Transalta Corp

TA-T

TSE:TA

8.96
0.01 (0.11%)
TransAlta Corporation is an electricity power generator and wholesale marketing company headquartered in Calgary, Alberta. It is a privately owned corporation and its shares are traded publicly.
More at Wikipedia

Analysis and Opinions about TA-T

Signal
Opinion
Expert
HOLD
HOLD
November 29, 2019
It has had a good bounce this year. Brookfield has been brought in (now holding 5% of the stock) and holds a couple of board seats. The true value is $11-$12, he thinks. He likes the hydro generation assets on the renewable trend. Yield 2.5%
Transalta Corp (TA-T)
November 29, 2019
It has had a good bounce this year. Brookfield has been brought in (now holding 5% of the stock) and holds a couple of board seats. The true value is $11-$12, he thinks. He likes the hydro generation assets on the renewable trend. Yield 2.5%
Robert Lauzon
Deputy Chief Investment Officer, Middlefield Capital Corporation
Price
$8.920
Owned
Unknown
SELL
SELL
November 18, 2019
He prefers ALA-T to this one at these levels. Nothing is going to move this one materially higher in the next while.
Transalta Corp (TA-T)
November 18, 2019
He prefers ALA-T to this one at these levels. Nothing is going to move this one materially higher in the next while.
Ryan Bushell
President, Newhaven Asset Management
Price
$8.910
Owned
No
PAST TOP PICK
PAST TOP PICK
October 25, 2019
(A Top Pick Oct 03/18, Up 11%) Doing what it is supposed to do. Dull and boring. He likes their hydro assets and Brookfield has bought into a convertible bond, equivalent to about 5% of the stock outstanding and may add another 5% in the future. Management wants to buy back stock. It should be a $9-$10 stock.
Transalta Corp (TA-T)
October 25, 2019
(A Top Pick Oct 03/18, Up 11%) Doing what it is supposed to do. Dull and boring. He likes their hydro assets and Brookfield has bought into a convertible bond, equivalent to about 5% of the stock outstanding and may add another 5% in the future. Management wants to buy back stock. It should be a $9-$10 stock.
Robert Lauzon
Deputy Chief Investment Officer, Middlefield Capital Corporation
Price
$7.850
Owned
Yes
WEAK BUY
WEAK BUY
September 16, 2019

It's been smashed in the past five years, dropping from the mid-teens to around $5-6, and cut their dividend. They made some bad calls when Alberta de-regulated and they let their transmission lines go. But they have turned around. The dividend could rise in coming years and it could move to $12. He prefers Capital Power.

Transalta Corp (TA-T)
September 16, 2019

It's been smashed in the past five years, dropping from the mid-teens to around $5-6, and cut their dividend. They made some bad calls when Alberta de-regulated and they let their transmission lines go. But they have turned around. The dividend could rise in coming years and it could move to $12. He prefers Capital Power.

Bruce Murray
CEO & Chief Investment Officer, The Murray Wealth Group
Price
$8.730
Owned
No
PAST TOP PICK
PAST TOP PICK
May 23, 2019
(A Top Pick May 03/18, Up 30%) They did a good job of highlighting value in their hydro assets. They are buying back stock but he would prefer they increased the dividend more. This is a good entry point again.
(A Top Pick May 03/18, Up 30%) They did a good job of highlighting value in their hydro assets. They are buying back stock but he would prefer they increased the dividend more. This is a good entry point again.
Robert Lauzon
Deputy Chief Investment Officer, Middlefield Capital Corporation
Price
$8.650
Owned
Yes
DON'T BUY
DON'T BUY
May 6, 2019
It is difficult. It is southern Alberta. It has been in transition for a bit and still seems to be. He would not feel comfortable in the sector until things look better in Alberta.
It is difficult. It is southern Alberta. It has been in transition for a bit and still seems to be. He would not feel comfortable in the sector until things look better in Alberta.
Rick Stuchberry
Portfolio Manager, Wellington-Altus Private Wealth
Price
$9.010
Owned
No
BUY
BUY
March 18, 2019
This hurt a lot of people. Now they are cheap, trading at 15.1% free-cash yield. He sees more upside 25-50% though nowhere near to $30.
Transalta Corp (TA-T)
March 18, 2019
This hurt a lot of people. Now they are cheap, trading at 15.1% free-cash yield. He sees more upside 25-50% though nowhere near to $30.
Greg Newman
Director & Portfolio Manager, Scotia Wealth Management
Price
$8.870
Owned
Unknown
DON'T BUY
DON'T BUY
January 17, 2019
Over a number of years are making a transition from coal to natural gas fired power plants. He would prefer to look at the renewables or NPI-T.
Transalta Corp (TA-T)
January 17, 2019
Over a number of years are making a transition from coal to natural gas fired power plants. He would prefer to look at the renewables or NPI-T.
Michael Simpson, CFA
Senior Vice-President, Sentry Investments
Price
$6.450
Owned
No
BUY
BUY
October 22, 2018

