Investing

Is Enbridge Inc (ENB) stock a good time to buy now?

  • Last Updated:
  • Oct 24th, 2020 5:44 am
Deal Addict
Nov 21, 2014
1234 posts
1337 upvotes
Atlantic
kyle2570 wrote: I just sold all my ENB positions. It went nowhere for 5 years. I don't have that much time to wait for nothing. If it doesn't go up, I sell.
So you're a long term investor and if a stock doesn't go up you sell........

The bigger issue is that when we look back at 2015 (really 2012-mid 2015), Enbridge stock was overvalued from a PE ratio perspective. So how did you go about choosing stocks for your investment?

Edit: I have a coworker who believes that a stock is expensive based on its price only. By his logic, nobody would ever buy Berkshire Hatheway Class A shares.
Newbie
Nov 7, 2019
33 posts
13 upvotes
EasyCompany251 wrote: So you're a long term investor and if a stock doesn't go up you sell........

The bigger issue is that when we look back at 2015 (really 2012-mid 2015), Enbridge stock was overvalued from a PE ratio perspective. So how did you go about choosing stocks for your investment?

Edit: I have a coworker who believes that a stock is expensive based on its price only. By his logic, nobody would ever buy Berkshire Hatheway Class A shares.


Long term investors can't sell losers? If I sell loser I became short term? Long term investing means I don't profit from doing short term swing trades. I profit from long term share appreciation. For good stocks, I hold them as long as they are good!
Does the company keep an employee who doesn't meet the management's performance expectations for 5 years? and the management wait for this person to get better? No. Time is money.

See attached two stocks: Great West vs Fair Isaac Corporation. Which one is better to own? I sold Great west a couple of years ago. It turned out to be a good decision. I avoided 0% + dividend return for 5 years.
FICO is a stock I just acquired recently after I spent 2 days sifting through 800 stocks and came up with 90 or so stocks such as this FICO's performance. I sold most Canadian banks, even good Canadian stocks because I raised the bar.
I tried a value investing. I don't like it. I listened to Charlie Munger's advice: Buy great businesses. Now I am a growth investor. Price is not that important. It's like doing DIY Indexing with 100s of stocks. Charlie Munger's idea is better than Benjamin Graham's and more practical, produce greater returns. Just give some numbers: Great West's 5 years compound return was just ~3.85% per year, barely beating inflation. While FICO compound return was: 1 year: 87% per year, 5 years: 35% per year, 10 years 33% per year.
Screenshot from 2020-01-06 18-12-31.png
Screenshot from 2020-01-06 18-13-12.png


List of recent positions I removed:

List 1:
**Sell CIX. Mutual fund industry decline.
**Sell STN. Stagnate. Went nowhere in 5 years.declining EPS.
**Sell AD. Stagnate. Went nowhere for 5 years.
**Sell ALA.to. unstable. Cut dividend.
**Sell CUF. Unstable. Cut dividend.

List 2: The % is 5 years compounded annual return. This list actually is not too bad.. It can produce average of 12% / year over long term. Some are excelent stocks like: CNR, IFC, BEP. If people are happy with 12% return, you are welcome to pick some below.
But I raised the bar to 15%+ to 30% per year so they no longer meet my expectation. and also some of them went now where for years.
CSL:12%
FAST: 10%
GNTX: 11%
UNP: 10%,126B
RNR:14% return
CCI: 13% return.
NA: 12% return.
TFII: 10% return.
CCA:10% return.
T: 7% return
MG: 3% return.
ACO.x:3% return. Went no where for 6 years.
BEP-un: 13%
CNR: 8%
CCL.b : went nowhere for 3 years.
RY: 9%
FTS: 9%
IFC: 11%
TD: 10%
BCE: 7%
SJ: 0% for 5 years.
EMA: 10%
RCH: 7%
FN: 12%
CM: 7%
BMO:10%
DOL: went nowhere for 2 years.
FCD: 12%
RLI: 14% return
Deal Addict
Nov 21, 2014
1234 posts
1337 upvotes
Atlantic
kyle2570 wrote: Long term investors can't sell losers? If I sell loser I became short term? Long term investing means I don't profit from doing short term swing trades. I profit from long term share appreciation. For good stocks, I hold them as long as they are good!
Fair enough, 5 years is a decent amount of time to hold a stock and expect some return or at least movement towards what you would expect.

I still think Enbridge is a good defensive stock to hold with some more upside, I picked it up at a price in which it was considered "cheap."

Quite a few of the stocks you listed are quality companies and core Canadian holdings. I am certainly looking to add some of these in the future at the right price.

That said, if you feel growth investing is what suits you and your investment objective then by all means, pick those companies with 15%+ annual growth/return. Many ways to play the investment game.
Newbie
Nov 7, 2019
33 posts
13 upvotes
EasyCompany251 wrote: Fair enough, 5 years is a decent amount of time to hold a stock and expect some return or at least movement towards what you would expect.

I still think Enbridge is a good defensive stock to hold with some more upside, I picked it up at a price in which it was considered "cheap."

Quite a few of the stocks you listed are quality companies and core Canadian holdings. I am certainly looking to add some of these in the future at the right price.

That said, if you feel growth investing is what suits you and your investment objective then by all means, pick those companies with 15%+ annual growth/return. Many ways to play the investment game.
Value investing is more work.

ENB will be here. It's not going down. It can still produce around 7 to 10% per year going forward. The dividend should be safe at 6%. Still, the electric car trend is a huge headwind. ICE also gets more efficient. Stock price is forward looking. Oil demand just need to slow down a bit to cause huge problems for oil/oil pipe line stocks. I just looked at Suncor, Imperial oil, Enbridge, Canadian Natural Resources. All of them went nowhere for 5 years.

