EMERA INC. $35 - Toronto symbol EMA

EMERA INC. $35 (Toronto symbol EMA; Income Portfolio, Utilities sector; Shares outstanding: 124.7 million; Market cap: $4.4 billion;Price-to-sales ratio: 2.1; Dividend yield: 4.0%; TSI Network Rating:Average; www.emera.com) is buying a biomass plant in Brooklyn,Nova Scotia, from that province’s government. This facility generates power by burning waste wood from nearby lumber mills.

Emera will pay $25 million for the plant when the deal closes in early 2013. That’s equal to 56% of the $44.7 million, or $0.36 a share, that it earned in the third quarter of 2012.

The company gets most of its power from coal-burning plants, so investing in renewable power facilities like this one will help it comply with tougher environmental regulations.

Emera is a buy.

A professional investment analyst for more than 30 years, Pat has developed a stock-selection technique that has proven reliable in both bull and bear markets. His proprietary ValuVesting System™ focuses on stocks that provide exceptional quality at relatively low prices. Many savvy investors and industry leaders consider it the most powerful stock-picking method ever created.