Updating Our Conservative Stocks CAE Inc., TransAlta Corp. and IGM Financial.

Article Excerpt

CAE INC. $8.90 plans to spend $630 million in the next six years on research aimed at improving its existing flight simulator technology, and to develop simulators for other uses such as emergency response to disasters. Ottawa has agreed to pay for 30% of these costs in exchange for a share of future royalties. Still, that’s a big commitment for CAE, which earned $38.6 million or $0.15 a share from continuing operations in the six months ended September 30, 2005. CAE is a buy. TRANSALTA CORP. $26 earned $0.20 a share before unusual items in the third quarter of 2005, up 17.6% from $0.17 a year earlier, due to fewer unplanned power plant interruptions. Although cash flow per share fell 3.5%, to $0.82 from $0.85, it’s still enough to cover the company’s capital expenditures and $1.00 dividend, which yields 3.8%. TransAlta is a buy. IGM FINANCIAL INC. $45 continues to gain from improving equity markets and mutual fund sales. Assets under administration…

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