We still like Canadian Utilities

Article Excerpt

CANADIAN UTILITIES LTD. (Toronto symbols CU (class A non-voting) $37 and CU.X (class B voting) $36; Income Portfolio, Utilities sector; Shares outstanding: 125.6 million; Market cap: $4.6 billion; Price-to-sales ratio: 1.7; SI Rating: Above Average) earned $73.5 million, or $0.59 a share, in the three months ended June 30, 2009. That’s a 3.8% rise from the $70.8 million, or $0.56 a share, that it earned a year earlier. These figures exclude gains and losses from hedging contracts that Canadian Utilities uses to lock in electricity and natural-gas prices. The company profited from higher demand for its natural-gas storage facilities, as many producers chose to store their gas instead of selling it at today’s low prices. Revenue fell 8.1%, to $602.7 million from $655.6 million, mainly because of lower electricity prices in Alberta. Canadian Utilities is a buy. The more liquid class A non-voting shares are the better choice. choice…