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Top 20 Largest Consolidated Short Position Report as of February 28/07
Issue Name Symbol As of Feb 28 As of Feb 15 Net Change
BOMBARDIER INC. CL B SV BBD.B 90,055,893 91,337,601 -1,281,708
ABIBITI-CONSOLIDATED INC. A 47,590,069 47,841,588 -251,519
KINROSS GOLD CORPORATION K 35,496,508 26,680,855 6,815,653
ROGERS COMMS INC. CL B RCI.B 34,514,331 34,726,610 -212,279
CGI GROUP INC. CL A SV GIB.A 29,107,892 30,870,552 -1,762,660
CELESTICA INC. SV CLS 25,934,988 25,850,158 84,830
NORTHERN ORION RES INC. J NNO 20,540,012 19,591,183 948,829
CAMECO CORPORATION CCO 20,394,285 20,038,117 356,168
ROYAL BANK OF CANADA RY 20,042,590 19,395,409 647,181
NORTEL NETWORKS CORP NT 19,797,437 20,605,307 -807,870
NORBORD INC. NBD 19,010,744 19,187,970 -177,226
DOMTAR INC. DTC 16,114,914 15,539,411 575,503
BEMA GOLD CORPORATION J BGO 14,097,143 16,065,934 -1,968,791
BCE INC. BCE 13,214,787 13,037,497 177,290
MANULIFE FINANCIAL CORP MFC 12,199,144 12,079,023 120,121
RESEARCH IN MOTION LTD RIM 12,142,833 11,947,480 195,353
ISHARES CN S&P/TSX 60 IND FUND XIU 11,806,394 10,699,838 1,106,556
ELDORADO GOLD CORPORATION ELD 11,684,356 12,081,745 -397,389
CANWEST GLOBAL COMM SV CGS 11,561,632 12,506,719 -945,087
CDN IMPERIAL BANK OF COMMERCE CM 11,243,473 11,389,858 -146,385
Gasification May Be Key to U.S. Ethanol
Sunday, March 4, 2007 3:37 PM EST
The Associated Press
By DIRK LAMMERS
SIOUX FALLS, S.D. (AP) � The government awarded $385 million in grants last week aimed at jumpstarting ethanol production from nontraditional sources like wood chips, switchgrass and citrus peels. What's surprising is that half of the six projects chosen will use a process first discovered almost a century ago to turn coal into a gas.
President Bush set a goal in his State of the Union address of producing 20 percent of the nation's fuel supply from renewable resources by 2017. Much of those supplies will come from the conversion of corn into enthanol, fueled by a boom in new ethanol plant construction that's already under way.
But Thursday's forecast from the Agriculture Department that half of this year's U.S. corn crop will be consumed by ethanol producers has raised red flags. Critics say surging demand for corn could push up prices of everything from corn-sweetened soft drinks to meats, since corn is a common feed ingredient for livestock.
That helps explain why the Energy Department is placing a big bet on a process called gasification. Long hailed as a more environmentally friendly way to turn coal into electricity, the process might also provide a faster and eventually cheaper way to produce ethanol from a variety of renewable sources collectively known as biomass, some scientists say.
For corn-based ethanol plants, the process of producing ethanol is as simple as brewing beer: sugars are extracted from the corn kernels and then enzymes are added to ferment it into alcohol. But biomass feedstocks don't easily give up their starches, so more expensive steps are needed to ferment cellulose in high-pressure chambers that have limited amounts of oxygen, according to Lanny Schmidt, a University of Minnesota chemical engineer.
Energy Secretary Samuel Bodman pegged the current cost of gasification as being about twice as much as the average $1.10 per gallon cost at corn-based ethanol plants.
A gasifier turns plant material into a synthesis gas consisting mostly of carbon monoxide and hydrogen. The "syngas" then could be turned into a variety of fuels including ethanol, hydrogen and environmentally friendly versions of diesel or gasoline, Schmidt said.
"These gasifiers are some high-tech stuff with high pressures and some more complexities," he said. "But they're probably more versatile at the end of the day to modify them as the demand and supplies change."
Gasification is a fairly simple process, based on chemistry developed in the 1920s, said Robert Brown, an Iowa State University chemical engineering professor and director of the school's Office of Biorenewables Programs.
The syngas produced during gasification mixes more readily with chemical catalysts, so it could be more easily turned into other fuels, chemicals and materials. Just add steam and you could produce hydrogen to power a fuel-cell vehicle, Brown said.
Of the six companies awarded U.S. Department of Energy grants, three will use versions of fermentation technology. But two others will use gasification and one will use a hybrid of both technologies:
� Alico Inc., a LaBelle, Fla.-based agribusiness company, would get up to $33 million to turn yard waste, wood waste and citrus peel into syngas, which would then be converted into ethanol, electricity and hydrogen.
� Range Fuels Inc., of Broomfield, Colo., would get up to $76 million for a plant near Soperton, Ga., to convert timber scraps into syngas to make ethanol and methanol.
� Abengoa Bioenergy, a St. Louis-based division of Spain's Abengoa SA, would receive up to $76 million for an 11.4 million gallons-per-year plant in Colwich, Kan., that would use both biochemical and thermochemical processes to convert corn stalks, wheat straw and switchgrass.
The Energy Department helped demonstrate the viability of gasification in the mid-1990s when it awarded Georgia-based FERCO $9.2 million to help build a power plant running on wood chips. By 2001, the $18 million plant in Burlington, Vt., was generating more than 200 megawatt-hours of electricity a day.
To compete in the marketplace, companies will have to make sure their feedstock supplies are consistent, do more research into catalysts that turn syngas into fuels, and develop better materials to contain the thermochemical reactions, according to the Energy Department.
The syngas would have to be cleaned and conditioned to remove contaminants, which is an expensive task. Energy officials say companies will have to bring down those costs if they're to compete in the market.
Mark Paster, a U.S. Department of Energy technology development manager who's studying ways to turn biomass into hydrogen, said both fermentation and gasification "are very viable and both routes continue to be researched and developed."
Paster said biomass helps reduce greenhouse gasses, so any method that can reach commercial viability will be better than one based on fossil fuel.
"There may not be a single winner, just like there's no winner in how we produce electricity," he said. "We do it in a variety of ways."
Weekly Update March 4, 2007
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Hudson Resources (HUD.V $1.21)
What a difference a year makes ! Hudson was originally featured December 5th 2005 at $0.36 and ten days ago was trading at $2.30 (gain of 539% at its peak). Our last updates came late 2006 in the 0.80's but underwhelming diamond results last week resulted in heavy selling (it also didn't help that the overall market was selling off). This only emphasizes what we've always said with small and microcaps - the importance of selling in stages when gains present themself. With Hudson, the market was looking for something more substantial to indicate their deposit is economic, and we haven't seen that yet. Diamond plays take a long time to mature and this one is proving no different. At this stage I believe our coverage of Hudson going forward will be very limited.
Bioscrypt (BYT.T $0.85)
www.bioscrypt.com
Last updated Jan 8/07 at $0.60, we were fortunate to watch BYT gain 100% by early February. Its been under pressure this past month but it remains our best tech in the security/biometric space for 2007. Financials were released Wednesday and were in line with expectation. They reported $5 million in revenue for Q4 with only a small loss (this was important to see).
Gryphon Gold (GGN.T $1.02)
www.gryphongold.com
We started coverage mid $0.70's in December, a few weeks after the stock collapsed from $1.40. It fell hard after announcing revisions to a feasibility study for its Nevada-based Borealis gold project due to an over- estimation of the resource (the study was done by Samuel Engineering, an independent consulting firm). The result was a lower annual gold production and higher per-ounce production costs. A financing and decision to proceed with production were therefore delayed.
Thursday afternoon the company released excellent drill results and the stock initially ran to $1.20 on strong volume before correcting near close. These are only the first 3 holes of a $4.5 million 72 hole drill program in their Borealis district. Of particular importance is a drill intercept of 165 ft grading 0.21 ozs/ton (7.3 g/tonne). As previously indicated, the exploration potential on this property is excellent (in addition to what they already have) and these first few holes are a very good leading indicator.
Comments (below) from my update to our paid subscribers on Jan 12th are applicable.
Tonight they provided the results of the re-estimation of their gold resource model making it 43-101 compliant (TSX strict guideline). The importance here, is that they are proving they have the following gold reserves on their Borealis project in Nevada;
Measured & Indicated 1.2 million ounces / Inferred 0.6 million
silver - approx. 8 million measured and indicated, 8 million inferred
A good way to reduce risk when speculating on gold stocks, is to use a valuation model that is quite conservative. Even with gold near $600, you still need to discount a tremendous amount to arrive at a realistic value. This includes operating costs, discounted cash flows, capital costs of a mine, etc. etc. - in a hot sector 90% of investors would just throw this notion out the window but in this market, you cannot afford to do that.
I have found an excellent benchmark is to use U.S. $25/oz. of gold in the measured & indicated category (when 43-101 compliant and if the grade is at least 2 grams/tonne). If we apply this to GGN's current reserves on Borealis, we can value this property at $30 million U.S. and throw in another $6 million for the inferred ($10/oz).
Rough estimates then peg fair value at $36 million U.S. X 1.12 / 41 million shares outstanding. This would realistically make their 1.8 million oz. of gold worth $0.98/share cdn. This excludes the silver. This also excludes their neighboring Graben zone which has proven approx. 1/2 million oz. and which should add another $0.30/share in value. Interesting to note that last year they hit a very strong hole of 556ft averaging 3 grams per ton on the Graben zone.
So realistically, this deposit should carry a value in the range of $1.30/share. Their property encompasses approx. 30 square miles and there are six known similar geological targets for exploration in 2007. Existing shareholders were (are) very upset that this project never went into production, but treating it purely as an exploration play, means we can still assume very good risk while they continue to drill in 2007.
Danny Deadlock
Microcap.com
--------------------------------------------------------------------------------
email: microcap@telus.net
web: http://www.microcap.com
Ear on the Street
Barrick Gold Corp. (ABX : TSX : $36.39 | NYSE : US$31.41)
Higher project costs
Blackmont Capital maintains "buy", 12-month target price is cut to $42.00
Desjardins Securities maintains "buy", 12-month target price is US$47.50
Haywood Securities maintains "sector outperform", 12-month target price is $44.00
TD Newcrest maintains "buy", 12-month target price is cut to US$39.00
ATCO Ltd. (ACO.X : TSX : $45.99)
Increased earnings from Canadian Utilities
TD Newcrest maintains "reduce", 12-month target price is $45.00
Agnico-Eagle Mines (AEM : TSX : $47.85 | NYSE : US$41.30)
Operating Q4 EPS slightly higher than expected
RBC Capital Markets maintains "sector perform", 12-month target price is US$51.00
ARC Energy Trust (AET.UN : TSX : $22.19)
Q4 in line
Scotia Capital Markets maintains "sector perform", 12-month target price is $22.50
Alamos Gold Inc. (AGI : TSX : $9.28)
Production shortfall in Q4
Raymond James maintains "outperform", 6-12 month target price is $11.75
TD Newcrest maintains "hold", 12-month target price is $9.00
Aurelian Resources (ARU : TSX-V : $29.85)
Infill drill holes indicate vertical continuity of mineralization in the FDN deposit
Blackmont Capital maintains "buy", 12-month target price is $48.35
Bombardier Inc. (BBD.B : TSX : $4.75)
Downgrade based on valuation
Desjardins Securities downgrades to "hold", 12-month target price is $4.80
BFI Canada Income Fund (BFC.UN : TSX : $26.30)
Q4 preview
Blackmont Capital maintains "buy", 12-month target price is $29.50
CAP REIT (CAR.UN : TSX : $20.93)
Analysts change the model
Blackmont Capital upgrades to "buy", 12-month target price is raised to $22.00
Cascades Inc. (CAS : TSX : $13.47)
Q4 below estimates
CIBC World Markets maintains "sector perform", 12-month target price is $14.50
Desjardins Securities maintains "buy", 12-month target price is $15.50
RBC Capital Markets maintains "sector perform", 12-month target price is $14.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $15.00
TD Newcrest maintains "hold", 12-month target price is $14.50
Canfor Corporation (CFP : TSX : $11.83)
Poor Q4 in line with expectations
Desjardins Securities maintains "hold", 12-month target price is $11.75
Raymond James maintains "market perform", 6-12 month target price is $12.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $12.85
Canadian Utilities (CU : TSX : $42.92)
Q4 EPS beats expectations
TD Newcrest maintains "hold", 12-month target price is $45.00
Consumers Waterheater Fund (CWI.UN : TSX : $15.00)
Q4 in line
CIBC World Markets downgrades to "sector underperform", 12-month target price is raised to $14.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $15.25
TD Newcrest maintains "hold", 12-month target price is $13.50
EGI Financial Holdings (EFH : TSX : $11.40)
Q4 well above estimates
CIBC World Markets maintains "sector perform", 12-month target price is raised to $12.50
Emergis (EME : TSX : $5.37)
Electronic health record market
CIBC World Markets maintains "sector perform", 12-month target price is raised to $6.25
Scotia Capital Markets rates "sector outperform", 12-month target price is $6.50
Enerplus Resources Fund (ERF.UN : TSX : $50.65 | ERF : NYSE : US$43.71)
Q4 essentially in line
CIBC World Markets maintains "sector perform", 12-month target price is cut to $54.00
RBC Capital Markets maintains "sector perform", 12-month target price is $44.50
Scotia Capital Markets maintains "sector perform", 12-month target price is $53.00
TD Newcrest maintains "hold", 12-month target price is $51.00
Fairfax Financial Holdings (FFH : TSX : $220.32 | NYSE : US$190.11)
Fundamentals steady in all segments
Scotia Capital Markets rates "sector perform", 12-month target price is $195.00
First Quantum Minerals (FM : TSX : $70.81)
Share price appreciation
TD Newcrest downgrades to "hold", 12-month target price is raised to $72.00
Inter Pipeline Fund (IPL.UN : TSX : $9.13)
Results lower that expected
RBC Capital Markets rates "outperform", 12-month target price is $9.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $8.75
Kaboose Inc (KAB : TSX : $3.07)
Announces agreement with Target Corp
GMP Securities maintains "buy", 12-month target price is raised to $3.75
Katanga Mining (KAT : TSX : $8.65)
Congo copper
GMP Securities maintains "buy", 12-month target price is increased to $13.25
Legacy Hotels Real Estate Tr. (LGY.UN : TSX : $11.22)
Reit takeout candidate
CIBC World Markets maintains "sector outperform", 12-month target price is raised to 11.75
Scotia Capital Markets maintains "sector perform", 12-month target price is $11.25
TD Newcrest maintains "buy", 12-month target price is $12.00
Lundin Mining (LUN : TSX : $12.76)
Higher zinc production, lower copper
CIBC World Markets maintains "sector outperform", 12-month target price is $17.00
GMP Securities maintains "buy", 12-month target price is $17.00
Maple Leaf Foods (MFI : TSX : $14.55)
Meat products improvement
Scotia Capital Markets rates "sector perform", 12-month target price is $14.75
TD Newcrest maintains "reduce", 12-month target price is raised to $12.00
Meridian Gold (MNG : TSX : $35.20 | MDG : NYSE : US$30.40)
El penon plant expansion
Raymond James reduces to "market perform", 12-month target price is $32.50
RBC Capital Markets rates "underperform", no target price reported
MOSAID Technologies (MSD : TSX : $28.85)
Intellectual property stock
GMP Securities maintains "buy", 12-month target price is $34.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $43.00
Northbridge Financial (NB : TSX : $30.51)
Needed strong quarter, didn't get it
RBC Capital Markets rates "sector outperform", no target price reported
Scotia Capital Markets rates "sector underperform", 12-month target price is $33.00
Newmont Mining (NMC : TSX : $54.10 | NEM : NYSE : US$46.72)
Little growth potential
Blackmont Capital maintains a "hold", 12-month target price is US$48.00
Desjardins Securities maintains "buy",12-month target price is US$67.00
Nortel Networks Corp. (NT : TSX : $36.26 | NYSE : US$31.28)
Transition year
RBC Capital Markets maintains "sector perform", 12-month target price is $32.00
Opta Minerals Inc (OPM : TSX : $4.90)
Strong growth continues in fourth quarter
Blackmont Capital maintains a "buy", 12-month target price is $4.75
Pan American Silver (PAA : TSX : $36.08)
Higher costs going forward
Blackmont Capital maintains a "buy", 12-month target price is cut to $42.00
Platinum Group Metals (PTM : TSX : $2.70)
Valuation hurt by increased capex at WBJV project
RBC Capital Markets downgrades to "sector perform", target price cut to $2.75
PrimeWest Energy Trust (PWI.UN : TSX : $23.04)
Year-end results meet expectations
CIBC World Markets maintains "sector perform", 12-month target price is $23.00
RBC Capital Markets maintains a "underperform", 12-month target price is raised to $18.50
Scotia Capital Markets continues to rate "sector perform", 1-year target price is $23.00
TD Newcrest maintains a "hold", 12-month target price is $20.00
QLT Inc. (QLT : TSX : $10.86 | QLTI : NASDAQ : US$9.38)
Visudyne faces competitive pressure
GMP Securities maintains "reduce", 12-month target price is US$6.00
Raymond James maintains a "market perform", 6-12 month target price raised to US$8.50
RBC Capital Markets maintains a "sector perform", target price is US$9.00
Scotia Capital Markets maintains a "sector underperform", 1-year target price is US$6.00
Ritchie Bros Auctioneers Inc. (RBA : TSX : $68.30 | NYSE : US$58.92)
Slows down a bit in fourth quarter
Blackmont Capital maintains a "buy", 12-month target price is cut to US$66.00
Raymond James maintains a "market perform", 6-12 month target price cut to US$61.25
Richmont Mines (RIC : TSX : $3.11)
Production forecast for 2007 lowered
Blackmont Capital maintains a "buy", 12-month target price is cut to $4.05
Stantec Inc. (STN : TSX : $28.16 | SXC : NYSE : US$24.15)
Strong growth demonstrated in fourth quarter
Raymond James maintains a "outperform", 6-12 month target price raised to $32.00
Scotia Capital Markets maintains a "sector perform", 1-year target price raised to $30.00
Supremex Income Fund (SXP.UN : TSX : $9.17)
Rapid unit price appreciation over last couple months behind downgrade
Desjardins Securities downgrades to "hold", target price is $9.00
TD Bank (TD : TSX : $70.80 | NYSE : US$61.13)
Strength across the board in first quarter
Blackmont Capital maintains a "hold", 12-month target price is raised to $73.00
CIBC World Markets maintains a "sector outperform", target price raised to $79.00
Scotia Capital Markets maintains a "sector perform", 1-year target price is $81.00
Teranet Income Fund (TF.UN : TSX : $9.95)
Upbeat presentation by CFO
RBC Capital Markets maintains a "outperform", target price is $10.50
TriStar Oil & Gas (TOG : TSX : $5.20)
Releases impressive first year reserve growth
GMP Securities reiterates "buy", target price is $8.50
Vault Energy Trust (VNG.UN : TSX : $5.13)
Announces in line year-end reserves
Scotia Capital Markets maintains a "sector underperform", 1-year target price cut to $4.50
Vero Energy (VRO : TSX : $5.95)
Strong 2006 reserve growth reported
GMP Securities maintains a "buy", target price is $8.75
Western Financial Group (WES : TSX : $4.45)
Solid long-term story
Desjardins Securities initiates coverage with a "buy", target price is $5.75
Western Oil Sands Inc (WTO : TSX : $34.26)
Shareholders continue to wait for news on "Shareholder Value Enhancement Initiatives"
RBC Capital Markets maintains a "sector perform", target price is $30.00
Ear on the Street
Astral Media (ACM.A : TSX : $41.35)
To acquire Standard radio
BMO Capital Markets maintains "market perform", 12-month target price is $46.00
CIBC World Markets maintains "sector perform", 12-month target price is $48.00
Desjardins Securities downgrades to "hold", 12-month target price is cut to $47.00
TD Newcrest downgrades to "reduce", 12-month target price is cut to $40.00
ARC Energy Trust (AET.UN : TSX : $22.11)
Strong Q4
BMO Capital Markets maintains "outperform", 12-month target price is $23.50
Canaccord Adams maintains "buy", 12-month target price is $24.00
CIBC World Markets maintains "sector perform", 12-month target price is raised to $24.00
Raymond James maintains "outperform", 6-12 month target price is cut to $24.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $22.50
TD Newcrest maintains "buy", 12-month target price is $23.00
Atrium Biotechnologies (ATB : TSX : $16.98)
Q4 to be reported today
RBC Capital Markets maintains "outperform", 12-month target price is $19.00
Ballard Power Systems (BLD : TSX : $7.97 | BLDP : NASDAQ : US$6.88)
Uncertain long-term prospects
RBC Capital Markets maintains "underperform", 12-month target price is US$4.00
Boralex Power Income Fund (BPT.UN : TSX : $10.04)
Solid Q4
BMO Capital Markets maintains "market perform", 12-month target price is $9.00
Canaccord Adams maintains "sell", 12-month target price is $9.00
Desjardins Securities maintains "hold", 12-month target price is $10.00
TD Newcrest maintains "hold", 12-month target price is $9.00
Breakwater Resources (BWR : TSX : $2.03)
Q4 beats expectations
Canaccord Adams maintains "buy", 12-month target price is raised to $2.90
TD Newcrest maintains "buy", 12-month target price is $2.50
CAE Inc. (CAE : TSX : $12.43)
Aircraft deliveries is expected to be up 5% in 2007
Canaccord Adams maintains "sell", 12-month target price is $9.00
Cascades Inc. (CAS : TSX : $13.13)
Q4 misses
Scotia Capital Markets maintains "sector perform", 12-month target price is $15.00
CCL Industries (CCL.B : TSX : $35.94)
Q4 stronger than expected
BMO Capital Markets maintains "outperform", 12-month target price is raised to $40.00
Canfor Corporation (CFP : TSX : $11.81)
Weak Q4
BMO Capital Markets maintains "underperform", 12-month target price is $9.00
CIBC World Markets maintains "sector underperform", 12-month target price is cut to $8.00
Raymond James upgrades to "outperform", 6-12 month target price is raised to $13.00
RBC Capital Markets maintains "sector perform", 12-month target price is $11.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $12.85
Corus Entertainment (CJR.B : TSX : $47.83 | CJR : NYSE : US$41.34)
Implication of Astral's acquisition of Standard Radio
BMO Capital Markets upgrades to "outperform", 12-month target price is raised to $55.00
CIBC World Markets maintains "sector outperform", 12-month target price is $50.00
Canadian National Railway (CNR : TSX : $53.75 | CNI : NYSE : US$46.35)
Reached tentative deal with the union
TD Newcrest maintains "hold", 12-month target price is $58.00
Consumers Waterheater Fund (CWI.UN : TSX : $14.95)
Portfolio shifts to higher rental rate appliances
Scotia Capital Markets maintains "sector outperform", 12-month target price is $15.25
Eastern Platinum (ELR : TSX : $1.82)
Impressed with site visit to Crocodile River PGM mine in South Africa
Raymond James maintains a "strong buy", 6-12 month target price is $2.75
Emergis (EME : TSX : $5.40)
Upside opportunity from potential regional Ontario EHR wins
Scotia Capital Markets maintains a "sector outperform", 1-year target price raised to $6.50
Enerplus Resources Fund (ERF.UN : TSX : $51.19 | ERF : NYSE : US$44.13)
Fourth quarter results meet expectations
Scotia Capital Markets maintains a "sector perform", 1-year target price is $53.00
Equitable Group Inc. (ETC : TSX : $34.20)
Fourth quarter results expected today
Blackmont Capital maintains a "buy", 12-month target price is $36.00
Fairfax Financial Holdings (FFH : TSX : $227.81 | NYSE : US$195.82)
Posts solid quarter
Scotia Capital Markets maintains a "sector perform", 1-year target price is US$195.00
FNX Mining Company (FNX : TSX : $21.44)
Q4 results slightly above estimates
BMO Nesbitt Burns maintains a "market perform", target price raised to $24.00
Canaccord Adams maintains a "buy", target price is $25.00
RBC Capital Markets maintains a "outperform", target price raised to $25.00
Home Capital Group (HCG : TSX : $37.50)
Bolstering commercial mortgage business with new hire
Blackmont Capital maintains a "hold", 12-month target price is $38.00
International Minerals (IMZ : TSX : $5.80)
FQ2/07 results meet expectations
RBC Capital Markets maintains a "sector perform", target price is $6.50
Inter Pipeline Fund (IPL.UN : TSX : $9.08)
Posts solid quarter
BMO Nesbitt Burns maintains a "market perform", target price raised to $9.00
CIBC World Markets maintains a "sector outperform", target price raised to $10.00
Scotia Capital Markets maintains a "sector perform", 1-year target price is $8.75
TD Newcrest maintains a "hold", 12-month target price is raised to $8.50
Jaguar Mining Inc. (JAG : TSX : $6.80)
Summary results released from pre-feasibility on Santa Isabel mine
TD Newcrest maintains a "speculative buy", 12-month target price is raised to $9.00
Legacy Hotels Real Estate Tr. (LGY.UN : TSX : $11.26)
In line Q4/06 results
Scotia Capital Markets maintains a "sector perform", 1-year target price raised to $11.25
MacDonald Dettwiler & Assoc. (MDA : TSX : $49.25)
Q4 preview
RBC Capital Markets maintains "top pick", 12-month target price is $60.00
Maple Leaf Foods (MFI : TSX : $14.94)
Q4 EPS beats expectations
Scotia Capital Markets maintains "sector perform", 12-month target price is $14.75
Meridian Gold (MNG : TSX : $33.90 | MDG : NYSE : US$29.26)
Aggressive exploration program
Blackmont Capital maintains "buy", 12-month target price is $39.00
BMO Capital Markets downgrades to "market perform", 12-month target price is cut to $34.00
RBC Capital Markets maintains "underperform", 12-month target price is US$32.00
March Networks (MN : TSX : $11.49)
To report Q3 today
CIBC World Markets maintains "sector perform", 12-month target price is $14.00
Morguard Real Estate Inv Trust (MRT.UN : TSX : $15.44)
Q4 in line
RBC Capital Markets maintains "outperform", 12-month target price is $16.50
MOSAID Technologies (MSD : TSX : $27.84)
Q3 better than expected
BMO Capital Markets maintains "outperform", 12-month target price is $36.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $43.00
Northbridge Financial (NB : TSX : $30.77)
Slightly negative Q4 results
BMO Nesbitt Burns maintains "market perform", 12-month target price is $33.50
RBC Capital Markets rates "outperform", 12-month target price is $36.00
Scotia Capital Markets rates "sector underperform", 12-month target price is cut to $33.00
TD Newcrest maintains "hold", 12-month target price is $33.00
Platmin Ltd (PPN : TSX : $6.90)
85% appreciation since IPO
RBC Capital Markets downgrades to "sector perform", 12-month target price is $7.75
PrimeWest Energy Trust (PWI.UN : TSX : $23.00 | PWI : NYSE : US$19.81)
Strong reserve additions
Scotia Capital Markets rates "sector perform", 12-month target price is $23.00
QLT Inc. (QLT : TSX : $10.48)
Visudyne still uncertain
Scotia Capital Markets maintains "sector underperform", 12-month target price is $6.00
Royal Utilities Income Fund (RU.UN : TSX : $12.32)
Agreement to extend contracts
BMO Nesbitt Burns maintains "market perform", 12-month target price is $11.25
RBC Capital Markets maintains "sector perform", 12-month target price is $12.25
Silver Eagle Mines (SEG : TSX : $1.43)
Miguel Auza progressing well
Blackmont Capital maintains "buy", 12-month target price is $2.20
Storm Exploration Inc. (SEO : TSX : $7.10)
Year-end results show strong performance
Canaccord Capital maintains "buy", 12-month target price is $9.25
Semafo Inc. (SMF : TSX : $2.45)
Expect increased gold production
Blackmont Capital downgrade to "hold", 12-month target price is $2.30
SNC-Lavalin Group (SNC : TSX : $35.99)
In-line Q4 results
BMO Nesbitt Burns maintains "market perform", 12-month target price is $36.00
Desjardins Securities downgrades to "hold", 12-month target price is raised to $37.00
RBC Capital Markets rate "outperform", no target price reported
Sherritt International (S : TSX : $15.11)
Waiting for nickel price forecast
Desjardins Securities put "buy" and $14.05 target under review
RBC Capital Markets rates "sector perform", 12-month target price is $15.50
Stantec Inc. (STN : TSX : $29.63 | SXC : NYSE : US$25.46)
Reaping benefits of previous acquisitions
Scotia Capital Markets maintains "sector perform", 12-month target price is $30.00
Suncor Energy (SU : TSX : $85.83 | NYSE : US$74.06)
Largest resource base in Athabasca Oil Sands
Raymond James rates "outperform", 12-month target price is $105.00
sxr Uranium One (SXR : TSX : $18.07)
Definitive agreement signed for Shooting Canyon Uranium Mill and US properties
Canaccord Adams maintains a "speculative buy", target price is $19.50
TD Bank (TD : TSX : $70.87 | NYSE : US$61.17)
Strong across all segments
TD Newcrest maintains "sector perform", 12-month target price is $81.00
Tundra Semiconductor (TUN : TSX : $10.32)
Q3 preview
Blackmont Capital maintains "buy", 12-month target price is $13.00
CIBC World Markets maintains "sector perform", 12-month target price is $13.00
Vault Energy Trust (VNG.UN : TSX : $4.97)
Year-End reserves in-line
Scotia Capital Markets maintains "sector underperform", 12-month target price is $4.50
Wescast Industries (WCS.A : TSX : $14.00)
Produce exhaust manifolds
BMO Nesbitt Burns maintains "market perform", 12-month target price is $12.50
Western Oil Sands Inc (WTO : TSX : $33.55)
Pleasing performance at Athabasca
Scotia Capital Markets maintains "sector perform", 12-month target price is $32.00
Canadian Satellite Radio (XSR : TSX : $6.87)
More competitive pressure after the merger between XM and Sirius
Desjardins Securities maintains "hold", 12-month target price is $8.00
Risk is everywhere: Know where you stand
ROB CARRICK
Saturday, March 03, 2007
The common wisdom on investing risk is that things go down as well as up, but in the long run you win.
If you're happy with that level of understanding about the hazards of being in the stock market, that's fine. But if you've watched the market gyrations of the past week and want to know more about the potential danger spots in your portfolio, then read on because this edition of the Portfolio Strategy column is all about risk.
