Recent Purchase – Nov ’15

I added two new positions, ENB and RCI on Monday.  The Canadian portion of my portfolio is now complete with only position adds to be performed.  The one thing in common between these two is that they’re undervalued given the continuing historic strength of the US dollar.  Whenever the CAD begins its’ ascent towards parity, I will be positioned for automatic dividend increases via the exchange rate.

Enbridge, being primarily a pipeline company, has seen its’ fortunes sag along with many companies in the energy/materials sectors.  It appears there may be light at the end of the tunnel.  With US elections forthcoming, I would expect to see some relief on the horizon.  Also the new Canadian government, a green minded crew, has signaled that they are not opposed to pipelines with robust environmental review.   Now as long as that light is not a freight train …

On a different note, Rogers Communications was my second purchase.  Now RCI did not make the cut when I created my Canadian portfolio earlier this year for a number of reasons.  However I have to admit that I may have been wrong in that assessment.  Why?  Their moat appears to be wider than I first thought.  With cord-cutting all the rage and over the top solutions delivered in the US, Canada generally isn’t too far behind.  What is a popular choice with cord cutters?  Live sports programming.  I believe content providers are uniquely positioned to profit (think ESPN).  This is where I miscalculated.  Who is better to profit than the providers?  The content owners either in tandem with a current provider or on their own.  With a cellular network in place they have both sides covered.  Oh, their unique content? Toronto Blue Jays (MLB), 37.5% of the Toronto Raptors (NBA), 37.5% of the Toronto Maple Leafs (NHL) …


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