Atco Ltd (ACO.X.TO)

Holding company for CU. Grows nicely. Great yield, trading at 13x earnings. 15% discount to NAV. There are assets to monetize on the real estate side. History of increasing dividend. Well run. Yield is 3.6%.

The largest portion of its value comes from its stake in Canadian Utilities. It is a durable, defensive company. Prefer Fortis and Algonquin to it. If you own Atco, hold it. The valuation can swing around due to sentiment, but the company is disciplined and has a good balance sheet. Their capital program is good and generates good returns. A good defensive long term hold.

His model price is $42.16 or an 8% upside. It is an interest sensitive. Only buy it at the $36 level. It should go 10 or 11% lower here.

It is really cheap. When it got down to his book value calculation, it got cheap. You could consider this to be defensive and it has a nice yield.

He prefers to own CU-T with the higher yield. He continues to hope this space will get more discounted before stepping in for his clients.

They do a lot of energy infrastructure. All of the bottoms of book value brought it down to one times book value. What's really interesting is that in the stock's bottom of 2000 it hit its low as the market was hitting its peak. (Analysts’ target: $41.90).

This company has not managed to grow its business outside of Canada. It is predominantly a business that runs in Alberta, so a bit of a bad postal code right now. There are better businesses if you want to play a rebound in Alberta. If you own, consider switching into Fortis (FTS-T) or Emera (EMA-T).

Still has a lot of growth in the industry. Last quarter they spent a lot to finance that growth so we need to see their next quarter. This is a good entry point.

Sees utility growth continuing. Sees 2013-15 as 10.4% growth rate compounded. Likes the name.

A regulated utility so he feels capital appreciation potential is somewhat limited, especially in his view of where he thinks interest rates are gradually going to increase in North America. Would rather have some merchant power exposure. Likes Capital Power (CPX-T) a little bit better and where you get better dividend growth.