Enbridge Energy Partners, L.P. (EEP) — This company processes, transports and stores crude oil and natural gas in North America. While most energy-related stocks have taken a beating in the past six months, this master limited partnership (MLP) is up 11%. MarketWatch highlighted Enbridge as one of the energy stocks that has “defied the oil-sector decline.”
I first recommended EEP stock on Oct. 29, when it was trading at $37.45, and again on Nov. 20.
Credit Suisse Group AG ADR
(CS) has an outperform rating on shares, and on Dec. 4, its analysts raised their 12-month price target by $5 to $47, which is 21% above current prices.
After a four-year consolidation, EEP stock broke through a long-term resistance line at $32 in June. It formed a bull channel with a support line connected to its March low and, more recently, the November and December lows under $37. The top of the channel is defined by the highs of June, September and December.
The October sell-off drove EEP stock to its 200-day moving average at $32, where my proprietary internal indicator, the Collins-Bollinger Reversal (CBR), triggered a buy signal. After that, the 50-day moving average, now at $37, became a general support area.
In light of the stock’s consistent advance in the face of a massive sell-off in energy products, my target is raised to $47. A stop-loss order should be placed at $33. The company pays an annual dividend of $2.22 per share for a forward yield of 5.7%.
