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Article Excerpt

In May 2013, Alberta’s TransAlta Corp. transferred its renewable power assets into a separate firm called TransAlta Renewables. That let it take advantage of rising investor interest in green energy to sell shares in this new business and unlock value for investors. It also raised funds for debt repayments. TransAlta, which now owns 60% of the renewables business, has no plans to sell or spinoff its remaining shares. That parent company is worth holding, but for your new buying we prefer TransAlta Renewables. TRANSALTA RENEWABLES INC., $20 is a buy. The company (Toronto symbol RNW; Utilities sector; Shares outstanding: 266.9 million; Market cap: $5.3 billion; Dividend yield: 4.7%; Takeover Target Rating: Lowest; www.transaltarenewables.com) is one of the largest generators of wind power in Canada. It currently owns 24 wind farms, 13 hydroelectric facilities, 8 natural gas generation facilities, 1 solar facility, 1 natural gas pipeline, and 1 battery storage project. In Canada, those assets are in B.C., Alberta, Ontario, Quebec and New Brunswick…

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