# ENB.TO overvalued?



## Kropew (Nov 24, 2013)

With a P/E ratio of 71.7

Seems pretty damn high to me


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## RParks (Sep 25, 2012)

I got out of it at a little over $50 for a 20% gain. Seems to keep going up though. It's an expensive stock, that's for sure. Looking at the chart, if it pulls back a little more to $47-$48 it might be worth getting back into for the next leg up.


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## leeder (Jan 28, 2012)

Enbridge and other pipeline companies are all overvalued. However, it should not prevent anyone from buying them for the long-term. Enbridge has offered 10%+ annual dividend growth and there are plenty of growth prospects. Core holding for me.


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## Kropew (Nov 24, 2013)

Im worried about an eventual devaluation of these companies because of measures that could be taken to reduce pollution.


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## HaroldCrump (Jun 10, 2009)

Rising bond yields is a bigger risk for these stocks, IMHO, than environmental regulations.
These companies will comply with whatever regulations are enforced.
If there is a move towards greener energy sources like wind and solar, they will simply start generating using that.
Enbridge competitor Trans Canada already has wind power generation, so does Trans Alta.

However, rising bond yields can deflate these stocks.


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## Pluto (Sep 12, 2013)

HaroldCrump said:


> Rising bond yields is a bigger risk for these stocks, IMHO, than environmental regulations.
> These companies will comply with whatever regulations are enforced.
> If there is a move towards greener energy sources like wind and solar, they will simply start generating using that.
> Enbridge competitor Trans Canada already has wind power generation, so does Trans Alta.
> ...


I agree with the bond yield idea, yields go up, the stock gets priced downward. as much as I like Enbridge its a game of chicken or trying to dodge the inevitable yield increase. Too I heard a rumour that Motley fool was pushing ENB. That could explain some of the apparent over enthusiasm. I'm not buying any enb right now. 

I have no concerns about solar or wind being competitive with oil or gas. Before either wind or solar will be competitive they need to solve the storage problem. Until they solve that, its max contribution will likely be about 3% of total consumption. In the mean time, its oil, gas, and coal powering the world, unless people can get over their irrational fears over nuclear power.


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## gibor365 (Apr 1, 2011)

I prefer ENF  better yield , payout, P/E etc....


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## Moneytoo (Mar 26, 2014)

gibor said:


> I prefer ENF  better yield , payout, P/E etc....


And the word "green" is repeated like 3 times in its Description lol It's weird that Globe and Mail analysts recommend ENB as Strong Buy and ENF as a Hold... Not that I rely on their opinion, so thank you, ENF at least looks like an option!


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## Hawkdog (Oct 26, 2012)

solar and wind will have no effect, it will be decades before they provide any impact. Take away the subsidies and the technology is not viable. 
keep in mind there are like 10 proposals in to build pipelines to the west coast - i expect the first lng one to be approved this fall,
I expect Harper to give Enbridge the green light the northern gateway pipeline any day - based on what CBC is reporting.


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## Canadian (Sep 19, 2013)

gibor said:


> I prefer ENF  better yield , payout, P/E etc....


Me too. Holding ENF and IPL. Wouldn't mind adding another pipeline to my portfolio at the right price...


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## Hawkdog (Oct 26, 2012)

http://www.theglobeandmail.com/glob...y-into-inter-pipeline-growth/article19157005/

IPL.T


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## My Own Advisor (Sep 24, 2012)

Holding ENB, IPL and ENF.


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## 4570 (Aug 2, 2009)

Interesting on a 5 year chart using globe watch list enf and enb are very close.

Anybody know if watch list calculates a div re invest?


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## doctrine (Sep 30, 2011)

I like ENF, but I'd say its 20% too expensive for me. Throughout 2011, 2012 and 2013 the average yield was close to 6%, so I'd wait for that ($22.90 or so, where it was in December), which is appropriate for the low dividend increases (3% increase last year). 

ENB itself is always expensive; about the best you can expect is to get in around a 3% yield, where it was back in February. By this measure, ENF is actually more expensive right now than the parent due to its recent stock price increase.


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