Topic: How To Invest

Pat: Would you please give me your opinion on Parkland Fuel? Thanks.

Article Excerpt

Parkland Fuel Corp., $12.87, symbol PKI on Toronto (Shares outstanding: 67.9 million; Market cap: $873.9 million, www.parkland.ca), operates gas stations, convenience stores and a fuel distribution business, mostly in western Canada and Ontario. The company was called Parkland Income Fund prior to its conversion to a dividend-paying corporation on December 31, 2010. Parkland owns 167 rural gas stations and convenience stores. Its brands include Fas Gas Plus, Race Trac Gas and Short Stop (convenience stores). Many stations sell propane in addition to gasoline and diesel fuel. The company also operates Esso gas stations in western Canada and Ontario under a licensing deal with Imperial Oil Ltd. (symbol IMO on Toronto). Parkland continues to sell its company-owned stations to franchisees. This lets it collect commissions on fuel sales and rent without having to staff and operate the stations. The company also sells fuel wholesale to 595 independent gas stations and commercial customers. As well, the company is converting its Bowden oil storage tanks near Red…