts. In the P&F chart the share price crossed a major resistance now turned support on Nov 1 but it has not capitalized on that movement 2 months later. The column SMA's are still brearish
the Trigger chart shows the potential for a bullish breakout but I am not 100% convinced of this. It already gave us a head fake on Dec 10 shown by the maroon line..... see how while the Slow Sto was fine, the MACD was in decline as the share price rose and the BBWidth was basically flat...and it fell back.
the Slow Sto recovered but again the MACD barely has a +ve slope... and an up-tick to the BBwidth is hardly a convincing trigger...could be but not convincing me at present.
Sentiment and Ichmoku Charts
Well... I must confess that I see no bearish signs in these last 2 charts...every indicator or overlay is at least Mildly Bullish
I feel uncertainty here....lets look at the next stock for a comparison
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Pembina Pipeline Corporation [TSX:PPL] [NYSE:PBA]
Pembina Pipeline is an integrated midstream energy infrastructure company in western Canada and North Dakota, highlighted by its regional pipeline network. The company operates over 9,000 kilometers of conventional hydrocarbon pipelines, coupled with 1,650 kilometers of heavy oil and oil sands pipelines. Gas processing facilities, natural gas liquids infrastructure, and a marketing business round out the integrated value chain. More It seems that in the last week Pembina Pipeline has acquired all the assets of Kinder Morgan. That will be major if they are successful in twinning the pipeline to the pacific ocean.
Financials: Pembina pipelines financials
Net revenue: has been steady around $325 million per quarter
Debt
Current: declining slightly each quarter about $0.3 4 Billion
Long term: Fairly stable at about $7.5 Billion
Dividend: Monthly @ $0.21cdn/ share
lets look at the charts
P&F and Trigger charts
the P&F Chart shows that the share price has been going sideways for most of this year.... the column SMA's are on the verge of turning bearish.
The trigger chart is not very hopeful. The big circle does NOT show a double bottom feature. A double bottom formation shows a bullish reversal.... but we are hammering away at all time highs there is no reversal here... the arrow points at the time when the 200day SMA moves above the 50day SMA.... not an auspicious sign.
the dashed blue line in the BBWidth shows the level where most breakouts occur .... this latest bounce is in the wrong level.
Sentiment and Ichimoku charts
Well I see a lot of indecision in the sentiment chart especially in the DI +/- where there is a lot of chaining,
In the Ichimoku chart itself is not stable.... yes we rose above a red cloud but it has done such several times in the last 6 months.
Conclusion
I don't really recommend either Enbridge or Pembina Pipelines.... For Canadian stocks they are in the expensive sphere....I know in terms of USA stocks their share price is maybe slightly above average.
I find the risk versus the expense too high for me...in the fantasy and in real life. Energy stocks are still salting out IMHO...which is too bad as I made a lot of money of O&G in thepast.
Merry Christmas Tocco.... Sorry I could not be more positive.
UE |
