Updates on Safety-Conscious Stocks

Article Excerpt

TRANSALTA CORP. $28.12 (Toronto symbol TA; SI Rating: Average) operates 50 power plants, in Canada, the United States, Mexico and Australia. In the three months ended March 31, 2007, TransAlta’s revenues fell 1.4%, to $723.7 million from $733.7 million. Earnings before unusual items fell 12.5%, to $66 million or $0.33 a share, from $75.4 million or $0.38 a share. Maintenance at some power plants took longer than planned, and that hurt results. Cash flow fell 18% in the latest quarter, to $198.1 million or $0.98 a share, from $217.4 million or $1.09 a share. TransAlta trades at 21.8 times the $1.29 a share it’s likely to make in 2007. That’s somewhat high for a utility. But the company should be able to keep paying its $1.00 dividend, which yields 3.6%. TransAlta’s share price has moved up lately, despite the lower results. That’s mainly due to speculation that it could become a takeover target. The company has no controlling shareholder, and generates plenty of steady…