# Fortis FTS.T Question?



## jargey3000 (Jan 25, 2011)

Can anyone tell me why Fortis touched on a 52-week high on Friday ($42.67), when most everything else seemed to be tanking due to Brexit news?


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## Eder (Feb 16, 2011)

Like buying bonds but with a yield higher than inflation.... 

jmo


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## My Own Advisor (Sep 24, 2012)

Flight to "safety" I suspect.


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## OurBigFatWallet (Jan 20, 2014)

^ agreed, I think in turbulent markets some tend to prefer the stability of utility stocks. At one point stocks like Fortis, Canadian Utilities and ATCO were actually up on Friday


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## FrugalTrader (Oct 13, 2008)

Also the odds of an interest rate increase have decreased due to uncertainty in the market (brexit). Utilities generally have a ton of debt, so they are interest rate sensitive.


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## jerryhung (Mar 28, 2011)

high yield, safe (utility, telecom, blah blah)

HydroOne new 52w high too

USA - T, VZ, MO (Altria), etc...


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## hollyhunter (Mar 10, 2016)

Technically speaking, it looks good. MACD goes green, bullish cross in Stochastic oscillator and RSI is trading near to 66.59 level with positive bias.


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## Eclectic12 (Oct 20, 2010)

jargey3000 said:


> Can anyone tell me why Fortis touched on a 52-week high on Friday ($42.67), when most everything else seemed to be tanking due to Brexit news?


Most of the stuff I was looking to add on Friday was up as well.

Most people will cut their expenses for a lot of other stuff in bad times but keep paying to keep the lights on. Which is why during uncertainty, if there are $$ to invest - a lot will look for things like FTS to buy.


Cheers


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## doctrine (Sep 30, 2011)

Why FTS is higher:

1. It is a utility. All utilities are trading higher as defensive stocks
2. FTS undertook three very large US acquisitions in the last few years; pending the latest, over 60% of revenue is US. US dollar is stronger, therefore FTS is stronger.
2. Interest rates are dropping. FTS is interest rate sensitive, therefore will do better (lower debt = lower costs = more profit = higher stock price)
3. It is technically strong and momentum is starting to take hold. "The first 52 week high is not the last" - it has been setting 52 week and all time highs all month.

Risks:

1. FTS is *NOT* a bond proxy nor bond-like. That is dangerous thinking. Just hitting 2015 lows would be a 20% drop, which could easily happen. The 2014 lows are a 30% drop. Few bonds, especially quality ones, ever drop 30%. That is potentially 7 or 8 years of dividends that could be wiped out in a matter of weeks. Stocks are not bonds, ever.

I own FTS and like it but if the 'mania' gets too much, I might offload. Yield is 3.5%, which will be a tipping point I believe for many investors. If the dividend growth is less than the projected 8-10%/year, I would sell for sure.


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## GizelleGizelle (Jun 10, 2016)

Did Fortis really acquire ITC???????????????????????


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