"Electric vehicles are expected to be 30% of new car sales by 2040, up from 1% today, forecasts IHS Markit."

On top of this, the management made a major mistake by taking too much leverage. Maybe there is long term reputation damage. It's hard to fix reputation once it's damaged.. Also, If they don't fix the management culture, history may repeat itself but in a different way. A good example is: Manulife. It was doing great for 8 years then they made mistakes and after 13 years, the stock still has not recovered.
Deal Addict
User avatar
Apr 23, 2009
1733 posts
698 upvotes
kyle2570 wrote: Long term investors can't sell losers? If I sell loser I became short term? Long term investing means I don't profit from doing short term swing trades. I profit from long term share appreciation. For good stocks, I hold them as long as they are good!
Does the company keep an employee who doesn't meet the management's performance expectations for 5 years? and the management wait for this person to get better? No. Time is money.

See attached two stocks: Great West vs Fair Isaac Corporation. Which one is better to own? I sold Great west a couple of years ago. It turned out to be a good decision. I avoided 0% + dividend return for 5 years.
FICO is a stock I just acquired recently after I spent 2 days sifting through 800 stocks and came up with 90 or so stocks such as this FICO's performance. I sold most Canadian banks, even good Canadian stocks because I raised the bar.
I tried a value investing. I don't like it. I listened to Charlie Munger's advice: Buy great businesses. Now I am a growth investor. Price is not that important. It's like doing DIY Indexing with 100s of stocks. Charlie Munger's idea is better than Benjamin Graham's and more practical, produce greater returns. Just give some numbers: Great West's 5 years compound return was just ~3.85% per year, barely beating inflation. While FICO compound return was: 1 year: 87% per year, 5 years: 35% per year, 10 years 33% per year.

Screenshot from 2020-01-06 18-12-31.png
Screenshot from 2020-01-06 18-13-12.png



List of recent positions I removed:

List 1:
**Sell CIX. Mutual fund industry decline.
**Sell STN. Stagnate. Went nowhere in 5 years.declining EPS.
**Sell AD. Stagnate. Went nowhere for 5 years.
**Sell ALA.to. unstable. Cut dividend.
**Sell CUF. Unstable. Cut dividend.

List 2: The % is 5 years compounded annual return. This list actually is not too bad.. It can produce average of 12% / year over long term. Some are excelent stocks like: CNR, IFC, BEP. If people are happy with 12% return, you are welcome to pick some below.
But I raised the bar to 15%+ to 30% per year so they no longer meet my expectation. and also some of them went now where for years.
CSL:12%
FAST: 10%
GNTX: 11%
UNP: 10%,126B
RNR:14% return
CCI: 13% return.
NA: 12% return.
TFII: 10% return.
CCA:10% return.
T: 7% return
MG: 3% return.
ACO.x:3% return. Went no where for 6 years.
BEP-un: 13%
CNR: 8%
CCL.b : went nowhere for 3 years.
RY: 9%
FTS: 9%
IFC: 11%
TD: 10%
BCE: 7%
SJ: 0% for 5 years.
EMA: 10%
RCH: 7%
FN: 12%
CM: 7%
BMO:10%
DOL: went nowhere for 2 years.
FCD: 12%
RLI: 14% return
Going through your list, you are on right track OP.
Deal Addict
Aug 17, 2008
4294 posts
3435 upvotes
Minnesota regulator gives go-ahead to Enbridge’s Line 3 replacement project (Reuters via G&M)
February 3 at 12:10 PM ET

https://www.theglobeandmail.com/busines ... idge-line/

"The Minnesota Public Utilities Commission voted 3-1 to find the revised statement from the state’s Department of Commerce adequate. It was to move on Monday afternoon to consider reissuing a certificate of need and route permit for the project."

Updates;
FP - https://business.financialpost.com/comm ... adequate-2 (non paywall ver)
"For state utility regulators, it’s Line 3 all over again" - https://www.mprnews.org/story/2020/02/0 ... at-the-puc

Chart (monthly) - https://invst.ly/pqkpt
AI Opinion - https://www.barchart.com/stocks/quotes/ENB.TO/opinion
Deal Addict
Aug 17, 2008
4294 posts
3435 upvotes
akaManny wrote: Yet BNN highlight is "Enbridge Q4 profit misses analyst estimates"
"Very cursory" =/= analysts estimates =/= the average of the analyst estimates aka "consensus. Feel free to sell if you are going to follow BNN.
Deal Addict
Mar 22, 2010
2805 posts
740 upvotes
I second that nothing really stands out from this quarter's ER other than dividend got increased almost 10%. Still holding.

Although I am somewhat regretting moving some of my ENB holdings to IPL few weeks ago. Good ol' hindsight.
Deal Addict
Feb 26, 2017
1628 posts
1664 upvotes
rapashoo wrote: I second that nothing really stands out from this quarter's ER other than dividend got increased almost 10%. Still holding.

Although I am somewhat regretting moving some of my ENB holdings to IPL few weeks ago. Good ol' hindsight.
I've not done very well with IPL but it always looks good to me with that dividend :).
Jr. Member
Dec 10, 2012
120 posts
6 upvotes
Ontario
Hi,


I would like to buy it in my RRSP account and leave there for next 20 years, just collecting dividend.

Your thoughts, this is a good entry point or there are better alternatives.
"“Your own Self-Realization is the greatest service you can render the world.”
― Ramana Maharshi.".

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