The Successful Investor Hotline – Friday, February 26, 2010

Article Excerpt

TRANSCANADA CORP., $34.78, Toronto symbol TRP, has set aside $22 billion for new growth projects. The company already spent $10 billion of these funds. It will spend the remaining $12 billion over the next four years. TransCanada will invest some of these funds in the Keystone pipeline, which will pump crude oil from Alberta to refineries in Illinois. Keystone should begin operating later this year. The company will also build new natural-gas-fired power plants in Ontario and Arizona. As well, it plans to refurbish reactors at the Bruce nuclear-power station in Ontario (TransCanada owns 48.8% of these reactors), and build new wind farms in eastern Canada. Meanwhile, the company reported that its 2009 earnings rose 3.6%, to $1.33 billion from $1.28 billion in the prior year. TransCanada sold new common shares to raise cash for its capital spending plans. Because of a 14% increase in the number of shares outstanding, per-share earnings fell 9.8%, to $2.03 from $2.25. These figures exclude…