We'll run some risk diagnostics on the kinds of investments that Canadians hold, and we'll look at how diversification can reduce the dangers of being exposed to markets such as China, where the stock market fell more than 9 per cent on Tuesday. At the end, you should have a better idea of how your portfolio would hold up in the event of a sustained market downturn.
Our risk analysis tool is one of the most useful and sophisticated websites available to investors, RiskGrades (riskgrades.com). This site is offered by a company called RiskMetrics Group, which advises more than 650 worldwide banks, pension funds, hedge funds and money managers. Individual investors can use RiskGrades at no cost, so don't hesitate to make use of its extensive database of U.S., Canadian and global stocks to evaluate your own holdings.
RiskGrades uses a rating system that examines how much variation there is in a stock's price – recent moves are emphasized – and then assigns an ever-changing numerical score ranging from zero for risk-free cash to as much as 1,000 or more for superspeculative investments. Using RiskGrades, you can accurately asses the comparative risks of investments in individual stocks and stock indexes, no matter what country they're from. You can also assemble portfolios and compare the overall risk with the individual components.
In a sensibly built portfolio, the risk of individual holdings is less important that the overall portfolio risk. RiskGrades makes this point clearly when you look at a balanced portfolio evenly split between stocks and bonds.
The stocks portion was made up of roughly equal holdings in three exchange-traded funds, one of which covered Canada's S&P/TSX composite index, one the S&P 500 stock index and the other the Morgan Stanley Capital International Europe Australasia Far East Index. The bond portion was composed of another ETF that covers the Scotia Capital Universe Bond Index, which is a benchmark for the entire Canadian bond market. ETFs were chosen for this exercise because they're stocks that allow investors to capture the returns of various stock and bond indexes.
The most hazardous holding in this basic but sound portfolio was the EAFE fund, with a risk grade of 79 as of late this week. The S&P/TSX composite was next at 59, the S&P 500 scored a 67 and the Canadian bond ETF scored a 20. Mixed together, these ETFs earned a risk grade of 31. As we'll see, that's quite a good rating.
Let's ramp up the risk level a bit now by moving to 75 per cent equities and 25 per cent bonds. This takes the portfolio risk score up to 46, which suggests that halving your bond exposure boosts your portfolio risk by a roughly equivalent amount. It should be no surprise, then, that eliminating bonds altogether raises the risk score to 61.
Now, what about some of the risky stuff that people have been investing in lately? Things such as China and emerging markets, for example. Using the applicable ETFs, we get a risk rating of 206 for the Chinese market and 143 for emerging markets in general. European stocks get a 93, while the Japanese market alone gets a 74 and the hot-performing Mexican stock market gets a 151. You prefer to speculate on technology rather than exotic markets? Stocks in the Nasdaq 100 index get a risk rating of 82. You like gold? An ETF acting as a proxy for gold bullion has a score of 100, while a crude oil ETF is at 156.
These risk numbers are, in a way, irrelevant because few people invest only in highly speculative things. The saner way is to sparingly mix them into a well-diversified portfolio, which keeps risk tamped down.
To see this effect in action, imagine adding a 5-per-cent weighting in the Chinese market to a portfolio that is 25 per cent invested in bonds with rest in Canadian, U.S. and international stocks. Without China, the risk score is 46; with China, it's 51.
Is that extra risk worth it? It's tempting to say yes, given that the Chinese market more than doubled last year. Just remember that China's risk score reflects not only this week's dip, but also the huge gains of last year. In other words, China's probably riskier than it appears at first glance.
Typical Canadian investors have large parts of their portfolios invested in domestic stocks, and that's a good move as far as risk is concerned. As we've seen, RiskGrades has assigned substantially lower scores to the Canadian market versus the U.S. and international markets, not to mention emerging markets.
Want to reduce your risk in the Canadian market even further? Think dividend-paying blue chips. There's an ETF that tracks TSX-listed stocks with strong dividend yields and it had a risk score of 42. You don't get exposure to much in the way of energy and metals stocks with this approach, but you do get a clear measure of stability.
It's often said that health care and consumer staples are sectors that hold up well when the markets get rough. Let's test that by looking at what RiskGrades has to say about U.S.-listed ETFs that track these sectors. There's a consumer staples ETF with a risk rating of 42, and a health care ETF with a rating of 60. These scores don't suggest an outstanding level of risk reduction, but they're a lot better than holding some individual stocks in the consumer staples and health care sectors.
Pfizer Inc. and Merck & Co. Inc., two pharmaceutical giants, had risk scores close to 100, as did the troubled grocery chain Loblaw Cos. Shoppers Drug Mart Corp. scored a 74, while Rothmans Inc. got a 104.
RiskGrades also has some interesting things to say about the relative dangers of holding the country's largest stocks as measured by market capitalization (that's shares outstanding times share price). The big banks offer the least risk right now, with risk ratings in the area of 45 to 65. Energy companies are about three times riskier and Research In Motion Ltd. beats 'em all with a rating of 210.
Just as there are gradations of risk in the stock market, there are also differences between various types of bonds. RiskGrades shows this through its ratings on a trio of TSX-listed ETFs that track subindexes of the Scotia Capital Universe Bond Index, which is used to measure the performance of the entire Canadian bond market.
As we've seen, the broad bond market gets a risk score of 20. Short-term bonds, which are less volatile but also offer lower yields, get a rating of 12. Real-return bonds, which are designed to offer a premium over the inflation rate, get a rating of 29. You'll notice that all bonds score better than stocks on risk, a point not to be ignored right now.
Machine Meltdown
Is Wall Street's rapid move toward more electronic trading to blame for Tuesday's stock plunge?
http://www.msnbc.msn.com/id/17424307/site/newsweek/
Undervalued Stock #1 ========== ------------ Teppco Partners LP (NYSE: TPP) ------------ Insider Name: Edward J. ThompsonInsider Position: President and CEOInsider Action: 2,000 shrs on 2/26/2007Insider Total Holding: 10,000 shrs -------------------------------------------------------Undervaluation Merits... P/E Ratio = 25.2 (Industry Average 26.4)P/S Ratio = 0.31 (Industry Average 2.84)P/B Ratio = 2.29 (Industry Average 2.70) Industry: Oil & Gas Pipelines -------------------------------------------------------Other Merits... Dividend Yield = 6.3% ------------ Teppco Partners LP (NYSE: TPP)
Think big, think positive, never show any sign of weakness. Always go for the throat. Buy low, sell high.
Fear? That’s the other guy’s problem. Nothing you have ever experienced will prepare you for the absolute carnage you are
about to witness. Super Bowl, World Series – they don’t know what pressure is. In this building, it’s either kill or be killed.
You make no friends in the pits and you take no prisoners. One minute you’re up half a million in soybeans and the next, boom,
your kids don’t go to college and they’ve repossessed your Bentley. Are you with me?
Ear on the Street
Aastra Technologies (AAH : TSX : $33.65)
Tax rate appears to be climbing
TD Newcrest downgrades to "hold", 12-month target price is cut to $40.00
AltaGas Income Trust (ALA.UN : TSX : $26.51)
Q4 in line
CIBC World Markets maintains "sector perform", 12-month target price is $26.00
TD Newcrest maintains "hold", 12-month target price is $24.00
Alcan Inc. (AL : TSX : $62.65 | NYSE : US$53.40)
A dramatic drop in chinese net exports
Desjardins Securities maintains "top pick", 12-month target price is US$75.00
Atrium Biotechnologies (ATB : TSX : $16.95)
Strong Q4
GMP Securities maintains "buy", 12-month target price is $25.50
BCE Inc. (BCE : TSX : $30.33 | NYSE : US$25.90)
A new unlimited rate plan between Bell customers
Credit Suisse maintains "neutral", 12-month target price is $33.50
GMP Securities maintains "buy", 12-month target price is $33.00
Bank of Nova Scotia (BNS : TSX : $50.11 | NYSE : US$42.74)
Contribution from Mexican affiliate during Q4/06 more or less flat year over year
Blackmont Capital maintains a "buy", 12-month target price is $55.00
TD Newcrest maintains "action list buy", 12-month target price is $57.00
CAE Inc. (CAE : TSX : $12.18 | CGT : NYSE : US$10.40)
Star Capital acquires two training business
Canaccord Adams maintains "sell", 12-month target price is $9.00
Chemtrade Logistics Inc Fd (CHE.UN : TSX : $8.70)
To put the company on sale?
Blackmont Capital maintains "hold", 12-month target price is $8.00
Connacher Oil and Gas (CLL : TSX : $3.80)
2006 reserves reported
GMP Securities maintains "buy", 12-month target price is $6.00
Raymond James rate "outperform", 12-month target price is $4.50
Celestica Inc. (CLS : TSX : $7.32 | NYSE : US$6.24)
New CEO may turn the business around
National Bank Financial maintains "sector perform", 12-month target price is $8.00
Davis & Henderson Income Fund (DHF.UN : TSX : $16.15)
Solid Q4
Scotia Capital Markets maintains "sector outperform", 12-month target price is $18.00
TD Newcrest maintains "hold", 12-month target price is raised to $16.50
Descartes Systems Group (DSG : TSX : $4.86 | DSGX : NASDAQ : US$4.14)
e-Manifest compliance service shows increasing traction
GMP Securities maintains "buy", 12-month target price is $6.40
Domtar Inc. (DTC : TSX : $9.73)
Near-term volatility an opportunity
Raymond James maintains "outperform", 6-12 month target price is raised to $13.00
Forzani Group (FGL : TSX : $19.05)
Current levels offer attractive buying opportunity
Scotia Capital Markets maintains a "sector outperform", 1-year target price raised to $22.50
Freehold Royalty Trust (FRU.UN : TSX : $14.60)
Posts in line fourth quarter results
Scotia Capital Markets maintains a "sector outperform", 1-year target price is $16.25
TD Newcrest maintains a "hold", 12-month target price is raised to $15.50
Grand Petroleum (GPP : TSX-V : $3.20)
Results in-line with expectations
Blackmont Capital maintains "buy", 12-month target price is $4.75
HudBay Minerals (HBM : TSX : $22.69)
Increased copper imports into China
Desjardins Securities maintains "top pick", 12-month target price is $27.30
H&R Real Estate Invest. Trust (HR.UN : TSX : $25.64)
Q4 in line
Canaccord Capital maintains "buy", 12-month target price is raised to $27.50
Desjardins Securities rates "buy", 12-month target price is $27.10
Keyera Facilities Income Fund (KEY.UN : TSX : $15.99)
Better than expected facilities contribution
CIBC World Markets maintains "sector performer", 12-month target price is $17.00
Laurentian Bank of Canada (LB : TSX : $31.86)
Stronger results than expected
Desjardins Securities maintains "hold", 12-month target price is $33.50
LionOre Mining International (LIM : TSX : $16.13)
Strong fundamentals of world nickel
Desjardins Securities maintains "buy", 12-month target price is $22.20
Livingston Intl Income Fund (LIV.UN : TSX : $20.89)
Eagle Global announced a $1.5 billion management buyout
Blackmont Capital maintains "hold", 12-month target price is $19.00
MacDonald Dettwiler & Assoc. (MDA : TSX : $48.80)
Strong housing market in UK
CIBC World Markets maintains "sector outperform", 12-month target price is raised to $65.00
GMP Securities Securities maintains "hold", 12-month target price is $46.80
Raymond James maintains "outperform", 12-month target price is raised to $59.75
Scotia Capital Markets rate "sector underperform", 12-month target price is $48.00
Magna International (MG.A : TSX : $84.85 | MGA : NYSE : US$72.45)
Dividend cut for M&A?
National Bank Financial maintains "outperform", 12-month target price is US$83.00
MKS Inc. (MKX : TSX : $1.72)
Results below estimates
GMP Securities Securities downgrade to "reduce", 12-month target price is cut to $1.50
TD Newcrest downgrade to "hold", 12-month target price is $2.25
Metallica Resources (MR : TSX : $5.11)
Cerro San Pedro update
Blackmont Capital rates "buy", 12-month target price is $5.28
Canaccord Capital maintains "speculative buy", 12-month target price is $6.30
Morguard Real Estate Inv Trust (MRT.UN : TSX : $15.75)
Solid operating stats
Canaccord Capital maintains "hold", 12-month target price is raised to $16.00
Metro Inc. (MRU.A : TSX : $39.30)
A&P could sell Metro shares
Scotia Capital Markets maintains "sector perform", 12-month target price is $42.00
Masters Energy (MSY : TSX : $2.60)
Solid reserve growth
GMP Securities Securities maintains "buy", 12-month target price is $4.25
Raymond James maintains "outperform", 12-month target price is $4.75
Petrolifera Petroleum (PDP : TSX : $16.70)
Year-end reserve numbers yield no surprises
GMP Securities reiterates "buy", target price is $24.00
Pizza Pizza (PZA.UN : TSX : $8.84)
Q4 in line
Canaccord Adams maintains a "buy", target price is $8.90
Cdn. Real Estate Investment (REF.UN : TSX : $32.40)
Q4 slightly better than expected
CIBC World Markets maintains "sector perform", 12-month target price is raised to $34.25
Royal Bank of Canada (RY : TSX : $53.82)
First quarter results coming today
Blackmont Capital maintains a "buy", 12-month target price is $55.00
Trican Well Service (TCW : TSX : $23.25)
Soft fourth quarter numbers, but outlook remains solid
Raymond James maintains a "outperform", 6-12 month target price is $28.00
TD Newcrest maintains a "buy", 12-month target price is $28.00
Torstar Corp. (TS.B : TSX : $18.68)
Fourth quarter results come in below expectations; challenges remain going forward
CIBC World Markets upgrades to "sector perform", target price raised to $20.00
Desjardins Securities upgrades to "buy", target price raised to $22.00
Scotia Capital Markets rate "sector perform", 12-month target price is $19.00
TD Newcrest downgrades to "reduce", 12-month target price is cut to $18.00
Wescast Industries (WCS.A : TSX : $13.10)
Results and outlook disappoint
Scotia Capital Markets maintains a "sector underperform", 1-year target price cut to $10.75
Anglo Swiss Resources Receives Report on the Fry Inlet Diamond Property, NWT
Anglo Swiss Resources Inc. (TSX.V-ASW & OTCBB-ASWRF) is pleased to announce it has received a report on the interpretation of the 2006 Fugro Airborne Survey (“Fugro”) data titled “Report on the Geophysical Data on the Fry Inlet Project, Lac de Gras, NWT, Canada by Jeremy S. Brett, M.Sc., P.Geo., MPH Consulting Limited (“MPH”).” The full report is available on the Company’s website www.anglo-swiss.com.
The MPH findings have far exceeded management’s expectations as over 220 anomalies have been identified on the eastern portion of the Fry Inlet Property with 73 of the anomalies generated categorized as High-Priority by MPH. A total of 1,695 line-kilometers were flown in 2006 by Fugro with ~E-W 100 meter line-spacing. Single-sensor Magnetic and five-sensor Electromagnetic data were collected. The report states the airborne geophysical data is of excellent quality.
MPH has identified 39 Magnetic anomalies conforming to an idealized Lac de Gras style intrusive diatreme (16 ranked as “A” and “23” as B+). There were another 34 Electromagnetic anomalies (10 ranked as “A” and 24 as “B+”) again conforming to an idealized diatreme model – prime contexts for the possibility of diamond bearing kimberlites.
Anglo Swiss Resources’ has initially selected a cluster of 7 targets including the significantly diamondiferous LI-201 kimberlite for drilling this year. This pipe produced 14 macrodiamonds and 46 microdiamonds from a previous drill program in the 1990’s. Kennecott tested 281 kilograms of rock and found just 60 diamonds, but that could be misleading. Kennecott limits its diamond recoveries to stones larger than a 0.15 millimetre cut-off, a significantly larger limit than most other labs employ. As well, 14 of the stones measured longer than 0.5 millimetre in one dimension, and one was large enough to sit on a one-millimetre sieve. That sparks hope that the body could contain larger stones.
The Company plans to have Fugro survey the western portion of the Fry Inlet Property, ~ 2,398 line-kilometers, as there also appears to be a cluster-like assemblage of 5 targets to the north-west with 7 indicator mineral trains (“KIM’s”) apparent. The trains appear to be dominated by eclogitic garnet and picroilmenite grains.
Anglo Swiss Resources:
* owns a 100% interest in the “Strategically Located Group of Claims” covering approximately 10,330 acres situated within the diamond producing area of the Lac de Gras region. These claims are each situated in very close proximity to diamondiferous kimberlites currently being explored by Archon, BHP Billiton, Peregrine, Southernera , Kennecott, Shear and others.
* owns the Falcon Bay Diamond Property consisting of a 100% interest in claims covering approximately 52,459 acres in the diamond producing area of Lac de Gras, NWT approximately 25 kilometers south of the Diavik property. These claims are west of Peregrine’s WO project and north of the Jordan Kimberlite.
* owns a 100% interest in the Fishing Lake Diamond Property, located some 110 kilometers north of Yellowknife, NWT, toward the western margin of the Slave Craton. The Fishing Lake property covers 8,467 acres.
The Company plans to have Fugro survey these claims as well in 2007, ~ 3,212 line-kilometers. In light of the close proximity to producing diamond mines, the presence of numerous diamondiferous kimberlites and kimberlite indicator minerals, management is of the opinion that the claims are highly prospective for the further discovery of diamonds.
END
Cassidy Gold Corp. (CDY:TSX-V) is pleased to announce results from reverse circulation (RC) drilling on its 100%-owned Kouroussa Gold Project, located in Guinea, West Africa. Step-out drilling at Kinkine included 19 RC holes totalling 2295 metres. Drilling continues to define the east side and northeast extension of the Kinkine deposit. Highlights include 7.48 g/t Au over 5.0 metres in KRC1129, 2.02 g/t Au over 13.0 metres in KRC1027, and 2.64 g/t Au over 10.0 metres in KRC1033. True widths are approximately 70% of reported lengths.
KRC1118 to KRC 1121 extended Kinkine mineralization to the northeast with intervals including 1.30 g/t Au over 6.0 metres in KRC1119 and 1.22 g/t Au over 4.0 metres in KRC1121 (see Table 1). KRC1126 to KRC1132 stepped out along the east side of the deposit extending several low angle mineralized lodes further east and confirming the stacked nature of these zones. Highlights include 2.02 g/t Au over 13.0 metres in KRC1127 and 7.48 g/t Au over 5.0 metres in KRC1129. Diamond drilling will resume testing additional stacked lodes between 120 and 200 metres depth shortly.
Sabina Silver (TSX: V.SBB; $3.60)
www.sabinasilver.com
Initial Report: Oct 16/06 $1.19 - up 202%
Second Report: Dec 18/06 $1.88 - up 91%
Friday Sabina moved to a new 52 week high and pushed short term gains from our initial reports to substantial levels. However, with ALL small and microcap stocks, it's important to lock in profits at stages along the way as they help offset inevitable losses on other speculations.
The fuel driving this run is news that Agnico Eagle is buying Cumberland Resources for $710 million. Agnico is basically paying for the Meadowbank gold project in Canada's remote north and this has made Sabina's Hackett River project seem much less "remote". In the past a major discount was applied to Sabina because of the location of Hackett. Too early to speculate that Sabina will be a takeover target in 2007.
Also helping Sabina was the $3.90 offer for Wolfden from Zinifex. Sabina owns 4 million shares of Wolfden so if this closes, it will add a nice chunk to the treasury.
Paramount Gold (PGDP / OTC $2.36)
www.paramountgold.com
As we lead up to the PDAC in Toronto (north america's largest mining show), this may be a good time to take a hard look at Paramount. The stock ran to $4.35 following the resource sector boom in Q1/06. At the time the stock was heavily promoted but saw irrational buying out of Germany that pushed the share price way ahead of the underlying fundamentals. Several investor websites in that country took contracts from every Canadian resource firm that approached them and as losses piled up through 2006, it severely damaged the credibility of those German advisories.
PGDP was fortunate to tag along on that ride, but then spent the past 8 months in a narrow range just above $2. Fundamentally it has been developing very well, but that irrational exhuberance in Q1/06 was way ahead of itself. Our paid newsletter started coverage of Paramount in late 2005 in the $0.70's and $0.80's so our readers were fortunate to profit from that rally. Once it was clear the share price was way ahead of underlying fundamentals, we dropped coverage. This will be our first visit back since that time.
For the past eight months the company has done an excellent job proving up reserves on their San Miguel property in Mexico and we're now hearing that exploration potential is looking better than ever. This area of Mexico has seen tremendous gold/silver discoveries over the past couple years. Emphasis can now be placed on the mining side, vs. the promotional (and irrational exhuberance) side that originated from an over-heated sector a year ago.
Significant announcements are often made by junior miners at the PDAC (www.pdac.ca) as the show is the perfect venue for reaching resource sector investors. On Friday, PGDP saw its first breakout in a long time and we hear March/April will be an exciting time for the company. Numerous analysts and even a few from the hedge fund crowd have visited the property recently and are kicking the tires on this company. With the proper funding to build a large drill program in 2007, the potential is signficant.
Paramount has 33 million shares out for a market cap of approx. $76 million U.S. - Nearby Palmarajo (PJO.V $9.45) has found a 3.1 million ounce gold equivalent resource or about 180 million ounces of silver and with 91M shares out has a market cap of C$860 million.
Paramount has so far found a 43-101 defined silver resource at just US$0.07 cents per ounce - 38 million ounces defined with only 6 months of drilling in 39 drill holes, at a cost thus far of US$2.5 million. Should Paramount prove up 200M ounces in 2007/08 and dilute with another 8 million shares to 41 million, a similar $865M market cap as Palmarejo would equate to $21 a share for Paramount. That is nothing more than blue sky speculation at this stage, but you can see where the share price can grow into the fundamentals on these junior miners.
Paramount Gold has a very strong technical team in Latin America and that was demonstrated when Teck Cominco teamed up with them in South America to form an exploration partnership (May/06 Andean Gold Alliance).
Paramount's technical team includes Bill Reed, former chief geologist for Hecla Mining and Echo Bay Mines, focusing in Mexico. Larry Segerstrom, recently Geology Manager for Freeport-McMoRan and before that with Newmont, Phelps Dodge and Noranda. President, CFO is Chris Crupi, former VP with PricewaterhouseCoopers. John Carden director was former Director of U.S. Exploration for Echo Bay. Senior Advisors are Jean Depati, longest serving director of Glamis Gold and John Simons discovered/developed the La Caridad copper- molybdenum deposit, now the largest mining and smelting operation in Mexico, with 4,000 employees.
Danny Deadlock
Microcap.com
--------------------------------------------------------------------------------
email: microcap@telus.net
web: http://www.microcap.com
Canada's PM Harper seems unwilling to find solutions
Sat, 24 Feb 2007 06:20:35 -0800
Summary:
A government reveals a lot about itself by what it says it can’t do. The Harper government, for instance, insists that Canada can’t possibly meet its Kyoto targets on greenhouse gas emissions.
Interestingly, there’s no such defeatism on the Conservative benches over Afghanistan.
Indeed, when it comes to the Afghan war, Prime Minister Stephen Harper is full of bravado and fighting spirit, despite the most dismal prospects for victory in that war – as a report by a Canadian Senate committee spelled out this week.
No matter how hopeless the situation in Afghanistan, Harper vows that Canada will be there, as a “country that leads, not that just follows.”
Yet in the battle against climate change – a far more important battle, by any reasonable measure – Canada, under the Conservatives, doesn’t lead or follow. It doesn’t even bother to show up.
This week, it voted against an opposition bill requiring Ottawa to meet our obligations under Kyoto, which we ratified in 2002.
Harper seems unwilling to find solutions
February 16, 2007
Linda McQuaig
A government reveals a lot about itself by what it says it can't do. The Harper government, for instance, insists that Canada can't possibly meet its Kyoto targets on greenhouse gas emissions.
Interestingly, there's no such defeatism on the Conservative benches over Afghanistan.
Indeed, when it comes to the Afghan war, Prime Minister Stephen Harper is full of bravado and fighting spirit, despite the most dismal prospects for victory in that war – as a report by a Canadian Senate committee spelled out this week.
No matter how hopeless the situation in Afghanistan, Harper vows that Canada will be there, as a "country that leads, not that just follows."
Yet in the battle against climate change – a far more important battle, by any reasonable measure – Canada, under the Conservatives, doesn't lead or follow. It doesn't even bother to show up.
This week, it voted against an opposition bill requiring Ottawa to meet our obligations under Kyoto, which we ratified in 2002.
The dispirited approach to Kyoto reveals the shallowness of Harper's recent conversion to the environmental cause in the wake of the sudden emergence of the issue as the top concern of Canadians.
Of course, we all know that Harper spent years in the trenches of the global warming battle – fighting on the wrong side, along with oil companies and a tiny gang of academic climate-change deniers.
But there's been surprisingly little chortling recently as the Prime Minister, somehow managing a straight face, now insists that "the science is clear that these changes are occurring, they're serious and we must act."
Such a late acceptance of what the scientific world has been loudly trumpeting for more than a decade would still be welcome, if it seemed genuine. Personally, I'd be more inclined to buy a used car from this Prime Minister than to trust his commitment to saving the planet.
So far, the government has been frantically reinstating Liberal programs cancelled earlier this year.
But even these would have only limited impact in reducing greenhouse gas emissions, according to Stephen Hazell, executive director of Sierra Club of Canada.
Harper likes to imply that actually meeting Kyoto targets would require unbearable sacrifices by Canadians.
He recently suggested we'd have to live in unheated homes all winter.
He seems to be trying to keep the focus away from reasonable and promising solutions, like clamping down on large industrial emitters, an approach called for in the opposition bill rejected by the Conservatives.
Above all, Harper seems keen to avoid clamping down on the oil sands.
Indeed, Harper's weak embrace of the environmental cause is perhaps best revealed by his refusal to end a special federal subsidy enjoyed by oil sands developers, a constituency that Harper has long been close to.
Under the Accelerated Capital Cost Allowance, oil-sands developers are allowed to deduct 100 per cent of their capital costs immediately – a tax perk that far exceeds the generosity of the 25 per cent deduction available to companies investing in conventional oil projects.
The allowance, introduced in 1996, was justified as a way to stimulate investment in the oil sands at a time when the potential of the resource hadn't yet been proven, and low world oil prices made development costs seem prohibitive.
There was also less awareness of climate change back then; Kyoto wasn't even signed until the following year.
But what may have seemed reasonable 11 years ago is downright perverse today, with oil-sands development overstimulated and now the fastest-growing source of our greenhouse gases.
The special tax treatment certainly flies in the face of any notion that the government is serious about reducing Canada's emissions.
It would be equivalent to Ottawa offering subsidies to the Taliban while vowing it is committed to victory in Afghanistan.
To make things more perverse, the companies benefiting from the special tax incentive are among the most profitable in Canada, including Husky, Imperial, Shell and Suncor.
In 2005, the oil and gas industry achieved operating profits of $30 billion – a 50 per cent increase over the previous year, according to the Alberta-based Pembina Institute.
It's hardly a sector that needs extra help from Canadian taxpayers.
In fact, oil-sands producers could easily afford to pay the additional $1 on each barrel of oil which the Pembina Institute estimates would cover the cost of serious emission reduction.
No wonder Harper is convinced we can't meet our Kyoto targets: He's planning to keep on giving special incentives to our biggest emitters.
Linda McQuaig is a Toronto-based author and commentator. lmcquaig@sympatico.ca.
http://www.thestar.com/article/182293
Attached is the most recent press release for Destiny Media Technologies.
Recent press releases on Destiny can be found at http://www.dsny.com/investor/
Ear on the Street
ATCO Ltd. (ACO.X : TSX : $46.39)
Q4 in line
RBC Capital Markets maintains "sector perform", 12-month target price is $48.00
Agnico-Eagle Mines (AEM : TSX : $47.25 | NYSE : US$40.76)
Strong Q4 and reserves up 19.3%
Blackmont Capital maintains "hold", 12-month target price is $48.00
Canaccord Adams upgrades to "buy", 12-month target price is raised to US$50.00
Desjardins Securities maintains "buy", 12-month target price is $62.75
Raymond James maintains "outperform", 6-12 month target price is $54.00
RBC Capital Markets maintains "sector perform", 12-month target price is not given
AGF Management (AGF.B : TSX : $30.73)
Margin expansion
CIBC World Markets upgrades to "sector outperform", 12-month target price is raised to $34.00
Credit Suisse maintains "outperform", 12-month target price is raised to $36.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is raised to $40.00
TD Newcrest maintains "hold", 12-month target price is raised to $32.00
Bow Valley Energy (BVX : TSX : $6.27)
Selling Canadian assets?
