TSX:CUS.DB.D - Post by User
Comment by
ocean112on Jan 23, 2015 12:29am
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Post# 23354606
RE:RE:RE:$$Blunderheim
RE:RE:RE:$$BlunderheimLets assume for a moment what you are saying is accurate. A "few" midstream players...lets see - that could be AltaGas, Enbridge, Gibson, InterPipeline, Keyera, Kinger Morgan, Pembina, or Transcanada - thats 8 midstream. If there is one E&P - say Cenovus - that's 9. Ok - consistent with "significant interest" and "numerous" proposals. Nine potential bidders. Not one, two, 3, 4, 5, 6, 7, 8 - but NINE potential buyers bidding on a strategically placed asset where the only other game in town is Gibson with linkage to CP and CN.
In Vancouver, when we have 9 bidders for one property that everyone wants - that's usually called a BIDDING WAR and more often than not - that drives UP THE PRICE of the asset. Me thinks you just confirmed the opposite of your argument if of course - you didn't make those statements up. Combine your comments with the general rule of thumb to do the opposite of what Kherson recommends - and this now has become a slam dunk!....:-)