Electrical Stocks Gain From Diversification

Article Excerpt

Deregulation in Canada’s power industry has helped fuel strong growth at many electrical utilities in the past few years. However, some power providers prefer regulation, since it virtually guarantees that they will earn a profit without the risk that deregulated plants face. It’s now common to find power companies that operate both types of plants. They’re also expanding to other parts of Canada and the world to cut their exposure to single region or regulatory board. Here are four top buys in the electrical utility sector. However, more conservative investors should probably choose Canadian Utilities and Emera, over Fortis and TransAlta. FORTIS INC. $23 (Toronto symbol FTS; SI Rating: Above average) operates regulated and non-regulated power systems in Canada, the United States, Belize and the Cayman Islands. It also owns hotels and commercial real estate properties, mainly in Atlantic Canada. In 2004, the company paid $1.5 billion in cash and stock for regulated electrical utilities in Alberta and British Columbia. This helped cut Fortis’s…

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