The Successful Investor Hotline – Friday, May 2, 2008

Article Excerpt

TRANSCANADA CORP. $37.50, Toronto symbol TRP, owns 50% of Broadwater Energy, a joint venture with Royal Dutch Shell, which hopes to build an offshore liquefied natural gas terminal in Long Island Sound. However, New York State and New Jersey have rejected the proposal. Broadwater now plans to appeal to the U.S. Commerce Department. The decision forced TransCanada to write off the $27 million it has already spent on the Broadwater project. If you exclude all unusual items, TransCanada’s earnings in the three months ended March 31, 2008 still rose 30.4%, to $326 million from $250 million a year earlier. Per-share earnings grew 22.4%, to $0.60 from $0.49, on more shares outstanding. Most of the higher earnings came from the acquisition of pipelines and natural gas storage facilities in February 2007. However, overall revenue fell 4.5%, to $2.1 billion from $2.2 billion, due to the temporary shutdown of a power plant in Quebec. TransCanada is a buy. CANADIAN UTILITIES LTD. $46.71, Toronto symbol CU,…

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