ENCANA $7.75

ENCANA $7.75 (Toronto symbol ECA; Shares outstanding: 849.8 million; Market cap: $6.4 billion; TSINetwork Rating: Average; Dividend yield: 1.1%; www.encana.com) continues to focus on its four key projects: Montney (B.C.), Duvernay (Alberta) and Eagle Ford and Permian (both in Texas). These fields produce large amounts of oil and natural gas liquids such as propane and butane. The company is now using its excess cash to pay down debt. That’s because Encana’s bonds are trading well below their face value due to weak oil and natural gas prices. Encana will now repurchase up to $400.0 million of those bonds by April 12, 2016 (all amounts except share price and market cap in U.S. dollars). That’s up from its earlier goal of $250.0 million. The new buyback target will cut Encana’s longterm debt, from $7.0 billion to $6.5 billion. Its debt is still high at 1.4 times its currently depressed market cap of $6.4 billion. However, taking advantage of today’s low interest rates to retire higher-rate debt will cut Encana’s future interest payments. Encana is a buy.

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Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Growth Stocks

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ETFs

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AI Investing

Artificial intelligence (AI) is essentially the merging of today’s big computing with big data. This has resulted in breakthroughs in everything from creating machines to recognize faces with more accuracy than a human, to the development of chatbots able to collect, organize and simplify all the Internet has to say on any topic.

Spinoffs

One of the ways a company can try to unlock its own hidden value is by creating a separate company out of a corporate subsidiary. The parent company can either sell stock in the new company to the public, or spin it off—hand the stock out to its own investors.

Penny Stocks

A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

Mining Stocks

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Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.