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Petrolifera Petroleum Ltd.
TSX PDP
December 11, 2006
Petrolifera's Argentina Drilling Success Continues
CALGARY - Petrolifera Petroleum Limited announced today that its RN.PM a-1032 well, situated southwest of the recently-tested 1019 oil well on the northern portion of its Puesto Morales Block in the Neuquin Basin, Argentina, is in the process of being cased as an indicated multi-zone oil discovery after completion of drilling and logging procedures. This marks the fourteenth successive oil well or indicated oil well drilled by the company on its Argentinean concession since late 2005. There have been no dry holes and many of the wells are multi-zone discoveries of light gravity crude oil and/or natural gas, in solution or non-associated in the Quintuco Formation.
As a consequence, Petrolifera's production of crude oil has consistently increased since late 2005 from about 300 barrels of oil equivalent per day ("boe/d) to around current levels of approximately 12,000-12,500 boe/d, including current natural gas sales of approximately 3.5 mmcf/d, over double previous volumes. These are being delivered to a local market through a recently-expanded low pressure gas line. Additional natural gas volumes are anticipated in 2007 once a new high-pressure natural gas pipeline, connecting to existing infrastructure in the region, is completed. Initial volumes are then anticipated to approach approximately 20 mmcf/d, with further increases possible over the balance of 2007, upon completion of a new gas plant and related facilities, targeted for the third quarter 2007.
Further crude oil production increases are also anticipated by year end 2006 as the company's 100 percent-owned 1019, 1018 and 1032 wells are completed and placed onstream, productive capacity of other wells is more fully realized and remedial work is conducted at previously-drilled wells during the ensuing month before the company's anticipated 50-well 2007 drilling program is reactivated in mid-January.
Readers are cautioned that the conversion ratio of six thousand cubic feet of natural gas to one barrel of oil used in calculating barrels of oil equivalent is based on an energy equivalency conversion method primarily applicable to the burner tip and does not necessarily represent a value equivalency at the wellhead. Furthermore, boes may be misleading, particularly if used in isolation.
Thirty Day Program
During the next thirty days and over the holiday season, Petrolifera plans to test, complete and tie-in the 1019, 1018, 1032 and 1024 wells. Testing at the 1019 well is now complete and the well is producing fluid at a rate of approximately 320 bbl/d from zones in the Sierras Blancas and Catriel Formations, with a measured 70 percent oil cut, resulting in a flow rate of approximately 235 bbl/d of crude oil. As small fracs were conducted on several of the productive zones in the well, it continues to clean up and may yield increased oil volumes over time. Of note is that crude oil production is being obtained for the first time from the zones in the Catriel Formation. Follow up drilling, including wells to evaluate the Punta Rosada Formation at structurally higher positions on this northeastern culmination, will occur next year. A number of directional wells will be required due to the proximity of surface locations to the water reservoir in the region.
The 1018 well is standing cased as an indicated oil discovery and it will be tested during the next month, as will the 1032 discovery, which as indicated appears to be very encouraging based on shows while drilling and subsequent log analysis. In addition to these testing and completion programs, Petrolifera plans to install a pump in the 1024 well and complete it for production from a new previously-untested zone in the Sierras Blancas Formation. Remedial work is also planned at the 1004 well, which continues to flow oil but at rates below its productive capacity. Production from this wide variety and number of zones at Puesto Morales underscores the continuing prospectivity of the region. During 2007, additional work to evaluate the indicated oil-bearing zones in the Quintuco Formation will also be undertaken.
Most if not all of the planned work during the next month will be conducted with the existing service and completion rig under contract to Petrolifera. These testing, completion and remedial programs are expected to contribute additional productivity to Petrolifera in line with prevailing 2006 and 2007 guidance as contained in the company's presentation to shareholders in October, 2006; this is posted under Investor Information - Presentations on the company's website at www.petrolifera.ca.
Rigs
Petrolifera is pleased to report that it expects to have three and possibly four drilling rigs available to it for its anticipated record drilling program in Argentina during 2007.
The new service rig contracted to the company and recently imported into Argentina for next year's activity has now been released from customs. Petrolifera and the drilling contractor/owner of this rig have now agreed to convert it to a drilling rig and it should be operational by mid-February, 2007. This rig will then primarily be used to drill shallower wells around 1,000 meters on the Rinconada Block to the east of Puesto Morales.
The new truck-mounted drilling rig which was imported into Argentina is presently in customs. It is expected to be released shortly and is anticipated to be operational by about mid-January, 2007, at which time Petrolifera will recommence its drilling campaign at Puesto Morales. A second new drilling rig being imported into the country is now anticipated to be available by mid-March 2007. Importantly, this drilling rig will also be able to be utilized for completions, which should streamline Petrolifera's program.
