Updates on TRANSALTA CORP., CANADIAN PACIFIC RAILWAY LTD., MANITOBA TELECOM SERVICES INC. and BCE INC.

Article Excerpt

TRANSALTA CORP. $20.17 (Toronto symbol TA; Shares outstanding: 218.8 million; Market cap: $4.4 billion; SI Rating: Average; Dividend yield: 5.8%) dropped 5% following the federal government’s June 23 announcement that it plans to phase out coal-fired power plants by around 2025. TransAlta uses coal to generate 57% of its power. Under the proposals, TransAlta would have to close its coal-fired plants when they reach 45 years of age or when their power-purchase contracts with provinces expire, whichever is later. The new rules would prevent TransAlta from extending the lives of these plants unless it can lower carbon emissions to the same level as natural-gas-fired plants. Ottawa’s plan is still in its early stages, and much could change before the new rules come into effect in 2011. Still, TransAlta feels it can replace some of its older plants with gas-fired facilities. It’s also developing new clean-coal and carbon-storage systems that would help it comply with the new standards. TransAlta is still a buy. CANADIAN PACIFIC…