It has not done very well. He also bought some of the preferreds. He thinks they are moving in the right direction. The dividend is pretty secure. They have a long way to go to complete their turnaround. There may be tax loss selling at the end of the year but many have already taken their loss.

Transalta Corp (TA-T)
October 22, 2018

It has not done very well. He also bought some of the preferreds. He thinks they are moving in the right direction. The dividend is pretty secure. They have a long way to go to complete their turnaround. There may be tax loss selling at the end of the year but many have already taken their loss.

Benj Gallander
President, Contra the Heard Investment Letter
Price
$7.240
Owned
Yes
TOP PICK
TOP PICK
October 3, 2018

There is deep value in this name, owning 60% of TransAlta Renewables – the share value of which equals the market value of TA-T on its own. They own 9% of the Alberta hydro market. The new PPAs on the hydro assets, which act as backup for wind and solar, could help propel this company to a double in the next three years. Yield 2.2%. (Analysts’ price target is $8.25)

Transalta Corp (TA-T)
October 3, 2018

There is deep value in this name, owning 60% of TransAlta Renewables – the share value of which equals the market value of TA-T on its own. They own 9% of the Alberta hydro market. The new PPAs on the hydro assets, which act as backup for wind and solar, could help propel this company to a double in the next three years. Yield 2.2%. (Analysts’ price target is $8.25)

Robert Lauzon
Deputy Chief Investment Officer, Middlefield Capital Corporation
Price
$7.190
Owned
Yes
COMMENT
COMMENT
September 28, 2018

Has been a terrible place to be. Long-term decline. It’s destroyed wealth. Market’s trading off of underlying ownership of Transalta Renewables. Pays a small dividend. Washed out, fairly decent value in it.

Transalta Corp (TA-T)
September 28, 2018

Has been a terrible place to be. Long-term decline. It’s destroyed wealth. Market’s trading off of underlying ownership of Transalta Renewables. Pays a small dividend. Washed out, fairly decent value in it.

Greg Newman
Director & Portfolio Manager, Scotia Wealth Management
Price
$7.270
Owned
Yes
WEAK BUY
WEAK BUY
May 23, 2018

It has a good dividend. The consolidation this year is actually pretty good, given the utility sector performance as a whole. This is in a good spot to begin to go higher. The quarterly dividend had been cut from $0.29 per share to $0.04, but this is already factored in by the market. Yield 2%.

It has a good dividend. The consolidation this year is actually pretty good, given the utility sector performance as a whole. This is in a good spot to begin to go higher. The quarterly dividend had been cut from $0.29 per share to $0.04, but this is already factored in by the market. Yield 2%.

Brooke Thackray
Research Analyst, Horizons ETFs (Canada) Inc.
Price
$6.710
Owned
No
TOP PICK
TOP PICK
May 3, 2018

It is not the same company of 5 years ago. All the headwinds are now tailwinds. They are becoming cash flow positive and paying down debt. It is quite attractive, being a utility. (Analysts’ target: $8.20).

