The Successful Investor Hotline – Friday, February 15, 2008

Article Excerpt

HOME CAPITAL GROUP INC. $39.51, Toronto symbol HCG, earned $2.59 a share in 2007, up 32.8% from $1.95 in 2006. Revenue grew 30.6%, to $368.9 million from $282.5 million. The company’s loan portfolio rose 21.5%, mainly due to strong demand for residential and commercial mortgages. Home Capital has no exposure to the U.S. mortgage market. Receivables on its Equityline Visa credit cards rose 40.2% in 2007. The strong results let Home Capital increase its dividend for the eighth time in the past five years. The new annual rate of $0.48 a share, up 9.1% from $0.44, yields 1.2%. Home Capital Group is a buy. TRANSALTA CORP. $34.48, Toronto symbol TA, plans to build a new wind power project in Southern Alberta. The $115 million cost is equal to just 15% of its 2007 cash flow of $781.5 million or $3.86 a share. The new project should begin operations in late 2009. Wind power is less reliable than traditional power plants. But small projects like…