Scotia Capital Markets maintains "sector outperform", 12-month target price is $9.00
CAP REIT (CAR.UN : TSX : $20.80)
Flat 2006 FFO
Raymond James maintains "market perform", 6-12 month target price is $21.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is raised to $21.00
TD Newcrest maintains "hold", 12-month target price is raised to $19.50
Cascades Inc. (CAS : TSX : $13.90)
Q4 reported today
RBC Capital Markets maintains "sector perform", 12-month target price is $14.00
Canfor Corporation (CFP : TSX : $11.90)
Q4 preview
RBC Capital Markets maintains "sector perform", 12-month target price is $11.00
Certicom Corp. (CIC : TSX : $5.81)
To report Q3 on February 28
Canaccord Adams maintains "hold", 12-month target price is $6.00
Corus Entertainment (CJR.B : TSX : $47.00)
Downgrade based on price appreciation
TD Newcrest downgrades to "hold", 12-month target price is $52.00
Cinch Energy (CNH : TSX : $0.95)
Closing of flow-through financing
Canaccord Adams maintains "buy", 12-month target price is $2.00
Le Chateau (CTU.A : TSX : $58.97)
Strong Canadian retail sales (Dec) number bodes well for company
GMP Securities maintains a "buy", target price is $72.50
Canadian Utilities (CU : TSX : $43.28)
Q4 meets expectations
Canaccord Adams maintains "hold", 12-month target price is $42.00
RBC Capital Markets maintains "outperform", 12-month target price is $49.00
CV Technologies (CVQ : TSX : $2.61)
Alleged lobbying without being registered
RBC Capital Markets maintains "sector perform", 12-month target price is $3.00
Consumers Waterheater Fund (CWI.UN : TSX : $15.05)
Increase distribution by 4.9%
Scotia Capital Markets maintains "sector outperform", 12-month target price is $14.50
Defiant Resources (DFR : TSX : $1.51)
Lower than expected reserves
Raymond James maintains a "strong buy", 6-12 month target price cut to $3.00
Movie Distribution Income Fund (FLM.UN : TSX : $8.41)
Fourth quarter results come in above expectations
Raymond James maintains a "market perform", 6-12 month target price is $10.00
TD Newcrest maintains a "speculative buy", 12-month target price is $9.00
First Quantum Minerals (FM : TSX : $70.09)
Recent price appreciation behind downgrade
Haywood Securities downgrades to "sector perform", target price is $70.00
FNX Mining Company (FNX : TSX : $21.10)
New discovery at Levack Mine
GMP Securities maintains a "buy", target price is $30.00
RBC Capital Markets maintains a "outperform", target price is $24.00
Scotia Capital Markets maintains "sector perform", 12-month target price is raised to $18.50
Gammon Lake Resources (GAM : TSX : $21.68)
January has been the best month to date
Scotia Capital Markets maintains "sector outperform", 12-month target price is $24.00
Glencairn Gold (GGG : TSX : $0.63)
Announces plans to convert Libertad to a conventional milling operation
Blackmont Capital maintains a "buy", 12-month target price is cut to $0.90
Iamgold Corp. (IMG : TSX : $10.69 | IAG : NYSE : US$9.22)
Recent increases in reserves offsets news of higher costs in 2007
Blackmont Capital maintains a "buy", 12-month target price is cut to $13.50
TD Newcrest maintains a "action list buy", 12-month target price is cut to US$15.00
International Minerals (IMZ : TSX : $5.65)
Company provides project updates
TD Newcrest maintains a "hold", 12-month target price is $6.50
Kinross Gold (K : TSX : $15.93 | KGC : NYSE : US$13.71)
Earnings and outlook meet expectations
Blackmont Capital maintains a "buy", 12-month target price is $19.00
RBC Capital Markets maintains a "sector perform", target price is US$16.00
TD Newcrest maintains a "hold", 12-month target price is US$15.00
Loblaw Companies (L : TSX : $47.44)
Held much anticipated Investor Day Wednesday
Credit Suisse reiterates "outperform", target price is $53.00
Desjardins Securities maintains a "hold", target price is $50.00
Scotia Capital Markets maintains "sector underperform", 12-month target price is $43.50
TD Newcrest maintains a "reduce", 12-month target price is $46.00
March Networks (MN : TSX : $11.20)
Q3 preview: Awaiting clarity on product roadmap and cost structure
Canaccord Adams maintains a "sell", target price is $10.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $11.00
Macquarie Power & Infrastruct. (MPT.UN : TSX : $11.69)
Posts solid fourth quarter
TD Newcrest maintains a "action list buy", 12-month target price is raised to $12.00
Newport Partners Income Fund (NPF.UN : TSX : $6.90)
Recent share price appreciation offers attractive exit point
Blackmont Capital maintains a "sell", 12-month target price is $5.50
Osprey Media Income Fund (OSP.UN : TSX : $5.84)
Seasonally strong quarter comes in below expectations
CIBC World Markets maintains a "sector perform", target price is $6.00
Orezone Resources (OZN : TSX : $1.91 | AMEX : US$1.65)
Releases positive results from Kossa project
Canaccord Adams maintains a "speculative buy", target price is $2.45
Pan American Silver (PAA : TSX : $33.94)
Reserves Grew by 20% over 2005
RBC Capital Markets rates "outperform", no target price reported
PrimeWest Energy Trust (PWI.UN : TSX : $23.09)
Q4 in line
Scotia Capital Markets maintains "sector outperform", 12-month target price is $28.50
Ritchie Bros Auctioneers Inc. (RBA : TSX : $67.41 | NYSE : US$58.08)
Gross auction sales up 25% over last year
Blackmont Capital maintains "buy", 12-month target price is US$69.00
RONA Inc. (RON : TSX : $24.25)
Aggressive growth aspirations
Blackmont Capital maintains "buy", 12-month target price is $27.50
Canaccord Capital maintains "buy", 12-month target price is $30.00
CIBC World Markets maintains "sector outperform", 12-month target price is raised to $27.00
Desjardins Securities rates "buy", 12-month target price is $26.00
RBC Capital Markets rates "outperform", 12-month target price is $31.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $28.50
Saputo Inc. (SAP : TSX : $42.70)
Buy Land O'Lakes cheese
CIBC World Markets maintains "sector perform", 12-month target price is raised to $42.00
Desjardins Securities maintains "buy", 12-month target price is $50.00
TD Newcrest maintains "buy", 12-month target price is raised to $49.00
Somerset Entertainment (SOM.UN : TSX : $2.83)
Going private potential has created overvaluation
Raymond James maintains a "underperform", 6-12 month target price is $1.75
Tiberon Minerals Ltd (TBR : TSX : $3.63)
Taken out by Vietnamese investment bank
Haywood Securities drops coverage
Transcontinental Inc. (TCL.A : TSX : $21.96)
Newspaper outsourcing
Desjardins Securities maintains "hold", 12-month target price is $22.00
Trafalgar Energy (TFL : TSX : $4.17)
Operational update in line
Blackmont Capital maintains "buy", 12-month target price is $5.00
Tim Hortons (THI : TSX : $35.96)
Breakfast sandwich success
Blackmont Capital maintains "buy", 12-month target price is $43.00
RBC Capital Markets rates "outperform", 12-month target price is $41.00
Taseko Mines (TKO : TSX : $3.20)
Looking for undervalued opportunities
Raymond James maintains "outperform", 12-month target price is $5.00
TransCanada Corp. (TRP : TSX : $38.09 | NYSE : US$32.85)
Increases ownership in TC Pipelines
RBC Capital Markets rates "outperform", 12-month target price is $46.00
Torstar Corp. (TS.B : TSX : $18.00)
Free papers in Alberta
CIBC World Markets rates "sector underperform", 12-month target price is $19.00
UraMin Inc. (UMN : TSX : $5.68)
Uranium in Namibia
Canaccord Capital upgrades to "buy", 12-month target price is $6.58
Virginia Mines (VGQ : TSX : $6.08)
2007 exploration budget to exceed $16 million
Canaccord Capital maintains "speculative buy", 12-month target price is $7.25
Zargon Energy Trust (ZAR.UN : TSX : $25.45)
Future remains bright
CIBC World Markets maintains a "sector outperform", target price is $29.50
Undervalued Stock #1 ========== ------------ Xcel Energy, Inc. (NYSE: XEL) ------------ Insider Name: Fredric W. CorriganInsider Position: DirectorInsider Action: 10,000 shrs on 2/20/2007Insider Total Holding: 10,000 shrs -------------------------------------------------------Undervaluation Merits... P/E Ratio = 18.2 (Industry Average 22.8)P/S Ratio = 1.0 (Industry Average 1.67)P/CF Ratio = 7.10 (Industry Average 11.6) Industry: Electric Utilities -------------------------------------------------------Other Merits... Dividend Yield = 3.7% ------------ Xcel Energy, Inc. (NYSE: XEL)
Cadbury Schweppes, Mastercard testing vending machines that take credit cards
Friday February 23, 2007
FRISCO, Texas (AP) - Just off the ice at the Star Center rink, Jenafir Chant held a credit card against a vending machine. A second later, a bottle of Diet Dr Pepper tumbled into view.
The machine takes plastic.
"We were all excited when these went in last week,' said Chant, who leads a team of girls who clean the ice between periods at Dallas Stars games.
"I was scrounging around for $2 for a Monster. Now I don't have to scrounge.'
The machine at the ice rink is one of 750 that British company Cadbury Schweppes PLC and MasterCard Inc. are testing in the Dallas area, New York and Chicago to answer a key question: Will people spend more at vending machines if they can use plastic?
The early answer is, yes.
Some of the machines were installed in January and have seen sales increases of 5 percent to 35 percent without any change in prices, said Mark Jackson, a vice president with Cadbury's U.S. beverages subsidiary, which markets Dr Pepper, Snapple, 7UP and other drinks.
Cadbury's experience fits with sales increases that other companies have reported when they shift consumers from cash to plastic.
Possible explanations vary from consumers not wanting to carry change, to ATMs that dispense only $20 bills, which cannot be used in most vending machines.
Cadbury is retrofitting machines in Dallas, New York and Chicago to take all major credit cards and debit cards. They still accept cash, too.
The beverage giant carefully selected locations for the machines, looking for locations frequented by adults likely to have and use plastic.
They have installed them at Dallas city hall, the convention center, hospitals, a college and recreational facilities like the ice rink in Frisco.
After three months, Cadbury will evaluate sales data and decide whether to retrofit more machines and introduce them in other cities.
"There is always going to be a degree of cash transactions,' Jackson said.
"But we recognize the fact we're moving more and more to a cashless society. We wanted to offer consumers a convenient way to buy our products out of a vending machine without having change or getting change.'
The Cadbury machines were retrofitted by USA Technologies Inc., of Malvern, Pennsylvania, which was created 15 years ago for the sole purpose of developing cashless systems.
Executives believed the day was coming when Americans would want to make nearly all their purchases with plastic.
"We looked at places that historically only took cash,' said Stephen Herbert, the company's president and chief operating officer.
"Fast-food was the first big stop, and vending was second.'
According to Vending Times, an industry publication, vending was a $46 billion business in 2005 and it was virtually all cash.
That makes it an appealing target for banks that issue credit cards.
Tests like Cadbury's are taking place now because the declining cost of wireless communications has helped make operating the machines economical.
Less than two years ago, air time to connect one machine to the supplier would have run about $20 (euro15) a month.
It is now one-tenth that, Herbert said.
Hardware and modems are also cheaper now. USA Technologies, MasterCard and a Coca-Cola bottler are involved in another rollout of cashless vending machines that began last year in the Philadelphia area.
Credit-card vending machines are also being used to sell DVD movies, and Sony Electronics Inc. has a few that dispense digital cameras and other gadgets.
But cheap items present a special challenge because transaction costs of even a few cents can wipe out profit on a soda that sells for $1.25 (euro.95).
"Vending is going to be the ultimate test for cashless' transactions, said Nick Montano, executive editor of Vending Times. "It's going to be five or 10 years before it really takes off,' he said.
Selling sodas by credit card could raise interesting issues for consumers too.
"What if the machine says your card's been rejected?' Chant said. "Wouldn't that suck to be declined for $1.25?'
Latest business news from AP-Wire
http://thestar.com.my/services/printerfriendly.asp?file=/2007/2/23/apworld/20070223120944.asp&se....
Top 20 Largest Consolidated Short Position Report as of February 15/07
Issue Name Symbol As of Feb. 15 As of Jan. 31 Net Change
BOMBARDIER INC. CL 'B' SV BBD.B 91,337,601 99,508,967 -8,171,366
ABITIBI-CONSOLIDATED INC. A 47,841,588 50,334,504 -2,492,916
ROGERS COMMS INC. CL'B' NV RCI.B 34,726,610 34,399,913 326,697
CGI GROUP INC. CL 'A' SV GIB.A 30,870,552 36,605,737 -5,735,185
KINROSS GOLD CORPORATION K 28,680,855 26,971,606 1,709,249
CELESTICA INC. SV CLS 25,850,158 29,628,910 -3,778,752
NORTEL NETWORKS CORPORATION NT 20,605,307 22,436,504 -1,831,197
CAMECO CORPORATION CCO 20,038,117 19,301,071 737,046
NORTHERN ORION RES INC. J NNO 19,591,183 19,080,239 510,944
ROYAL BANK OF CANADA RY 19,395,409 19,232,080 163,329
NORBORD INC. NBD 19,187,970 18,339,844 848,126
BEMA GOLD CORPORATION J BGO 16,065,934 15,317,781 748,153
DOMTAR INC. DTC 15,539,411 17,816,694 -2,277,283
BCE INC. BCE 13,037,497 12,268,597 768,900
CANWEST GLOBAL COMM CORP. SV CGS 12,506,719 12,724,013 -217,294
ELDORADO GOLD CORPORATION ELD 12,081,745 9,672,019 2,409,726
MANULIFE FINANCIAL CORP MFC 12,079,023 11,399,740 679,283
RESEARCH IN MOTION LIMITED RIM 11,947,480 11,797,997 149,483
CAN IMPERIAL BANK OF COMMERCE CM 11,389,858 11,027,217 362,641
IAMGOLD CORPORATION IMG 10,990,894 10,986,918 3,976
Ear on the Street
Air Canada (AC.B : TSX : $19.20)
Significant discount to other mainline airlines
CIBC World Markets maintains "sector outperform", 12-month target price is $24.00
Alexis Nihon REIT (AN.UN : TSX : $18.57)
Homburg will acquire Alexis Nihon for $18.60
RBC Capital Markets maintains "sector perform", 12-month target price is cut to $18.60
Scotia Capital Markets maintains "tender", 12-month target price is cut to $18.60
Aur Resources (AUR : TSX : $20.88)
Underperformance underserved
CIBC World Markets maintains "sector outperform", 12-month target price is $32.00
Bell Aliant (BA.UN : TSX : $29.66)
2007 guidance in line
BMO Capital Markets maintains "outperform", 12-month target price is $31.00
Desjardins Securities maintains "buy", 12-month target price is $31.00
GMP Securities maintains "hold", 12-month target price is $27.50
TD Newcrest maintains "hold", 12-month target price is cut to $30.00
Bear Ridge Resources (BER : TSX : $1.85)
Initiatives to reduce debt level
BMO Capital Markets maintains "outperform", 12-month target price is cut to $2.75
Bow Valley Energy (BVX : TSX : $6.02)
2006 U.K. reserve higher than expected
Blackmont Capital maintains "buy", 12-month target price is $7.50
Raymond James maintains "outperform", 6-12 month target price is cut to $8.25
CAP REIT (CAR.UN : TSX : $20.20)
Q4 meets expectations
Blackmont Capital maintains "hold", 12-month target price is $19.75
Cominar REIT (CUF.UN : TSX : $24.87)
Backed away from the agreement to acquire Alexis Nihon
Raymond James maintains "strong buy", 6-12 month target price is $27.00
RBC Capital Markets maintains "sector perform", 12-month target price is raised to $26.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is raised to $24.10
Canadian Royalties Inc (CZZ : TSX : $3.20)
40% increase in mill throughput
Blackmont Capital maintains "buy", 12-month target price is $3.20
Emergis (EME : TSX : $5.25)
Q4 preview
RBC Capital Markets maintains "outperform", 12-month target price is $6.00
Fraser Papers (FPS : TSX : $6.01)
Q4 miss expectations
BMO Capital Markets maintains "underperform", 12-month target price is $5.00
Forsys Metals (FSY : TSX : $8.45)
Prospecting in Namibia
Blackmont Capital maintains "hold", 12-month target price is $8.00
Gerdau AmeriSteel (GNA : TSX : $13.19)
Downgrade driven by price appreciation
Desjardins Securities downgrades to "hold", target price is $14.80
Leon's Furniture (LNF : TSX : $49.91)
Fourth quarter results slightly above expectations; ups dividend by 12%
BMO Nesbitt Burns maintains a "market perform", target price is $51.00
CIBC World Markets maintains "sector outperform", 12-month target price is raised to $55.00
MAG Silver Corp. (MAG : TSX-V : $8.36)
Optimistic after site visit
Raymond James maintains a "strong buy", 6-12 month target price is $10.00
MacDonald Dettwiler & Assoc. (MDA : TSX : $48.27)
Q4 to be lifted by strong U.K. housing market
Scotia Capital Markets maintains a "sector underperform", 1-year target price is $46.00
March Networks (MN : TSX : $11.22)
Q3/07 earnings expected to be released Wednesday February 28
BMO Nesbitt Burns maintains a "market perform", target price is $10.98
Medicure (MPH : TSX : $1.18)
Aggrastat salesforce deployed in U.S.
GMP Securities maintains a "buy", target price is $2.75
Macquarie Power & Infrastruct. (MPT.UN : TSX : $11.75)
Fourth quarter results slightly below estimates
RBC Capital Markets continues to rate "sector perform", target price is $10.00
Miranda Technologies (MT : TSX : $14.52)
Better than expected fourth quarter results
CIBC World Markets maintains a "sector perform", target price raised to $15.00
Raymond James maintains a "outperform", 6-12 month target price raised to $17.00
TD Newcrest maintains a "hold", 12-month target price is raised to $16.00
Open Text (OTC : TSX : $26.51 | OTEX : NASDAQ : US$22.86)
Diminished growth prospects and overvalued price
Canaccord Adams downgrades to "sell", target price is US$20.00
Polaris Minerals (PLS : TSX : $9.29)
Production starts at Orca quarry
GMP Securities maintains a "buy", target price raised to $12.00
Quebecor Inc. (QBR.B : TSX : $40.00)
Videotron posts another strong quarter
CIBC World Markets maintains a "sector perform", target price raised to $48.00
Scotia Capital Markets maintains a "sector outperform", 1-year target price raised to $46.25
BMO Nesbitt Burns maintains "market perform", 12-month target price is $45.00
Credit Suisse First Boston rates "neutral", 12-month target price is raised to $35.00
Desjardins Securities maintains "hold", 12-month target price is $40.00
RBC Capital Markets maintains "outperform", 12-month target price is $45.00
Research In Motion (RIM : TSX : $162.78 | RIMM : NASDAQ : US$140.27)
Popular pearl
Canaccord Capital rates "buy", 12-month target price is US$180.00
RONA Inc. (RON : TSX : $24.02)
On track for $7 billion in retail sales
Blackmont Capital rates "buy", 12-month target price is $27.50.
Rider Resources Ltd. (RRZ : TSX : $8.38)
Drilling aggressively this summer
Scotia Capital Markets maintains "sector perform", 12-month target price is $10.50
Strateco Resources (RSC : TSX-V : $3.41)
Good in-fill drill results
Blackmont Capital maintains "hold", 12-month target price is $3.70
Russel Metals (RUS : TSX : $28.00)
End market fundamentals favorable
BMO Nesbitt Burns rates "market perform", 12-month target price is $32.00
CIBC World Markets rate "sector outperform", 12-month target price is $31.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $30.50
Silver Wheaton (SLW : TSX : $12.63 | NYSE : US$10.86)
Slightly above consensus
RBC Capital Markets maintains "sector perform", 12-month target price is $13.00
Southwestern Resources (SWG : TSX : $7.97)
Expect drilling approval
Raymond James maintains "strong buy", 12-month target price is $20.00
sxr Uranium One (SXR : TSX : $17.05)
Ur-Asia acquisition
Raymond James upgrade to "strong buy", 12-month target price is $20.00
TD Bank (TD : TSX : $70.20)
Expect dividend increase
CIBC World Markets rates "sector outperform", 12-month target price is $77.00
True Energy Trust (TUI.UN : TSX : $5.31)
Reasonable valuation
CIBC World Markets maintains "performer", 12-month target price is $7.25
Tundra Semiconductor (TUN : TSX : $10.19)
Potential adoption of RapidIO
Blackmont Capital upgrades to "buy", 12-month target price is $13.00
Van Houtte (VH : TSX : $24.45)
Takeout valuation estimate
GMP Securities Securities maintains "buy", 12-month target price is $30.00
3m at 180 g/t GOLD (6ozs) within 24m at
33.7 g/t GOLD in TRENCH at MT. PENCK
February 21, 2007 - Vancouver, BC - Vangold Resources Ltd. ("Vangold")
(TSX: VAN) announces that its joint venture partner, New Guinea Gold Corporation ("NGG"), manager of the projects owned by Kanon Resources Ltd. ("Kanon") in Papua New Guinea, has provided an update on the Mt. Penck project (EL 1322) (West New Britain, PNG). Kanon is owned 50% Vangold and 50% NGG. The Mt Penck property is beneficially owned 40% by Vangold and 60% by NGG.
Recent trenching at the Mt Penck Project in Papua New Guinea has confirmed two significant new gold mineralised zones at Upper Peni Creek and Kavola South. Upper Peni Creek is 300m west of Kavola East, where most of the 2006 drilling was concentrated, and Kavola South is 100m south of Kavola East. The trenches are hand dug trenches and were dug to gain some idea of the lateral extent of gold grades along strike. The trenches were dug approximately parallel to the strike of the high grade "core" of both zones.
Upper Peni Creek Zone
Separate trench intersections above 0.5g/t gold cutoff include:
24m at 33.7g/t gold, including 12m at 62.93g/t gold, including 3m at 180g/t gold; 12m at 4.07g/t gold;
33m at 1.73g/t gold;
18m at 1.82g/t gold; and
12m at 0.88g/t gold.
Ear on the Street
Amtelecom Income Fund (AMT.UN : TSX : $13.35)
Bell Aliant makes hostile bid
BMO Capital Markets maintains "market perform", 12-month target price is raised to $13.00
Alimentation Couche-Tard (ATD.B : TSX : $25.20)
New Street coverage
Canaccord Adams initiates coverage with a "buy", 12-month target price is $30.00
Advantage Energy Income Fund (AVN.UN : TSX : $12.35 | AAV : NYSE : US$10.72)
Recent equity issue of 7.8 million trust units
RBC Capital Markets maintains "sector perform", 12-month target price is $10.25
Bell Aliant (BA.UN : TSX : $29.26)
Bids for Amtelecom
RBC Capital Markets maintains "sector perform", 12-month target price is $29.00
Boardwalk REIT (BEI.UN : TSX : $47.70)
Strong Q4
Blackmont Capital maintains "sell", 12-month target price is raised to $43.40
Canaccord Adams maintains "hold", 12-month target price is raised to $45.00
Desjardins Securities maintains "top pick", 12-month target price is raised to $53.85
RBC Capital Markets maintains "sector perform", 12-month target price is $50.00
Scotia Capital Markets maintains "sector underperform", 12-month target price is $44.50
BFI Canada Income Fund (BFC.UN : TSX : $26.23)
Positive industry trend confirmed by Waste Connections
Blackmont Capital maintains "buy", 12-month target price is $29.50
Bank of Nova Scotia (BNS : TSX : $51.34)
To acquire 10% of First Bancorp, Puerto Rico's second-largest bank
CIBC World Markets maintains a "sector outperform", target price is $58.00
Canfor Pulp Income Fund (CFX.UN : TSX : $14.63)
Solid Q4
Desjardins Securities maintains "hold", 12-month target price is $13.25
Raymond James maintains "strong buy", 6-12 month target price is raised to $16.50
RBC Capital Markets maintains "outperform", 12-month target price is $14.50
Scotia Capital Markets maintains "sector perform", 12-month target price is $13.00
Chemtrade Logistics Inc Fd (CHE.UN : TSX : $8.25)
Q4 in line
BMO Capital Markets upgrades to "outperform", 12-month target price is raised to $9.30
Scotia Capital Markets maintains "sector perform", 12-month target price is $8.25
Labopharm Inc. (DDS : TSX : $6.99 | DDSS : NASDAQ : US$5.98)
European launches progressing as expected; financial results in line
Blackmont Capital maintains a "buy", 12-month target price is raised to $10.00
Canaccord Adams maintains a "buy", target price is $10.30
Scotia Capital Markets maintains a "sector perform", 1-year target price cut to $7.25
Eastern Platinum (ELR : TSX : $1.89)
Crocodile River operation may exceed expectations
Canaccord Adams maintains "buy", 12-month target price is $2.00
Emera Inc. (EMA : TSX : $21.33)
Q4 slightly misses
BMO Capital Markets maintains "market perform", 12-month target price is $22.00
Canaccord Adams maintains "buy", 12-month target price is $25.00
CIBC World Markets maintains "sector underperform", 12-month target price is $21.00
RBC Capital Markets maintains "sector perform", 12-month target price is $22.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $22.00
Enbridge (ENB : TSX : $38.33)
Solid 2006 operating results
Desjardins Securities maintains "buy", 12-month target price is $41.00
Goldcorp Inc. (G : TSX : $32.79)
Announces sale of Peak and Amapari mines
Blackmont Capital maintains a "buy", 12-month target price is $39.00
HudBay Minerals (HBM : TSX : $23.77)
Next couple weeks to be interesting in the zinc market
Desjardins Securities reiterates "top pick", target price is $27.30
Harvest Energy Trust (HTE.UN : TSX : $26.52 | HTE : NYSE : US$23.00)
Re-valuation of refinery model
RBC Capital Markets upgrades to "outperform", target price raised to $28.00
IGM Financial (IGM : TSX : $50.39)
Increases dividend on heels of solid fourth quarter results
BMO Nesbitt Burns maintains a "outperform", target price raised to $57.00
CIBC World Markets maintains "sector perform", 12-month target price is $56.00
Scotia Capital Markets maintains a "sector perform", 12-month target price is $58.00
Kereco Energy (KCO : TSX : $6.48)
Bought deal closed
BMO Nesbitt Burns maintains a "market perform", target price is $8.00
Canadian Hydro Developers (KHD : TSX : $6.30)
Q4 a little bit soft
BMO Capital Markets maintains "market perform", 12-month target price is raised to $6.25
Scotia Capital Markets maintains "sector outperform", 12-month target price is $7.75
MEGA Brands (MB : TSX : $25.65)
Positive impressions from 2007 American International Toy Fair in New York City
CIBC World Markets maintains a "sector outperform", target price is $32.00
Desjardins Securities maintains a "buy", target price is $30.00
RBC Capital Markets maintains a "outperform", target price not provided
Miranda Technologies (MT : TSX : $13.36)
2007 to be challenging
CIBC World Markets maintains a "sector perform", target price is $13.00
Nova Chemicals Corp (NCX : TSX : $37.89 | NYSE : US$33.12)
Protracted CN Rail strike could significantly impact earnings
Canaccord Adams maintains a "buy", target price is US$40.00
Northland Power Income Fd (NPI.UN : TSX : $12.77)
No surprises in the fourth quarter
BMO Nesbitt Burns maintains a "market perform", target price is $13.00
Canaccord Adams maintains a "hold", target price is $12.00
CIBC World Markets reiterates a "sector outperform", target price is $14.50
Pan American Silver (PAA : TSX : $33.10)
Announces 20% increase in year-end reserves
Blackmont Capital maintains a "buy", 12-month target price is $44.00
QLT Inc. (QLT : TSX : $11.02 | QLTI : NASDAQ : US$9.83)
Cautious heading into fourth quarter results
BMO Nesbitt Burns downgrades to "market perform", target price raised to US$10.85
Cdn. Real Estate Investment (REF.UN : TSX : $32.23)
Q4 in line
BMO Capital Markets maintains "market perform", 12-month target price is $33.00
Canaccord Adams maintains "buy", 12-month target price is raised to $34.75
RBC Capital Markets maintains "sector perform", 12-month target price is $33.00
Scotia Capital Markets maintains "sector underperform", 12-month target price is $31.00
RONA Inc. (RON : TSX : $24.24)
Looking for moderate growth from fourth quarter results, expected tomorrow
RBC Capital Markets maintains a "outperform", target price is $28.00
Stratos Global (SGB : TSX : $5.30)
Fourth quarter EBITDA beat expectations; 2007 guidance in line
Desjardins Securities reiterates "buy", target price is $7.00
SNC-Lavalin Group (SNC : TSX : $36.51)
Fourth quarter results expected this Friday
RBC Capital Markets maintains a "outperform", target price is $42.00
Student Transport of America (STB.UN : TSX : $11.75)
Q2/07 results come in just short of expectations
BMO Nesbitt Burns maintains a "market perform", target price is $12.00
TransCanada Corp. (TRP : TSX : $38.18 | NYSE : US$32.69)
Receives important approval for proposed Keystone oil pipeline
RBC Capital Markets maintains a "outperform", target price is $46.00
TELUS (T : TSX : $57.93 | TU : NYSE : US$49.05)
Posts in line Q4/06 results
BMO Nesbitt Burns maintains a "market perform", target price raised to $63.00
Desjardins Securities downgrades to "hold", target price is $63.00
RBC Capital Markets maintains a "outperform", target price raised to $66.00
Scotia Capital Markets maintains a "sector perform", 1-year target price raised to $64.00
Vecima Networks (VCM : TSX : $10.60)
To acquire Spectrum Signal Processing
Raymond James maintains "outperform", 6-12 month target price is $12.50
West Fraser Timber Co. (WFT : TSX : $45.00)
Depressed lumber prices impact fourth quarter results
BMO Nesbitt Burns maintains a "market perform", target price is $50.00
CIBC World Markets maintains a "sector perform", target price cut to $43.00
RBC Capital Markets maintains a "outperform", target price is $47.00
Whiterock REIT (WRK.UN : TSX : $14.55)
Selling its share of three Quebec City properties
Blackmont Capital maintains a "buy", 12-month target price is $15.50
Ear on the Street
Alberta Clipper Energy (ACN : TSX : $4.95)
Bought deal financing closed
BMO Capital Markets maintains "outperform", 12-month target price is cut to $6.75
Amtelecom Income Fund (AMT.UN : TSX : $13.45)
Bell Aliant bids for $13.00/unit
Canaccord Adams maintains "buy", 12-month target price is raised to $14.00
Aur Resources (AUR : TSX : $20.89)
Q4 fell short of consensus
Raymond James maintains "market perform", 6-12 month target price is $27.00
Bell Aliant (BA.UN : TSX : $29.40)
Sale of directory business for $330 million
RBC Capital Markets maintains "sector perform", 12-month target price is raised to $30.00
Bombardier Inc. (BBD.B : TSX : $4.74)
Launched the CRJ1000 regional jet
BMO Capital Markets maintains "underperform", 12-month target price is $3.20
Credit Suisse maintains "underperform", 12-month target price is $2.65
Desjardins Securities maintains "buy", 12-month target price is $4.80
GMP Securities maintains "reduce", 12-month target price is $3.35
TD Newcrest maintains "reduce", 12-month target price is $4.00
Bird Construction Income Fund (BDT.UN : TSX : $14.45)
Wins marquee project
Blackmont Capital maintains "buy", 12-month target price is raised to $19.00
BlackWatch Energy Services (BWT.UN : TSX : $2.20)
Suspension of distributions
Blackmont Capital downgrades to "sell", 12-month target price is cut to $2.25
Cameco Corp. (CCO : TSX : $42.16)
New Street coverage
CIBC World Markets initiates coverage with a "sector outperform", 12-month target price is $51.00
Canfor Pulp Income Fund (CFX.UN : TSX : $15.03)
Strong Q4
BMO Capital Markets maintains "outperform", 12-month target price is raised to $15.00
CIBC World Markets maintains "sector outperform", 12-month target price is raised to $16.50
Chemtrade Logistics Inc Fd (CHE.UN : TSX : $8.33)
Limited downside risk
Blackmont Capital upgrades to "hold", 12-month target price is raised to $8.00
Cangene Corp. (CNJ : TSX : $8.60)
A strong contender for BioShield contracts
GMP Securities maintains "buy", 12-month target price is $13.50
Cardiome Pharma (COM : TSX : $14.04 | CRME : NASDAQ : US$12.01)
FDA accepts NDA for Vernakalant IV
Raymond James maintains "strong buy", 6-12 month target price is $19.00
RBC Capital Markets maintains "outperform", 12-month target price is $15.00
Cordero Energy (COR : TSX : $5.02)
Lower 2007 guidance
BMO Capital Markets maintains "outperform", 12-month target price is cut to $6.50
Canadian Utilities (CU : TSX : $43.49)
ATCO Electric files 2007/08 GTA
BMO Capital Markets maintains "market perform", 12-month target price is $42.50
Domtar Inc. (DTC : TSX : $11.00 | NYSE : US$9.40)
Better than expected performance by the Weyerhaeusre Paper Division
BMO Capital Markets maintains "outperform", 12-month target price is raised to $13.50
Great Lakes Carbon Inc. Fd (GLC.UN : TSX : $11.95)
Rain's bid insufficient
RBC Capital Markets upgrades to "outperform", 12-month target price is raised to $14.25
GobiMin (GMN : TSX-V : $2.35)
New copper joint venture in China
Desjardins Securities maintains "buy", 12-month target price is $3.90
Goldcorp Inc. (G : TSX : $32.12 | GG : NYSE : US$27.36)
Announces sale of Peak, Amapari
CIBC World Markets maintains "sector outperform", 12-month target price is cut to US$39.00
Raymond James maintains "outperform", 12-month target price is $37.00
Great-West Lifeco (GWO : TSX : $36.67)
To purchase Putnam
BMO Capital Markets maintains "outperform", 12-month target price is $40.00
Iamgold Corp. (IMG : TSX : $10.43)
Increase in reserves at Rosebel
Blackmont Capital maintains "buy", 12-month target price is $14.00
Inmet Mining (IMN : TSX : $60.85)
Less metal expected from Ok Tedi and Cayeli
Raymond James rates "outperform", 12-month target price is $62.38
Isotechnika Inc (ISA : TSX : $1.62)
Raised $40.4 million in bought deal
RBC Capital Markets rates "outperform", 12-month target price is $4.50
KCP Income Fund (KCP.UN : TSX : $8.34)
Takeover speculation
BMO Nesbitt Burns maintains "market perform" 12-month target price is $9.25
Loblaw Companies (L : TSX : $47.78)
Annual investor day Wednesday Feb 21
Desjardins Securities rates "hold", 12-month target price is $50.00
Miranda Technologies (MT : TSX : $14.45)
Results better that consensus
BMO Nesbitt Burns maintains "outperform", 12-month target price is raised to $18.00
Noranda Income Fund (NIF.UN : TSX : $9.98)
Weaker zinc sales
BMO Nesbitt Burns maintains "outperform", 12-month target price is $12.50
RBC Capital Markets rates "sector perform", 12-month target price is $10.50
TD Newcrest maintains "hold", 12-month target price is cut to $10.00
Q9 Networks Inc. (Q : TSX : $14.19)
Leading provider of outsourced IT
GMP Securities initiates coverage with "buy", 12-month target price is $17.00
Ritchie Bros Auctioneers Inc. (RBA : TSX : $71.85 | NYSE : US$61.47)
Solid start
Raymond James maintains "market perform", 12-month target price is $62.50
Rogers Communications (RCI.B : TSX : $39.50)
Wireless competitors could increase
Canaccord Capital rates "sell", 12-month target price is raised to $32.00
Cdn. Real Estate Investment (REF.UN : TSX : $32.56)
Sells 1/2 interest in Toronto office building
Desjardins Securities maintains "hold", 12-month target price is raised to $34.00
Research In Motion (RIM : TSX : $165.48 | RIMM : NASDAQ : US$141.25)
Blackberry 8800 impressive
RBC Capital Markets maintains "sector perform", 12-month target price is US$145.00
TD Newcrest maintains "action list buy", 12-month target price is raised to US$175.00
RONA Inc. (RON : TSX : $24.09)
Q4 results coming today
Blackmont Capital maintains a "buy", 12-month target price is $27.50
Canaccord Capital maintains "buy", 12-month target price is $25.00
SFK Pulp Fund (SFK.UN : TSX : $5.47)
Distribution increased, as expected
Raymond James maintains a "outperform", 6-12 month target price raised to $5.75
TD Newcrest maintains a "buy", 12-month target price is raised to $5.75
Silver Wheaton (SLW : TSX : $12.33 | NYSE : US$10.53)
Posts in line results
Blackmont Capital maintains a "buy", 12-month target price is raised to $16.00
RBC Capital Markets maintains a "sector perform", target price not provided
Sound Energy Trust (SND.UN : TSX : $4.65)
Drops the monthly DPU; updates guidance
TD Newcrest maintains a "hold", 12-month target price is $4.75
Savanna Energy Services (SVY : TSX : $19.07)
Makes $68 million service rig purchase
RBC Capital Markets maintains a "top pick", target price raised to $28.00
TD Newcrest maintains a "hold", 12-month target price is $21.00
Stornoway Diamond (SWY : TSX : $1.13)
Renard project should add value
GMP Securities initiates coverage with a "buy", 12-month target price is $1.80
TELUS (T : TSX : $58.30 | TU : NYSE : US$48.53)
Fourth quarter results slightly ahead of expectations
Credit Suisse maintains a "outperform", target price raised to $65.00
Vecima Networks (VCM : TSX : $10.55)
Acquiring Spectrum Signal Processing
CIBC World Markets maintains a "sector outperform", target price is $14.00
West Fraser Timber Co. (WFT : TSX : $44.15)
Fourth quarter meets expectations
RBC Capital Markets maintains a "sector perform", target price is $47.00
Wolfden Resources Inc (WLF : TSX : $3.70)
Receives conditional takeover offer from Zinifex
Desjardins Securities reiterates "hold", target price raised to $4.25
Canadian Satellite Radio (XSR : TSX : $7.40)
XM Satellite Radio and Sirius Satellite Radio announce merger plans
Desjardins Securities maintains "hold", 12-month target price is $10.00
GMP Securities maintains "buy", 12-month target price is $9.50
RBC Capital Markets maintains "sector perform", 12-month target price is $8.50
Yellow Pages Income Fund (YLO.UN : TSX : $13.24)
Acquiring Bell Aliant's Directory Services
Blackmont Capital upgrades to "buy", 12-month target price is raised to $14.00
BMO Nesbitt Burns maintains a "market perform", target price is $13.50
CIBC World Markets maintains a "sector perform", target price raised to $13.75
Desjardins Securities reiterates "top pick", target price is $15.00
TD Newcrest maintains a "action list buy", 12-month target price is raised to $15.00
WASHINGTON & HOUSTON, February 21 /CNW/ - Calibre Energy, Inc.,
(OTCBB:CBRE), ("Calibre") announced that the Bina-Bawi 1 exploration well was
at a depth of 3,355 meters (11,007 feet) and has completed logging the lower
part of the hole. Earlier in the drilling of the Bina-Bawi 1, oil was
recovered from the drill string during a fishing operation from intervals in
the Upper Cretaceous at the depths of 550 to 750 meters. The Joint Venture has
agreed to commence testing to determine the productive and commercial
potential of at least three zones intersected by the well. Furthermore, the
Joint Venture anticipates drilling the Bina-Bawi 2 appraisal well upon the
completion of the Bina-Bawi 1 in order to evaluate and test the prospective
intervals in the Upper Cretaceous.
