Fortis (Symbol-FTS)

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Fortis (Symbol-FTS)

Postby petfiora » 18 Jan 2007 21:17

Fortis is offering new shares for 29.00$. Duh, I don't understand, to-day's quote is 27.75$ why would anyone subscribe to the new issue???
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Postby notnormal » 18 Jan 2007 21:38

The offer has been closed. At the time of the offer, it was below market price.
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Postby bcjmmac » 19 Jan 2007 09:39

notnormal wrote:The offer has been closed. At the time of the offer, it was below market price.


Sounds like my finance prof was correct - with some exceptions (i.e. IPOs), if companies want to raise money they only issue new stock if they think their stock is currently overpriced (otherwise, bonds or other debt instruments are favored)!
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Postby Shakespeare » 27 Feb 2007 12:25

Fortis is offering new shares for 29.00$.
Sounds like my finance prof was correct - with some exceptions (i.e. IPOs), if companies want to raise money they only issue new stock if they think their stock is currently overpriced
I see FTS is off ~5% today after the Terasen announcement, now at $26.12. :shock:

Added: A 100 share nibble. Not cheap at this price, but cheaper than it was.
“Never appeal to a man's better nature. He may not have one. Invoking his self-interest gives you more leverage.” -- R.A. Heinlein, Time Enough for Love.
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Postby AltaRed » 27 Feb 2007 14:47

Shakespeare wrote:
Fortis is offering new shares for 29.00$.
Sounds like my finance prof was correct - with some exceptions (i.e. IPOs), if companies want to raise money they only issue new stock if they think their stock is currently overpriced
I see FTS is off ~5% today after the Terasen announcement, now at $26.12. :shock:

Added: A 100 share nibble. Not cheap at this price, but cheaper than it was.


Hmmm. Think I would need it to fall off to about $25 to bite. I know nothing about this sort of thing, but would the underwriters involved in the bought deal start buying to leverage down? Or simply hold on hoping market prices recover?
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Postby Stan » 01 Mar 2007 14:17

AltaRed wrote:
Shakespeare wrote:
Fortis is offering new shares for 29.00$.
Sounds like my finance prof was correct - with some exceptions (i.e. IPOs), if companies want to raise money they only issue new stock if they think their stock is currently overpriced
I see FTS is off ~5% today after the Terasen announcement, now at $26.12. :shock:

Added: A 100 share nibble. Not cheap at this price, but cheaper than it was.


Hmmm. Think I would need it to fall off to about $25 to bite. I know nothing about this sort of thing, but would the underwriters involved in the bought deal start buying to leverage down? Or simply hold on hoping market prices recover?


I also bought some at $26.00 offering.
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Postby Shakespeare » 03 Mar 2007 11:55

Tireless energy has Fortis cooking with gas
Mr. Marshall runs a very lean shop -- only 13 of Fortis's 4,400 employees are at head office. Operations are highly decentralized with considerable authority at the operational level. The network of 10 subsidiaries is held together by the peripatetic CEO, who travels the world looking at acquisitions and fixing problems.


Note to moderator: perhaps this thread should be retitled to simply Fortis (FTS) .
“Never appeal to a man's better nature. He may not have one. Invoking his self-interest gives you more leverage.” -- R.A. Heinlein, Time Enough for Love.
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Postby ModeratorZ » 03 Mar 2007 12:13

Shakespeare wrote:Note to moderator: perhaps this thread should be retitled to simply Fortis (FTS) .


Done.
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Postby northbynorthwest » 19 Aug 2007 14:28

Fortis is now $24.80, down 16.7 % YTD.
Anyone seeing FTS or the other utilities as looking attractive yet?
Most of the bargain hunters seem to be overlooking them in favour of the banks, but maybe there's a good reason for that.
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Postby Shakespeare » 19 Aug 2007 14:33

I added to a small position last week. I want to wait to see more results before adding more.
“Never appeal to a man's better nature. He may not have one. Invoking his self-interest gives you more leverage.” -- R.A. Heinlein, Time Enough for Love.
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Postby AltaRed » 19 Aug 2007 14:57

It is on my 'watch' list, but I don't like the yield or the P/E ratio yet relative to TRP and ENB.
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Postby 2 yen » 21 Aug 2007 01:18

Slowly adding to holdings at 100 shares a time. It is a dull utility, just what I like right now. Will keep adding sub 25$ this fall.
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Postby Profit not Prophet » 28 Aug 2007 11:35

On the surface it looks like a stodgy dreary t-bill return but with stock market fluctuations to mess your world up. Digging a bit deeper it seems to more or less keep up with say gwo great west lifes returns. Mmmm. I've read that for creating your own do it yourself dividend fund buy the best bank, pipeline, insurance and utility. I've been trying to diversify beyond the banks, lifes and pipelines but have not got to this type of thing as they seem beyond dull with better returns out there. Fortis seems to be the nicest looking horse in this course. Anyone have anything to add? thanks....
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Postby creep » 28 Aug 2007 11:52

It still looks expensive with respect to average historical yeild.
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Postby AltaRed » 28 Aug 2007 12:12

Profit not Prophet wrote:I've been trying to diversify beyond the banks, lifes and pipelines but have not got to this type of thing as they seem beyond dull with better returns out there. Fortis seems to be the nicest looking horse in this course. Anyone have anything to add? thanks....


