Tuesday, August 18, 2009

Emera Inc 2

I am continuing my review this stock (TSX-EMA) today as I have not reviewed it since September 2008 and the 2008 year end annual statement came in later. I bought this stock in July 2005 and I have made a return of 7.5% per year, including dividends.

First, I am looking at Insider Buying and Insider Selling. There is some insider selling that went on at the end of 2008. I do not think this is significant. What I feel is significant is that this company upped their dividend this year. This shows that the people running this company have faith that the company will make a reasonable return in 2009.

In looking at spreadsheet ratios, I first find that the estimated P/E at 14.5 is lower than average 5 year P/E on close of 18 and the 5 year average P/E on the low stock price at 15. A P/E of 14.5 is not a bad P/E ratio. The dividend yield is at 4.86% is better than the 5 year average of 4.24%. The current stock price is at the Graham Price. The current Price/Book Value is about 90% of the 10 year average P/BV. All these ratios point to a good current price. It is not a great price, but it is a reasonable one. This is often the best you can hope do.

When I looked for analyst recommendations on this stock all I seem to find is Strong Buys and Hold. The mean rating would be a Buy. (See my site for information on analyst ratings.) There is some concern about its purchasing a stake in Algonquin Power (TSX-APF.UN), however, others feel that it will do very well in the future.

I intend to keep my stock in this company as I feel that it is a good stable stock that will return good dividends and some stock growth.

Emera is a holding company in the energy sector. Its principal operating subsidiaries are Nova Scotia Power Inc. and Bangor Hydro-Electric Company. Nova Scotia Power is Nova Scotia's integrated electric utility. Bangor Hydro is an electric distribution utility in Central Maine. Emera has a few smaller operations and investments, such as a minority stake in M & NP pipeline. Its web site is www.emera.com. See my spreadsheet at www.spbrunner.com/stocks/ema.htm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.

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