Friday, September 7, 2007

limit order for Inter Pipeline

I put in a Limit Order today to add to my position and buy more Inter Pipeline Fund (IPL.UN) at $8.80. It is currently trading at around $9.00. The order expires on October 15, 2007.

If the 'buy' goes through at $8.80 then I would have purchased this portion at a yield of 9.55%. This will complete my Income Trust portion of my portfolio which I have previously described as part of our 'maternity leave' financial strategy.

3 comments:

Torbjorn said...

what are your thoughts on the Pembina Pipeline Fund? It's Returns and Profit margins appear to pump out stronger results...

MG said...

Pembina is fine as well in my opinion. There is not much between these two in my opinion. The only reason I like Inter better is because it is cheaper, thus has a higher yield, it also has a lower debt/equity ratio.

I believe PIF.UN raised their distribution at a better pace, and that's probably the reason for the valuation discrepency.

Financial Jungle said...

I bought Inter Pipeline at $9.55 and again at $9.00. I wouldn't hesitate to buy more at $8.50.

The distribution is stable. Any growth is a bonus IMO. Pipelines are very expensive and time consuming to construct, so that'll create tough barrier to new entrants.

Apparently there's a huge shortage of pipelines right now due to rising oil and gas production. I think this is one of the safest income trust out there in terms of distribution.