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In addition to TransCanada (see page 41), we like the outlook of these four utilities. Like TransCanada, Emera and Fortis are expanding in the U.S. These purchases cut their reliance on Canada, and should enhance their earnings and dividends for years to come. Canadian Utilities and ATCO have both suffered lately due to their high exposure to Alberta, where low oil prices have hurt the economy and power prices. However, their new projects should let them continue to raise their dividends....
BOMBARDIER INC. (Toronto symbols BBD.A $1.52 and BBD.B $1.43; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $2.3 billion; Priceto- sales ratio: 0.2; Dividend suspended in February 2015; TSINetwork Rating: Speculative; www.bombardier.com) is the world’s third-largest maker of commercial aircraft, after Boeing and Airbus. It’s also a leading maker of passenger railcars. The company recently formed a joint venture with the government of Quebec to build its new CSeries passenger jets. Under the deal, the province will pay $1.0 billion for 49.5% of this business (all amounts except share prices and market cap in U.S. dollars)....
IMPERIAL OIL LTD. $40 (Toronto symbol IMO; Conservative Growth and Income Portfolios, Shares outstanding: 847.6 million; Market cap: $33.9 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.4%; TSINetwork Rating: Average; www.imperialoil.ca) plans to expand its oil sands operations in the Cold Lake area of northern Alberta. In 2015, Cold Lake supplied 158,000 barrels a day, or 43% of Imperial’s average daily production of 366,000 barrels a day. This expansion will cost $2 billion. It should produce an additional 50,000 barrels a day by 2022. Imperial’s expertise with solvent assisted, steam-assisted gravity drainage technology should help cut its operating costs. That process also creates fewer greenhouse gasses than conventional extraction methods. Imperial Oil is a buy.
BLACKBERRY LTD. $9.21 (Toronto symbol BB; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 521.2 million; Market cap: $4.8 billion; Price-to-sales ratio: 2.0; No dividends paid; TSINetwork Rating: Speculative; www.blackberry.com) provides secure wireless communication services, mainly to businesses and government agencies. In the fiscal year ended February 29, 2016, BlackBerry’s revenue fell 35.2%, to $2.2 billion from $3.3 billion a year earlier (all amounts except share price and market cap in U.S. dollars). Smartphones supplied 40% of total revenue, followed by the fees it charges wireless carriers to access its networks (37%). The software it installs on its clients’ email servers contributed 23% of revenue. Without unusual items, the company lost $0.19 a share, compared to a profit of $0.08 in 2014. BlackBerry holds cash of $2.6 billion, or $5.03 a share. Its longterm debt of $1.3 billion is a manageable 27% of its market cap....