It is not the same company of 5 years ago. All the headwinds are now tailwinds. They are becoming cash flow positive and paying down debt. It is quite attractive, being a utility. (Analysts’ target: $8.20).

Robert Lauzon
Deputy Chief Investment Officer, Middlefield Capital Corporation
Price
$6.880
Owned
Yes
PAST TOP PICK
PAST TOP PICK
November 24, 2017

(A Top Pick Sept 15/16. Up 28%.) *Long* (Pairs trade with a Short on TRP-T.) He still has both positions on.

Transalta Corp (TA-T)
November 24, 2017

(A Top Pick Sept 15/16. Up 28%.) *Long* (Pairs trade with a Short on TRP-T.) He still has both positions on.

Daniel Lloyd
Portfolio Manager, Forge First Asset Management
Price
$7.500
Owned
Yes
DON'T BUY
DON'T BUY
November 2, 2017

It has had a nice recovery based on the bottom but not when you look at the high of a couple of years ago. They have the renewable side and it used to be worth more than TA-T corp. That imbalance got fixed. They got into trouble on the balance sheet. He would prefer something more stable.

Transalta Corp (TA-T)
November 2, 2017

It has had a nice recovery based on the bottom but not when you look at the high of a couple of years ago. They have the renewable side and it used to be worth more than TA-T corp. That imbalance got fixed. They got into trouble on the balance sheet. He would prefer something more stable.

Bruce Campbell (1)
President, Campbell and Lee InvMngmnt
Price
$7.490
Owned
No
HOLD
HOLD
August 3, 2017

Alberta shut down its coal fired electrical generation plants. Contracts were ended. Australia has some issues for them too. They have cut their costs down and re-focused. There used to be funding issues. They are fine now, but not the best in their sector. He leans more to interpipes. There is clearly not a dividend cut coming. They are not overlevered.

Transalta Corp (TA-T)
August 3, 2017

Alberta shut down its coal fired electrical generation plants. Contracts were ended. Australia has some issues for them too. They have cut their costs down and re-focused. There used to be funding issues. They are fine now, but not the best in their sector. He leans more to interpipes. There is clearly not a dividend cut coming. They are not overlevered.

Paul Gardner, CFA
Partner and Portfolio Manager, Avenue Investment Management
Price
$8.140
Owned
Unknown
COMMENT
COMMENT
June 27, 2017

You buy this because of its assets and the ability of those assets to generate cash flow. Feels the Alberta electric generation market is still subject to a lot of question marks. He would rather own wind power in Europe.

Transalta Corp (TA-T)
June 27, 2017

You buy this because of its assets and the ability of those assets to generate cash flow. Feels the Alberta electric generation market is still subject to a lot of question marks. He would rather own wind power in Europe.

Lyle Stein
Sr. Portfolio & Managing Director, Vestcap Investment Management
Price
$8.010
Owned
Unknown
COMMENT
COMMENT
June 1, 2017

This has struggled over the last couple of years as it got hurt by the environmental movement and the NDP government in Alberta wanting to shut down all coal producing energy assets. They are migrating from coal to natural gas and have 2 plants, Sundance 1 and Sundance 2 that are coal fired, which are going to close by the end of this year. That hurts their bottom line. Also, for the last number of years, they have been over levered. Their bond rating has always hovered below investment grade or just barely above it. Thinks it will be in the penalty box for another 6 months to 1 year because they don’t have the greatest of assets.

This has struggled over the last couple of years as it got hurt by the environmental movement and the NDP government in Alberta wanting to shut down all coal producing energy assets. They are migrating from coal to natural gas and have 2 plants, Sundance 1 and Sundance 2 that are coal fired, which are going to close by the end of this year. That hurts their bottom line. Also, for the last number of years, they have been over levered. Their bond rating has always hovered below investment grade or just barely above it. Thinks it will be in the penalty box for another 6 months to 1 year because they don’t have the greatest of assets.

