transcanada

BCE INC., $42.15, Toronto symbol BCE, recently failed to win regulatory approval for its $3.4-billion deal to buy Astral Media (Toronto symbols ACM.A and ACM.B). Montreal-based Astral owns 22 TV stations, 84 radio stations and several pay TV and specialty channels, such as the Movie Network, Family Channel and Teletoon. It also owns billboards and sells other outdoor advertising in Quebec, Ontario and B.C. Regulators felt the purchase would give BCE an overwhelming share of Canada’s English-language TV broadcast market, which would hurt competition....

TRANSCANADA CORP. $45 (Toronto symbol TRP; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 705.0 million; Market cap: $31.7 billion; Price-to-sales ratio: 3.6; Dividend yield: 3.9%; TSINetwork Rating: Above Average; www.transcanada.com) has won contracts to build and operate two pipelines that will supply natural gas to government-owned power plants in Mexico. These lines will cost $1.4 billion U.S., and should begin operating in 2016. TransCanada has 25-year contracts with Mexico’s federal power company, which cuts the risk of these investments. These deals should help the company win even more business as Mexico continues to convert its power plants from coal to gas. TransCanada is a buy.

TORSTAR CORP., $8.15, Toronto symbol TS.B, fell 8% this week after it reported lower-than-expected earnings. The company continues to see weak advertising demand at its newspapers, including its flagship paper, The Toronto Star. Strong competition and unfavourable foreign exchange rates are also hurting profits at its Harlequin book publishing subsidiary. As a result, Torstar’s earnings fell 44.1% in the three months ended September 30, 2012, to $14.1 million, or $0.18 a share, from $25.2 million, or $0.32 a share, a year earlier....

TRANSCANADA CORP. $44.97 (Toronto symbol TRP; Shares outstanding: 704.9 million; Market cap: $31.7 billion; TSINetwork Rating: Above Average; Dividend yield: 3.9%; www.transcanada.com) has formed a new 50/50 joint venture with privately held Phoenix Energy Holdings Ltd. The partners plan to build a 500-kilometre pipeline that would pump crude from Phoenix’s oil sands properties in northern Alberta to Edmonton. TransCanada will operate the new line. TransCanada’s share of the project’s $3.0-billion cost is $1.5 billion. The partners aim to begin construction in 2014, and the line should start up in early 2017....

TRANSCANADA CORP. $45.02 (Toronto symbol TRP; Shares outstanding: 704.9 million; Market cap: $31.7 billion; TSINetwork Rating: Above Average; Dividend yield: 3.9%; www.transcanada.com) has settled its dispute with the Ontario government.

In 2009, the company agreed to build a natural-gas-fired power plant in Oakville, Ontario. However, the provincial government cancelled the project in 2010.

This week, TransCanada agreed to build a new gas-fired power plant on the grounds of the Lennox generating station near Napanee in eastern Ontario.

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ISHARES S&P/TSX 60 INDEX FUND $17.71 (Toronto symbol XIU; buy or sell through brokers; ca.ishares.com) is a good, low-fee way to buy the top stocks on the TSX. The units are made up of stocks that represent the S&P/TSX 60 Index, which consists of the 60 largest, most heavily traded stocks on the exchange. Expenses are just 0.17% of assets.

The index mostly consists of high-quality companies. However, as the fund must ensure that all sectors are represented, it holds a few stocks we wouldn’t include.

The index’s top holdings are Royal Bank, 7.4%; TD Bank, 6.8%; Bank of Nova Scotia, 5.8%; Suncor Energy, 4.5%; Barrick Gold, 3.7%; CN Railway, 3.5%; Bank of Montreal, 3.4%; Potash Corp., 3.3%; Goldcorp, 3.3%; BCE Inc., 3.1%; Canadian Natural Resources, 3.0%; TransCanada Corp., 2.9%; CIBC, 2.8%; Enbridge, 2.8%; Cenovus Energy, 2.4%; and Telus Corp., 1.8%.

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TRANSCANADA CORP. $44 (Toronto symbol TRP; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 704.0 million; Market cap: $31.0 billion; Price-to-sales ratio: 3.6; Dividend yield: 4.0%; TSINetwork Rating: Above Average; www.transcanada.com) is mainly known for its natural gas and oil pipelines. However, the company continues to expand its electrical-power business. TransCanada’s 19 power plants in Canada and the U.S. now supply 30% of its revenue.

The company has agreed to build a new gas-fired power plant near Napanee, Ontario, as part of a deal with the Ontario Power Authority (OPA), which regulates the province’s power producers. This new plant will replace a plant that TransCanada previously agreed to build in Oakville, Ontario.

The OPA will pay TransCanada $210 million for the turbines and other equipment originally earmarked for the Oakville plant. The company will also receive $40 million to cover the costs of equipment that it can’t move to the new site. However, the OPA will pay TransCanada lower rates for the new plant’s power when it starts up in 2017.

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These five electric utilities are using their strong cash flows to make acquisitions and invest in new projects. These moves will enhance their long-term prospects and give them more cash for dividends. However, not all are buys right now. TRANSCANADA CORP. $44 (Toronto symbol TRP; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 704.0 million; Market cap: $31.0 billion; Price-to-sales ratio: 3.6; Dividend yield: 4.0%; TSINetwork Rating: Above Average; www.transcanada.com) is mainly known for its natural gas and oil pipelines. However, the company continues to expand its electrical-power business. TransCanada’s 19 power plants in Canada and the U.S. now supply 30% of its revenue. The company has agreed to build a new gas-fired power plant near Napanee, Ontario, as part of a deal with the Ontario Power Authority (OPA), which regulates the province’s power producers. This new plant will replace a plant that TransCanada previously agreed to build in Oakville, Ontario....

Most stock markets have risen lately. But as always, they remain subject to unexpected downturns. Even so, the long-term outlook is for higher stock prices. One way to profit from rising markets is to add exchange traded funds (ETFs) that track major stock indexes to your portfolio. ETF’s trade on stock exchanges, just like stocks. Prices are quoted in newspaper stock tables and online. You must pay brokerage commissions to buy and sell ETFs, but their low management fees still give them a cost advantage over most mutual funds....

TRANSCANADA CORP. $45.02 (Toronto symbol TRP; Shares outstanding: 704.9 million; Market cap: $31.7 billion; TSINetwork Rating: Above Average; Dividend yield: 3.9%; www.transcanada.com) has settled its dispute with the Ontario government. In 2009, the company agreed to build a natural-gas-fired power plant in Oakville, Ontario. However, the provincial government cancelled the project in 2010. This week, TransCanada agreed to build a new gas-fired power plant on the grounds of the Lennox generating station near Napanee in eastern Ontario....