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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (59495)	5/17/2017 7:00:06 PM
From: Spekulatius	1 Recommendation Recommended By E_K_S Read Replies (1) \| Respond to of 78753

I have been buying ENB as well, starting at $41. I had some leftover SE shares that I forgot to sell and that converted into ENB after the merger. That worked out well, but more importantly, I was pretty I pressed with ENB track record and outlook. The company currently generates about $2.95 in DCF/share, which is a ~7.5 % cash yield. That by itself is Ok, but not too impressive. The nice part is that the DCF is like a coiled spring and should go up to almost $3.9/share, when all the Capex projects (which are mostly financed already) start to generate cash in 2019. Then, the stock will be very cheap. They have an A- credit rating ,despite the fairly high leverage, I guess because of the high visibility in cash flow growth and their track record. In 2019, leverage should be down to 4.5x EBITDA. I think that ENB is a good GAARP stock where one can see the business doing well for 30 years out.