Topic: How To Invest

Pat: I bought Parkland Fuel in October 2010 at $11.50 share. Today it’s almost at $17. It pays a good dividend. Is it a sell at this level? Thanks.

Article Excerpt

Parkland Fuel Corp., $16.97, symbol PKI on Toronto (Shares outstanding: 66.6 million; Market cap: $1.1 billion, www.parkland.ca), operates gas stations, convenience stores and a fuel distribution business, mostly in Western Canada and Ontario. The company was called Parkland Income Fund prior to its conversion to a dividend-paying corporation on December 31, 2010. Parkland owns 163 rural gas stations and convenience stores. Its brands include Fas Gas Plus, Race Trac Gas and Short Stop (convenience stores). Many stations sell propane in addition to gasoline and diesel fuel. The company also operates Esso gas stations in western Canada and Ontario under a licensing deal with Imperial Oil Ltd. (symbol IMO on Toronto). Parkland continues to sell its company-owned stations to franchisees. This lets it collect rent and commissions on fuel sales without having to staff and operate the stations. The company also sells fuel to commercial customers and 576 independent gas stations. In addition, Parkland is spending $21 million to convert its Bowden oil storage tanks…