Chinese buying picking up for copper: imports up sharply
By: Lawrence Williams
Posted: '16-FEB-07 22:00' GMT © Mineweb 1997-2006
LONDON (Mineweb.com) --According to the latest analysis by Numis Securities in London, Chinese import statistics indicate a strong pick up in Chinese copper imports implying that re-stocking is taking place following a year where the Chinese have been running down their inventories. January refined and alloy copper imports reached 147,650t up 70% year on year.
Numis Securities has been in the forefront of regular analysis of the Chinese metals sector, so one needs to pay some attention to its findings.
Numis says that Chinese copper imports in January were at levels not seen since 2005. Market participants in the region estimate that February imports could hit 150,000 t as consumers secure metal ahead of the Chinese Lunar New Year celebrations and week-long holiday starting 18th February. Copper imports were down in 2006 in response to high prices prompting heavy de-stocking activity throughout the consumption pipeline. The lower prices seen in recent weeks have encouraged re-stocking which has long been expected. Additionally the lower prices of recent weeks, have reduced scrap supply.
Traditionally, Numis says, prices are often stronger at this time of year as manufacturers build stock levels ahead of the construction season. It is therefore possible that copper prices prove to be resilient during the spring and into the Northern Hemisphere’s summer period. However, manufacturing and demand frequently slows over the summer.
Copper prices received a further boost on Wednesday due to a weakening of the US$ following comments from US Federal Reserve Chairman, Ben Bernanke saying that inflationary pressures “are beginning to diminish”, which could lead to an interest rate cut this year.
Despite the recent strong recovery in copper prices to US$5,865 per ton this morning from a recent low of US$5,270 on 8 February, Numis remains cautious for the outlook over the year ahead. The next few months may well prove to be strong but new supply is coming to the market, and if prices are too high, then demand will no doubt fall away and re-stocking activity cease as happened in 2006.
On the negative side for copper, LME copper inventories have almost doubled since October 2006, although they still only represent a fraction of world usage. Additionally, the high copper prices last year were in part due to metal supply being in deficit during the year – boosted by some disruptions at key producers. This year the metal is expected to be in surplus by 197,000 tons according to Bloomsbury Minerals Economics – one of the most reliable forecasters of copper prices.
For exposure to copper Numis recommend: Xstrata, BHP, Rio Tinto, Antofagasta, First Quantum, African Copper, and Monterrico Metals. (Numis points out it is broker and adviser two of these – First Quantum and African Copper).
We introduced Bioscrypt (BYT.T $0.95) back on January 8th at $0.60. This was our first entry into the security sector for 2007 and the following company (GLOI) will be our second. GLOI is tightly held and for existing shareholders that is fine, but when a person is looking to take a new position, it becomes a significant disadvantage. OTC market makers will also take advantage of this situation by manipulating share price so its the type of company that requires patience. If you're looking closely at stocks like this and find that market makers move share price beyond a comfortable range, just wait patiently rather than chase them. The short term volatility only increases risk if they try to take advantage of new buyers.
Canaccord (www.canaccord.com) analysts recently placed a $5 target on GLOI. This would be based upon a 12 to 18 month window and likely contingent upon the company hitting profitable annual revenue of $100 million in 2007 (a realistic objective). This is a fascinating OTC company with an advisory board that reads like the Who's Who of U.S. government and national security. They employ security and risk experts like retired Army General Wesley Clark, onetime FEMA director James Witt, and former NYC police commissioner Howard Safir.
Global Options Group (GLOI/OTC $1.45)
www.globaloptions.com
GLOI is in a very large and growing (but fragmented) market for security solutions and risk mitigation. They are aggresive and have plans to consolidate the risk mitigation industry (estimated at $14 Billion annually) in an effort to become one of the top consulting firms.
Recently the u.S. Congress passed a homeland security bill (anti-terror legislation) valued at almost $50 Billion over the next several years. This demonstrates the importance placed on this industry from both a government, and corporate perspective.
"Our first and highest duty as members of this Congress is to protect the American people, to defend our homeland and to strengthen our national security," said Majority Leader Steny Hoyer.
Overview & Strategic Objectives
The company provides high-end risk mitigation services to Fortune 500 corporations, governmental organizations and high-profile individuals throughout the world. Their services currently include risk management and security, investigations and litigation support, crisis management and corporate governance. These engagements take their staff around the world and are typically highly sensitive engagements where they interact with senior leaders in corporations and governments. Their overall mission is to identify, evaluate, assess, prevent and correct issues that may threaten people, organizations or strategic initiatives for corporations and governments.
Their goal is to become, through acquisition and new product development, a major risk mitigation solutions company. They are frequently in discussions with privately or publicly owned firms in the risk mitigation industry. Potential acquisitions could take advantage of synergies and expand geographic reach into many more countries around the world. The company seeks to leverage their executive-level contacts, management and advisory teams across all their product and service offerings, while building a lower-cost infrastructure than individual businesses could achieve on their own.
According to the Lehman Brothers Security Industry Annual Report 2004, the risk mitigation market doubled in size from 1990 to 2000 and the market is expected to continue its steady growth and triple in size from 2000 to 2010.
Organized into Three major segments:
Investigations and Litigation Support
Crisis Management and Corporate Governance
Risk Management and Security
Their management, staff and advisory boards include security, emergency preparedness, business continuity and terrorism experts formerly in the military and top governments positions, former intelligence and law enforcement officers, professional investigators, and legal and crisis communications specialists.
As an example, the company has performed risk assessments of corporate headquarters, chemical weapon stockpiles, nuclear installations and reactors, factories, yachts, private aircraft, homes, transportation systems, government facilities, political conventions, sports stadiums and sporting events.
An Outstanding Advisory Board
In addition to their management team, they utilize a group of advisors to provide assistance with corporate and governmental contacts, as well as business development. Board members currently include:
a) Frances Cook - former Ambassador to Burundi, former Ambassador to Cameroon; former Ambassador to the Sultanate of Oman and the first female Ambassador from any country in the Arabian Gulf.
b) John Oswald - former partner of the international law firm of Lord Day & Lord; director of numerous corporations, including Preem Holdings, the largest downstream refining operation in Europe
c) Sir Richard Needham - former United Kingdom Minister for Trade and Industry
d) Honorable William S. Sessions - former Director of the Federal Bureau of Investigation; former Chief of the Government Operations Section of the Department of Justice
e) Rodney Slater - former United States Secretary of Transportation; former head of the Federal Highway Administration
f) Honorable William H. Webster - former Director of the Central Intelligence Agency (1987-91); former Director of the Federal Bureau of Investigation (1978- 87); Judge Webster was awarded the Presidential Medal of Freedom and the National Security Medal.
g) Honorable R. James Woolsey - former Director of the Central Intelligence Agency (1993-95); former member of the National Commission on Terrorism; former Undersecretary of the Navy; and former General Counsel to the United States Senate Committee on Armed Services.
Danny Deadlock
Microcap.com
--------------------------------------------------------------------------------
email: microcap@telus.net
web: http://www.microcap.com
Companies featured in the current edition of the newsletter: ADSX, ARGA, CYTR, EMIS, GNBT, HSOA, HYTM, IMMG, ISOND, ITUI, SCLL, SFP, SOG, SWTS, USAT
The bulls seized control of Wall Street last week, as reassuring comments by Federal Reserve Chairman Bernanke last week were all that was needed to send the Dow to another record high, and support further gains in all of the other indexes. Bernanke’s comments support the view that The Fed is not expected to raise rates anytime soon, while still leaving potential for a possible rate cut later in the year. The S&P 500 was up and down over the course of the week, but saw a surge based on Bernanke’s comments. The S&P 500 closed the week up 17 points and increased its year to date gain to 2.6%. The Dow was up 186 points and is up 2.4% this year, while the Nasdaq rose 36 points, increasing its year to date advance to 3.4%. The Russell 2000 closed the week up 11 points and increased its year to date gain to 3.9%.
Investors ignored declines in industrial production, housing and consumer confidence to send the markets higher last week. Industrial production dropped last month as a result of weakness in the auto sector. Housing remains a concern with January housing starts plunging 14.3%, the steepest decline in more than a decade. Many believe the sharp decline, after two consecutive months of gains, was due to unseasonably cold weather. However, the January core PPI was in line with expectations, helping to ease concerns about economic weakness. The Saudi oil minister suggested that no output reductions were necessary and oil prices ended the week at $59.39, trading in a narrow range.
What should investors look for in the upcoming week? Earnings announcements have slowed considerably with only a handful of major names scheduled to report results over the course of the upcoming holiday shortened week, as all of the markets are closed Monday. Investors can expect to see earnings reports from Alltel (NYSE: AT), Home Depot (NYSE: HD), First Energy (NYSE: FE), and Wal-Mart (NYSE:WMT) before the bell Tuesday. Hewlett-Packard (NYSE: HPQ) and Medtronic (NYSE: MDT) will announce earnings after the bell. Abercrombie (NYSE: ANF) and Whole Foods (Nasdaq: WFMI) will announce earnings after the close Wednesday. Thursday will be the busiest day for announcements with earnings reports from CMS Energy (NYSE: CMS), JC Penny (NYSE: JCP), Barrick Gold (NYSE: ABX), OfficeMax (NYSE: OMX), Safeway (NYSE: SW), and TRW Automotive (NYSE: TRW) before the bell. H&R Block (NYSE: HRB), Chiquita Brands (NYSE: CQB) and Chesapeake Energy (NYSE: CHK) will report earnings after the bell Thursday. Friday morning reports from Lowe’s (NYSE: LOW)and Clear Channel (NYSE: CCU) will close out the week for earnings reports.
Next week’s economic news and data will be relatively tame, but some mid-week activity could get some investor attention. The January Core CPI will be announced before the bell Wednesday followed shortly after by mid-morning announcements of the January Leading Indicators and the Weekly Crude Inventories. The FOMC minutes from January 31, 2006 will be released shortly before the market close Wednesday afternoon. The Weekly Initial Unemployment Claims will be announced before the bell Thursday and the January Help-Wanted Index will be announced later that morning. Fed Gov Bies will speak at Duke on Tuesday. Fed Gov Kohn will address financial stability Wednesday while San Francisco Fed president Yellen will speak on the economy.
The conference schedule for next week will once again be active. The four-day ROTH Capital Partners 19th Annual OC Conference at the Ritz Carlton in Laguna Niguel , California will begin Monday. Hythiam, Inc, (NASDAQ: HYTM)is scheduled to present Tuesday at 10:30 a.m. Pacific Time. Emisphere Technologies (NASDAQ: EMIS) presents later that day at 3:30 p.m. Auriga Laboratories, Inc. (OTCBB: ARGA), is scheduled to present at 10:30 Thursday, along with USATechnologies (OTCBB: USAT). CytRx Corporation (NASDAQ: CYTR)is scheduled to present on Thursday at 11:30 am PST. The four-day Consumer Analyst Group of New York 2007 Conference in Scottsdale, Arizona and the three-day Morgan Stanly Basic Materials Conference in New York will begin Tuesday. The Prudential Equity Group Washington Healthcare Conference in Washington, D.C. and the Piper Jaffray Second Annual Solar & Clean Tech Symposium are Wednesday. The three-day RBC Capital Markets Communications, Media and Technology conference in Toronto, Ontario, the two-day Bank of America Technology Conference in New York, and the four-day CIBC World Markets 2007 Whistler Institutional Investor Conference in Whistler, British Columbia will also begin Wednesday. The CIBC 4th Annual Vail Semiconductor Summit in Vail, Colorado and the Credit Suisse Global Forest Products Conference are scheduled to begin Thursday. The JPMorgan Private Homebuilder Conference in New York and the two-day D.A. Davidson 5th Annual Technology Conference in Phoenix, Arizona will also begin Thursday.
Volume Alert:Shares of CytRx Corporation (NASDAQ: CYTR), a biopharmaceutical company focused on developing products primarily in the area of small molecules and ribonucleic acid interference (RNAi), surged to another 52-week high on more than four times average volume last week, as the stock continues its blistering run that has seen shares advance more than double this year as investors have begun to focus on the company’s RNAi technology platform and its scientific advisory board, led by Craig Mello, Ph.D., who was recently awarded the Nobel Prize as the co-discoverer of RNAi. Despite the gains, the stock still trades at a substantial discount to peer company Alnylum Pharmaceuticals, and well below the price that Merck paid to acquire Sirna recently. The stock closed the week up $0.85 at $4.10.
Generex Biotechnology Corporation (NASDAQ: GNBT), a leader in the area of buccal drug delivery, announced its wholly-owned subsidiary, Anitgen Express received a Notice of Allowance in connection with U.S. Patent Application No. 10/197,000. The specific award covers fundamental aspects of the design and use of Ii-Key antigenic epitope hybrids in treating disease. In addition to the initiation of a Phase II clinical trial designed to test the efficacy of one of its immunotherapeutic Ii-Key hybrid vaccines in breast cancer, Antigen Express has also initiated clinical trials on a synthetic avian influenza vaccine based on the same platform. The stock ended the week down $0.11 at $1.73.
Isonics Corporation (NASDAQ: ISOND), developer of innovative solutions for the homeland security and semiconductor markets, announced last week that the company has completed a 1-for-4 reverse split of its common stock as part of a plan to maintain the company’s continued listing status on the Nasdaq. Isonics’ shareholders received one share of Isonics stock for every four shares they held. the company’s stock symbol will trade with a “D” at the end for approximately 20 trading days to reflect the reverse stock split. The company’s common stock will once again trade under the ISON ticker symbol after the expiration of the period. Shares ended the week down $0.32 at $1.76.
Small appliance maker Salton, Inc. (NYSE: SFP), announced last week fiscal results for its second quarter ended December 30, 2006. Salton reported net sales of $190.9 million and a loss of $6.3 million compared with net sales of $230.4 million in the second quarter of fiscal 2006 and a loss of $27.8 million. The net loss reported in fiscal 2006 included a $28.1 million non-cash charge for recording a valuation allowance on a portion of the company’s deferred tax assets. Gross profit for the second quarter declined from $64.4 million in fiscal 2006 to $49.8 million in fiscal 2007, primarily a result of the decreases in net sales in the domestic business coupled with rising prices from suppliers, and increased cost of raw materials. For the six months ended December 30, 2006, Salton had net sales of $329.3 million and a loss of $16.4 million, compared with net sales of $378.8 million and net income of $1.9 million. Fiscal 2006 net income included a $27.8 million gain associated with the sale of the company's 52.6% ownership interest in Amalgamated Appliances and $21.7 million gain from the early retirement of debt, partially offset by a $28.1 million valuation allowance recorded on a portion of the deferred tax assets. Gross profit for the first half of fiscal 2007 was $84.2 million, compared to $93.9 million, in the corresponding period from the year before. Of course, the results were overshadowed by the company’s recent announcement that it had inked a deal to merge with Applica, in a move that should allow both small appliance companies to reduce operating costs and enhance sales of top brands through the entry into new markets. The stock ended the week down $0.24 at $2.67.
Volume Alert:Shares of i2Telecom International, Inc. (OTCB: ITUI)surged to its highest level in nearly one year on more than three times average volume, as investors have reacted enthusiastically to the company cleaning up its capital structure, allowing it to focus on developing its innovative Voice-over-IP products. Shares doubled for the week, closing at $0.28.
Shares ofHome Solutions of America, Inc. (NASDAQ: HSOA), a provider of rebuilding, remodeling and construction services, came under pressure last week after the lone analyst covering the company reduced his estimates for the fourth quarter citing delays in funding for the Road Home Program. In the report, the analyst reduced his Q4 EPS estimate from $0.25 to $0.16 and cut the 2007 forecast from $0.79 to $0.70. The news should come as little surprise to investors in the stock, as the company cited funding delays in a previous press release and Centex, a 10% customer of the company, previously said that the housing market was the worst it had experienced in the last 25 years. Still, if the company were to earn $0.49 for the full year as the analyst forecast, it would be nearly double what it earned in fiscal 2005. At the lower earnings level, the stock trades for just 12 times trailing 12-month EPS. Shares ended the week at $6.29, down 14 cents.
Stem Cell Innovations, Inc., (OTCBB: SCLL)presented data last week at the Stem Cells World Congress in San Diego describing further characterization and extension of its PluriCell™stem cell system. The Congress attracted experts from academia and industry to discuss progress in the stem cell arena. The companyt described how its PluriCells™ have the ability to become endothelial cells, the cells that line the arteries and which are central players in cardiovascular disease. Normal adults have few circulating endothelial precursors in their blood but increased levels have been shown in conditions associated with myocardial infarction and stroke. PluriCells™ can provide both a drug discovery platform and also a potential cell therapy for use in these conditions.
IMPART Media Group, Inc. (OTCBB: IMMG), an innovator in the creation of out-of-home digital advertising content and information network management, announced last week that RediClinic LLC has selected the company as their digital signage provider. RediClinics are staffed by certified nurse practitioners who work with local physicians to diagnose, treat, and prescribe medications for common medical conditions. The company also administers a wide range of preventive services, including health screening tests, vaccinations, and back-to-school & sports physicals. Impart’s functionally unique and innovative Impart IQ™ platform was the selected solution for use by RediClinic. For each RediClinic installation, Impart will provide two Impart IQ Box™ players, as well as web-hosting, content management, and network monitoring monthly services for the RediClinic digital television system. The two companies are also in the process of creating an interactive solution that will ultimately be expanded into customer learning experiences throughout RediClinic's national network. Shares ended the week up $0.13 at $0.85.
Sweet Success Enterprises, Inc. (OTCBB: SWTS), which has re-launched a product line made popular by Nestlé’s to tap into the rapidly growing demand for convenient and nutritious beverages, announced last week that it has established e-distribution of it products through Amazon.com. The company has added Amazon.com to its growing list of distributors and has already begun shipping products to fill Amazon’s purchase order for the complete Fuel for Health™ line of beverages. Unlike other distribution vehicles, the relationship with Amazon is expected to result in immediate revenue. Shares ended the week down $0.05 at $0.58.
USA Technologies, Inc. (OTCBB: USAT), a developer of cashless vending and energy management products, announced results for the fiscal second quarter ended December 31, 2006. The company reported record quarterly revenue of $2 million, helped by the largest e-Port contract in the company’s history. Revenue for the six months ended December 31, 2006 was $4 million compared with $3.3 million for the same six month period ended December 31, 2005. Gross profit declined during the periods as a result of lower margins on the sale of hardware to MasterCard International, which is expected to result in ongoing recurring revenue. The company reported cash and cash equivalents of $8.5 million on December 31, 2006, compared with cash and cash equivalents of $2.9 million on June 30, 2006. The company’s balance sheet should allow it to meet the listing requirements for a national exchange. The stock ended the week down $0.38 at $6.34.
On The Wires: Verichip Corporation, a subsidiary of Applied Digital (NASDAQ:ADSX),announced that Michael Barbe has joined the company under the newly created position of Vice President of Sales and Distribution for the VeriMed Patient Identification System. Mr. Barbe has over 20 years of experience in the medical device industry and will be responsible for development of a distribution network for the VeriMed Patient Identification System. Auriga Laboratories, Inc. (OTCBB: ARGA), announced that effective March 1, 2007, Trevor K. Pokorney will be appointed to the company’s board of directors. In addition to extensive business and financing experience in regards to high-tech startup companies, Mr. Pokoney holds a Master of Science degree from Carnegie Mellon University Graduate School of Industrial Administration, Manufacturing and Operations Management and Bachelor of Science in Mechanical Engineering from the University of Texas at Austin . Junior oil and gas producer Strategic Oil & Gas, Ltd. (TSX Venture: SOG), announced last week that the company has begun drilling its first well in 2007. Strategic holds an initial working interest of approximately 30% in this Alberta gas test and the drilling is time is scheduled for two weeks.