Accordingly, Petrolifera anticipates having three drilling rigs available to it throughout most of 2007. Furthermore, the company was recently offered a fourth rig by an established Argentinean contractor; this is also a new rig which would be available by mid-year 2007. A decision on whether to contract this rig is under evaluation; Petrolifera is examining if additional suitable and qualified supervisory personnel are available to effectively manage a further expansion of its drilling operations.
Facilities and Pipeline
The company is pleased to report that deliveries of Puesto Morales crude oil through its newly-installed six-inch crude oil pipeline, which connects to main transmission facilities situated approximately 25 kilometers west of the field, commenced approximately one week ago. Initial deliveries are approximately 600 cubic meters per day (approximately 3,700 bbl/d), with the balance of Petrolifera's production still being trucked to third party processing and delivery facilities. As previously noted, this will continue until the company's own expanded treatment and water handling facilities are completed in the spring of 2007. The expansion and consequent delay in completion of these facilities was necessitated by the company's significant drilling success in the second half of 2006 and due to the likelihood of introducing some form of pressure maintenance to its operations during 2007. This would assist the company in sustaining, extending and expanding its growing production levels in ensuing years.
As previously mentioned, design and construction of a high pressure natural gas pipeline and a related natural gas plant to capture and sell solution gas produced in conjunction with the company's Sierras Blancas and Punta Rosada crude oil is proceeding; Petrolifera also plans to drill approximately ten Quintuco natural gas wells in the first half of 2007 to augment the solution gas volumes with deliveries of non-associated natural gas from this extensive gas reservoir. Completion of the gas plant will also permit the company to recover natural gas liquids for sale by the third quarter of 2007.
Other
Petrolifera has now completed its new 3D seismic program over the balance of the Puesto Morales and Rinconada Blocks which had not previously been evaluated. The data will be processed and then interpreted. It is hoped that a number of additional drillable prospects will emerge from this program in a manner similar to that which occurred on the northern portion of the Puesto Morales Block, which upon drilling has led to the significant production gains experienced through 2006.
Petrolifera has had a very successful 2006 and will be busy augmenting its Argentinean production base with completions and workovers during the next month, following which time the company will reactivate its multi-rig, multi-well drilling program for 2007 on both the Puesto Morales and Rinconada Blocks which comprise the company's 100 percent-owned concession. With over six times as many wells anticipated for Argentina in 2007 as compared to wells drilled in 2006, the company remains optimistic over its ability to add significant reserves and productivity next year. The company anticipates financing its total $130 million 2007 capital budget in Argentina, Peru and one other country in South America from forecast net revenues in Argentina. Surplus funds will be added to working capital, which now stands at approximately $45 million. Petrolifera has no debt.
Forward Looking Statements
Crescent Point Energy Trust
TSX: CPG.UN
December 12, 2006
Crescent Point Energy Trust and Mission Oil & Gas Inc. announce revised merger terms and intention to reschedule shareholder meeting
CALGARY - Crescent Point Energy Trust and Mission Oil & Gas Inc. announce that Independent Committees of both Boards of Directors have unanimously approved a proposal pursuant to which Crescent Point and Mission will revise the terms (the "Revised Plan") of the previously announced Plan of Arrangement (the "Plan") under which all of Mission's issued and outstanding shares will be exchanged for trust units of Crescent Point. The Independent Committee of Mission's Board of Directors has further agreed to terminate the special meeting of the holders of the common shares of Mission (the "Meeting") scheduled for December 18, 2006 and reschedule the Meeting for early February, 2007. Mission will also seek a further amendment of the interim order of the Court of Queen's Bench of Alberta to permit the rescheduling of the Meeting to on or about February 8, 2007 and to establish new dates for the deposit of proxies and the filing of notices of objection. Mission will press release the details in respect of the new dates for the deposit of proxies and the filing of notices of objection after the Court of Queen's Bench of Alberta rules on the proposed amendment of the interim order.
REVISED PLAN
Under the terms of the Revised Plan, each issued and outstanding common share of Mission will be exchanged for 0.695 trust units of Crescent Point plus cash in the amount of $0.78 per Mission common share (comprised of Mission's prorata share of the December 2006 and January 2007 distributions plus $0.50 per Mission share). Based on the above exchange ratio, Crescent Point will issue an estimated 31.8 million trust units, assume approximately $46.5 million of net debt (net of option proceeds) and pay approximately $35.7 million in cash for a total consideration of approximately $647 million, or approximately $13.12 per Mission share, based on Crescent Point's December 11, 2006 closing price of $17.75. The Trust currently owns approximately 3.8 million Mission shares, which it purchased for $30 million, or $7.90 per Mission share, and has a total current value of approximately $50.0 million. Incorporating the Trust's existing ownership, the effective purchase price is approximately $627 million.