Paul Gardner, CFA
Partner and Portfolio Manager, Avenue Investment Management
Price
$7.660
Owned
Unknown
COMMENT
COMMENT
May 9, 2017

This, by default, is a contrarian company that happens to be in the utility space. This is coming back. They’ve had to do some major cost cutting. They’re converting some of their coal plants to natural gas in order to avoid some carbon tax. The beauty of utilities is that they do generate cash flow. The question becomes, how sustainable is that cash flow. Feels you can do better elsewhere.

This, by default, is a contrarian company that happens to be in the utility space. This is coming back. They’ve had to do some major cost cutting. They’re converting some of their coal plants to natural gas in order to avoid some carbon tax. The beauty of utilities is that they do generate cash flow. The question becomes, how sustainable is that cash flow. Feels you can do better elsewhere.

Lyle Stein
Sr. Portfolio & Managing Director, Vestcap Investment Management
Price
$7.240
Owned
Unknown
HOLD
HOLD
April 3, 2017

He likes the sector. He thinks it looks okay. It broke out and came back to do a test. There is some upside.

Transalta Corp (TA-T)
April 3, 2017

He likes the sector. He thinks it looks okay. It broke out and came back to do a test. There is some upside.

Keith Richards
Portfolio Manager, ValueTrend Wealth Management
Price
$7.630
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
March 30, 2017

(Top Pick Apr 6/16, Up 35%) Cheap valuation. They have an agreement with the Alberta government on their coal. Brookfield has been buying up similar assets.

Transalta Corp (TA-T)
March 30, 2017

(Top Pick Apr 6/16, Up 35%) Cheap valuation. They have an agreement with the Alberta government on their coal. Brookfield has been buying up similar assets.

Jason Mann
CIO & Co-Founder, Edgehill Patners
Price
$7.820
Owned
Yes
DON'T BUY
DON'T BUY
February 24, 2017

A utility type stock, and is fully priced at this level. It has had an excellent run this year. He questions if the yield is sustainable on a longer-term basis.

Transalta Corp (TA-T)
February 24, 2017

A utility type stock, and is fully priced at this level. It has had an excellent run this year. He questions if the yield is sustainable on a longer-term basis.

Bill Shaw
Partner & Portfolio Manager, Exponent Investment Management
Price
$7.150
Owned
Unknown
DON'T BUY
DON'T BUY
February 14, 2017

Cut their dividend pretty significantly about 1.5 years ago, and there isn’t really a lot of catalysts in the stock. A coal fired power production largely with some CPA’s that are rolling off over time, and then they will ultimately need to replace their fleet with natural gas, renewables or some combination of the 2. With a yield at 2.1%, and without a lot of growth, there are better options elsewhere.

Transalta Corp (TA-T)
February 14, 2017

Cut their dividend pretty significantly about 1.5 years ago, and there isn’t really a lot of catalysts in the stock. A coal fired power production largely with some CPA’s that are rolling off over time, and then they will ultimately need to replace their fleet with natural gas, renewables or some combination of the 2. With a yield at 2.1%, and without a lot of growth, there are better options elsewhere.

Ryan Bushell
President, Newhaven Asset Management
Price
$7.620
Owned
No
DON'T BUY
DON'T BUY
February 10, 2017

A utility company that he would not own. You own utility companies for slow, steady growth, steady rising dividends so that you can sleep at nights. This has not been that kind of company. Its operations have been troubled. Management has done some questionable things.

Transalta Corp (TA-T)
February 10, 2017

A utility company that he would not own. You own utility companies for slow, steady growth, steady rising dividends so that you can sleep at nights. This has not been that kind of company. Its operations have been troubled. Management has done some questionable things.

Norman Levine
Managing Director, Portfolio Management Corp
Price
$7.890
Owned
No
HOLD
HOLD
January 20, 2017

Their legacy business was coal which experienced some difficulty, and was on the way to being shut down in Alberta. The issue was, how much will they get for these legacy assets. Also, they wisely decided to set up a renewable subsidiary where they still own a good chunk of it. This has grown quite nicely. Thinks the CEO is doing a decent job.

