TransAlta expands wind farm

Article Excerpt

TRANSALTA CORP. $24 (Toronto symbol TA; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 198.0 million; Market cap: $4.8 billion; Price-to-sales ratio: 1.7; Dividend yield: 4.8%; SI Rating: Average) is expanding its Kent Hills wind farm in New Brunswick. That’s because it won a 25-year power contract from the provincially owned electrical utility. The company will expand Kent Hills’ capacity to 150 megawatts from 96 megawatts in partnership with Natural Forces Technologies Inc. (NFT), a local wind-power developer. NFT owns 17% of Kent Hills, and will have an option to buy an additional 17% by the end of 2010, when the partners expect to finish the expansion. The project will cost roughly $100 million. TransAlta earned $66 million, or $0.34 a share, in the third quarter of 2009. TransAlta is a buy. buy…

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