The Successful Investor Hotline – Friday, May 6, 2011

Article Excerpt

This week’s election of a majority Conservative government is a positive development for most of the stocks we recommend. That’s mainly because next year’s cut in the corporate tax rate will proceed as planned. As well, the Conservatives will not impose onerous new carbon taxes or environmental regulations on oil-sands operators such as Suncor (see below). Emera should also benefit, as Ottawa will continue to guarantee loans related to its new power plant in Labrador. SUNCOR ENERGY INC., $40.26, Toronto symbol SU, merged with Petro-Canada in 2009 to become Canada’s largest integrated-oil company. In the three months ended March 31, 2011, Suncor’s earnings rose 32.0%, to $1.0 billion from $779 million a year earlier. Earnings per share rose 30.0%, to $0.65 from $0.50. If you exclude unusual items, such as gains and losses on asset sales, Suncor’s earnings per share jumped 291.7%, to $0.94 from $0.24. On this basis, the latest earnings beat the consensus estimate of $0.80 a share. Cash flow per…