Topic: How To Invest

Q: Hi Pat: What are your recommendations on Capital Power? Thanks?

Article Excerpt

A; Capital Power Corp., $20.99, symbol CPX on Toronto (Shares outstanding: 96.1 million; Market cap: $2.0 billion; www.capitalpower.com), is one of Canada’s largest independent power producers, with interests in 3,600 megawatts of generation capacity. In 2013, the company sold its New England power plants to Emera for $541 million U.S. It now has the bulk of its generating capacity in Alberta. In the three months ended September 30, 2016, Capital Power earned $30.0 million, or $0.31 a share. A year earlier, the company earned $33 million, or $0.33. Capital Power’s revenue for the quarter fell 19.4%, to $378.0 million from $469.0 million. Alberta Premier Rachel Notley has mandated that coal power be phased out in the province by 2030. The government aims to replace a third of that coal-fired capacity with renewable energy, including wind and solar. It expects power from natural gas to replace the remaining two-thirds. Capital Power gets almost 60% of its power from coal-fired plants in Alberta, so it…