transcanada

PLEASE NOTE: Next week, Wall Street Stock Forecaster, our newsletter that focuses on the U.S. stock markets, will reveal its #1 pick for 2012. TRANSCANADA CORP., $41.81, Toronto symbol TRP, fell 2% this week after the U.S. State Department rejected the company’s plan to build the Keystone XL pipeline, which would pump oil from the Alberta oil sands through Oklahoma to refineries on the U.S. Gulf Coast. However, TransCanada is working to reroute the pipeline around environmentally sensitive areas in Nebraska. Once it finalizes the new route, the company can reapply for a permit. If approved, the pipeline could begin operating in 2014....

In next week’s Successful Investor Hotline, we’ll reveal our #1 stock pick for 2012. Don’t miss this unique opportunity to profit. CANADIAN PACIFIC RAILWAY LTD., $69.08, Toronto symbol CP, rose 4% this week on media reports that Pershing Square Capital Management, L.P. is pressuring the company to replace its current chief executive officer with Hunter Harrison, the retired CEO of rival Canadian National Railway Co. (Toronto symbol CNR). Pershing Square is an activist investment firm that is now CP’s largest shareholder. CP’s shares have gained 8.3% since October 28, 2011 when Pershing Square said that it had bought 12.2% of the company on. Pershing Square now owns 14.2% of CP....

TRANSCANADA CORP. $43.95 (Toronto symbol TRP; Shares outstanding: 704.0 million; Market cap: $30.9 billion; TSINetwork Rating: Above Average; Dividend yield: 3.8%; www.transcanada.com) is buying nine solarpower projects in Ontario from Canadian Solar Inc. (Nasdaq symbol CSIQ). TransCanada will pay $470 million for these projects. Canadian Solar is building the facilities using its own photovoltaic panels. It expects to finish construction between late 2012 and mid-2013. TransCanada will buy each facility as it starts operating. In all, these projects will generate 86 megawatts of electricity. To put that in context, TransCanada currently owns or invests in North American power plants that generate a combined 10,800 megawatts....

Pat McKeough responds to many personal questions on specific stocks and other investing topics from the members of his Inner Circle. Every week, his comments and recommendations on a selection of the most intriguing questions of the past week go out to all Inner Circle members. And every Friday, we offer you one of the highlights from these Q&A sessions. This week, one Inner Circle member asked for an update on a pipeline firm that sometimes appears to be overshadowed by the most prominent names in the industry like TransCanada and Enbridge. Here is Pat’s reply. ...

PLEASE NOTE: This is our last Hotline for 2011. Our next Hotline will go out on Friday, January 6, 2012. TRANSCANADA CORP., $44.05, Toronto symbol TRP, is buying nine solar-power projects in Ontario from Canadian Solar Inc. (Nasdaq symbol CSIQ). TransCanada will pay $470 million for these projects. That’s 12.7% more than the $417 million, or $0.59 a share, that it earned in the three months ended September 30, 2011....

Inter Pipeline Fund, $18.75, symbol IPL.UN on Toronto (Units outstanding: 264.1 million; Market cap: $5.0 billion; www.interpipelinefund.com), transports, stores, markets and processes oil and natural gas. The fund has three divisions: pipelines transports 35% of Canadian oil sands production and 15% of western Canadian conventional crude oil; extraction processes 40% of Alberta’s exported natural gas into natural gas liquids; and the storage division, which operates under the Simon Storage and TLG banners. In the three months ended September 30, 2011, Inter Pipeline’s revenue rose 30.4%, to $302.1 million from $231.7 million a year earlier. Cash flow per unit jumped 43.3%, to $0.43 from $0.30. That’s mainly because the company’s pipelines shipped 993,300 barrels a day in the quarter, up 24.6% from 797,300 barrels a year earlier. The increased volumes came mostly from a $1.8-billion expansion of the fund’s Corridor pipeline, which was completed in January 2011....

TRANSCANADA CORP. (Toronto symbol TRP; www.transcanada.com) has agreed to reroute its proposed Keystone XL oil pipeline around an environmentally sensitive aquifer in Nebraska’s Sandhills region. The state government will work closely with TransCanada to find an acceptable route. That should speed up the environmental approval process for this Canadian stock’s biggest pipeline project....

TRANSCANADA CORP. $42.88 (Toronto symbol TRP; Shares outstanding: 704.0 million; Market cap: $30.2 billion; TSINetwork Rating: Above Average; Dividend yield: 3.9%; www.transcanada.com) has agreed to reroute its proposed Keystone XL oil pipeline around an environmentally sensitive aquifer in Nebraska’s Sandhills region. The state government will work closely with TransCanada to find an acceptable route. That should speed up the environmental approval process. Keystone XL will pump oil from the Alberta oil sands through Oklahoma to refineries on the U.S. Gulf Coast. Last week, the U.S. State Department postponed a final decision on the project until 2013 to give TransCanada time to find a better route through Nebraska. This compromise makes it less likely that TransCanada will have to write off the $1.9 billion that it has already spent on the $7-billion project....

TRANSCANADA CORP., $41.57, Toronto symbol TRP, has agreed to reroute its proposed Keystone XL oil pipeline around an environmentally sensitive aquifer in Nebraska’s Sandhills region. The state government will work closely with TransCanada to find an acceptable route. That should speed up the environmental approval process. Keystone XL will pump oil from the Alberta oil sands through Oklahoma to refineries on the U.S. Gulf Coast. Last week, the U.S. State Department postponed a final decision on the project until 2013 to give TransCanada time to find a better route through Nebraska. This compromise makes it less likely that TransCanada will have to write off the $1.9 billion U.S. that it has already spent on the $7-billion U.S. project. To put these figures in context, the company’s cash flow was $2.8 billion (Canadian), or $3.97 a share, in the first nine months of 2011....

TRANSCANADA CORP., $40.81, Toronto symbol TRP, fell 4% this week after the U.S. State Department said it wants the company to re-route its proposed Keystone XL oil pipeline around underground water tables in Nebraska. Keystone XL will pump oil from oil-sands projects in Alberta through Oklahoma to refineries on the U.S. Gulf Coast. TransCanada had hoped to receive final approval for the project by the end of 2011, but finding an acceptable new route will take around 18 months. These delays would add to Keystone XL’s $7-billion U.S. cost, and might prompt oil shippers and refineries to cancel their commitments....