CARIBBEAN UTILITIES (CUP.U) Stocks
ABOUT CARIBBEAN UTILITIES
Caribbean Utilities Limited is the only public electric utility in Grand Cayman, the largest of the three Cayman Islands. Caribbean Utilities Limited has a history dating back to 1966, when it first commenced its operations.
Today Caribbean Utilities Limited has an installed generating capacity of 161 megawatts and is considered one of the most reliable and efficient power companies in the Caribbean.
The Cayman Islands, a United Kingdom Overseas Territory with an approximate population of approximately 58 000, are comprised of three islands: Grand Cayman, Cayman Brac and Little Cayman. Located about 150 miles south of Cuba, 460 miles south of Miami and 167 miles northwest of Jamaica, the largest island is Grand Cayman with an area of 76 square miles.
Here, Caribbean Utilities Limited has over 200 employees and supplies electricity to over 29 000 customers.
OVERVIEW OF CARIBBEAN UTILITIES
Caribbean Utilities Limited has a portfolio consisting of a generating plant, a transmission and distribution system, and other properties. The company’s power system is comprised of 20 generating units (17 diesel engines, 2 gas turbines and 1 steam turbine) with a combined capacity of 161 megawatts (MW).
In addition, the company has 4 mobile units, each with a capacity of 1.5 MW. Caribbean Utilities Limited base its generation expansion on historical growth trends and planned major commercial developments.
Caribbean Utilities Limited’s transmission and distribution system are comprised of 8 major transformer substations, approximately 387 miles of overhead high-voltage and 53.8 miles of underground high-voltage lines and 14 miles of high-voltage submarine cable in Grand Cayman.
The company’s transmission and distribution lines and substations are designed for high winds and flooding that might result from a hurricane.
Caribbean Utilities Limited also owns six additional sites for transformer substations located on approximately 7 acres of land.
VISION AND VALUES OF CARIBBEAN UTILITIES
Caribbean Utilities Limited’s ethos is centered on values of excellent corporate citizenship. Caribbean Utilities Limited has taken the lead in community involvement by providing voluntarism and financial support to many worthy projects.
The company’s employees serve as mentors for young people in various organizations, including the Cadet Corps and the Big Brothers Big Sisters Programme. Other programmes include the Sunrise Adult Training Centre and the Lighthouse School.
In 2000, Caribbean Utilities Limited established the CUC Children’s Fund, which allows its employees to make annual contributions to assist organizations dedicated to accommodating the needs of the youth. Each year, contributors select benefactors of the Fund, which have included the Island’s primary schools, the Lighthouse School, the Sunrise Adult Training Centre, Big Brothers Big Sisters and the Family and Children Services Unit.
In addition to these benefactors, the Fund has also contributed to various fundraising efforts for children who are ill, one of whom underwent a successful liver transplant in June 2007 and another who had a serious heart condition.
This Fund facilitates a greater sense of involvement in the community for the Caribbean Utilities Limited’s employees.
MARKET PERFORMANCE OF CARIBBEAN UTILITIES
Caribbean Utilities Limited trades on the Toronto Stock Exchange (TSX), where investors can buy shares on the stock symbol –CUP.U.
Data from the company’s 2019 third quarter financial analysis shows operating income totaled US Dollar 9.7 million, an increase of US Dollar 0.3 million when compared to operating income of US Dollar 9.4 million for 2018. The increase is primarily attributable to higher electricity sales revenues which were partially offset by higher depreciation and maintenance expenses.
Net earnings totaled US Dollar 10.4 million, an increase of US Dollar 1.2 million from US Dollar 9.2 million in 2018. In addition to the items impacting operating income, net earnings were also positively impacted by higher other net income and lower finance charges driven by higher Allowance for Funds Used During Construction (“AFUDC”). Other income was positively impacted by a one-off write back of previously recognized bad debt expenses of US Dollar 1.1 million.
Caribbean Utilities Limited’s strong performance to date, bolstered by its regional market dominance, has delivered a rising share price for investors with good long-term growth in dividends, securing a solid buy-in for those who choose to purchase shares today.
Buy CARIBBEAN UTILITIES stocks / shares – A Step by Step Guide how to Buy / Purchase CARIBBEAN UTILITIES Stocks or Shares online.
Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy CARIBBEAN UTILITIES Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN CARIBBEAN UTILITIES STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a US Dollar 5 stock, multiply 100 by US Dollar 5 to get US Dollar 500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE CARIBBEAN UTILITIES STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of CARIBBEAN UTILITIES stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy CARIBBEAN UTILITIES stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?