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Compiling comments that experts make about stocks while on public TV.

2012-11-01

Opinion for Transalta Corp (TA-T)

Signal Price Bias Subject Owned
$15.860 OPTIMISTIC NORTH AMERICAN No

Gone through quite a bit of transformation over the last 15 years. Feels they had a wrongheaded policy of trying to maintain the dividend in the face of drastic business changes. A lot of their coal-fired generators are being phased out. Need to build new ones and need to look for new opportunities. Feels they should cut the dividend and use the money to build a new, efficient power generation in the right jurisdiction. Payout ratio is almost 100%.

Jim Huang
President, T.I.P. Wealth Management

1 Comment

Sue

November 2nd 2012 at 12:41pm

Company having major problems. Agree that at some point dividend will have to be cut. Payout Ratio is a huge red flag to potential investors.

Disclosure: I do not own this stock.


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