Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Canadian electricity company TransAlta (NYSE: TAC ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at TransAlta's business and see what CAPS investors are saying about the stock right now.
|Market Cap||$4.2 billion|
|Industry||Independent power producers and energy traders|
|Trailing-12-Month Revenue||$2.7 billion|
|Management||CEO Dawn Farrell (since January 2012)
CFO Brett Gellner (since June 2010)
|Return on Equity (average, past 3 years)||8.2%|
|Cash/Debt||$433.8 million / $4.1 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 124 members who have rated TransAlta believe the stock will outperform the S&P 500 going forward.
I don't see any specific catalyst that will lift TransAlta's stock in the short term, but it certainly appears to be oversold to me at this point. ...
The fact that [TransAlta] generates half of its electricity using coal bothers me somewhat, but it is in Canada and not the United States so I don't believe that it will be affected by the new U.S. EPA regulations. I'm sure that Canada has its own regulations restricting coal, but as a fuel source coal is actually really cheap right now, which theoretically should be good for the company. ...
[TransAlta] isn't going to knock your socks off, but it looks like a fairly stable way to generate 6% in a low-yield environment.
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