Ear on the Street
ATS Automation Tooling Systems (ATA : TSX : $10.80)
Photowatt IPO price disappointing
CIBC World Markets maintains "sector outperform", 12-month target price is cut to $13.00
BlackWatch Energy Services (BWT.UN : TSX : $4.20)
Industry weakness
Blackmont Capital downgrades to "hold", 12-month target price is cut to $4.50
Chemtrade Logistics Inc Fd (CHE.UN : TSX : $8.25)
Less Q4 distributable cash than last year
Blackmont Capital maintains "sell", 12-month target price is $7.00
Canadian National Railway (CNR : TSX : $54.06)
Management reiterates guidance
Blackmont Capital maintains "buy", 12-month target price is $59.00
Canadian Pacific Railway (CP : TSX : $64.38)
CEO reiterates 2007 guidance
Blackmont Capital maintains "buy", 12-month target price is $68.75
Cinram International (CRW.UN : TSX : $23.76)
Q4 can provide upside surprise
National Bank Financial upgrades to "outperform", 12-month target price is raised to $25.00
CV Technologies (CVQ : TSX : $3.19)
Health Canada approves Cold-fX
RBC Capital Markets maintains "sector perform", 12-month target price is $3.00
DHX Media (DHX : TSX : $1.50)
Q2 below estimates
Canaccord Adams maintains "buy", 12-month target price is cut to $2.10
EnCana Corp. (ECA : TSX : $56.91 | NYSE : US$48.90)
Q4 in line and dividend raised
Blackmont Capital maintains "buy", 12-month target price is raised to US$58.00
Canaccord Adams maintains "hold", 12-month target price is US$55.00
RBC Capital Markets maintains "outperform", 12-month target price is $64.00
TD Newcrest maintains "buy", 12-month target price is US$60.00
Equinox Minerals Limited (EQN : TSX : $2.03)
First off take agreement with a Chinese company
CIBC World Markets maintains "sector underperform", 12-month target price is raised to $2.00
RBC Capital Markets maintains "underperform", 12-month target price is $2.40
Extendicare REIT (EXE.UN : TSX : $18.56)
Higher valuation due to increasing M&A in the sector
National Bank Financial maintains "outperform", 12-month target price is raised to $20.75
Fording Canadian Coal Trust (FDG.UN : TSX : $26.85 | FDG : NYSE : US$23.06)
Q4 in line
National Bank Financial downgrades to "underperform", 12-month target price is $22.50
Flint Energy Services Ltd. (FES : TSX : $26.86)
More cautious outlook of the oil service sector
Blackmont Capital maintains "buy", 12-month target price is cut to $38.50
Gateway Casinos Income Fund (GCI.UN : TSX : $18.61)
Workers voted to continue the strike at the Palace Casino
Blackmont Capital maintains "hold", 12-month target price is $19.00
Greystar Resources (GSL : TSX : $9.36)
Gold resource continues to expand at Angostura
RBC Capital Markets maintains "outperform", 12-month target price is $15.00
Great-West Lifeco (GWO : TSX : $36.73)
Earnings and dividend growth continued in the Q4
Desjardins Securities maintains "buy", 12-month target price is raised to $40.75
GMP Securities maintains "buy", 12-month target price is $41.00
TD Newcrest maintains "hold", 12-month target price is raised to $37.00
Home Capital Group (HCG : TSX : $34.00)
Posts better than expected quarter
Blackmont Capital maintains a "hold", 12-month target price is raised to $38.00
Desjardins Securities maintains a "buy", target price raised to $40.00
GMP Securities maintains a "buy", target price raised to $40.00
TD Newcrest maintains a "hold", 12-month target price is raised to $38.00
Cdn. Hotel Income Properties (HOT.UN : TSX : $16.56)
Fourth quarter in line
CIBC World Markets maintains a "sector perform", target price raised to $17.50
HSE Integrated (HSL : TSX-V : $1.90)
Reduced activity outlook
Blackmont Capital maintains "buy", 12-month target price is cut to $2.75
ING Canada (IIC : TSX : $51.66)
To buy back $500 million of its shares
CIBC World Markets maintains "sector outperform", 12-month target price is cut to $56.00
RBC Capital Markets maintains a "underperform", target price is $53.00
TD Newcrest maintains a "buy", 12-month target price is cut to $61.00
Inmet Mining (IMN : TSX : $62.50)
Good Q4
National Bank Financial maintains "sector perform", 12-month target price is $65.00
Canadian Hydro Developers (KHD : TSX : $6.31)
Reports inline fourth quarter
GMP Securities reiterates "buy", target price raised to $8.00
RBC Capital Markets maintains a "outperform", target price is $7.00
Continental Minerals (KMK : TSX-V : $2.02)
To form a partnership with Jinchuan Group
Blackmont Capital maintains "buy", 12-month target price is cut to $5.40
LionOre Mining International (LIM : TSX : $14.47)
Nickel supply remains historically low
CIBC World Markets maintains a "sector perform", target price raised to $16.00
Desjardins Securities reiterates "buy", target price is $17.10
Menu Foods Income Fund (MEW.UN : TSX : $7.34)
Q4 EBITDA meets expectations
CIBC World Markets maintains a "sector perform", target price raised to $7.00
Minefinders Corp. (MFL : TSX : $12.72 | MFN : AMEX : US$10.95)
Recent price appreciation behind downgrade
TD Newcrest downgrades to "hold", 12-month target price is $13.00
Northland Power Income Fd (NPI.UN : TSX : $12.85)
Increased overhead costs behind weaker than expected quarter
RBC Capital Markets maintains a "underperform", target price is $13.00
Nexen (NXY : TSX : $70.49 | NYSE : US$60.53)
Mixed Q4
Blackmont Capital maintains "buy", 12-month target price is $71.00
CIBC World Markets maintains a "sector outperform", target price is $81.00
National Bank Financial downgrades to "sector perform", 12-month target price is $74.00
RBC Capital Markets maintains a "sector perform", target price is $70.00
TD Newcrest maintains a "hold", 12-month target price is $73.00
Onex Corporation (OCX : TSX : $29.49)
2006 was a good year for the company
RBC Capital Markets maintains a "outperform", target price is $35.00
Precision Drilling (PD.UN : TSX : $25.82)
Pricing levels better than expected
National Bank Financial maintains "sector perform", 12-month target price is $31.00
Raymond James maintains "market perform", 6-12 month target price is $26.00
TD Newcrest maintains "hold", 12-month target price is $31.00
Peyto Energy Trust (PEY.UN : TSX : $17.36)
Reserves continue to increase
CIBC World Markets maintains "sector perform", 12-month target price is $19.00
Haywood Securities rate "sector outperform", 12-month target price is $20.00
RBC Capital Markets maintains "sector perform", 12-month target price is $17.25
Phoenix Oilfield Hauling (PHN : TSX-V : $0.63)
Slow activity expected in 2007
Blackmont Capital maintains "hold", 12-month target price is cut to $0.80
Paramount Energy Trust (PMT.UN : TSX : $12.14)
Cuts distribution by 30%
Blackmont Capital maintains a "hold", 12-month target price is $11.75
CIBC World Markets maintains a "sector underperform", target price is $11.75
Raymond James maintains "outperform", 6-12 month target price is $14.25
Parkbridge Lifestyle (PRK : TSX : $5.70)
Strong first quarter
Desjardins Securities maintains "top pick", 12-month target price is $7.40
Rogers Communications (RCI.B : TSX : $40.25)
Wireless leads the way
CIBC World Markets maintains "sector outperform", 12-month target price is raised to $45.00
Desjardins Securities maintains "top pick", 12-month target price is $45.00
GMP Securities upgrade to "buy", 12-month target price is $44.00
Haywood Securities rate "sector outperform", 12-month target price is $48.00
TD Newcrest maintains "buy", 12-month target price is raised to $50.00
Rider Resources Ltd. (RRZ : TSX : $8.47)
New financing for further exploration
GMP Securities resume coverage with "hold", 12-month target price is $11.00
Saxon Energy Services (SES : TSX : $3.99)
Q4 in line
Raymond James maintains "strong buy", 6-12 month target price is $6.00
Stratos Global (SGB : TSX : $5.14)
Rebound of broadband revenues
Canaccord Capital maintains "buy", 12-month target price is $7.00
sxr Uranium One (SXR : TSX : $16.43)
Acquiring UrAsia
Canaccord Capital maintains "buy", 12-month target price is $19.30
Trinidad Energy Services (TDG.UN : TSX : $13.89)
More cautious outlook of the oil service sector
Blackmont Capital maintains "buy", 12-month target price is raised to $15.25
TORR Canada (TOR : TSX : $0.86)
Q2 sales less than expected
Blackmont Capital maintains "buy", 12-month target price is $1.60
Vaaldiam Resources Ltd (VAA : TSX : $0.92)
To acquire Majescor's 40% interest in the Brauna
National Bank Financial maintains "outperform", 12-month target price is cut to $2.25
Van Houtte (VH : TSX : $24.50)
Coffee margins improving
GMP Securities rate "buy", 12-month target price is raised to $30.00
National Bank Financial maintains "outperform", 12-month target price is raised to $27.00
RBC Capital Markets rates "sector perform", no target price reported
Workbrain Corp (WB : TSX : $9.48)
Q4 disappointing
National Bank Financial downgrades to "sector perform", 12-month target price is cut to $11.00
Westaim Corp. (WED : TSX : $1.25)
Time running out for iFire
GMP Securities maintains "buy", 12-month target price is cut to $2.90
West Fraser Timber Co. (WFT : TSX : $45.19)
Lumber recovers
Desjardins Securities maintains "hold", 12-month target price is $47.00
RBC Capital Markets rates "sector perform", 12-month target price is $47.00
WestJet Airlines (WJA : TSX : $15.78)
Record Q4 results
CIBC World Markets "sector outperform", 12-month target price is $19.50
National Bank Financial maintains "sector perform", 12-month target price is cut to $16.00
George Weston Ltd. (WN : TSX : $71.96)
Q4 in line
RBC Capital Markets maintains "sector perform", 12-month target price is $75.00
Undervalued Stock #1 ========== --------- Dominion Resources, Inc. (NYSE: D) --------- Insider Name: Mark J. KingtonInsider Position: DirectorInsider Action: 2,000 shrs on 2/2/2007Insider Total Holding: 13,699 shrs -------------------------------------------------------Undervaluation Merits... P/E Ratio = 19.0 (Industry Average 23.4)P/B Ratio = 2.28 (Industry Average 2.63)P/CF Ratio = 9.80 (Industry Average 11.40) Industry: Electric Utilities -------------------------------------------------------Other Merits... Dividend Yield = 3.30% --------- Dominion Resources, Inc. (NYSE: D)
Ear on the Street
Aeroplan Income Fund (AER.UN : TSX : $19.44)
Strong Q4 DCPU
CIBC World Markets maintains "sector perform", 12-month target price is raised to $18.00
Desjardins Securities maintains "hold", 12-month target price is raised to $21.00
TD Newcrest maintains "buy", 12-month target price is raised to $22.00
Algoma Steel (AGA : TSX : $36.76)
Q4 EPS above estimates
CIBC World Markets maintains "sector outperform", 12-month target price is raised to $48.00
GMP Securities maintains "buy", 12-month target price is raised to $49.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is raised to $51.50
TD Newcrest downgrades to "hold", 12-month target price is $40.00
Axcan Pharma (AXP : TSX : $18.33 | AXCA : NASDAQ : US$15.61)
A solid Q1
RBC Capital Markets maintains "sector perform", 12-month target price is raised to $17.50
Axia NetMedia (AXX : TSX : $4.80)
Better-than-expected Q2
Canaccord Adams maintains "buy", 12-month target price is raised to $5.00
Haywood Securities maintains "sector outperform", 12-month target price is raised to $6.00
CAE Inc. (CAE : TSX : $12.17 | CGT : NYSE : US$10.41)
Q3 beats expectations
Canaccord Adams maintains "sell", 12-month target price is raised to $9.00
GMP Securities maintains "buy", 12-month target price is raised to $14.40
RBC Capital Markets maintains "sector perform", 12-month target price is raised to $12.00
Scotia Capital Markets upgrades to "sector outperform", 12-month target price is raised to $14.50
TD Newcrest maintains "buy", 12-month target price is raised to $14.00
Canaccord Capital Inc. (CCI : TSX : $18.45)
Q3 EPS ahead of expectations
CIBC World Markets maintains "sector outperform", 12-month target price is $23.00
TD Newcrest maintains "hold", 12-month target price is raised to $21.00
Cameco Corp. (CCO : TSX : $43.72 | CCJ : NYSE : US$37.32)
2007 deliveries delayed
GMP Securities maintains "buy", 12-month target price is US$54.00
Crescent Point Energy Trust (CPG.UN : TSX : $17.23)
Momentum increases due to Mission acquisition
TD Newcrest maintains "buy", 12-month target price is raised to $18.50
Canadian Tire Corporation (CTC.A : TSX : $72.89)
Q4 in line
CIBC World Markets maintains "sector perform", 12-month target price is $76.00
Desjardins Securities maintains "buy", 12-month target price is $80.00
Raymond James maintains "market perform", 6-12 month target price is $78.00
RBC Capital Markets maintains "outperform", 12-month target price is cut to $85.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $80.00
CV Technologies (CVQ : TSX : $2.27)
Q1 loss and disappointing U.S. sales
RBC Capital Markets maintains "sector perform", 12-month target price is cut to $3.00
Consumers Waterheater Fund (CWI.UN : TSX : $14.92)
Closed acquisition of Toronto Hydro Energy Sevices Inc.
TD Newcrest maintains "hold", 12-month target price is $13.50
Draxis Health (DAX : TSX : $5.92 | DRAX : NASDAQ : US$5.04)
Q4 in line
Desjardins Securities maintains "hold", 12-month target price is US$5.75
Scotia Capital Markets maintains "sector outperform", 12-month target price is $6.00
TD Newcrest maintains "action list buy", 12-month target price is US$6.50
Dalsa Corp. (DSA : TSX : $11.68)
Attractive valuation
Scotia Capital Markets maintains "sector perform", 12-month target price is $15.00
Enerflex Systems (EFX.UN : TSX : $10.60)
Q4 misses
RBC Capital Markets maintains "outperform", 12-month target price is $14.00
Emergis (EME : TSX : $5.25)
Infoway DIS agreement
Scotia Capital Markets maintains "sector outperform", 12-month target price is $6.00
Forzani Group (FGL : TSX : $18.88)
Cold weather in eastern Canada my help sales
Canaccord Adams maintains "hold", 12-month target price is $18.50
Fortis Inc. (FTS : TSX : $27.10)
Another quarter above estimates
Canaccord Adams maintains "buy", 12-month target price is raised to $32.00
CIBC World Markets maintains "sector underperform", 12-month target price is $27.00
TD Newcrest upgrades to "hold", 12-month target price is $26.00
Highpine Oil & Gas (HPX : TSX : $17.40)
Strong production growth expected in Q1
RBC Capital Markets maintains "outperform", 12-month target price is $21.00
Heroux-Devtek Inc. (HRX : TSX : $7.47)
Strong Q3
Raymond James maintains "outperform", 6-12 month target price is raised to $9.25
International Forest Products (IFP.A : TSX : $7.25)
Q4 beats expectations
Raymond James maintains "outperform", 6-12 month target price is $8.50
RBC Capital Markets maintains "outperform", 12-month target price is $8.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $8.35
Jazz Air Income Fund (JAZ.UN : TSX : $8.60)
2006 results beat expectations
CIBC World Markets maintains "sector outperform", 12-month target price is $9.30
Desjardins Securities maintains "buy", 12-month target price is $9.75
Kingsway Financial Services (KFS : TSX : $23.15 | NYSE : US$19.77)
Disappointing quarter
CIBC World Markets downgrade to "sector perform", 12-month target price is cut to $26.00
Desjardins Securities maintains "buy", 12-month target price is cut to $32.00
Scotia Capital Markets rates "sector perform", 12-month target price is $29.00
Cossette Communication Group (KOS : TSX : $12.00)
Q1 slightly ahead of expectations
Desjardins Securities maintains "hold", 12-month target price is $13.00
TD Newcrest upgrades to "buy", 12-month target price is raised to $14.00
Loblaw Companies (L : TSX : $46.92)
Long road to recovery
Desjardins Securities maintains "hold", 12-month target price is $50.00
RBC Capital Markets rates "underperform", 12-month target price is $46.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $43.50
TD Newcrest maintains "reduce", 12-month target price is cut to $46.00
Major Drilling Group Intl. (MDI : TSX : $25.35)
Second largest minerals and mining driller
TD Newcrest initiates coverage with a "buy", 12-month target price is $32.00
Mission Oil & Gas (MSO : TSX : $12.75)
Acquired by Crescent Point Energy Trust
GMP Securities Securities discontinues coverage
Nortel Networks Corp. (NT : TSX : $33.91 | NYSE : US$29.02)
Expect class action settlement in Q3/07
Scotia Capital Markets maintains "sector outperform", 1-year target price of $40.00
Open Text (OTC : TSX : $26.83 | OTEX : NASDAQ : US$22.91)
Beat expectations on bottom line
Canaccord Capital maintains "hold", 12-month target price is US$20.00
CIBC World Markets maintains "sector perform", 12-month target price is raised to US$25.00
GMP Securities Securities maintains "buy", 12-month target price is raised to US$24.00
Raymond James maintains "outperform", 12-month target price is raised to $30.00
RBC Capital Markets maintains "outperform", 12-month target price is raised to US$27.00
Scotia Capital Markets rates "sector perform", 12-month target price is US$25.00
TD Newcrest maintains "buy", 12-month target price is raised to US$27.00
Research In Motion (RIM : TSX : $156.38 | RIMM : NASDAQ : US$133.33)
One million subscriber adds in Q4
RBC Capital Markets maintains "sector perform", 12-month target price is US$145.00
Shoppers Drug Mart (SC : TSX : $51.25)
Strong quarter on all fronts
CIBC World Markets maintains "sector outperform", 12-month target price is raised to $57.00
Desjardins Securities maintains "hold", 12-month target price is $50.50
Scotia Capital Markets maintains "sector outperform", 1-year target price of $59.00
Steeplejack Industrial Group (SID : TSX : $7.55)
Another strong quarter
Raymond James maintains "strong buy", 6-12 month target price is $10.00
Energy Savings Income Fund (SIF.UN : TSX : $13.00)
Mixed Q3 and lower 2007 customer addition guidance
Canaccord Adams maintains "buy", 12-month target price is $15.25
Haywood Securities maintains "sector outperform", 12-month target price is $15.00
TD Newcrest downgrades to "hold", 12-month target price is cut to $14.00
Sun Life Financial Inc. (SLF : TSX : $51.89 | NYSE : US$44.25)
Beats consensus in Q4
Desjardins Securities maintains "buy", 12-month target price is $56.00
GMP Securities Securities maintains "buy", 12-month target price is $57.50
Scotia Capital Markets rates "sector outperform", 12-month target price is $58.00
TD Newcrest upgrade to "buy" 12-month target price is raised to $58.00
Stelco Inc. (STE : TSX : $20.00)
Operating losses of 120-140 million in Q4/06
RBC Capital Markets maintains "underperform", 12-month target price is reduced to $16.00
TIO Networks (TNC : TSX-V : $0.95)
New COO announced
GMP Securities Securities maintains "buy" 12-month target price is $1.70
Thomson Corporation (TOC : TSX : $51.00 | NYSE : US$43.55)
Increased annual divided by 11%
Scotia Capital Markets rates "sector perform", 12-month target price is $52.50
TD Newcrest maintains "hold", 12-month target price is raised to $53.00
TimberWest Forest Corp. (TWF.UN : TSX : $17.00)
Unit price appreciation
Raymond James rates "market perform", 6-12 month target price is $14.50
Scotia Capital Markets downgrades to "sector underperform", 12-month target price is $15.50
Westport Innovations (WPT : TSX : $1.52)
Provides update on WRI
Canaccord Capital maintains "hold", 12-month target price is $1.60
Western Oil Sands Inc (WTO : TSX : $33.50)
Potential for sale or merger
GMP Securities Securities upgrades to "buy", 12-month target price is raised to $37.00
Raymond James rates "market perform", 6-12 month target price is $34.00
Tiomin Kenyan titanium mining project might after all be a white elephant
By: Frank Jomo
Posted: '14-FEB-07 09:00' GMT © Mineweb 1997-2006
MALAWI (Mineweb.com) -- The collapse of Toronto listed Tiomin Resources’ titanium project in Kenya might be nigh following reports that the company has halted development of the Kwale mineral sands project.
A brief statement by the company says the project will be on hold for the next seven months. This is owing to the fact that delays and rising costs forced the project's lenders to withdraw the US$155 million debt facility that was in place for the Project. The company however added that it expected that strong product prices (for zircon and rutile) and reduced capital spending will revive lender interest at the appropriate time.
“Tiomin anticipates completing the resettlement of the farmers displaced by the Project by the end of the first quarter,” reads the brief statement. “ The Company will work towards the evaluation of substantial technical and contractual cost saving measures to improve the economics of the Kwale Project.”
The development comes hard on the heel of an announcement by ATW Venture Corporation that it will not execute the formal agreement it had with Tiomin to acquire an option to purchase up to a 50 percent interest in the company’s Kenyan mineral sand projects.
The latest development come at a time when the Kenyan government has exempted the company from paying Sh5.8 billion (US$ 84 million) in Value Added Tax on assorted imported mining equipment, according to the East African Standard.
But the exemption according to the paper has not come cheap. The country’s Finance Minister Amos Kimunya has warned Tiomin that if it breached any of the terms of a special mining lease the Kenyan government granted it in February 2005, the tax would be payable.
But announcing the suspension of the project, the company said it still remained in Force Majeure with the government – which is a legal term that implies that Tiomin is exonerated from any liabilities that may arise as a result of frustration of the contract
by factors beyond its control like natural disasters.
Tiomin signed an agreement with Standard Chartered Bank, WestDLB AG, Caterpillar Financial Australia Ltd and African Development Bank to fund the project in Kenya which was the largest Foreign Direct Investment (FDI) the country had in the past twenty years. The realization of that FDI now hangs in limbo.
Ear on the Street
Air Canada (AC.A : TSX : $19.92)
Solid Q4
Raymond James maintains "market perform", 6-12 month target price is raised to $21.00
TD Newcrest maintains "buy", 12-month target price is $25.00
ACE Aviation Holdings (ACE.B : TSX : $35.86)
Q4 in line
Desjardins Securities maintains "hold", 12-month target price is $40.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $41.00
TD Newcrest maintains "buy", 12-month target price is raised to $45.00
AutoCanada Income Fund (ACQ.UN : TSX : $10.50)
New Street coverage
Scotia Capital Markets initiates coverage with a "sector outperform", 12-month target price is $12.50
ATS Automation Tooling Systems (ATA : TSX : $12.55)
Q3 preview
Blackmont Capital maintains "buy", 12-month target price is $13.70
Alimentation Couche-Tard (ATD.B : TSX : $25.07)
Retail gasoline margin below estimates
Blackmont Capital maintains "buy", 12-month target price is $32.00
Aur Resources (AUR : TSX : $19.94)
Q4 weaker than expected
Canaccord Adams maintains "hold", 12-month target price is cut to $20.00
CIBC World Markets maintains "sector outperform", 12-month target price is $32.00
Credit Suisse maintains "neutral", 12-month target price is $23.00
Desjardins Securities maintains "buy", 12-month target price is $26.85
GMP Securities maintains "buy", 12-month target price is $29.00
Scotia Capital Markets maintains "sector underperform", 12-month target price is cut to $19.00
TD Newcrest downgrades to "hold", 12-month target price is cut to $23.00
Brookfield Properties (BPO : TSX : $54.15 | NYSE : US$46.24)
Q4 in line
CIBC World Markets maintains a "sector perform", target price raised to US$49.00
Desjardins Securities maintains "buy", 12-month target price is US$58.50
Raymond James maintains "outperform", 6-12 month target price is raised to US$56.00
RBC Capital Markets maintains "sector perform", 12-month target price is raised to US$48.00
Scotia Capital Markets maintains "sector underperform", 12-month target price is US$38.50
TD Newcrest maintains "hold", 12-month target price is US$46.00
CAE Inc. (CAE : TSX : $12.67 | CGT : NYSE : US$10.79)
Rebounding of civil sim market share
GMP Securities reiterates "focus buy", target price is $14.40
Canaccord Capital Inc. (CCI : TSX : $19.00)
Delivers on most recent quarter
Westwind Partners maintains a "buy", 1-year target price is $21.75
Calpine Power Income Fund (CF.UN : TSX : $12.89)
No superior alternatives in sight
Desjardins Securities changes to "sell", target price is $13.00
Countryside Power Income Fund (COU.UN : TSX : $9.31)
Reviewing strategic alternatives
Desjardins Securities downgrades to "hold", target price raised to $10.00
CanWest MediaWorks (CWM.UN : TSX : $8.34)
Takeover premium potential increasing
TD Newcrest maintains a "action list buy", 12-month target price is raised to $9.00
Labopharm Inc. (DDS : TSX : $7.19)
More visibility on Tramadol OD's potential
Blackmont Capital maintains a "buy", 12-month target price is $9.00
EnCana Corp. (ECA : TSX : $55.90 | NYSE : US$47.52)
Fourth quarter results expected to be released before market open on Thursday
Blackmont Capital maintains a "buy", 12-month target price is US$57.00
Enerflex Systems (EFX.UN : TSX : $10.43)
Weak fourth quarter results
Raymond James maintains a "outperform", 6-12 month target price cut to $12.00
Finning International (FTT : TSX : $50.23)
Fourth quarter results expected today
RBC Capital Markets maintains a "outperform", target price is $53.00
H&R Real Estate Invest. Trust (HR.UN : TSX : $25.96)
Developing EnCana's new head office complex in Calgary
CIBC World Markets maintains a "sector outperform", target price raised to $27.35
Heroux-Devtek Inc. (HRX : TSX : $7.44)
Posts strong Q3/07 results
GMP Securities maintains a "buy", target price raised to $8.20
International Forest Products (IFP.A : TSX : $7.75)
Fourth quarter results encouraging
TD Newcrest maintains a "buy", 12-month target price is $9.00
Inmet Mining (IMN : TSX : $59.73)
Falling commodity prices to be offset by production growth
Scotia Capital Markets maintains a "sector outperform", 1-year target price raised to $65.00
Quebecor World (IQW : TSX : $16.60 | NYSE : US$14.09)
Print market is weak
Desjardins Securities maintains "sell", 12-month target price is US$11.00
Kingsway Financial Services (KFS : TSX : $23.01 | NYSE : US$19.61)
Reports disappointing fourth quarter results
RBC Capital Markets downgrades to "sector perform", target price cut to $26.00
Mediagrif Interactive Techn. (MDF : TSX : $9.00)
Initiating restructuring
CIBC World Markets maintains a "sector perform", target price cut to $9.50
Scotia Capital Markets maintains a "sector underperform", 1-year target price is $9.50
Masters Energy (MSY : TSX : $3.10)
Company provides 2007 guidance
Raymond James maintains a "outperform", 6-12 month target price is $4.75
Novelis (NVL : TSX : $51.43 | NYSE : US$43.75)
Agreed to be bought by Hindalco
Blackmont Capital upgrades to "hold", 12-month target price is raised to US$44.93
Nexen (NXY : TSX : $69.67 | NYSE : US$59.20)
Fourth quarter results expected to be released before market open on Thursday
Blackmont Capital maintains a "buy", 12-month target price is $71.00
Scotia Capital Markets maintains a "sector outperform", 1-year target price is $83.50
Penn West Energy Trust (PWT.UN : TSX : $35.20)
Acquires new assets
TD Newcrest maintains "buy", 12-month target price is $36.00
QLT Inc. (QLT : TSX : $10.43)
Settles patent suit
Scotia Capital Markets maintains "sector underperform", 12-month target price is $6.00
Redstar Oil & Gas (RED : TSX : $1.45)
Joint venture with private US oil and gas co
GMP Securities maintains "buy", 12-month target price is $2.00
Stratos Global (SGB : TSX : $5.13)
Q4 reports on Thursday Feb 15
Scotia Capital Markets rates "sector underperform", 12-month target price is $5.50
Shell Canada (SHC : TSX : $44.89)
Directors circular released
RBC Capital Markets rates "sector perform", 12-month target price is $46.00
Teck Cominco Ltd. (TCK.B : TSX : $82.40 | TCK : NYSE : US$70.08)
Weak zinc market
Scotia Capital Markets downgrade to "sector perform", 12-month target price is $87.00
TORR Canada (TOR : TSX : $0.95)
Working on several projects
Blackmont Capital maintains "speculative buy", 12-month target price is $1.60
TELUS (T : TSX : $57.99 | TU : NYSE : US$48.01)
Leveraged buyout model
RBC Capital Markets rates "sector perform", 12-month target price is $64.00
TimberWest Forest Corp. (TWF.UN : TSX : $16.75)
Higher real estate proceeds
Raymond James maintains a "market perform", 6-12 month target price raised to $16.00
TD Newcrest maintains "hold", 12-month target price is raised to $16.50
Vecima Networks (VCM : TSX : $10.50)
Details coming on WiMAX market
CIBC World Markets maintains "sector outperform", 12-month target price is $15.50
Raymond James maintains "outperform", 12-month target price is $12.50
Western Canadian Coal (WTN : TSX : $1.92)
Net loss exceeds expectations
GMP Securities maintains "buy", 12-month target price is lowered to $2.45
Western Oil Sands Inc (WTO : TSX : $32.93)
Possible corporate transactions
Scotia Capital Markets downgrades to "sector perform", 12-month target price is $32.00
Yellow Pages Income Fund (YLO.UN : TSX : $13.08)
Ideal LBO candidate
Blackmont Capital maintains "hold", 12-month target price is $13.50
YM BioSciences (YM : TSX : $1.99)
Tesmilifene trial failed
RBC Capital Markets rates "sector perform", 12-month target price is $2.00
RENO, NV (Mineweb.com) -- As Vancouver’s Teck Cominco announced a potential $1.6 billion share buyback, coupled with a planned share split, company officials told analysts Tuesday emerging-market, metal-intensive economies should keep mining busy for the next 20 years.
Teck Cominco expects to receive approval for a share buyback of up to 20 million of its outstanding Class B subordinate voting shares, a sale that could commence next week. However, Chief Executive Don Lindsay warned analysts that the buybacks will take place over the months ahead from time to time when share prices are favorable.
In a news release, Lindsay said the proposed share repurchases will be an opportunity “for us to effectively return some capital to shareholders, while preserving substantial capacity for future growth.” At the same time, Teck also announced plans to implement a share split of its issued outstanding Class A common shares and Class B subordinate shares. The split must be approved by shareholders during the company’s April 25th AGM.
Meanwhile, Lindsay told analysts Tuesday that “the next 20 years will be better than the last 20 years” for mining companies, based on the expectations of high metal consumption among emerging markets economies, which now comprised 50% of global GDP. Because it is difficult to bring new mining operations into production, and not much in the way of high-quality resources have been discovered this past year, Lindsay forecast a continued scarcity of supply and solid demand for metals.
Teck announced Monday that it would extend the life of the Highland Valley copper mine in British Columbia another six years to 2019. During 2013 to 2019, Highland Valley plans to produce 1.5 billion pounds of copper and 21 million pounds of molybdenum for a capex of $300 million.
Teck Cominco also forecast a copper global supply/demand balance of 155 thousand tonnes this year as demand is expected to increase 4%.
Mike Agg’s Teck Cominco’s Vice President, Refining and Sales, told analysts that the global zinc market “is still very tight” and that the “market is going to stay very tight for the metal for the whole year.”
Andrew Stonkus, Vice President, Concentrate Marketing, added that the “Chinese (zinc) market is continuing to show tremendous strength and growth.” Stonkus also predicted that China’s destocking phase will subside and copper imports will pick up again.
Although Teck Cominco launched a strong, but failed bid for fellow Canadian miner Inco earlier this year, Lindsay told analysts that he is far more interested in “maintaining a healthy cash balance,” and wait for price corrections that would reduce the price of any potential future acquisitions.
FINANCIALS
The company reported net earnings of $2.4 billion in 2006, almost double the net earnings of $1.3 billion in 2005. The higher earnings were attributed to “significantly higher commodity prices, partially offset by a weaker U.S. dollar.”
Operating expenses increased from $2.2 billion in 2005 to $2.7 billion last year - attributed to the higher cost of raw materials at the Trail smelter.
For the fourth-quarter 2006, the company reported a record $866 million in net earnings, up from $510 million in net earnings reported during the same period a year ago. The earnings also reflected an after-tax gain of $115 million for the sale of Inco shares.
CORPORATE DEVELOPMENT
The company expects to reach commercial production at its Pogo gold project in Alaska by April with full production anticipated in May. The company anticipates annual gold production of 350,000 to 400,000 ounces over the 10-year life of the project.
The refurbishment of Lennard Shelf zinc operation, a joint venture with Xstrata, is expected to commence shipping zinc concentrate in April.
Last month, Teck Cominco invested $30 million in Nautilus Minerals, which is exploring the ocean floor for gold, copper, zinc and silver massive sulphide deposits. The company also completed its purchase of 24.9% on a fully-diluted basis of Tahera Diamond for $30 million. Teck also invested $11 million to increase its interest from 7.5% to 11.5% in ZincOx Resources, which is developing a recycling strategy focus on the recovery of zinc from electric arc furnace dust.
OUTLOOK
Copper production at Highland Valley is expected to decrease by 30,000 tonnes this year as the mine begins a three-year transitional mining period. The company’s share of copper production at Antamina is expected to decrease by 8,000 tonnes, while Teck Cominco’s share of Zinc production is expected to increase by 40,000 tonnes.
The Lennard Shelf mine is anticipated to result in 30,000 tonnes of additional zinc production for Teck Cominco. Corporate gold production is expected to increase by 85,000 ounces due to the opening of Pogo mine.
