The Successful Investor Hotline – Friday, July 5, 2013

Article Excerpt

TRANSCANADA CORP., $45.59, Toronto symbol TRP, has completed the purchase of a solar power facility in Brockville, Ontario, from Canadian Solar (Nasdaq symbol CSIQ). This is the first part of TransCanada’s agreement to buy nine Ontario solar power stations from Canadian Solar. The company expects to take possession of the remaining eight facilities by the end of 2014. In all, TransCanada will pay $470 million. That’s equal to 1.3 times the $370 million, or $0.52 a share, that the company earned in the three months ended March 31, 2013. The Ontario government recently cut subsidies for large solar and wind projects. However, TransCanada has 20-year deals to sell the power from these nine solar farms, which cuts the risk of this investment. TransCanada is a buy. Please make sure you are logged in to your account to access these articles. Click here if you’ve lost your password. TransCanada was recently covered in the June 2013 issue of The Successful Investor. Click here to access it. TransCanada was…