Why I'm bullish on KEYKEY beat analyst expectatons when short interest had increased 25% prior to earnings. It was a great quarter but I'm bullish for the following reasons:
1. Leverage at end of Q1 was an attractive 2.6 net of Ebitda. Their target range is 2.5 to 3 so after spending a billion dollars on KAPS and buying incremental capacity at the Keyera Fort Saskatchewan complex ("KFS"), they are already at the low end of the target range. Management execution is truly amazing.
2. Because of managements ability to execute and deliver projects, EBTDA is projected to grow on average 6 to 7% every year for three years.
If your a dividend and growth investor, it doesn't get any better than Keyera. Both dividend and share price will grow soon.