I am having the same difficulty. Fortis is on my list but not until it falls more (~$23-24). The part that gives me most heartburn is the electrical generating part of the organization - generators can be left high and dry due to quirks in regulatory oversight and/or cheap new supplies. I want a bit of a premium over pipelines and financials for that risk.
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Postby Operabob » 28 Aug 2007 12:37

On the surface it looks like a stodgy dreary t-bill return but with stock market fluctuations to mess your world up. Digging a bit deeper it seems to more or less keep up with say gwo great west lifes returns. Mmmm. I've read that for creating your own do it yourself dividend fund buy the best bank, pipeline, insurance and utility. I've been trying to diversify beyond the banks, lifes and pipelines but have not got to this type of thing as they seem beyond dull with better returns out there. Fortis seems to be the nicest looking horse in this course. Anyone have anything to add? thanks....


Basically I'm running my own mutual fund as you describe using DRIPs of which Fortis offers one.

Yes, the dividend looks meagre but they have branched out (NG in BC) and are on the Mergent list of dividend achievers showing they have a history of increasing dividends. (Disclosure: I own FTS)

You could contrast them with TransAlta which real is stodgy. However, the last time I looked I was up around 100% on TA by buying them on the dips through the DRIP. (They have pulled back since the last time I checked).

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Postby JaydoubleU » 06 Dec 2007 00:07

Looking hard at FTS, but can't decide between this or ENB, TPR or other?

Anyone have a favorite here?
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Postby 2 yen » 06 Dec 2007 06:09

They're not the same. Fortis is mainly power. The other two are mainly pipes. I have all three and like them. Add when you can.
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Postby BRIAN5000 » 06 Dec 2007 12:25

TRANSCANADA CORP
FORTIS INC
TRANSALTA CORP MTN
ENBRIDGE INC
EMERA INC

I own them all and am wanting to add to FTS, ENB, TA and EMA when they go on sale.

Since I started buying these they have doubled plus the dividend this has been over about 10 - 15 years. I am not a good enough record keeper to tell you the exact return. Dripping to start with, then 100 share adds in the last few years. It seems they are always to expensive. TRP was most likely the best buy after the dividend cut.

If I could figure out how to post a little excel spread sheet it would show what I am doing. I am trying equal out my weighting in each.
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Postby JaydoubleU » 08 Dec 2007 06:27

Cheers, yeah, I realize they aren't at all the same: utilities and pipelines; for some reason, though, they are coupled together in my mind.

They have one thing in common, FTS and ENB: both offer yields that are significantly lower than historical averages, and this is why I scratch my head and wait.

Do they ever get cheap?  What makes it happen? Interest rate rises... :roll:
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Postby mpav » 09 Dec 2007 00:11

The divide between power utilities and pipelines is blurring specifically when you look at TRP. Their power generation is the a big growth story for them.

I do like FTS, but think it is expensive (its PE drifts around 20). They do have the retail distrubution in BC, Caribbean etc., but that doesn't really interest me to a great extent. I was in the Cayman Islands two weeks ago and the big issue is the government expects a rate cut from FTS .....the politics seem like such a pain in that space.

I generally have been buying TRP and avoiding both FTS, and CU.
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Postby bailey » 16 Dec 2007 09:57

One reason to hold Fortis.
http://www.theglobeandmail.com/servlet/ ... gs/?query=

Disclosure: I own FTS shares.
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Postby iluvnascar » 16 Dec 2007 11:06

Speaking of pipelines......any fans of Inter Pipeline (IPL.UN) out there?? Now yielding 8.9%.......and on record as being able to maintain the payout when the taxation of trusts begins in 2011.

They recently tried to sell a new issue @ $9.80 which I believe remains only partially subscribed......it came out at a bad time and the stock is trading in the $9.40 - $9.50 range.

But I like the company.....
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Postby JungleGuy » 16 Dec 2007 16:02

mpav wrote:I do like FTS, but think it is expensive (its PE drifts around 20).


The current PE ratio doesn't reflect the true earning potential of Fortis. Their largest holding, Terasen Gas, was purchased back in May of this year, however Terasen Gas is a seasonal business and virtually all of its earnings come from Q4 and Q1. In fact, Terasen Gas even took a $3.7-milion bite out of Fortis' latest Q3 earnings.

PE should come down substantially after 2008 Q1.
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Postby Operabob » 16 Dec 2007 16:25

Also, the Terasen Gas they took over is located in a very high growth area of BC.

Now that Alberta has upped royalties O & G money is moving to BC.

Don't forget they also have real-estate/hotels.

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