Updating Our Current Recommendations on TransCanada Corp., RioCan Real Estate Investment Trust, CAE Inc. and Canadian Utilities Ltd.

Article Excerpt

TRANSCANADA CORP. $34 (Toronto symbol TRP; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 615.1 million; Market cap: $20.9 billion; Price-to-sales ratio: 3.0; SI Rating: Above average) plans to build a new pipeline called Pathfinder that would transport natural gas from Colorado to North Dakota. The company planned to offset the $2 billion cost of building the new line by selling a minority stake in it to two local gas producers. However, these producers had to withdraw from the project as the credit crisis has hurt their borrowing ability. TransCanada now hopes to find new partners. But even if it has to cancel the Pathfinder project, it’s only a small part of its overall operations. TransCanada is a buy. RIOCAN REAL ESTATE INVESTMENT TRUST $13 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 221.0 million; Market cap: $2.9 billion; Price-to-sales ratio: 3.8; SI Rating: Average) owns 50% of the Brentwood Village Shopping Centre in Calgary. The trust and its partner…