RE:RE:Enbridge Smashescorvette..yep that has been the historical pattern and we will see if that history repeats.
Here's my take on this..
Longer term, ENB management has set the stage for growth through its recent large acquistions (LNG port in Texas, US gas utilities etc). It is also doing a full court press to lower its operating costs. It spends about a billion dollars a year powering its pipelines. Savings there go straight to the bottom line.
That said, IMO ENB is undervalued.
So why is this the case?
I believe there are two main reasons for this...
1..their recent acquisition from Dominion Energy resulted in dilution for existing shareholders and ENB will be taking on significant short term debt at high interest rates which will need to be financed later this year. This creates some degree of uncertainty which has to be discounted by the market.
2...An Indian tribe in the US has successfully won a case to stop the flow of oil in Line 5 through their reserve stating in 2026. ENB is appealing this decision. If the appeal is lost then ENB will have re-route the pipeline around the reserve and this will not be easy due to the usual permit delays etc. This will significantly impact the flow of of oil products in Line 5 and hence impact revenue and profits. IMO they will win the appeal but again all this creates uncertainty which has to be discounted in the market.
So essentially, as an investor, if you are confident that ENB will prevail in these two situations and take a longer term investment perspective then there is no doubt that ENB is a screaming buy at current prices.