Topic: How To Invest

Q: Hi: I bought TransAlta when it was $13.00 and it’s been on a downward spiral ever since. Do you see any improvement in the future? Thanks.

Article Excerpt

A: TransAlta, $7.33, symbol TA on Toronto (Shares outstanding: 287.9 million; Market cap: $2.1 billion;, is one of the biggest operators of coal-fired electric generating plants in Alberta. Alberta Premier Rachel Notley has mandated that electric plants phase out coal power in the province by 2030. Her aim is to have renewable energy replace one-third of current coal-fired capacity. Natural gas will replace the remaining two-thirds. The stock jumped from around $6 recently to today’s price after Premier Notley outlined the compensation the province will pay TransAlta to phase out its Keephills 3, Genesee 3 and Sheerness coal-fired plants. Under the terms of the Off-Coal Agreement, TransAlta will receive annual cash payments of approximately $37.4 million commencing in 2017 and terminating in 2030. Receipt of the payments is subject to a number of terms and conditions; for example, TransAlta must maintain a set amount of investment and investment related activities in Alberta. It must also maintain a significant business presence in the province…

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