Transalta Corp (TA-T)
January 20, 2017

Their legacy business was coal which experienced some difficulty, and was on the way to being shut down in Alberta. The issue was, how much will they get for these legacy assets. Also, they wisely decided to set up a renewable subsidiary where they still own a good chunk of it. This has grown quite nicely. Thinks the CEO is doing a decent job.

Michael Simpson, CFA
Senior Vice-President, Sentry Investments
Price
$7.760
Owned
No
COMMENT
COMMENT
December 9, 2016

Reached an agreement with Alberta for transition payments of about $97 million a year from 2017 to 2030. That news was better than expected and he upgraded it to a $7.50 target. It is a little higher than that, but still pretty cheap on a free cash yield. Trading at 15.3 versus its peers at lower levels. Its payout ratio on a free cash flow is 14%. He would prefer one with a bigger yield and one with the drop downs, Transalta Renewables (RNW-T).

Transalta Corp (TA-T)
December 9, 2016

Reached an agreement with Alberta for transition payments of about $97 million a year from 2017 to 2030. That news was better than expected and he upgraded it to a $7.50 target. It is a little higher than that, but still pretty cheap on a free cash yield. Trading at 15.3 versus its peers at lower levels. Its payout ratio on a free cash flow is 14%. He would prefer one with a bigger yield and one with the drop downs, Transalta Renewables (RNW-T).

Greg Newman
Director & Portfolio Manager, Scotia Wealth Management
Price
$7.540
Owned
Unknown
COMMENT
COMMENT
November 30, 2016

Preferreds. The settlement of the energy issue last week has been very favourable. This company is in good shape, because a lot of their existing coal capacity can also convert into natural gas, so as they meet the capacity markets in Alberta that have been created, that is a plus for them. As to preferreds, people own them for 1) income and 2) for the higher position on the balance sheet. It has a 7% yield, but in 2017, that will reset to 3.1% above whatever the 5-year yield is at the time. The rate-reset game that has been going on in the Canadian preferred market since 2008, has been very painful.

Transalta Corp (TA-T)
November 30, 2016

Preferreds. The settlement of the energy issue last week has been very favourable. This company is in good shape, because a lot of their existing coal capacity can also convert into natural gas, so as they meet the capacity markets in Alberta that have been created, that is a plus for them. As to preferreds, people own them for 1) income and 2) for the higher position on the balance sheet. It has a 7% yield, but in 2017, that will reset to 3.1% above whatever the 5-year yield is at the time. The rate-reset game that has been going on in the Canadian preferred market since 2008, has been very painful.

Lyle Stein
Sr. Portfolio & Managing Director, Vestcap Investment Management
Price
$7.350
Owned
Yes
DON'T BUY
DON'T BUY
November 28, 2016

(Market Call Minute.) Has had a good run lately, but given that it is a utility you don’t want to be here.

Transalta Corp (TA-T)
November 28, 2016

(Market Call Minute.) Has had a good run lately, but given that it is a utility you don’t want to be here.

John Stephenson
President & CEO, Stephenson & Company Capital Management
Price
$7.350
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
November 9, 2016

Long half of pairs trade (Top Pick Sept 15/16, Down 6.65%) He still likes it a lot and it did well until a couple of days ago. It is a deeply undervalued utility.

Transalta Corp (TA-T)
November 9, 2016

Long half of pairs trade (Top Pick Sept 15/16, Down 6.65%) He still likes it a lot and it did well until a couple of days ago. It is a deeply undervalued utility.

Daniel Lloyd
Portfolio Manager, Forge First Asset Management
Price
$5.610
Owned
Yes
DON'T BUY
DON'T BUY
October 3, 2016

It is not just the stable generator of electricity any more. Alberta has to go through a full resolution of what they are going to do with coal plants. The dividend has been cut to virtually nothing.

Transalta Corp (TA-T)
October 3, 2016

It is not just the stable generator of electricity any more. Alberta has to go through a full resolution of what they are going to do with coal plants. The dividend has been cut to virtually nothing.

Lyle Stein
Sr. Portfolio & Managing Director, Vestcap Investment Management
Price
$5.780
Owned
No
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