Allan Meyer Valener Inc. VNR-T BUY Feb 05, 2016

We just had a positive transit. Maybe it is becoming known. $25.80 is the model price. 5.5% yield. It is underpriced. It looks like it is going to go places.

This gives you a play on Gaz Metro, the big Quebec gas utility. Likes the dependable, forecastable nature of its gas distribution. Has 7% free cash flow Enterprise Value. Dividend yield of 5.25%.

Based in Québec and owns a percentage of a gas distribution. A very good business. His problem is that if interest rates go up, you might have a bit of problem. Valuation at 11X EBITDA is very expensive. If you own, he would take some profits and try to buy back under $20.

A lot of success is tied to Gaz Metro in Québec, but they also have some wind farms that have recently come online in the last year or 2, and giving good returns to the company. Recent earnings were solid and they raised the dividend by 3.7%, and plan to raise it 4% next year. For a utility that pays 4.5%-5% in dividends, it is not really that expensive relative to its peers. A solid, slow growth, income type of name.