Ear on the Street
Air Canada (AC.B : TSX : $19.75)
Q4 slightly beats expectations
BMO Capital Markets maintains "market perform", 12-month target price is $18.50
ACE Aviation Holdings (ACE.B : TSX : $36.13)
Q4 better than expected
BMO Capital Markets maintains "outperform", 12-month target price is raised to $41.00
CIBC World Markets maintains "sector perform", 12-month target price is raised to $40.50
AEterna Zentaris (AEZ : TSX : $4.59 | AEZS : NASDAQ : US$3.94)
Non-cash restatement of Q3 financials
RBC Capital Markets maintains "outperform", 12-month target price is $7.00
Aur Resources (AUR : TSX : $20.65)
Q4 in line
BMO Capital Markets maintains "market perform", 12-month target price is $22.00
Brookfield Asset Management (BAM.A : TSX : $60.47 | BAM : NYSE : US$51.75)
Q4 shows solid growth
BMO Capital Markets maintains "market perform", 12-month target price is raised to US$55.00
CIBC World Markets maintains "sector perform", 12-month target price is raised to US$55.00
BCE Inc. (BCE : TSX : $30.47 | NYSE : US$26.10)
Mixed Q4
BMO Capital Markets maintains "outperform", 12-month target price is $34.00
Baytex Energy Trust (BTE.UN : TSX : $20.19)
Year-end reserve up 4%
BMO Capital Markets maintains "outperform", 12-month target price is $24.50
CIBC World Markets maintains "sector perform", 12-month target price is raised to $20.00
RBC Capital Markets maintains "sector perform", 12-month target price is raised to $18.25
TD Newcrest maintains "hold", 12-month target price is raised to $22.00
Blue Pearl Mining (BLE : TSX : $7.87)
New Street coverage
GMP Securities initiates coverage with a "buy", 12-month target price is $11.50
Brookfield Properties (BPO : TSX : $54.00 | NYSE : US$46.21)
Good Q4 results
BMO Capital Markets maintains "market perform", 12-month target price is raised to US$50.00
CanWest Global Communications (CGS : TSX : $11.18 | CWG : NYSE : US$9.54)
Privatization of CanWest MediaWorks Income Fund?
BMO Capital Markets maintains "outperform", 12-month target price is $13.00
Centerra Gold Inc. (CG : TSX : $13.61)
Heightened political risk in the Kyrgrz Republic and Mongolia
RBC Capital Markets downgrades to "outperform", 12-month target price is cut to $19.00
CI Financial Income Fund (CIX.UN : TSX : $26.38)
Acquires Rockwater
CIBC World Markets maintains "sector perform", 12-month target price is $28.50
Genuity maintains "buy", 12-month target price is $28.00
Canadian National Railway (CNR : TSX : $54.20)
Business still on track despite strike
Blackmont Capital maintains "buy", 12-month target price is $59.00
Crescent Point Energy Trust (CPG.UN : TSX : $16.83)
$600 million acquisition of Mission Oil & Gas
BMO Capital Markets maintains "outperform", 12-month target price is $21.00
Four Seasons Hotels (FSH : TSX : $94.97 | FS : NYSE : US$81.37)
Enters into a definitive agreement to go private
RBC Capital Markets maintains "sector perform", 12-month target price is US$82.00
Fortis Inc. (FTS : TSX : $27.68)
Fourth quarter and fiscal 2006 results beat expectations
BMO Nesbitt Burns upgrades to "outperform", target price raised to $29.50
Groupe Laperriere & Verreault (GLV.A : TSX : $31.50)
Q3 below estimates
Blackmont Capital maintains "buy", 12-month target price is cut to $38.50
BMO Nesbitt Burns maintains a "outperform", target price raised to $36.00
Desjardins Securities maintains a "buy", target price is $33.00
Hostopia.com (H : TSX : $6.30)
Inline Q3 numbers; conservative outlook
RBC Capital Markets reiterates "outperform", target price is $8.00
Kingsway Financial Services (KFS : TSX : $22.92 | NYSE : US$19.62)
Weak fourth quarter results
BMO Nesbitt Burns maintains a "market perform", target price cut to $23.00
Mainstreet Equity (MEQ : TSX : $15.00)
First quarter results topped expectations
Blackmont Capital maintains a "buy", 12-month target price is raised to $18.50
Matrikon Inc. (MTK : TSX : $3.40)
Departure of CFO
BMO Nesbitt Burns maintains a "market perform", target price is $4.00
Novelis (NVL : TSX : $51.18 | NYSE : US$43.82)
To be acquired by Hindalco
BMO Nesbitt Burns reiterates "underperform", target price is US$44.00
Desjardins Securities rates "tender", target price raised to US$44.93
Orleans Energy (OEX : TSX-V : $3.78)
Additional colour from new corporate presentation
GMP Securities maintains a "buy", target price raised to $5.00
Open Text (OTC : TSX : $26.91 | OTEX : NASDAQ : US$23.01)
Unveils product integration roadmap
BMO Nesbitt Burns maintains a "market perform", target price is US$23.50
Penn West Energy Trust (PWT.UN : TSX : $35.15 | PWE : NYSE : US$30.11)
Makes $339 million purchase of light oil and gas properties
BMO Nesbitt Burns maintains a "outperform", target price is $40.00
RBC Capital Markets maintains a "sector perform", 12-month target price is raised to $32.00
QLT Inc. (QLT : TSX : $10.67 | QLTI : NASDAQ : US$9.14)
Eligard patent settlement in line with expectations
RBC Capital Markets maintains a "sector perform", target price raised to US$9.00
Rockwater Capital (RCC : TSX : $7.60)
Supports takeover bid
TD Newcrest upgrades to "hold", 12-month target price is raised to $7.65
Shermag Inc. (SMG : TSX : $1.95)
Major sales decrease
GMP Securities downgrades to "hold", 12-month target price is $2.10
Seamark Asset Management (SM : TSX : $8.07)
Up 22% this year
BMO Nesbitt Burns maintains "underperform", 12-month target price is raised to $7.00
Softchoice Corp. (SO : TSX : $11.76)
Vista leading to software upgrades
BMO Nesbitt Burns maintains "outperform", 12-month target price is $14.50
GMP Securities maintains "buy", 12-month target price is raised to $17.00
TransAlta Corp. (TA : TSX : $24.21 | TAC : NYSE : US$20.75)
Difficult choices ahead regarding TransAlta Power distribution policy
BMO Nesbitt Burns maintains "underperform", 12-month target price is $22.50
Teck Cominco Ltd. (TCK.B : TSX : $85.36)
Class B share buyback
Credit Suisse rates "outperform", 12-month target price is $95.00
Desjardins Securities maintains "buy", 12-month target price is raised to $98.85
RBC Capital Markets rate "outperform", 12-month target price is $100.00
WestJet Airlines (WJA : TSX : $15.51)
More capacity, more passengers
RBC Capital Markets maintains "sector perform", 12-month target price is $18.00
West Energy Ltd. (WTL : TSX : $4.59)
Production estimates lowered
Blackmont Capital maintains a "buy", 12-month target price is cut to $7.00
GMP Securities maintains "buy", 12-month target price is lowered to $8.00
RBC Capital Markets rates "sector perform", 12-month target price is $7.00
Yamana Gold Inc. (YRI : TSX : $16.16)
Commercial production at Chapada mine
Blackmont Capital maintains "buy", 12-month target price is $20.00
Exploration Commences on M10 Massive Sulphide Prospect in Ecuador
Vancouver, BC - MPH Ventures Corp. (TSX.V: MPS) (the "Company") announces that it has commenced its field program on the M10 massive sulphide prospect in Ecuador. The M10 property is located in the Pichincha province, 50 kilometres west-southwest of Capital Quito in Ecuador, immediately north and adjoining Cornerstone Capitals and Coastport Capital's La Plata gold-rich VMS (volcanic massive sulphide) deposit, and covers an area of 4,915 hectares. MPH Ventures is earning a 50% interest in the M10 massive sulphide prospect from Lateegra Gold Corp.
M10 Ecuador Property Geological Map:
http://www.mphventurescorp.com/s/Image.asp?i=maps/MPS-EC-M10geomap.jpg
The initial focus of the field program is mapping and sampling, with a particular focus on the southern area of the M10 concession. MPH Ventures was able to locate maps of field work carried out in the early 1990's, which have assay data and geological mapping information. The Company's field crew is going back to these areas of earlier work and will attempt to verify the information contained therein.
Stream sediment sampling commenced on Feb 11, 2007 and, subject to success and accessibility, the Company proposes to collect approximately 150 stream sediment samples for analysis.
The earlier maps show a grid on the south central portion of the M10 concession and MPH Ventures will attempt to recapture the old grid to commence the soil sampling. The grid and soil sampling will commence once an environmental study is completed. The Company expects the soil sampling to commence in about one month's time.
Once the grid and soil sampling are completed, MPH Ventures has budgeted for a geophysical survey (IP Mag.). Decisions about where to place the geophysical survey will be determined after the geological and analytical data is available.
The M10 property was identified by Ing Fredy Salazar, who spent several years as a senior geologist for Newmont Mining, and provided consulting services for Aurelian Resources. Mr. Salazar was instrumental in the identification of the land package known as the Condor project held by Aurelian Resources located in the emerging gold belt in southern Ecuador.
The exploration target on the M10 concession is the continuation of the La Plata polymetallic volcanogenic massive sulphide (VMS) trend. Mineralization at La Plata and in the area occurs at or near the north-south trending contact between intermediate and felsic volcanics. Recent results from drilling on La Plata by Cornerstone Capital and Coastport Capital returned significant massive sulphides including 6.7 metres averaging 11 g/t gold, 78 g/t silver, 23% zinc, 1% copper and 8.9 metres averaging 32 g/t gold, 289 g/t silver, 18% zinc, and 6% copper (see their news release dated June 22, 2006). The M10 concession covers 7.5 kilometres of potential strike length of favorable geology. Documented mineral showings are reported to exist on the property including the El Diablo showing located on the south limits of the property.
MPH Ventures Corp. is a gold, silver, and base metal exploration company focused on mineral exploration and development within Latin America.
For further information on MPH Ventures Corp. (TSX.V: MPS), visit the Company's web site at www.mphventurescorp.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"Jim Pettit"
________________________________
James G. Pettit
President
For further information contact myself or:
Don Myers, MPH Ventures Corp., Director
Telephone: 604-687-3376
Toll Free: 800-567-8181
Facsimile: 604-687-3119
Email: info@mphventurescorp.com
Ear on the Street
Aurora Energy Resources (AXU : TSX : $16.70)
Largest Canadian uranium outside of Athabasca
Canaccord Capital maintains "hold", 12-month target price is raised to $18.00
BPO Properties (BPP : TSX : $66.00)
Occupancies and rents rise
TD Newcrest maintains "hold", 12-month target price is raised to $72.00
CI Financial Income Fund (CIX.UN : TSX : $26.98)
Fairly valued units
CIBC World Markets maintains "sector perform", 12-month target price is $28.50
Scotia Capital Markets maintains "sector perform", 12-month target price is $28.00
TD Newcrest maintains "hold", 12-month target price is $26.00
Catalyst Paper (CTL : TSX : $3.94)
Expectation of eroding profit margins
Desjardins Securities maintains "sell", 12-month target price is $3.25
Raymond James maintains "underperform", 12-month target price is $3.25
RBC Capital Markets rates "underperform", 12-month target price is $3.25
Scotia Capital Markets maintains "sector underperform", 12-month target price is $3.80
TD Newcrest maintains "reduce", 12-month target price is $3.50
Crew Energy Inc (CR : TSX : $11.52)
Increasing growth rate
Raymond James maintains "outperform", 6-12-month target price is $18.00
Canexus Income Fund (CUS.UN : TSX : $7.03)
Releases partial Q4 results
CIBC World Markets maintains "sector perform", 12-month target price is $7.00
RBC Capital Markets maintains "outperform", 12-month target price is $7.75
CryoCath Technologies (CYT : TSX : $3.10)
Exciting outlook for Arctic Front
Blackmont Capital rates "buy", 12-month target price is $4.00
CIBC World Markets maintains "sector outperform", 12-month target price is $5.00
GMP Securities Securities maintains "buy", 12-month target price is $5.00
RBC Capital Markets maintains "outperform", 12-month target price is $7.00
Emergis (EME : TSX : $5.25)
Upside potential remains in the Canadian electronic health record market
Scotia Capital Markets maintains "sector outperform", 12-month target price is $6.00
Fording Canadian Coal Trust (FDG.UN : TSX : $27.00)
Coal price declines anticipated
CIBC World Markets maintains "sector underperform", 12-month target price is $23.00
Desjardins Securities maintains "hold", 12-month target price is $29.10
Scotia Capital Markets maintains "sector underperform", 12-month target price is $20.00
TD Newcrest maintains "hold", 12-month target price is $24.00
Finning International (FTT : TSX : $52.99)
Strong results reported
CIBC World Markets rate "sector outperform", 12-month target price is raised to $58.00
Desjardins Securities upgrades to "top pick", 12-month target price is $59.00
Raymond James upgrades to "outperform", 6-12 month target price is raised to $55.50
TD Newcrest maintains "buy", 12-month target price is raised to $57.00
Gateway Casinos Income Fund (GCI.UN : TSX : $18.84)
Waiting for Q4 results
Blackmont Capital downgrades to "hold", 12-month target price is $19.00
GobiMin (GMN : TSX-V : $2.25)
China needs nickel
Desjardins Securities maintains "buy", 12-month target price is $3.90
Home Capital Group (HCG : TSX : $32.10)
Report Q4/06 earnings today
Blackmont Capital maintains "hold", 12-month target price is $33.00
Cdn. Hotel Income Properties (HOT.UN : TSX : $16.19)
Another distribution increase
Raymond James rate "market perform", 6-12 target price is $16.00
Inmet Mining (IMN : TSX : $60.69)
Strong upside potential
RBC Capital Markets rates "outperform", 12-month target price is $90.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $62.00
Innova Exploration (IXL : TSX : $5.76)
Operational update provided
Blackmont Capital maintains "hold", 12-month target price is $6.75
RBC Capital Markets rates "outperform", 12-month target price is $7.25
Logibec Groupe Informatique (LGI : TSX : $17.00)
Good sales momentum
GMP Securities Securities maintains "buy", 12-month target price is $19.00
Livingston Intl Income Fund (LIV.UN : TSX : $21.40)
Strong December trade volumes released by Statistics Canada
Scotia Capital Markets maintains "sector perform", 12-month target price is $21.00
Manulife Financial (MFC : TSX : $40.14 | NYSE : US$34.43)
Strong Q4 earnings
Desjardins Securities maintains "top pick", 12-month target price is raised to $48.00
GMP Securities maintains "buy", 12-month target price is raised to $47.00
TD Newcrest maintains "buy", 12-month target price is $44.00
MOSAID Technologies (MSD : TSX : $28.80)
U.S. court denies Mosaid and Infineon's joint submission
GMP Securities maintains "buy", 12-month target price is $34.00
Methylgene Inc. (MYG : TSX : $3.55)
Bough deal financing
RBC Capital Markets maintains "sector perform", 12-month target price is cut to $4.50
Peak Energy Services Trust (PES.UN : TSX : $4.45)
Cuts distribution by 33%
RBC Capital Markets maintains "sector perform", 12-month target price is $5.00
Softchoice Corp. (SO : TSX : $12.10)
Q4 in line
Raymond James maintains "outperform", 6-12 month target price is raised to $14.00
Student Transport of America (STB.UN : TSX : $11.50)
Q2 cash flow a little bit light
CIBC World Markets maintains "sector outperform", 12-month target price is $13.25
Stelco Inc. (STE : TSX : $20.25)
Impact of Q4 losses
CIBC World Markets rates "sector underperform", 12-month target price is cut to $20.00
Teck Cominco Ltd. (TCK.B : TSX : $86.83 | TCK : NYSE : US$74.77)
Q4 and 2007 guidance in line
Canaccord Adams maintains "buy", 12-month target price is $93.00
Desjardins Securities maintains "buy", 12-month target price is $98.85
GMP Securities maintains "buy", 12-month target price is $110.00
TD Newcrest downgrades to "hold", 12-month target price is $95.00
TVA Group (TVA.B : TSX : $14.60)
Weak Q4
CIBC World Markets upgrades to "sector perform", 12-month target price is raised to $15.00
RBC Capital Markets maintains "underperform", 12-month target price is $15.00
Scotia Capital Markets maintains "sector underperform", 12-month target price is $12.50
TD Newcrest downgrades to "reduce", 12-month target price is cut to $13.00
Vecima Networks (VCM : TSX : $10.25)
Q2 in line
CIBC World Markets maintains "sector outperform", 12-month target price is cut to $14.00
Raymond James maintains "outperform", 6-12 month target price is $12.50
Workbrain Corp (WB : TSX : $10.15)
Q4 reported yesterday
RBC Capital Markets maintains "outperform", 12-month target price is $11.00
Yellow Pages Income Fund (YLO.UN : TSX : $12.99)
Solid Q4
CIBC World Markets maintains "sector perform", 12-month target price is raised to $13.25
Desjardins Securities upgrades to "top pick", 12-month target price is raised to $15.00
RBC Capital Markets maintains "outperform", 12-month target price is $14.50
Scotia Capital Markets maintains "sector outperform", 12-month target price is $15.25
TD Newcrest maintains "buy", 12-month target price is raised to $14.50
ZCL Composites (ZCL : TSX : $12.86)
Acquires U.S.-based XAHC
Raymond James maintains "outperform", 6-12 month target price is raised to $14.25
Dear Investor,
Because you've previously expressed interest in similar companies, we'd like to take this opportunity to introduce you to one of our new clients, EcuaGold Resources Ltd. (TSXV: EGR). Please contact me if you would like to learn more about EcuaGold and wish to request an investor package.
Bruce Korhonen, Senior Account Executive
Toll free: 1.866.684.4743 ext. 230
Email: bruce@ascentacapital.com
EcuaGold Resources Ltd. is engaged in the acquisition, exploration and potential development of precious metals properties in southern Ecuador. The company presently controls a 100% interest in 12 concessions and has applications pending for 17 others. EcuaGold's land position currently exceeds 31,000 hectares, comprising eight distinct projects, and will approximate 82,000 hectares if the pending concession applications are granted in full.
The majority of EcuaGold's concessions are located in southern Ecuador, a highly prospective region that is currently host to a number of projects. These include, among others, Aurelian Resources' Condor Project, IAMGOLD's Quimsacocha Project, International Minerals' Rio Blanco and Gaby Projects and Dynasty Metals & Mining's Copper-Gold Belt, Jerusalem and Zamora Projects.
EcuaGold's principal properties are the Molleturo Project, a high-grade polymetallic vein system, and the Curiplaya Project, a gold-copper porphyry system. NI 43-101 Reports were recently prepared for each project in connection with EcuaGold's $6.9 million IPO and TSX Venture Exchange listing in January 2007.
CORONADO RESOURCES LTD.
CRD – TSX-V
Vancouver, B.C., Canada, February 15, 2007
Confirmation of Four Mineralized SKARN Zones
Underground Diamond Drill Mobilized
Coronado Resources Ltd. recently received a brief report form Mr. Thomas Evans consulting geologist and owner of Nevada based Western Geosciences Inc. Mr. Evans is also Technical Advisor for the company and acted as the on site geologist during the 2005 and 2006 diamond drill programs. His responsibilities included, drill hole locating, core logging and determination of sample intervals.
Mr. Evans has summarized that there are four distinct and separate mineralized skarn zones located on the property. As previously reported, the zones have returned excellent gold and copper assay results. Similarly the consultant presently preparing the resource calculation has verbally reported that early observations suggests that four separate mineralized skarn zones do exists as well as a massive sulfide zone.
This is in agreement with the earlier summation by company management and reported in a November 2nd 2006 news release that five zones do indeed exist.
The underground decline has reached a linear depth of 330 feet. Two underground drill stations have been established and an underground diamond drill is presently being mobilized to the property.
The company has agreed to re - price 500,000 employee options and has granted 100,000 additional options to an officer and employees all at $ 0.84 per share exercisable for a period of 2 years.
Eugene Larabie , P. Eng. Is the “qualified person” overseeing the project. For more information, please visit the company’s website at http://www.coronadoresourcesltd.com.
On Behalf of the Board
“Eugene Larabie”
Eugene Larabie , President
Novori Inc. Announces a reminder of upcoming 2-for-1 Common Stock Split
BELLINGHAM, WA--(MARKET WIRE)--Feb 16, 2007 -- Novori Inc. (OTC BB:NOVO.OB - News) - http://www.novori.com - announced today that the previously approved 2-for-1 common stock split will be taking effect tomorrow, February 16, 2007, which makes today the last day of trading prior to the split.
"This stock split reflects our continued confidence in the long-term outlook for Novori. It will increase tradable shares and result in a market price that should be attractive to a broader group of investors," said Harold Schaffrick, Chairman and Chief Executive Officer.
Forrester's Research recently confirmed that the online Jewelry sales industry is skyrocketing and estimates that the online diamond industry will grow from $2.1 billion in 2005 to $8 billion in 2010, making it the 3rd fastest growth industry for Internet sales. Although only at its early stages of development Novori has already shown great growth with 2006 revenues exceeding 2005 by 2,374%.
About Novori Inc.
Founded in 2004, Novori is a leading online interactive retailer of diamond engagement rings and fine jewelry. Novori launched their website in 2005 and has built a well-respected brand by providing consumers with superior customer service and a better way to buy diamond engagement rings. Novori prides its self on the highest quality standards in the industry and provides consumers with unique online tools to allow consumers to explore, build and purchase their own custom made diamond rings in a way not previously offered by traditional retailers. The Novori.com web site offers thousands of independently certified diamonds, settings and fine jewelry at prices significantly below traditional retail. Novori's shares are traded on the Over the Counter market (OTCBB) under the symbol NOVO.
Forward-Looking Statements
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Such statements are indicated by words or phrases such as "believe," "will," "breakthrough," "significant," "indicated," "feel," "foresee," "revolutionary," "should," "ideal," "extremely," and "excited." These statements are made under "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See Novori's filings with the Securities and Exchange Commission, including, without limitation, Novori's recent Form 10-KSB and Form 10-QSB, which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.
Contact:
Investor Relations:
1-888-646-5677
Ear on the Street
AutoCanada Income Fund (ACQ.UN : TSX : $10.75)
Restructuring of Chrysler is positive for AutoCanada
Scotia Capital Markets maintains "sector outperform", 12-month target price is $12.50
Agnico-Eagle Mines (AEM : TSX : $47.10 | NYSE : US$40.53)
Friendly takeover bid for Cumber Resources
Blackmont Capital maintains "hold", 12-month target price is cut to $48.00
Desjardins Securities maintains "buy", 12-month target price is $62.75
Raymond James upgrades to "outperform", 6-12 month target price is raised to $54.00
RBC Capital Markets maintains "sector perform", 12-month target price is US$51.00
Algoma Steel (AGA : TSX : $51.44)
In talks with a potential buyer
BMO Capital Markets upgrades to "outperform", 12-month target price is raised to $60.00
CIBC World Markets maintains "sector outperform", 12-month target price is raised to $50.00
GMP Securities maintains "buy", 12-month target price is raised to $57.50
RBC Capital Markets maintains "outperform", 12-month target price is raised to $77.00
Alexis Minerals Corporation (AMC : TSX-V : $1.20)
More gold assays from Lac Herbin
Canaccord Adams maintains "buy", 12-month target price is raised to $1.35
Alexis Nihon REIT (AN.UN : TSX : $19.00)
Homburg offers $18.50/unit for Alexis Nihon
Scotia Capital Markets maintains "sector perform", 12-month target price is $18.75
ATS Automation Tooling Systems (ATA : TSX : $11.05)
Disappointing Q3
Blackmont Capital downgrades to "hold", 12-month target price is cut to $10.50
Credit Suisse maintains "neutral", 12-month target price is $11.25
Raymond James downgrades to "market perform", 6-12 month target price is cut to $11.50
ATS Andlauer Income Fund (ATS.UN : TSX : $13.00)
Q4 better than expected
RBC Capital Markets maintains "outperform", 12-month target price is raised to $13.00
Advantage Energy Income Fund (AVN.UN : TSX : $12.38 | AAV : NYSE : US$10.67)
$100 million financing closed
BMO Capital Markets maintains "underperform", 12-month target price is $12.00
CIBC World Markets reinstates coverage with a "sector underperform", 12-month target price is raised to $11.25
Scotia Capital Markets reinstates coverage with a "sector underperform", 12-month target price is $11.50
BPO Properties (BPP : TSX : $66.00)
Q4 FFO above expectations
CIBC World Markets maintains "sector outperform", 12-month target price is raised to $73.00
Chemtrade Logistics Inc Fd (CHE.UN : TSX : $8.12)
Conservative stance taken heading into fourth quarter earnings release
Blackmont Capital maintains a "sell", 12-month target price is $7.00
Cumberland Resources (CLG : TSX : $8.65)
Takeover bid from Agnico-Eagle
Raymond James downgrades to "market perform", 6-12 month target price is $8.50
Creststreet Power & Income (CRS.UN : TSX : $5.64)
Alberta windfarm transaction implies higher valuation metrics
Scotia Capital Markets maintains "sector perform", 12-month target price is raised to $5.25
Commercial Solutions (CSA : TSX : $6.28)
Weaker than expected Q1
GMP Securities maintains "buy", 12-month target price is $8.30
Raymond James downgrades to "market perform", 6-12 month target price is cut to $7.50
Chartwell Seniors Housing REIT (CSH.UN : TSX : $17.66)
Positive implication of higher bid for Sunrise
BMO Capital Markets maintains "market perform", 12-month target price is raised to $17.00
Catalyst Paper (CTL : TSX : $3.93)
Weak Q4
CIBC World Markets maintains "sector perform", 12-month target price is cut to $3.50
Raymond James maintains "underperform", 6-12 month target price is $3.25
RBC Capital Markets maintains "underperform", 12-month target price is $3.25
Labopharm Inc. (DDS : TSX : $6.99 | DDSS : NASDAQ : US$6.00)
Q4 and full-year results coming today
Canaccord Adams maintains a "buy", target price is $10.30
Empire Company (EMP.A : TSX : $41.86)
Future looking slightly better
Scotia Capital Markets upgrades to "sector perform", 1-year target price raised to $44.50
Extreme CCTV (EXC : TSX : $3.39)
Reports second quarter results
Canaccord Adams maintains a "speculative buy", target price raised to $3.90
HudBay Minerals (HBM : TSX : $23.08)
Production results from 2006 and guidance for 2007 meet expectations
RBC Capital Markets maintains a "outperform", target price is $29.00
Home Capital Group (HCG : TSX : $34.29)
Some concerns taken away from quarterly report
Blackmont Capital maintains a "hold", 12-month target price is $33.00
Cdn. Hotel Income Properties (HOT.UN : TSX : $16.71)
Reports in line Q4/06 results; ups distribution by 3.2%
BMO Nesbitt Burns maintains "outperform", target price raised to $17.00
Canaccord Adams maintains "buy", 12-month target price is raised to $17.00
RBC Capital Markets maintains "sector perform", 12-month target price is raised to $17.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $16.40
TD Newcrest maintains a "buy", 12-month target price is raised to $17.00
Inmet Mining (IMN : TSX : $61.22)
Q4/06 results below expectations; 2007 production guidance short of estimates
Canaccord Adams reiterates "buy", target price is $70.00
CIBC World Markets maintains a "sector outperform", target price is $75.00
Credit Suisse maintains a "outperform", target price raised to $70.00
GMP Securities continues to rate "buy", target price is $72.00
TD Newcrest maintains a "buy", 12-month target price is raised to $70.00
IPL Inc. (IPI.A : TSX : $7.50)
Turnaround story showing momentum
GMP Securities upgrades to "buy", target price is $9.50
Canadian Hydro Developers (KHD : TSX : $6.30)
B.C. goes green
Scotia Capital Markets maintains "sector outperform", 12-month target price is $7.75
Mainstreet Equity (MEQ : TSX : $17.00)
Boosted by Alberta property values and rental conditions
Desjardins Securities maintains a "top pick", target price raised to $24.60
Melcor Developments (MRD : TSX : $24.00)
Potential highlighted by Brookfield's Alberta land operation
Desjardins Securities maintains a "top pick", target price is $33.15
Mavrix Fund Management (MVX : TSX : $1.90)
Reports fourth quarter and F06 results
GMP Securities reiterates "buy", 12-month target price is raised to $2.50
NUCRYST Pharmaceuticals (NCS : TSX : $4.88 | NCST : NASDAQ : US$4.22)
Sales of lead product slowing down
GMP Securities maintains a "buy", target price cut to US$8.00
Nortel Networks Corp. (NT : TSX : $36.09 | NYSE : US$31.06)
Slowly turning the corner
RBC Capital Markets maintains a "sector perform", target price raised to US$32.00
Onex Corporation (OCX : TSX : $29.55)
Reports Q4/06 and year-end results
BMO Nesbitt Burns maintains "outperform", 12-month target price is $33.00
GMP Securities rate "hold", 12-month target price is $28.55
Peyto Energy Trust (PEY.UN : TSX : $17.49)
2006 reserve report
BMO Nesbitt Burns maintains "market perform" 12-month target price is $18.00
ProEx Energy Ltd. (PXE : TSX : $13.36)
Pipeline bottlenecks hamper growth
Raymond James maintains "strong buy", 12-month target price is $22.00
Stylus Energy (STY : TSX : $2.70)
Oil and gas properties in Alberta
BMO Nesbitt Burns initiate coverage with "market perform", 12-month target price is $3.50
Sunrise Senior Living REIT (SZR.UN : TSX : $18.05)
New bid tops Ventas
BMO Nesbitt Burns rates "market perform", 12-month target price is raised to $18.00
RBC Capital Markets maintains "sector perform", 12-month target price is raised to $18.00
Teck Cominco Ltd. (TCK.B : TSX : $87.39 | TCK : NYSE : US$75.18)
Soft quarter; outlook remains solid
BMO Nesbitt Burns maintains "market perform", 12-month target price is $86.00
CIBC World Markets maintains a "sector perform", target price is $100.00
Teknion Corporation (TKN : TSX : $4.25)
Continued FX pressure
BMO Nesbitt Burns upgrades to "market perform", 12-month target price is raised to $6.00
Scotia Capital Markets rates "sector underperform", 12-month target price is $4.40
TD Newcrest maintains "buy", 12-month target price is $5.50
TransCanada Corp. (TRP : TSX : $38.02 | NYSE : US$32.70)
$1.5 billion equity offering
CIBC World Markets maintains "sector outperform", 12-month target price is $43.00
Scotia Capital Markets rates "sector outperform", 12-month target price is reduced to $43.00
Workbrain Corp (WB : TSX : $9.69)
Weaker than expected results
CIBC World Markets maintains "sector perform", 12-month target price is $9.00
GMP Securities rate "buy", 12-month target price is $11.50
RBC Capital Markets downgrades to "sector perform", 12-month target price is $10.00
Scotia Capital Markets rates "sector underperform", 12-month target price is $8.50
WestJet Airlines (WJA : TSX : $15.72)
Q4 beats the expectations
BMO Nesbitt Burns maintains "market perform", 12-month target price is raised to $16.00
Canaccord Capital maintains "buy", 12-month target price is raised to $18.25
Credit Suisse maintains "outperform", 12-month target price is raised to $20.00
Desjardins Securities maintains "buy", 12-month target price is $17.50
Raymond James rates "outperform", 6-12 month target price is raised to $18.50
Scotia Capital Markets maintains "sector perform", 12-month target price is raised to $18.25
TD Newcrest maintains "buy", 12-month target price is raised to 19.00
George Weston Ltd. (WN : TSX : $72.00)
Bearish outlook at Loblaw dominates
CIBC World Markets maintains "sector underperform", 12-month target price is cut to $63.00
Credit Suisse maintains a "outperform", target price is $88.00
RBC Capital Markets maintains a "sector perform", target price is $75.00
Scotia Capital Markets downgrades to "sector underperform", 1-year target price cut to $71.50
TSX Group (X : TSX : $50.17)
New exchange in Calgary
CIBC World Markets maintains "sector outperform", 12-month target price is $60.00
Scotia Capital Markets rates "market perform", 12-month target price is $55.00
Undervalued Stock #1 ========== -------------- Assurant Inc. (NYSE: AIZ) -------------- Insider Name: Howard L. CarverInsider Position: DirectorInsider Action: 2,000 shrs on 2/14/2007Insider Total Holding: 16,521 shrs -------------------------------------------------------Undervaluation Merits... P/E Ratio = 9.8 (Industry Average 16.8)P/S Ratio = 0.84 (Industry Average 1.05)P/B Ratio = 1.76 (Industry Average 2.94) Industry: Health & Accident, Insurance -------------------------------------------------------Other Merits... Dividend Yield = 0.7% -------------- Assurant Inc. (NYSE: AIZ)
Symbol NDL
Shares Issued 32,101,518
Close 2007-02-15 C$ 0.28
Recent Sedar Documents
Nordic hopes Sunrise brings Finnish sparkle
2007-02-15 14:35 ET - Street Wire
by Will Purcell
Walter Melnyk's Nordic Diamonds Ltd. and Sunrise Diamonds PLC plan to drill their Kuopio-Kaavi diamond project in Finland. The property lies on the western fringe of the highly diamondiferous Karelian craton and contains several pipes that yielded modest diamond grades. The new drill program will seek new discoveries and will probe some of the existing finds.
