The Successful Investor Hotline – Thursday, March 20, 2008

Article Excerpt

TRANSCANADA CORP. $38.06, Toronto symbol TRP, has teamed up with U.S.-based Williams Companies Ltd. to evaluate the Sunstone project, a proposed pipeline that would transport natural gas from the Rockies to the western United States. Sunstone could begin operations in 2011. Both companies already operate pipelines in the region, which cuts the risk of this project. TransCanada is a buy. TRANSALTA CORP. $30.36, Toronto symbol TA, fell 10% this week after activist shareholder Luminus Management withdrew its slate of director nominees. Luminus owns roughly 8.4% of TransAlta’s shares, and has pressured the company to increase shareholder value. TransAlta recently sold its Mexican assets, and will use most of the cash to buy back stock. It also recently increased its dividend for the first time since 1999. The current rate of $1.08 a share yields 3.6%. While Luminus has eased its pressure for now, its ongoing involvement is a plus. TransAlta is a buy. HOME CAPITAL GROUP INC. $33.78, Toronto symbol HCG, is down 20.5%…