TC Pipelines LP
and its subsidiaries acquire, own and manage energy transmission pipeline
systems in the US
and Canada . The
partnership has experienced flat earnings over the past five years though that
is expected to change substantially this year. In that same period, dividends
have increased 5% annually and return on equity has averaged 10-15%. The
company should continue to expand moderately as a result of:
(1) it is a key
player in the Western Canada gas transmission market for
which there is robust demand,
(2) acquisitions,
(3) its low debt
to equity ratio provides financial flexibility for future acquisitions.
Negatives:
(1) declining
availability of gas in its Northern Border Pipeline service area,
(2) uncertain
investment environment can impact its ability to finance growth,
(3) subject to
possible changes in energy regulations.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio Since 2003
Debt/ EPS Down
Net Value Line
Equity ROE Since 2003 Margin Rating
Chart
Note:
TCP stock made good progress off its
November 2008 low, surpassing the downtrend off its May 2005 high (red line)
and the November 2008 trading high
(green line). Long term, the stock
has struggled to hold an uptrend (straight blue lines). Intermediate term, which is clearly the more
relevant trend, it is in a trading range.
The wiggly blue line is on balance volume. The High Yield Portfolio owns a full position
in TCP .
It is also on the High Yield Buy List.
The lower boundary of its Sell
Half Range
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