The plan
The Kuopio-Kaavi partners are currently lining up several drill targets, but must wait until spring to start the new work. The project saw little work since Sunrise signed an option deal last summer, but that will change starting this year because of the escalating spending requirements laid out in the deal.
Sunrise can earn a 75-per-cent interest in Kuopio-Kaavi by spending approximately $1.5-million over a four-year period. Nordic's new partner had no spending requirement the first year, but it must spend nearly $250,000 in the second year of the deal and $750,000 in the third year.
Some of the old kimberlite finds appear worth a closer look and Nordic tried drilling some of the pipes a few years ago, with mixed results. The original partners on the project, Ashton Mining Ltd. and Dia Met Minerals Ltd., obtained intriguing grades in some of the 20 pipes they found during the 1990s and their preliminary work left several mineral trains unexplained. As a result, tracking new kimberlites in the area will be a key part of the planned drill program.
Nordic's president, Walter Melnyk, said his company had little choice but to make a deal with Sunrise, after it scooped up all the old exploration data covering Nordic's project. The information went to Rio Tinto PLC and BHP Billiton Inc. when they took over Ashton and Dia Met several years ago, and both companies rebuffed Nordic's attempts to acquire the data.
The two mining majors apparently had an agreement preventing the transfer of the data without the other's approval, but the arrangement quietly expired. Sunrise jumped first, getting data covering all the Nordic ground, as well as its own. That left Nordic having to start exploring from scratch, or to make a deal with its rival. Mr. Melnyk chose the latter course.
The encouragement
Nordic's Kuopio-Kaavi property contains 16 of Ashton's kimberlite finds and all of them carried diamonds. Ashton completed mini-bulk samples on some of its finds and a few produced grades ranging from 0.10 to just over 0.25 carat per tonne and Nordic retested two of the pipes in 2004.
Ashton got a grade of about 0.13 carat per tonne from the No. 12 kimberlite, but Nordic was disappointed with its own test that yielded 133 microdiamonds from 150 tonnes of rock. The poor size distribution of the parcel and the small and complex nature of the pipe precluded further work.
The company thought better of its No. 21 pipe, where Ashton got a grade of 0.27 carat per tonne from about 16 tonnes of kimberlite. Nordic recovered 330 diamonds from 280 kilograms of kimberlite taken from the 1.3-hectare pipe, and the size distribution was more promising. The result left Nordic planning to step up its search for new pipes near No. 21, as well as more tests of the pipe itself.
Explorers on the Russian portion of the Karelian craton discovered some rich diamond deposits. The Lomonosova pipe covers about 13 hectares and the Archangelsk pipe is just slightly smaller. Both have grades of one carat per tonne or more, with diamond values well above $125 (U.S.) per carat. The combination of size, grade and value puts the gross value of the large Archangelsk pipe cluster at well over $30-billion (U.S.), providing added incentive for the Kuopio-Kaavi partners.
Ear on the Street
AutoCanada Income Fund (ACQ.UN : TSX : $10.75)
Restructuring of Chrysler is positive for AutoCanada
Scotia Capital Markets maintains "sector outperform", 12-month target price is $12.50
Agnico-Eagle Mines (AEM : TSX : $47.10 | NYSE : US$40.53)
Friendly takeover bid for Cumber Resources
Blackmont Capital maintains "hold", 12-month target price is cut to $48.00
Desjardins Securities maintains "buy", 12-month target price is $62.75
Raymond James upgrades to "outperform", 6-12 month target price is raised to $54.00
RBC Capital Markets maintains "sector perform", 12-month target price is US$51.00
Algoma Steel (AGA : TSX : $51.44)
In talks with a potential buyer
BMO Capital Markets upgrades to "outperform", 12-month target price is raised to $60.00
CIBC World Markets maintains "sector outperform", 12-month target price is raised to $50.00
GMP Securities maintains "buy", 12-month target price is raised to $57.50
RBC Capital Markets maintains "outperform", 12-month target price is raised to $77.00
Alexis Minerals Corporation (AMC : TSX-V : $1.20)
More gold assays from Lac Herbin
Canaccord Adams maintains "buy", 12-month target price is raised to $1.35
Alexis Nihon REIT (AN.UN : TSX : $19.00)
Homburg offers $18.50/unit for Alexis Nihon
Scotia Capital Markets maintains "sector perform", 12-month target price is $18.75
ATS Automation Tooling Systems (ATA : TSX : $11.05)
Disappointing Q3
Blackmont Capital downgrades to "hold", 12-month target price is cut to $10.50
Credit Suisse maintains "neutral", 12-month target price is $11.25
Raymond James downgrades to "market perform", 6-12 month target price is cut to $11.50
ATS Andlauer Income Fund (ATS.UN : TSX : $13.00)
Q4 better than expected
RBC Capital Markets maintains "outperform", 12-month target price is raised to $13.00
Advantage Energy Income Fund (AVN.UN : TSX : $12.38 | AAV : NYSE : US$10.67)
$100 million financing closed
BMO Capital Markets maintains "underperform", 12-month target price is $12.00
CIBC World Markets reinstates coverage with a "sector underperform", 12-month target price is raised to $11.25
Scotia Capital Markets reinstates coverage with a "sector underperform", 12-month target price is $11.50
BPO Properties (BPP : TSX : $66.00)
Q4 FFO above expectations
CIBC World Markets maintains "sector outperform", 12-month target price is raised to $73.00
Chemtrade Logistics Inc Fd (CHE.UN : TSX : $8.12)
Conservative stance taken heading into fourth quarter earnings release
Blackmont Capital maintains a "sell", 12-month target price is $7.00
Cumberland Resources (CLG : TSX : $8.65)
Takeover bid from Agnico-Eagle
Raymond James downgrades to "market perform", 6-12 month target price is $8.50
Creststreet Power & Income (CRS.UN : TSX : $5.64)
Alberta windfarm transaction implies higher valuation metrics
Scotia Capital Markets maintains "sector perform", 12-month target price is raised to $5.25
Commercial Solutions (CSA : TSX : $6.28)
Weaker than expected Q1
GMP Securities maintains "buy", 12-month target price is $8.30
Raymond James downgrades to "market perform", 6-12 month target price is cut to $7.50
Chartwell Seniors Housing REIT (CSH.UN : TSX : $17.66)
Positive implication of higher bid for Sunrise
BMO Capital Markets maintains "market perform", 12-month target price is raised to $17.00
Catalyst Paper (CTL : TSX : $3.93)
Weak Q4
CIBC World Markets maintains "sector perform", 12-month target price is cut to $3.50
Raymond James maintains "underperform", 6-12 month target price is $3.25
RBC Capital Markets maintains "underperform", 12-month target price is $3.25
Labopharm Inc. (DDS : TSX : $6.99 | DDSS : NASDAQ : US$6.00)
Q4 and full-year results coming today
Canaccord Adams maintains a "buy", target price is $10.30
Empire Company (EMP.A : TSX : $41.86)
Future looking slightly better
Scotia Capital Markets upgrades to "sector perform", 1-year target price raised to $44.50
Extreme CCTV (EXC : TSX : $3.39)
Reports second quarter results
Canaccord Adams maintains a "speculative buy", target price raised to $3.90
HudBay Minerals (HBM : TSX : $23.08)
Production results from 2006 and guidance for 2007 meet expectations
RBC Capital Markets maintains a "outperform", target price is $29.00
Home Capital Group (HCG : TSX : $34.29)
Some concerns taken away from quarterly report
Blackmont Capital maintains a "hold", 12-month target price is $33.00
Cdn. Hotel Income Properties (HOT.UN : TSX : $16.71)
Reports in line Q4/06 results; ups distribution by 3.2%
BMO Nesbitt Burns maintains "outperform", target price raised to $17.00
Canaccord Adams maintains "buy", 12-month target price is raised to $17.00
RBC Capital Markets maintains "sector perform", 12-month target price is raised to $17.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $16.40
TD Newcrest maintains a "buy", 12-month target price is raised to $17.00
Inmet Mining (IMN : TSX : $61.22)
Q4/06 results below expectations; 2007 production guidance short of estimates
Canaccord Adams reiterates "buy", target price is $70.00
CIBC World Markets maintains a "sector outperform", target price is $75.00
Credit Suisse maintains a "outperform", target price raised to $70.00
GMP Securities continues to rate "buy", target price is $72.00
TD Newcrest maintains a "buy", 12-month target price is raised to $70.00
IPL Inc. (IPI.A : TSX : $7.50)
Turnaround story showing momentum
GMP Securities upgrades to "buy", target price is $9.50
Canadian Hydro Developers (KHD : TSX : $6.30)
B.C. goes green
Scotia Capital Markets maintains "sector outperform", 12-month target price is $7.75
Mainstreet Equity (MEQ : TSX : $17.00)
Boosted by Alberta property values and rental conditions
Desjardins Securities maintains a "top pick", target price raised to $24.60
Melcor Developments (MRD : TSX : $24.00)
Potential highlighted by Brookfield's Alberta land operation
Desjardins Securities maintains a "top pick", target price is $33.15
Mavrix Fund Management (MVX : TSX : $1.90)
Reports fourth quarter and F06 results
GMP Securities reiterates "buy", 12-month target price is raised to $2.50
NUCRYST Pharmaceuticals (NCS : TSX : $4.88 | NCST : NASDAQ : US$4.22)
Sales of lead product slowing down
GMP Securities maintains a "buy", target price cut to US$8.00
Nortel Networks Corp. (NT : TSX : $36.09 | NYSE : US$31.06)
Slowly turning the corner
RBC Capital Markets maintains a "sector perform", target price raised to US$32.00
Onex Corporation (OCX : TSX : $29.55)
Reports Q4/06 and year-end results
BMO Nesbitt Burns maintains "outperform", 12-month target price is $33.00
GMP Securities rate "hold", 12-month target price is $28.55
Peyto Energy Trust (PEY.UN : TSX : $17.49)
2006 reserve report
BMO Nesbitt Burns maintains "market perform" 12-month target price is $18.00
ProEx Energy Ltd. (PXE : TSX : $13.36)
Pipeline bottlenecks hamper growth
Raymond James maintains "strong buy", 12-month target price is $22.00
Stylus Energy (STY : TSX : $2.70)
Oil and gas properties in Alberta
BMO Nesbitt Burns initiate coverage with "market perform", 12-month target price is $3.50
Sunrise Senior Living REIT (SZR.UN : TSX : $18.05)
New bid tops Ventas
BMO Nesbitt Burns rates "market perform", 12-month target price is raised to $18.00
RBC Capital Markets maintains "sector perform", 12-month target price is raised to $18.00
Teck Cominco Ltd. (TCK.B : TSX : $87.39 | TCK : NYSE : US$75.18)
Soft quarter; outlook remains solid
BMO Nesbitt Burns maintains "market perform", 12-month target price is $86.00
CIBC World Markets maintains a "sector perform", target price is $100.00
Teknion Corporation (TKN : TSX : $4.25)
Continued FX pressure
BMO Nesbitt Burns upgrades to "market perform", 12-month target price is raised to $6.00
Scotia Capital Markets rates "sector underperform", 12-month target price is $4.40
TD Newcrest maintains "buy", 12-month target price is $5.50
TransCanada Corp. (TRP : TSX : $38.02 | NYSE : US$32.70)
$1.5 billion equity offering
CIBC World Markets maintains "sector outperform", 12-month target price is $43.00
Scotia Capital Markets rates "sector outperform", 12-month target price is reduced to $43.00
Workbrain Corp (WB : TSX : $9.69)
Weaker than expected results
CIBC World Markets maintains "sector perform", 12-month target price is $9.00
GMP Securities rate "buy", 12-month target price is $11.50
RBC Capital Markets downgrades to "sector perform", 12-month target price is $10.00
Scotia Capital Markets rates "sector underperform", 12-month target price is $8.50
WestJet Airlines (WJA : TSX : $15.72)
Q4 beats the expectations
BMO Nesbitt Burns maintains "market perform", 12-month target price is raised to $16.00
Canaccord Capital maintains "buy", 12-month target price is raised to $18.25
Credit Suisse maintains "outperform", 12-month target price is raised to $20.00
Desjardins Securities maintains "buy", 12-month target price is $17.50
Raymond James rates "outperform", 6-12 month target price is raised to $18.50
Scotia Capital Markets maintains "sector perform", 12-month target price is raised to $18.25
TD Newcrest maintains "buy", 12-month target price is raised to 19.00
George Weston Ltd. (WN : TSX : $72.00)
Bearish outlook at Loblaw dominates
CIBC World Markets maintains "sector underperform", 12-month target price is cut to $63.00
Credit Suisse maintains a "outperform", target price is $88.00
RBC Capital Markets maintains a "sector perform", target price is $75.00
Scotia Capital Markets downgrades to "sector underperform", 1-year target price cut to $71.50
TSX Group (X : TSX : $50.17)
New exchange in Calgary
CIBC World Markets maintains "sector outperform", 12-month target price is $60.00
Scotia Capital Markets rates "market perform", 12-month target price is $55.00
Ear on the Street
Aber Diamond Corp. (ABZ : TSX : $46.81 | ABER : NASDAQ : US$39.62)
Strong production outlook
RBC Capital Markets maintains "outperform", 12-month target price is raised to US$46.00
Agnico-Eagle Mines (AEM : TSX : $47.73 | NYSE : US$40.38)
Q4 preview
RBC Capital Markets maintains "sector perform", 12-month target price is US$53.00
Arctic Glacier Income Fund (AG.UN : TSX : $12.56)
Equity offering of $74.5 million
National Bank Financial maintains "outperform", 12-month target price is cut to $15.10
TD Newcrest maintains "buy", 12-month target price is raised to $13.50
Alamos Gold Inc. (AGI : TSX : $8.17)
Upgrade on share sell-off
BMO Capital Markets upgrades to "outperform", 12-month target price is cut to $11.00
BCE Inc. (BCE : TSX : $31.26)
Results reported on today
CIBC World Markets maintains "sector outperform", 12-month target price is $34.00
CAP REIT (CAR.UN : TSX : $19.25)
Announces $60 million acquisition
Blackmont Capital maintains "hold", 12-month target price is $19.75
Cogeco Cable (CCA : TSX : $40.20)
Closing of $192.5 million financing
GMP Securities maintains "buy", 12-month target price is $44.50
National Bank Financial maintains "outperform", 12-month target price is $49.00
Cineplex Galaxy Inc Fund (CGX.UN : TSX : $13.78)
Weak Q4 expected
Raymond James maintains "outperform", 6-12 month target price is $14.50
Chariot Resources (CHD : TSX : $0.81)
Metallurgy issues and project delay at Mina Justa
Raymond James maintains "strong buy", 6-12 month target price is $1.30
Celestica Inc. (CLS : TSX : $7.69 | NYSE : US$6.50)
Solid book value
BMO Capital Markets maintains "market perform", 12-month target price is $8.50
Canadian National Railway (CNR : TSX : $53.99 | CNI : NYSE : US$45.61)
Conductors vote to strike
RBC Capital Markets maintains "outperform", 12-month target price is $63.00
Chartwell Seniors Housing REIT (CSH.UN : TSX : $16.96)
Acquire four properties in Ontario
National Bank Financial maintains "outperform", 12-month target price is raised to $17.25
Canadian Tire Corporation (CTC.A : TSX : $70.32)
Q4 preview
RBC Capital Markets maintains "outperform", 12-month target price is $89.00
Coast Wholesale Appliances (CWA.UN : TSX : $8.75)
New Street coverage
CIBC World Markets initiates coverage with a "sector perform", 12-month target price is $9.50
bcMetals Corporation (C : TSX-V : $1.69)
Imperial Metals sets to win the bidding war
Haywood Securities maintains "tender", 12-month target price is raised to $1.70
CryoCath Technologies (CYT : TSX : $3.30)
Strong showing at STS conference
RBC Capital Markets maintains "outperform", 12-month target price is $7.00
Canadian Royalties Inc (CZZ : TSX : $3.12)
Indicated resource at Ivakkak increased by 117%
Blackmont maintains "buy", 12-month target price is $3.20
Raymond James maintains "strong buy", 6-12 month target price is $4.20
Draxis Health (DAX : TSX : $6.10 | DRAX : NASDAQ : US$5.16)
Q4 preview
Desjardins Securities maintains "hold", 12-month target price is raised to US$5.75
Duvernay Oil Corp (DDV : TSX : $32.60)
Year-end preview
Canaccord Adams maintains "buy", 12-month target price is $45.00
Denison Mines Corp. (DML : TSX : $11.37)
New Street coverage
GMP Securities initiates coverage with a "buy", 12-month target price is $15.00
Emera Inc. (EMA : TSX : $21.42)
Nova Scotia Power's 2007 rate settlement approved
RBC Capital Markets maintains "sector perform", 12-month target price is $22.00
EXFO Electro-Optical Engin. (EXF : TSX : $8.24 | EXFO : NASDAQ : US$6.98)
Strong growth ahead
Desjardins Securities re-initiates coverage with a "buy", 12-month target price is $10.25
Flint Energy Services Ltd. (FES : TSX : $28.00)
Contract Negotiation with Suncor
Blackmont Capital maintains "buy", 12-month target price is $40.50
RBC Capital Markets upgrades to "outperform", 12-month target price is raised to $37.00
TD Newcrest maintains "buy", 12-month target price is $36.00
First Quantum Minerals (FM : TSX : $61.48)
New Street coverage
Canaccord Adams initiates coverage with a "buy", 12-month target price is $70.00
Finning International (FTT : TSX : $50.23)
Downgrade based on valuation
Raymond James downgrades to "market perform", 6-12 month target price is $52.50
Great Lakes Carbon Inc. Fd (GLC.UN : TSX : $11.65)
Acquisition offer from Rain Commodities
RBC Capital Markets maintains "sector perform", 12-month target price is 11.50
Groupe Laperriere & Verreault (GLV.A : TSX : $33.70)
To report Q3 on February 12
BMO Capital Markets maintains "outperform", 12-month target price is $35.00
Galleon Energy (GO.A : TSX : $16.91)
Significant extension to the Puskwa oil pool
RBC Capital Markets maintains "outperform", 12-month target price is raised to $21.00
TD Newcrest maintains "buy", 12-month target price is raised to $22.00
Grey Wolf Exploration (GWE : TSX : $3.10)
Current production below estimate
BMO Capital Markets maintains "outperform", 12-month target price is $3.50
Garda World Security Corp (GW : TSX : $20.02)
Acquire U.K-based GSS Global
Desjardins Securities maintains "buy", 12-month target price is $28.00
GMP Securities maintains "buy", 12-month target price is $33.00
National Bank Financial maintains "outperform", 12-month target price is $25.50
Husky Energy (HSE : TSX : $76.41)
Q4 in line
Desjardins Securities maintains "buy", 12-month target price is $85.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $85.50
TD Newcrest maintains "reduce", 12-month target price is $74.00
Hostopia.com (H : TSX : $6.35)
New Street coverage
RBC Capital Markets maintains "outperform", 12-month target price is $8.00
Harvest Energy Trust (HTE.UN : TSX : $26.42)
Financing improves balance sheet
Canaccord Adams maintains "buy", 12-month target price is $29.00
IPSCO Inc. (IPS : TSX : $120.70 | NYSE : US$102.32)
Lower than expected Q4 results
CIBC World Markets maintains "sector outperform", 12-month target price is cut to $117.00
Desjardins Securities downgrades to "hold", 12-month target price is $130.00
GMP Securities maintains "buy", 12-month target price is raised to $112.00
RBC Capital Markets rates "top pick", 12-month target price is $116.00
Scotia Capital Markets rates "sector outperform", 12-month target price is cut to $140.00
TD Newcrest maintains "buy" 12-month target price is $120.00
Jaguar Mining Inc. (JAG : TSX : $6.37)
Early exercise of warrants offered
Blackmont Capital maintains "buy", 12-month target price is $9.25
Canadian Hydro Developers (KHD : TSX : $6.25)
Adding wind energy
BMO Nesbitt Burns maintains "market perform", 12-month target price is $6.00
Liquor Barn Income Fund (LBN.UN : TSX : $8.70)
Liquor sales up since hockey came back
Raymond James maintains "outperform", 12-month target price is $9.50
LionOre Mining International (LIM : TSX : $13.20)
Selkirk PFS results positive
GMP Securities maintains "buy", 12-month target price is raised to $19.00
Loblaw Companies (L : TSX : $51.31)
Results reported tomorrow
National Bank Financial maintains "sector perform", 12-month target price is $44.00
RBC Capital Markets rates "top pick", 12-month target price is $46.00
MacDonald Dettwiler & Assoc. (MDA : TSX : $49.54)
Home information Pack coming soon
Raymond James maintains "outperform", 12-month target price is raised to $54.00
Minefinders Corp. (MFL : TSX : $12.84)
Leach pad loading to begin this summer
BMO Nesbitt Burns maintains "outperform", 12-month target price is $20.00
Norbord Inc. (NBD : TSX : $9.57)
Possible price war in panels
BMO Nesbitt Burns rates "underperform", 12-month target price is $8.00
Northgate Minerals Corp. (NGX : TSX : $4.28 | NXG : AMEX : US$3.62)
Disappointing 2007 guidance
Canaccord Adams downgrades to "hold", 12-month target price is cut to US$4.00
Oilexco Inc. (OIL : TSX : $8.60)
Awarded six production licenses
Canaccord Adams maintains "buy", 12-month target price is $8.58
Open Text (OTC : TSX : $22.55)
First look at hummingbird
Raymond James rates "outperform", 12-month target price is $26.00
Potash Corp. of Saskatchewan (POT : TSX : $176.79 | NYSE : US$149.70)
Chinese negotiations over?
RBC Capital Markets rates "outperform", 12-month target price is $165.00
Purepoint Uranium Group (PTU : TSX-V : $2.22)
66% gain in last seven days
Blackmont downgrades to "hold" 12-month target price is $3.20
Q9 Networks Inc. (Q : TSX : $14.05)
Partnership with IBM
Haywood Securities rates "sector outperform", 12-month target price is raised to $17.00
Cdn. Real Estate Investment (REF.UN : TSX : $32.71)
Downgrade on valuation
BMO Capital Markets downgrades to "market perform", 12-month target price is raised to $33.00
RSX Energy (RSX : TSX-V : $3.80)
New pipeline operational
Haywood Securities rates "sector outperform", 12-month target price is $5.75
Raymond James maintains "outperform", 12-month target price is $5.00
Shoppers Drug Mart (SC : TSX : $50.48)
Dividend payout could be increased
RBC Capital Markets maintains "outperform", 12-month target price is $60.00
Scotia Capital Markets rates "sector outperform", 12-month target price is $59.00
SFK Pulp Fund (SFK.UN : TSX : $4.96)
Recent $82 million equity issue
TD Newcrest reinstates coverage "buy", 12-month target price is $5.25
Toromont Industries (TIH : TSX : $24.87)
Q4 results surprise
Blackmont Capital maintains "buy", 12-month target price is $28.50
CIBC World Markets rates "sector perform", 12-month target price is $28.00
Desjardins Securities maintains "buy", 12-month target price is increased to $28.50
Raymond James maintains "market perform", 12-month target price is $27.00
TD Newcrest maintains "hold", 12-month target price is $26.00
Talisman Energy (TLM : TSX : $20.63 | NYSE : US$17.45)
Relative valuation reduced
RBC Capital Markets downgrade to "sector perform", 12-month target price is $22.00
Transalta Power Lp (TPW.UN : TSX : $7.70)
Results lower than expected
BMO Nesbitt Burns rates "underperform", 12-month target price is $6.50
Scotia Capital Markets rates "underperform", 12-month target price is $7.00
TimberWest Forest Corp. (TWF.UN : TSX : $16.63)
Brookfield logical buyer
RBC Capital Markets rates "sector perform", 12-month target price is $14.50
Wireless Matrix (WRX : TSX : $0.91)
Expansion is warranted
GMP Securities maintains "buy" 12-month target price is increased to $1.15
Yamana Gold Inc. (YRI : TSX : $15.99)
Operating results encouraging
Blackmont Capital maintains "buy", 12-month target price is $20.00
VOLUME 276
Companies featured in the current edition of the newsletter: ACCP, ADSX, ARGA, AXMP, CYTR, EMIS, ENZ, GNBT, HSOA, HYTM, IMMG, IRBO, ISON, LANW, LNXGF, RTK, SCLL, SFP, SWTS, USAT
Stocks consolidated some of their recent gains last week, with each of the indexes retreating modestly on below average volume. With fewer companies reporting results in the coming weeks, investors began to once again focus on interest rates and energy prices. Comments by Fed officials on Friday stoked fears that the Fed may not be done raising interest rates yet, contributing to most of the weekly decline in the indexes. The Dow finished the week down 72 points, paring its year to date gain to 0.9%. The Nasdaq dipped 16 points, reducing its year to date gain to 1.8%. The S&P 500 dropped 10 points, and is up 1.4% for the year, while the Russell 2000 finished the week down 2 points, reducing its yearly gain to 2.5%.
Last week’s economic news was relatively light with only a few high-profile companies reporting results. With Fed officials hinting that rate increases are more likely than reductions, this week’s upcoming CPI data takes on added importance. Likewise, the focus has shifted back to the energy sector, as crude oil prices continued to rise last week, briefly jumped above $60 per barrel. Oil finally settled at $59.89 per barrel, but the price increase could stoke inflationary concerns.
What should investors look for in the upcoming week? Next week will not see the same level of earnings activity as over the past few weeks, but there will be a few companies reporting results with the ability to impact trading. Monday before the bell Loews Corporation (NYSE: LTR) reports results. YUM! Brands (NYSE: YUM) will announce earnings after the market close on Monday. The activity picks up Tuesday with pre-market announcements from Coca-Cola Enterprises (NYSE: CCE), KB Home (NYSE: KBH) and Marsh McLennan (NYSE: MMC). Expect to see announcements from Applied Materials (Nasdaq: AMAT) and MetLife (NYSE: MET) after the bell Tuesday. United Auto (NYSE: UAG), Progress Energy (NYSE: PGN), Office Depot (NYSE: ODP), MGM Mirage (NYSE: MGM), Deere (NYSE: DE) and Coca-Cola (NYSE: KO) will announce earnings before the market opens on Wednesday. Thursday morning announcements include Baker Hughes (NYSE: BHI), EnCana (NYSE: ECA), Molson Coors Brewing (NYSE: TAP), and Reliance Steel (NYSE: RS). Allied Waste (NYSE: AW) and Community Health (NYSE: CYH), will announce earnings after the market close Thursday. Friday’s announcements will include earnings reports from Campbell Soup (NYSE: CPB) and Goodyear Tire (NYSE: GT).
Next week’s economic reports will take on added significance. The January Treasury Budget will be announced late in the afternoon Monday and the December Trade Balance will be announced before the bell Tuesday. January Retail Sales will be announced before the open on Wednesday followed by mid-morning announcements of December Business Inventories and the Weekly Crude Inventories. January Import and Export Prices will be announced before the bell Thursday, as well as the Weekly Initial Unemployment Claims and the February NY Empire State Index. December Net Foreign Purchases and January Industrial Production and Capacity Utilization will be announced later Thursday morning. The February Philadelphia Fed Index will be announced mid-day Thursday. January Housing Starts and January Building Permits, as well as the January Core PPI, which could dramatically move markets, will be announced before the open on Friday. The February Michigan Sentiment Index will be announced later that morning. Investors will likely pay close attention to Fed Chairman Bernanke on Wednesday as he testifies at the Senate on policy. Financial futures and options pits will close at 1p.m. on Friday.
