TSX:VSN.DB.B - Post by User
Comment by
Beckysbosson Mar 11, 2016 8:37am
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Post# 24647119
RE:new price target - March 10
RE:new price target - March 10
My experience with analyst targets ( which I pay very little attention to) is that they follow stocks down and follow stocks up. You will see this lately with anything energy related, they always seem to be behind the curve.
Trans Canada is looking at buying a U.S based nat gas pipeline company that serves the Marcellus/Utica area , the share price today of that company is at 2X book value, Not sure what price might be paid or if there will be a premium to that price but as a relevent measure today Veresen (who dominates shipment of gas out of the Montney) is trading at less than 1X book value. Most Cdn pipes are in the 1.5 to 2X bookvalue here. It isn't just about the dividend, revenue and growth etc.. there is value in those existing facilities. When and if Veresen moves back to $10 or $11, TD will move there target up, guarantee that. If Veresen stays this cheap, given the pipes they own , the deals with KKR out of the U.S, the option on the LNG plant somebody will take them out. This share price is near the 2009 lows.