Travel agency sale boosts ATCO’s value

Article Excerpt

ATCO LTD. (Toronto symbols ACO.X [class I non-voting] $53 and ACO.Y [class II voting] $52; Income Portfolio; Utilities sector; Shares outstanding: 58.2 million; Market cap: $3.1 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.0%; SI Rating: Above Average) is selling its travel-agency business, which supplies less than 2% of the gas and electric utility operator’s total revenue. The price was not disclosed. ATCO will probably sell more of its smaller operations, such as its billing and payment-processing business. This would help unlock more of its value. ATCO is a buy. The more liquid class I non-voting shares are the better choice. choice…

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