The conference schedule will be highly active again next week. The three-day Deutsche Bank Securities 2007 Small Cap Growth Conference begins Monday in Naples, Florida. The three-day Second Annual Stem Cell Summit begins Monday in San Diego, while the three-day UBS Annual Healthcare Services Conference in New York starts Monday as well. Hythiam, Inc. (NASDAQ: HYTM), will present there on Wednesday at 8:30 a.m. Eastern Time. Other conferences starting Monday include Citigroup hosting its three-day 2007 Retail Conference and Field trip in Orlando, the Goldman Sachs 2007 Housing Conference, and the three-day 9th Annual Bio CEO and Investor Conference in New York. CytRx Corporation (NASDAQ: CYTR) is scheduled to present at the 9th Annual Bio CEO and Investor Conference Wednesday at 3:00 p.m. Eastern Time. Emisphere Technologies, Inc. (NASDAQ: EMIS) will also present on Wednesday at 12:00 p.m. The CIBC Human Capital Management Software 1-on-1 Conference in New York and the First Albany Capital 2nd Annual Orthopedics Conference in San Diego will begin Tuesday. The three-day Merrill Lynch Insurance Investor Conference and the three-day Merrill Lynch Internet, Software & Services Conference begin Tuesday as well, and both conferences will be held in New York. Merriman Curhan Ford & Co. will hold a IP Video 2007 Conference in San Francisco on Tuesday. The three-day BB&T Capital Markets 22nd Annual Transportation Conference in Miami and the four-day Piper Jaffray 5th Annual Aircraft Summit in Vail, Colorado begin Wednesday. The two-day Credit Suisse Digital Media, Memory & Storage Conference in Boston also begins Wednesday. The two-day EnerCom Incorporated Oilservice Conference V in San Francisco begins Thursday.
Hythiam, Inc. (NASDAQ: HYTM), a healthcare services management company that licenses the PROMETA™ physiological protocols designed to treat substance dependence, announced last week that the company has launched a new nationwide team of field personnel with a focus on increasing the awareness of the PROMETA® protocols among allied health professionals and physicians specializing in the treatment substance dependency. This national field organization is made up of 36 individuals, 18 of which are PROMETA Clinical Consultants (PCC). The remaining half of the team is comprised of Site Managers. The Site Managers will service the company’s licensed locations as liaisons between Hythiam and its licensees. In addition to working closely with the Site Managers to execute strategies for increasing the visibility of licensed sites, the PCC’s will also service Hythiam’s existing 60 PROMETA licensed sites by communicating the scientific features, advantages and benefits of the treatment protocols to key thought leaders and decision makers. The company also said that its flagship PROMETA center, based in Los Angeles, achieved its highest monthly revenue since its inception a year ago. HYTM recently said that two additional Centers were recently opened in San Francisco and New Jersey. The stock ended the week at $8.56, down 13 cents.
Enzo Biochem, Inc. (NYSE: ENZ), developer of innovative health care products based on molecular biology and genetic engineering techniques, announced last week that the company had agreed to sell one million shares of the company’s common stock at $15 per share in a registered direct offering. While the shareholder was not disclosed, it must have been somebody who wanted to own the stock pretty badly, as the company completed the sale of 3.3 million shares at $14 less than six weeks earlier. Net proceeds totaling $14.2 million from the sale increase the company’s cash position to approximately $125 million. Enzo also said that its subsidiary, Enzo Life Sciences, Inc., had been granted two new patents by the U.S. Patent and Trademark Office. These new patents add to the competitive position of the company’s intellectual property portfolio and serves to strengthen Enzo’s existing proprietary labeling products for the genomics and diagnostics markets. U.S. Patent No 7,166,478, covers a wide range of applications in DNA labeling broadly used in such areas as nucleic acid arrays for gene expression and analysis of gene copy number in chromosomes. U.S. Patent No. 7,163,796, relates to the use of novel processes developed at Enzo for use in chemiluminescent assays. The patents highlight the company’s broad portfolio of intellectual property, which has sometimes caused it to protect its IP estate through litigation. One lawsuit, filed by ENZ against Applied Biosystems (ABI), may have merit, if one were to read a 10-Q filing by ABI, in which it acknowledged that the lawsuit by Enzo was one of the risk factors investors faced. The suit alleges that ABI infringed six patents due to the sale of sequencing reagent kits, TaqMan ® genotyping and gene expression assays, and the gene expression microarrays used with the Applied Biosystems group’s Expression Array System. On November 8, 2006, a patent interference proceeding was declared by the United States Patent and Trademark Office between Enzo Diagnostics, Inc. and the California Institute of Technology, concerning a patent application owned by Enzo and U.S. Patent No. 5,821,058, owned by Caltech. The ’058 patent is exclusively licensed to Applied Biosystems and claims methods for DNA sequencing. The possibility of Enzo prevailing in the interference potentially provides it with the ability to assert claims against ABI and possibly others. Enzo shares closed the week up $0.57 at $15.65.
Applied Digital (NASDAQ: ADSX), a leading provider of identification and security technology, finally completed the IPO of its Verichip Corporation subsidiary on Friday as the stock begin trading on the Nasdaq Global Market under the ticker symbol CHIP. VeriChip offered 3.1 shares of its common stock at $6.50 per share, before underwriting discounts and commissions. So where does that leave ADSX? Primarily as the majority owners of VeriChip and Digital Angel. While it will undoubtedly take some time for VeriChip to develop the market for the VeriMed Patient Identification System, the company is primarily being valued based upon revenue ($20.3 million for the first nine months of 2006) generated by RFID sales of infant protection and wander prevention systems. Essentially, it is trading at comparable multiples of revenue to other RFID publicly-traded companies, with investors attributing little value to VeriMed. Investors should focus on the number of new hospitals adopting the system, a key metric to value the company’s future progress in gaining traction. The stock ended the week down $0.12 at $1.90.
New 52-Week High: Shares of CytRx Corporation (NASDAQ: CYTR), a biopharmaceutical company focused on developing products primarily in the area of small molecules and ribonucleic acid interference (RNAi), surged to yet another new high last week on heavy volume, as the company announced that it will proceed with its arimoclomol study. CYTR unveiled the company’s plans for completing its next step in the process of initiating the Phase IIb clinical trial for treatment of ALS, more commonly known as Lou Gherig’s disease, planned for commencement in the third quarter of 2007. The company plans to proceed with the maximum safe and well-tolerated dose during the Phase IIb efficacy trial of the orally-administered arimoclomol. At a European single-site, this double-blind, placebo-controlled multiple rising/ascending dose study is designed to test the safety, tolerability and pharmacokinetics of increasing dosages of arimoclomol in healthy volunteers over a seven-day period. Included in the plan will be 40 healthy volunteers in four groups consisting of ten individuals. CytRx believes that positive efficacy and safety results from the Phase IIb trial could be sufficient for arimoclomol product registration in the U.S. The stock ended the week up 36 cents at $3.25.
Generex Biotechnology Corporation (NASDAQ: GNBT), a leader in the area of buccal drug delivery, announced that the company has selected and finalized the preparations of 50 volunteers set to participate in clinical trials for a synthetic avian influenza vaccine under development by GNBT’s wholly-owned subsidiary, Antigen Express. The company previously announced that it entered into an agreement with Lebanese-Canadian Hospital in Beirut, Lebanon to conduct the Phase I trial. The hospital is currently screening an additional 70 potential volunteers. The study is expected to accrue160 total patients. Antigen Express’s development of a novel peptide vaccine technology houses certain advantages for utilization against the potentially pandemic H5N1 avian influenza virus. The peptide vaccine has the potential for more inexpensive and rapid mass production, whereas the potential of the traditional egg-based vaccine would allow for vaccination of only a fraction of the world population. The technology under current development by Antigen Express is designed to more potently stimulate CD4+T helper cells by modifying a specific protein from the H5N1 virus in order to protect against the lethality of the virus. In other company news, Frost & Sullivan selected Generex as the recipient of the 2006 Frost & Sullivan Award for Technology Innovation in the field of diabetic therapies. The company's Generex Oral-lyn™ oral insulin spray technology for the treatment of Type-1 and Type-2 diabetes provides an ideal and noninvasive path for insulin delivery. The technology is currently available in South America and Generex is preparing for a pivotal Phase III study in the USA and worldwide. The stock ended the week up 9 cents at $1.84.
Rentech Inc. (AMEX: RTK), a developer of alternative energy sources, announced last week results for its 2007 first fiscal quarter ended December 31, 2006. RTK reported significantly increased revenue as a result of sales of nitrogen products from its manufacturing plant in East Dubuque, Illinois, which was acquired in April, 2006. RTK reported revenues of $35.4 million versus $41,000 for the equivalent period in fiscal year 2006. The company reported a net loss applicable to common shareholders of $(8.7) million or $(0.06) per share, compared to a net loss applicable to common shareholders of $(5.7) million or $(0.05) per share during the three months ended December 31, 2005. The company had cash and cash equivalents of $53.8 million at December 31, 2006. Perhaps most significantly, the company said in its conference call that it planned to finance a significant portion of the conversion costs for its East Dubuque facility through project financing, which would reduce the amount of stock the company would need to issue. Shares ended the week up 29 cents at $3.88.
Earnings Preview: Small-appliance maker Salton, Inc. (NYSE: SFP) will report second quarter results on Tuesday before the market opens for the period ended December, 2006 but the results are likely to be overshadowed by an announcement last week where the company said it had entered into a definitive agreement to merge with Applica, in a move that came as little surprise to investors. Immediately following the merger, Applica will become a subsidiary of Salton and the existing stockholders of Applica will control approximately 83% percent of Salton’s outstanding common stock. The combination of Applica and Salton will result in the creation of one of the largest U.S. public companies centered on the household small-appliance industry and should drive substantial cost savings, likely well in excess of $50 million. The combination of the two companies will create a broad product portfolio of highly recognizable consumer product names. The companies intend to complete this transaction by the end of the second calendar quarter of 2007. Harbinger Capital Partners, which acquired Applica after a bidding war with NACCO Industries, will be the largest shareholder of the combined companies. The stock ended the week down 8 cents at $2.91.
Isonics Corporation (NASDAQ: ISON), the developer of innovative solutions for the homeland security and semiconductor markets, announced that the company has made the final principal payment to the holders of its 8% Convertible Debentures, which were issued in February 2005. The repayment of the Debentures simplifies the company’s capital structure and eliminates the need for the company to issue more shares to repay the debt. Shares ended the week down 3 cents at $0.52.
Home Solutions of America, Inc. (NASDAQ: HSOA), a provider of recovery, restoration and rebuilding/remodeling services, said last week that its subsidiary, Fireline Restoration, Inc., was an emergency first responder to the tornados that hit central Florida in early February. In the wake of the twisters, the company was on the ground to assist with immediate remediation and recovery efforts once the area was confirmed safe and emergency services had finished attending victims of the natural disaster. HSOA anticipates revenue of approximately $8 million from the storm and additional reconstruction work in the area. Despite the news, this heavily shorted stock (30% short interest) continues to struggle with its 200-day moving average $6.67, rising briefly over that level earlier in the week only to fail to hold that level, as it has since July. Shares ended the week down 21 cents at $6.43.
New 52-week High: Is Access Pharmaceuticals, Inc. (OTCBB: ACCP), an emerging biopharmaceutical company that develops and commercializes propriety products for the treatment and supportive care of cancer patients, close to inking a significant licensing agreement? While the company has said nothing about a deal for its MuGard™ product, used for the management of oral mucositis, a painful, inflammatory mouth condition affecting over 40% of cancer patients undergoing chemotherapy and radiation therapy, specialty pharmaceutical company BioProgress plc. said in a release disseminated in London but not picked up widely in the U.S. that it had entered into a term sheet to license the product for sale within the European, CIS and Middle East regions. As consideration for the exclusive rights, BioProgress will, upon signing the final licensing agreement, pay Access $1 million. Shares ended the week up $1.99 at $7.15.
Volume Alert: Shares of specialty pharmaceutical company Auriga Laboratories, Inc. (OTCBB: ARGA), jumped 55% last week on more than five times average volume, after the company announced preliminary results for the year ended December 31, 2006. For the twelve months ended December 31, 2006, ARGA had revenue of $7.4 million in its first full year of operations. Unaudited gross profit totaled nearly $4.1 million last year, up nearly 105% from the prior year. Auriga forecast $6.2 million in gross revenue for its first quarter ended March 31, 2006 and full-year revenue of $26 million. Auriga plans to launch Aquoral™, a prescription-only product designed to treat the widespread condition of Xerostomia, as well as its Zinx™ family of respiratory prescription and over-the-counter products during the first quarter 2007. Shares ended the week up 43 cents at $1.20.
Research and development biotechnology company ImmuneRegen BioSciences, Inc., a wholly owned subsidiary of IR BioSciences Holdings, Inc. (OTCBB: IRBO), announced that Viprovex™ has demonstrated the potential for treating potentially resurgent Spanish Flu, Avian Flu and other infectious diseases. The results were based upon studies the company conducted in animal models showing protection from infection by Bacillis anthracis and influenza A viruses. Studies aimed at potential mechanisms have examined cellular components of the host immune system and have found that in both animals and in cultured cells, Viprovex causes differential activation of components of the innate immune system. These results support the whole animal findings and suggest that Viprovex may be capable of preventing immune system over-stimulation that might motivate the severe lethality of both Spanish flu and avian influenza. Current studies are planned to confirm both anti-viral effectiveness as well as these specific mechanistic findings in animal models for avian and Spanish Flu. In addition, these studies will expand efficacy observations against Anthrax to viral diseases such as Hepatitis C and Dengue Fever. The stock ended the week up a penny at $0.14.
Joe Granville, a noted mining newsletter published who writes The Granville Letter, said last week in his publication that he thought the stock of junior mining company Linux Gold Corp. (OTCBB: LNXGF) could easily reach a $1 or more. While certainly a bold prediction, Granville has been uncannily accurate before, winning the top gold model for the second consecutive year in a competition to forecast the price of gold. Previously, he recommended Linux as a top stock, just weeks before the stock surged to a new 52-week high in May. Linux shares ended the week unchanged at $0.27.
Cell biology company Stem Cell Innovations (OTCBB: SCLL), said last week that the company had submitted its ACTIVTox® in vitro toxicology suite to ECVAM to seek validation as an alternative to animal testing in the European Union. The company’s proprietary, highly characterized human liver cell system is currently being used to accurately predict the response of the liver to a new drug compound and chemists can then eliminate potential toxicity before entering clinical trials. The use of ACTIVTox has the potential to reduce the need for animals in clinical testing, in turn saving pharmaceutical companies time and money. ACTIVTox also has broad application and can be used to examine toxicity in chemicals, nutraceuticals and cosmetics. Shares ended the week at $0.05, down $0.02.
Sweet Success Enterprises, Inc. (OTCBB: SWTS), which has re-launched a product line made popular by Nestlé’s to tap into the rapidly growing demand for convenient and nutritious beverages, announced the finalization of an agreement with Kerry Sainte-Claire for the production of the unique ChocKoala Immunity Jr.(TM) This agreement significantly broadens the company’s production potential to include the smaller “kid-friendly” products. The company will mass-produce the one of a kind ChocKoala Immunity Jr. in the 250mL Tetra Prisma packaging at KSC's 122,000SF state-of-the-art facility. Kerry Sainte-Claire, is a unit of the multinational conglomerate Kerry Group. Kerry Group is a leader in global food ingredients and flavors markets, and a leading branded consumer foods processing and marketing organization. The stock ended the week unchanged at $0.63.
USA Technologies, Inc. (OTCBB: USAT), a developer of cashless vending and energy management products, announced last week that all energy utilities offering EnergyMiser rebates had renewed their incentive programs for 2007. USAT also signed two additional utilities, increasing the total number of energy utilities offering EnergyMiser rebates to 26. The two new utilities joining the program are The United Illuminating Company, of Connecticut and the Western Massachusetts Electric Company. Shares ended the week down 8 cents at $6.72.
Language Access Network (OTC: LANW), a leader in video language interpretation services, announced last week that the company will provide services to Cypress Fairbanks Medical Center, in Houston, Texas. Cypress is part of the massive Tenet Healthcare System. Language access will provide interpretation service in over 150 languages, including American Sign Language, to the medical center's Emergency Department. The company’s Martti™ system will be available free to Cypress Fairbanks Medical Center patients 24 hours a day, year round. Texas ranks second in the nation, behind California, with 13% of its population speaking English less than very well. If the launch is successful, it could lead to widescale adoption among other hospitals in the Tenet chain. The stock ended the week down $0.15 at $2.80.
AXM Pharma Inc. (OTC: AXMP), a manufacturer of proprietary and generic pharmaceutical and nutraceutical products for the Chinese and other Asian markets, announced last week the acquisition of a leading Chinese research institute. The company’s wholly-owned subsidiary, AXM Shengyang entered into an Acquisition Restructure and Technology Transfer Agreement with Beijing Yuhuatang Biological Sci-Tech Development Co., Ltd. AXM will issue approximately 4.5 million shares of the company's common stock and RMB 1 million to Yuhuatang in exchange for all of Yuhuatang’s common stock and technology. Yuhuatang’s technology was granted innovative funds for Small and Medium Enterprises from State Science and Technology Ministry. Under the agreement, AXM will acquire a broad portfolio of products including products in the areas of testosterone and testosterone undecanoate, both of which contain Androstenedione. The demand for these products far exceeds the supply. The company expects that it can produce these products in a GMP-certified 60,000 square meter facility and expects to produce and launch these products during the fourth quarter of 2007. The products will be exported and will also be sold domestically. Construction funding will come from Chinese investors under financial terms currently under negotiation. AXM also announced that Brazil Wahsun Import & Export Ltd. has signed a ten-year agreement, under which AXM Pharma has been designated exclusive distributor for Sygen. Sygen, a product produced by TRB Pharma of Brazil, measures pathological changes in the central nervous system and Parkinson's disease. Shares ended the week up $0.05 at $0.30.
In an operational update released to company shareholders, IMPART Media Group, Inc. (OTCBB: IMMG), an innovator in the creation of out-of-home digital advertising content and information network management, provided information regarding the company’s business strategies. The company said its E&M business produced its best quarter in 20 years and surpassed 1,000 sold units for the Impart IQ™ platform by the year-end of 2006. The company also said the market acceptance of the Impart IQ mini™ increased. The company anticipates becoming cash flow positive in the second quarter of 2007. IMPART also announced its preliminary unaudited revenues for the fourth quarter 2006 was $2.34 million. The revenues total represents an increase of 42% over third quarter revenues. In additional company news, IMPART announced its expansion into Europe as a supplier to the Interpublic Group's Momentum Worldwide subsidiary. The company is providing an integrated, interactive merchandising shelf signage solution with 8.4" LCD touch screen, custom enclosure, Impart IQ mini™ player, dual solid state flash memory storage for both the media and Windows embedded operating system, plus USB future upgrade accommodations for Wi-Fi connectivity. The stock ended the week up $0.21 at $0.72.
On the Wires: Access Pharmaceuticals, Inc. appointed Esteban Cvitkovic, M.D. to its Board of Directors. Dr. Cvitkovic has also assumed the title of Vice Chairman (Europe). Dr. Cvitkovic is widely respected physician who played a crucial role in the registration of leading cancer drugs and with over thirty years of international experience in oncology therapeutics he will assist Access with the development of its existing portfolio. Dr. Cvitkovic is currently a Senior Medical Consultant to AAIOncology and maintains a part-time academic practice including teaching at the hospitals Beaujon and St. Louis in Paris. Language Access Network, a leader in video language interpretation services, recently announced the addition of Erika Shell Castro as Director of Interpreter Services. Castro was previously employed as the Manager of Interpretive Services at OhioHealth, where she was responsible for designing and implementing a full service Language Access Services program. She is a trained facilitator for the 40 hour spoken language medical interpreter training program, Bridging the Gap, and under an agreement with the Cross Cultural Health Care Program, Castro will provide this training to all of LANW’s spoken language interpreters. Sweet Success Enterprises, Inc. said last week that the company has appointed Robert D. Straus, Senior Vice President and Senior Analyst at Merriman Curhan, Ford & Co., to its Board of Directors. He joined the firm to cover specialty consumer and retail sectors. AXM Pharma Inc. appointed Elliot M. Maza to serve as a director on the Board and as Chairman of the Audit Committee. Maza is currently the Executive Vice President and Chief Financial Officer of Intellect Neurosciences, Inc.
Weekly Update February 11, 2007
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I presented Plug Power last week but we hit a glitch with the mail server and not everyone received the update. I am resending this week with updated information concerning Russian involvement and a target set by Citigroup.
That information is included at the bottom of this week's update. Citigroup placed an $8 target and billionaire shareholder, Mikhail Prokhorov, had the following comments following an important shuffling of assets.
"I am resolved to get seriously involved into this promising domain," Prokhorov said in a statement published on the Interros Web site. "I feel the hydrogen technology will help to establish an innovative economy in Russia."
Plug Power (PLUG/NASDAQ $3.72)
www.plugpower.com
Hydrogen Fuel Cells
Sept 30th - net cash approx. $270 million U.S. ($2.12/share)
shares fully diluted: 127 million
Revenue is marginal - near $6 million for 2006 (development stage)
It would be difficult to have missed all the media recently over Global Warming. The state of California has taken the most proactive approach this year by banning power companies from buying electricity from high-polluting sources, including most out-of-state coal-burning plants. In Bush's recent state-of-the- union address, he also approved billions in incentives to develop alternative energy sources. Thanks to Bush and the United Nations report on global warming, alternative energy is back in the limelight.
World Class Technology
Plug Power designs and develops on-site energy systems, based on proton exchange membrane (PEM) fuel cell technology, for energy consumers worldwide. Their technology platform includes proprietary PEM fuel cell and fuel processing technologies, from which multiple products are being offered or are under development.
They are currently offering for commercial sale thier GenCore® product, a backup power product for telecommunications, broadband, utility and industrial uninterruptible power supply (UPS) applications. The GenCore is fueled by hydrogen and does not require a fuel processor. They are also developing additional products, including a continuous power product, with optional combined heat and power capability for remote small commercial and remote residential applications.
PLUG is smallcap by U.S. standards but for us, it's abnormally large. However, I am presenting it for diversification now that the sector is back in vogue. The stock is trading at the low end of a three year chart and in theory, should have downside limited to the low three dollar range which was tested in January.
I typically have little interest in alternative energy companies but these guys are very well funded, have huge backers, and own some of the most advanced fuel cell technology in the world.
The U.S. and European governments have been supporters of the company through funding initiatives in late 2006. This has included;
* $4 million for development and demonstration of an ethanol-based, grid-connected system with the U.S. Army Engineer Research and Development Center's Construction Engineering Research Laboratory
* $3.6 million for the international development and demonstration of a high temperature combined heat and power proton exchange membrane (PEM) fuel cell system targeted for multi-family home applications.
* $1 million for the development of a new design for a prototype 1kW PEM fuel cell stack
* a grant from the European Commission for the development and demonstration of three high temperature combined heat and power proton exchange membrane (HT- PEM) fuel cell system prototypes (that could be used as heat and power sources for commercial and residential structures throught Europe)
Fascinating Russian Involvement
In the summer of 2006, Interros, a major Russian investment firm, and Norilsk Nickel, the world's largest producer of nickel and palladium, invested $217 million in exchange for shares of Class B Capital Stock that are convertible into 39.5 million shares of common stock (factored into the shares outstanding above). The purchase price per share of common stock in the transaction, on an as-converted basis, is $5.50 - on a converted basis, these two Russian companies own 35% of PLUG.
Two weeks ago it was announced that these major Russian investors were planning to "restructure" their business relationship, with shares in PLUG expected to change hands.
Russian billionaires Mikhail Prokhorov and Vladimir Potanin, who invested $217 million (£111 million) in Plug Power plan to change their business and investment structures.
Mr Potanin, who is chief executive of Interros Holding Company, will buy Russian mining company Norilsk Nickel from Mr Prokhorov, in exchange for Interros's power and energy assets. This, the St Petersburg Times is quoted as reporting, is likely to include a 35 per cent stake in Plug Power. The stake was bought through a joint venture between the two businessmen called Smart Hydrogen.
An article published recently by the St. Petersburg Times in Russia said that this would include Smart Hydrogen's 35 percent stake in Plug.
"I am resolved to get seriously involved into this promising domain," Prokhorov said in a statement published on the Interros Web site. "I feel the hydrogen technology will help to establish innovative economy in Russia." Plug will maintain a presence in Russia, where it will soon begin marketing its products.
$8 Target from Citigroup
Citigroup recently dropped coverage of PLUG because David Smith, an alternative-energy analyst, is leaving Citigroup. Before leaving, Smith had good things to say about the company. He gave it a buy recommendation with a 12 month target price of $8 This was before the Russian restructuring and all the media exposure with global warming so hopefully the next 12 months can see the company meet or exceed his expectations.
Danny Deadlock
Microcap.com
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email: microcap@telus.net
web: http://www.microcap.com
Interesting article...thanks Arc!
This talks a bit about coal-fired ethanol plants
http://www.investorshub.com/boards/read_msg.asp?Message_id=11854619&txt2find=ethanol
Battle between London Stock Exchange and Nasdaq reaches climax
Canadian Press
LONDON (AP) - The battle between the London Stock Exchange PLC and the Nasdaq Stock Market Inc. for control of the British bourse reaches a climax Saturday with the deadline for shareholders to accept the Nasdaq's hostile 2.7 billion pound (US$5.3 billion; euro4.1 billion) offer.
Analysts said the struggle, which has grown increasingly acrimonious over the past several months, is likely to persist until the last minute as both sides lobby key investors.
"It's a Mexican standoff," said Clem Chambers, chief executive of stock website ADVFN. "It's going to be very tight."
Nasdaq, which abandoned a previous attempt to acquire the LSE, this time refused to raise its 1,243 pence (US$24.35; euro18.75) per share bid. The New York-based exchange did extend the offer period by two weeks after announcing at an earlier deadline that it had received assurances for just 0.62 per cent of the shares.
Added to the 28.75 per cent it built up by buying in the market in recent months, that remains well short of the 50 per cent it needs to begin taking control - but some key investors could swing the result.
The LSE's fate is likely to be decided by hedge funds and other arbitrageurs, led by U.S. investor Samuel Heyman, who has built up a 10.3 per cent stake during the bid.
Chief executive Clara Furse said last month that she had spoken with Heyman, whose stake entitles him to call an extraordinary general meeting to potentially force the LSE board to open talks with the U.S. exchange. She said talks with all major shareholders were "constructive," and declined to comment further.
At the heart of the battle is the valuation of the London exchange, which is hotly disputed by each side.
The LSE has almost tripled its share value from 450 pence two years ago with Furse winning praise in Britain for holding out against a number of failed suitors, including Nasdaq, Deutsche Boerse AG and Australia's Macquarie Bank Ltd. Euronext NV, which is now being acquired by the NYSE Group Inc., also previously expressed interest without ever stating a price.
LSE shares closed at 1,282 pence (US$25.10; euro19.33) Thursday, down 1.4 per cent, but still above the offer price as the weekend deadline approached.
Furse maintains that the share price reflects the true value of the exchange, pointing to record transaction numbers, and has suggested that Nasdaq "put up, or shut up."
Nasdaq chief executive Bob Greifeld argues that the stock has been vastly inflated in recent years because of cross-Atlantic takeover fever and claims that the LSE is misleading shareholders by basing its growth prospects on "self-serving and misguided peer group selection."
A combination of the Nasdaq and LSE would create the world's second transatlantic exchange with about 6,400 listed companies carrying a total market value of US$11.8 trillion (euro9.1 trillion).
Even if defeated on Saturday, Nasdaq has warned this may only be the first round in a longer fight for the LSE.
The exchange will be barred under British takeover law from renewing its bid for a year if it fails to win enough votes this time around, but it has indicated it may hold on to its stake in the expectation that the LSE's shares will return to more appropriate levels.
The fight for the LSE has been conducted against the backdrop of increasing pressure on stock exchanges to find merger partners so they can compete globally.
The New York Stock Exchange is expected to close its US$14.3 billion (euro11.01 billion) acquisition of Paris-based Euronext within the next couple of months. The NYSE also recently took a major stake in India's largest bourse and signed a broad agreement with the Tokyo Stock Exchange, the world's second-biggest financial market.
Nasdaq's leadership has appeared miffed that the LSE board refused to even discuss the offer and Greifeld warned this week that the London exchange is in danger of being left in a "strategic vacuum" if it continues to spurn the bid.
Greifeld said that Nasdaq would consider offering its technology to an LSE rival as part of moves it expects to drive down the exchange's share price.
"They could string it out," said Chambers, adding it is still possible a competitor will emerge, despite the share surge.
"The LSE valuation is at an amount that makes it possible for a lot of people to play at that level," he said.
Celent analyst Cubillas Ding said that Nasdaq was also probably "already considering other avenues to market" in the event of failure, and would likely look for other acquisitions rather than a stand-alone venture.
Dupont sees key GMO role in ethanol corn challenge
Fri Feb 9, 7:47 PM ET
PUERTO VALLARTA, Mexico (Reuters) - New strains of genetically modified corn will play a key role in meeting soaring demand as U.S thirst for ethanol fuel cuts into supplies, a top seed company scientist said on Friday.
Dupont's Bill Niebur, the firm's vice president for genetics research and development, said demand for ethanol means the race is on to rapidly ramp up grain yields.
"We doubled average yields in North America in 41 years. We don't have that much time to make the next step," Niebur said at a gathering of grain exchanges, traders and consumers in Mexico. "The challenge for our plant breeders is to move that curve significantly faster."
The rapidly increasing number of corn-hungry U.S. ethanol plants has raised concerns there will not be enough grain to go around.
Industry insiders expect farmers to plant significant new corn acreage in the United States this year, but many warn that new land is limited, making yield increases more urgent.
Niebur said Dupont's seed division Pioneer was now spending between 9 percent and 11 percent of revenues on research and would hire 25 percent more scientists this year, many from India.
He said the time frame for getting new seeds to market had halved, with 87 percent of the hybrid corn seeds the firm now sells developed in the last four years. Development cycles need to compress more, he said.
Niebur said new research was focused on boosting yields by making plants more weather, bug and weed resistant, as well as creating corn types more suitable to ethanol production.
Average U.S. corn yields in the United States are close to 150 bushels per acre, with yields breaking through the 150 bushel mark only once, in 2004.
"What we are told is we can break the 400-bushel-yield level in corn, we can break the 100-bushel-level in beans," he said, adding that some corn growers had already gotten close to that mark.
He admitted those yields would not become widespread in the near future and predicted a 1 percent to 2 percent increase in productivity per year.
Peter Nessler, vice president of the renewable fuels group at FCStone, said yields increased in spurts, high productivity one year usually being followed by several flat years.
"We made a high in 1986, we never broke it until 1992," he said. "We made a high in 1994, it took all the way until 2003 to beat."
In 2006, 61 percent of corn planted in the United States was genetically modified, compared to 52 percent in 2005 and 46 percent in 2004, according to U.S.
Department of Agriculture statistics.
Niebur said he expected that uptake to continue until reaching as much as 95 percent of corn planted. He said farmers planting to meet ethanol demand were more willing to use GMO.
"They don't care if it's GMO or not. They're looking for more corn," he said.
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