Topic: How To Invest

Q: I really enjoy your Inner Circle emails. I was hoping to get TSI’s take on TransAlta Corp. Thanks!

Article Excerpt

A: TransAlta Corp., $18.29, symbol TA on Toronto (Shares outstanding: 298.4 million; Market cap: $5.5 billion; www.transalta.com), is one of Canada’s largest publicly traded power generators. Established in 1911, the company develops and operates electricity generation facilities. Its assets are mostly in Alberta but other parts of Canada, the U.S. and Australia. These generation operations include water, wind, solar, battery storage, natural gas, and coal. The company will stop coal-fired generation by the end of 2025. Notably, TransAlta is one of the largest producers of wind power and thermal generation in Canada. It’s also the largest producer of hydro power in Alberta. The company operate non-regulated businesses with a mix of merchant and contracted assets. Merchant assets do not have firm buying agreements in place when constructed. Instead, they sell electricity on the cash market. Contracted assets are subject to power purchase agreements. Buyers agree to buy a fixed amount of electricity from the provider at a set price, for a predetermined time. Contracted assets provide…