Q: So I’m sitting here day dreaming about SOBO. I understand Keystone XL is now their “ asset “ and wondering about possible scenarios under Trump. If he again OK’s it , would the stock move and in what direction, will it get built, is it still needed , would it be doable for this size company , etc ? Needing to add to my list of high dividend stocks, SOBO interests me and wonder what this sizeable project would have on the stock. Thanks.Derek
5i Research Answer:
Not all of this info is currently available. Keystone XL has been cancelled twice. Trump reinstated it, and then Biden cancelled it again. The issue is that completion likely will cost a lot, and SOBO is quite indebted already. At the first cancellation, it was only 8% complete. Financing would likely easily be available, however we also might have a leadership change in Canada, and the government is also a part owner. We would treat it as an option, but would prefer not to assume anything here. We think SOBO is a decent income play with some additional growth potential either way. We would be comfortable buying it.