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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello - Would I be correct in saying that the price for Fortis is presently cheap? When I look back over a 5 year period the P/E ratio appears to be at its lowest level right now. Would you agree?

I have no data that goes back further than that so I don't know what the average P/E would be over a longer time frame.
Read Answer Asked by James on December 01, 2015
Q: In most of your replies to questions about Fortis, you emphasized that the utility was fine for income but not to expect much in the way of capital gains. In 2014, the company's shares rose almost 30%! With 20-20 hindsight, can you explain the contradiction and can you tell me if the driver(or drivers)for that solid gain will still in place for 2015?
Robert
Read Answer Asked by Robert on December 31, 2014
Q: re: Utilities & Interest Rates

I know we all continue to watch for any mention that it is time to raise interest rates. And it appears to me to be inevitable - just a matter of when.

It is obvious which sectors should benefit once this happens - banks, insurance, lenders - also just as obvious we can probably expect REITs to take a hit when they go up.

Can you please comment on what effect rising interest rates will have on Utilities? And which companies in particular we should have our eyes on when rates do go up?

Thanks for all you do

Gord
Read Answer Asked by Gord on September 19, 2014
Q: Hi team:
I am aware that Peter put alot of weight in fundamentals of a company/stock before a recommnedaton is being made
I was watching the market call on BNN recently, and the comments was made re: utilities tend to do well in the summer
I do have FTS and EMA and CU and would not hesitate to add more
Is there any particular reason from a seasonal or fundamental point of view to support this trend ?
(I do have some ZUT in my RRSP as well),
many thanks !
Read Answer Asked by Michael on May 29, 2014
Q: Re: FTS.IR
I am an owner of FTS and have been quite interested in following the merger/take over of UNS. I have been part of other take overs/buyouts with other companies but can't figure out why the .IR units are pounding so much higher. I was hoping you would be able to tell me what is happening with these .IR units and why they are gaining so much. Thanks
Read Answer Asked by Keith on May 23, 2014
Q: Hi Team,
Do preferred shares generally follow the common shares [up or down] or are preferred shares more influenced by other factors such as interest rates?
As an example, I own FTS.PR.J - if the common shares of Fortis [FTS] keeps working its way back up to say $35.00, will my preferred come back to $25?
Read Answer Asked by Michael on April 08, 2014
Q: I had an order in today for Fortis shares, but missed on my offer. I don't know whether to be happy or sad! As we now know, trading was haulted at the end of the day due to their announcement of purchasing UNS Energy of Arizona. Is 1.8B rather massive for Fortis? If the price moves downward tomorrow does one buy now, or wait until the dust settles? I was buying for the long term. I'm not too keen on purchasing companies heavily in debt. Your opinion of this deal would be very much appreciated. Many thanks, and Merry Christmas 5i staff.\
John.
Read Answer Asked by John on December 11, 2013
Q: Hi Reter and team: Within the last week two analysts on BNN gave dramatically different assessments of Fortis. One figured it was a buy at current prices and that being a regulated utility its revenue would be allowed to rise with interest rates. The other thought it would never grow again and deserved to be shorted (shorting it was his third "pick"). Can you shed some light on this disagreement?
Read Answer Asked by Roland on November 19, 2013