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3 Good stocks in bad times

Roger Conrad’s Canadian Edge
C/O Investing Daily, 7600A Leesburg Pike, West Building, Suite 300 Falls Church, Va., 22043 U.S.A.
(703)-394-4931, US$399 a year.

Considering the plunge in natural gas prices this year, the ongoing debt turmoil in Europe and continuing uncertainty in Asia, at least three companies in Roger Conrad’s CE Portfolio have proven their mettle, standing up to these challenges with no discernible impact on their results.

At AltaGas Ltd. (ALA-TSX, $31.59), funds from first-quarter operations hit a record $0.84 per share, up 13.5 per cent from the same period last year. Contributing significantly to the company’s growth was its acquisition of Pacific Northern Gas, which, in Mr. Conrad’s opinion, offers numerous potential infrastructure expansion opportunities, in addition to being more profitable to run now.

With new pipelines, gas midstream assets and power plants coming online soon, conservative income seekers should consider this a great time to pick up shares of this long-time CE Portfolio holding. AltaGas is a “buy” under US$32 a share.

Shaw Communications Inc. (SJR.B-TSX, $20.03) saw operating income rise two per cent for the quarter and eight per cent for the first six months of fiscal 2012. Reporting on a different timetable than Mr. Conrad’s other recommendations, Shaw’s net income from continuing operations was flat at $0.38 a share “but nearly doubled for the six months from the year before.”

A boost in capital spending (digital network upgrades and expanded Wi-Fi capabilities), while accounting for a “sharp” fall in free cash flow from $174 million to $57 million, is ultimately expected to bring down operating costs and increase sales. And watch for the company to raise its dividend again early in 2013.

For Mr. Conrad, Shaw is a “buy” up to US$22 a share.

Meanwhile, transportation and logistics services provider TransForce Inc. (TFI-TSX, $18.06) is on the move, adding to its energy services transport assets and boosting its quarterly dividend by 13 per cent to $0.13 a share. Trans-Force is a “buy” under US$17.