Q: Hi all, as background, TA is selling assets to RNW early in the new year (January 2016). RNW miniority shareholders need to approve the transaction, but it is accretive and RNW would boost its dividend by 5% immediately so approval looks probable. Upon completion of the transation, TA will own 64.3% of RNW, which is worth $5.78 per share (based on an RNW market price of around $10.00), plus TA does have other assets (unfortunately coal fired plants in Alberta, but they must be worth something). So I am wondering why you think TA shares are trading at only $4.20, which is a 27% discount to the value of its investment in RNW only?
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Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: Good day, is TA worth (risk/return) buying at $5? I am thinking that there will likely be (another) dividend cut which will push the shares lower short-term, but after that, they could bounce back to $7-9 - at which point I would exit. What's your thoughts - thanks.
Q: What is the payout ratio for TA? It's yield is 13.408% and pays out a quarterly amount of 0.18 for a total of 0.72 per year. It earns 0.66 a share per year. Therefore I figure the payout is 109%. Is this how the pay out rate is calculated. If I am correct. how can a company sustain paying out more than it earns, thanks
Q: I am wondering what your impression of TransAlta Preferred shares (TA.Pr.D, TA.Pr.F,Ta.Pr.H,TA.Pr.J). They are paying a nice dividend and I am wondering if it is save?
Q: Peter and His Wonder Team
I thought the $200M investment in TA would have been good news...but the stock is down almost 5% at mid day. Please provide your insight into this transaction. Does it have much benefit if you are a TA shareholder?
Thanks in advance for your assistance!
Dr.Ernest Rivait
I thought the $200M investment in TA would have been good news...but the stock is down almost 5% at mid day. Please provide your insight into this transaction. Does it have much benefit if you are a TA shareholder?
Thanks in advance for your assistance!
Dr.Ernest Rivait
Q: I read that TA was near sale before the deal fell through. Can you guess possible price range that this company would be sold for or percent premium to present trading price. Thank-you
Best Regards
Harold
Best Regards
Harold
Q: Is this a good entry point for Transalta? Thank you
Q: Peter and His Wonder Team
On April 30th in response to a question you choose CPX over TA and stated TA was expensive. Since then TA has fallen approximately 20%.What do you think has caused this? Is it company related, the sector or fear of the NDP...or all three? If the shares fell another 10% or 15% would you consider it a possible long term contrarian play? Thanks for your thoughts!
Dr. Ernest Rivait
On April 30th in response to a question you choose CPX over TA and stated TA was expensive. Since then TA has fallen approximately 20%.What do you think has caused this? Is it company related, the sector or fear of the NDP...or all three? If the shares fell another 10% or 15% would you consider it a possible long term contrarian play? Thanks for your thoughts!
Dr. Ernest Rivait
Q: Could you please give your thoughts on TA's latest quarterly report. Much appreciated, David.
Q: What are your thoughts on TransAlta's 2014 report given today and their outlook going forward? Thanks.
Q: Hi Peter and Co.
May I have your opinion on this bond...TRANSALTA MTN 6.4% 18NV19? The bond is presently trading at $110.36*, and I do have a nice capital gain. I have no problem holding the bond (in my RSP) until maturity, but am concerned about the safety of the bond considering the price decline in TA's stock price. Your thoughts are appreciated.
Merry Christmas to the staff at 5iResearch.
Arnie
May I have your opinion on this bond...TRANSALTA MTN 6.4% 18NV19? The bond is presently trading at $110.36*, and I do have a nice capital gain. I have no problem holding the bond (in my RSP) until maturity, but am concerned about the safety of the bond considering the price decline in TA's stock price. Your thoughts are appreciated.
Merry Christmas to the staff at 5iResearch.
Arnie
Q: I am interested in your opinion relating to the safety and sustainability of the dividends on the company's preferred shares. The Preferred "F" shares reset in 2017 at + 317 basis points - thanks for your feedback
Q: Good Morning
What is your view of the new Transalta floating rate pref. for a longer term income holding?
Thanks for your input.
What is your view of the new Transalta floating rate pref. for a longer term income holding?
Thanks for your input.
Q: Is this a good entry point for Transalta? Tx
Q: Hi
I have held TA for about 10 years and note that it is now at or near a 10-year low. Is it time to sell or time to buy?
Thank you, Peter
I have held TA for about 10 years and note that it is now at or near a 10-year low. Is it time to sell or time to buy?
Thank you, Peter
Q: Has anything materially changed with TransAlta since the Feb 20th question and answer to set off the recent downward move? We own it at $20.00. Is it time to sell?
Q: Hi Peter & Co.
We've held Trans Alta TA since 2006. Now it looks like the short sellers are having their day.
Do we finally 'bite the bullet' and get out ?
Or do you think that cutting the Dividend will be good enough to help TA's Bottom Line?
Thank you
Dennis
We've held Trans Alta TA since 2006. Now it looks like the short sellers are having their day.
Do we finally 'bite the bullet' and get out ?
Or do you think that cutting the Dividend will be good enough to help TA's Bottom Line?
Thank you
Dennis
Q: Hi Peter
I am really enjoying my membership.
Any thoughts on TransAlta (TA)? Is the 7.85% dividend sustainable?
Thanks
I am really enjoying my membership.
Any thoughts on TransAlta (TA)? Is the 7.85% dividend sustainable?
Thanks
Q: Hi Peter,
Would you consider purchasing transalta at this time? thanks Clare
Would you consider purchasing transalta at this time? thanks Clare
Q: TA.pr.D
I read your recent comment on TA common shares, but does the same opinion apply to their reset prefs, this one trading at a very attractive price and yield. More broadly, so many rate reset prefs are off, in particular the past 2 weeks. While part of an income portfolio (the lower current costs seemingly protecting against rate increases), are they possibly still a bit of a value trap, even at these reduced prices? Thank-you as always...
I read your recent comment on TA common shares, but does the same opinion apply to their reset prefs, this one trading at a very attractive price and yield. More broadly, so many rate reset prefs are off, in particular the past 2 weeks. While part of an income portfolio (the lower current costs seemingly protecting against rate increases), are they possibly still a bit of a value trap, even at these reduced prices? Thank-you as always...