Topic: How To Invest

The Successful Investor Hotline – Friday, May 15, 2020

Article Excerpt

EMERA INC., $52.11, Toronto symbol EMA, is a buy. The company owns 100% of Nova Scotia Power, that province’s main electricity supplier. Its businesses extend well past that: the company also owns and invests in power plants and gas pipelines in the U.S. and the Caribbean. They include the company’s July 2016 purchase of Teco Energy for $13.9 billion. That firm supplies electricity and natural gas to customers in Tampa Bay, Florida, and New Mexico. In March 2020, Emera completed the sale of Emera Maine to ENMAX Corp., the utility company owned by the City of Calgary. Emera received $959 million U.S. for that business. ENMAX will also assume $500 million U.S. in debt, bringing the total value of the deal to roughly $1.8 billion U.S. That sale is mainly why Emera’s revenue in the three months ended March 31, 2020, fell 10.0%, to $1.64 billion from $1.82 billion a year earlier. That also missed the consensus forecast of $1.74 billion. If you disregard gains…

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