Q: I would appreciate your thoughts on switching my TVE shares to SOBO. SOBO is showing good momentum following the spin off from TRP whereas TVE has range bound for quite some time. I hold an adequate amount of TRP and my only other O&G holding is ENB.
5i Research Answer:
We are quite comfortable with SOBO and would be fine with a switch if one wants a larger company (3X) in the infrastructure space rather than a midcap producer. But we would not specifically see TVE as a SELL. We would note that TRP and ENB are also infrastructure companies, so it may help diversification overall to have at least some producer exposure within the sector.