In agreeing to the Revised Plan, Crescent Point and Mission have agreed that either Mission or Crescent Point may terminate the arrangement agreement, without the payment of any termination fee to the other, upon receipt and review of the Proposals. The Revised Plan requires the requisite approval of Mission shareholders along with customary regulatory, court and other approvals.
An information circular in respect of the Revised Plan is expected to be mailed to Mission's shareholders in early January, 2007. This will allow the Revised Plan to be implemented on or about February 9, 2007, allowing shareholders of Mission who receive units of the Trust pursuant to the Revised Plan to receive the February distribution on the trust units payable March 15, 2007, which distribution is expected to be $0.20 per trust unit.
RATIONALE
On October 31, 2006, the federal Minister of Finance announced proposed changes to the Income Tax Act (Canada) affecting the taxation of income trusts, such as Crescent Point, and their unitholders (the "Proposals"). Mission's and Crescent Point's respective determination to reschedule the Meeting arises out of the continued consideration of the Proposals by the Independent Committee of the Board of Directors of Mission and the Independent Committee of the Board of Directors of the administrator of Crescent Point.
The rescheduling of the Meeting is expected to provide Mission's shareholders and the Independent Committees of the Boards of Directors of Crescent Point and Mission the opportunity to fully consider the guidelines setting out the application of the Proposals, which are expected to be provided by the Department of Finance before Christmas. Assuming announcement of the guidelines before Christmas, the Independent Committees will each determine if the Revised Plan is, in the case of Crescent Point, in the best interests of Crescent Point and its unitholders, and, in the case of Mission, in the best interests of Mission and its shareholders. The Independent Committees of the Boards of Directors may be required to re-evaluate their options with respect to the Revised Plan and timelines depending on the timing of the Department of Finance guidelines. A further press release will be issued by Mission and Crescent Point once the Independent Committees of the respective Boards of Directors have made a determination in this regard.
Since the announcement of the Plan on September 11, 2006, Mission has continued to successfully implement its capital program developing its Bakken light oil play. Drilling and fracture stimulation results and the start-up of the Mission Viewfield gas plant have all been positive and have exceeded Crescent Point's expectations. Based on the above, Crescent Point has increased its internal estimate of Mission's pro forma 2007 production profile from 5,500 boe/d to more than 6,000 boe/d. Crescent Point's management, Independent Committee of the Board of Directors and financial advisors are of the view that the rescheduling of the Meeting and the continued positive results of Mission's capital program support an increase in the consideration given to Mission shareholders.
FINANCIAL AND STRATEGIC ADVISORS
BMO Capital Markets and Scotia Waterous are acting as financial advisors to Crescent Point with respect to the Revised Plan. BMO Capital Markets and Scotia Waterous have advised the Independent Committee and Board of Directors of Crescent Point that, subject to review of the Proposals, they intend to provide opinions, as of the date of the information circular in respect of the Revised Plan, that the consideration offered pursuant to the Revised Plan is fair from a financial point of view to the Crescent Point unitholders.
GMP Securities L.P. and Orion Securities Inc. are acting as financial advisors to Mission with respect to the Revised Plan and GMP Securities L.P. has advised Mission's Independent Committee and Board of Directors that, subject to review of formal documentation, the consideration to be received by Mission shareholders is fair from a financial point of view. Tristone Capital Inc. acted as strategic advisor to Mission in connection with the Revised Plan.
FORWARD LOOKING STATEMENTS
Mahalo Energy Ltd.
TSX: CBM
December 12, 2006
Mahalo Announces Contingent Resource Study by Sproule Associates Limited
CALGARY, ALBERTA - Mahalo Energy Ltd. is pleased to provide results of three Contingent Resource Studies by Sproule Associates Limited (the "Sproule Reports") dated December 12, 2006. The effective date of the Sproule Reports is March 31, 2006.
Sproule Associates Limited ("Sproule") was retained by the Company to provide an independent evaluation of contingent resources on certain of its United States shale and Canadian coal bed methane ("CBM") properties.
In order to estimate the contingent resource on the Company's Caney and Woodford Shale properties in Oklahoma and certain Horseshoe Canyon and Mannville CBM properties in Canada, Sproule was required to estimate original gas in place volumes. The aggregate sum of these estimated gas in place volumes (as totaled by the Company) ranges from 3.2 to 4.3 trillion cubic feet of raw gas, net to the Company's working interest and before royalties. The information obtained from the study will provide additional economic and statistical characterizations of the contingent resource underlying these properties and facilitate the creation of specific development plans.
It is important for the reader to differentiate between "contingent resources" and "proved and probable reserves". The contingent resources evaluated in the Sproule Report do not constitute "reserves" and therefore do not include the Company's already established proved and probable reserves. A separate, independent study of the Company's proved and probable reserves will be conducted effective December 31, 2006.
Methodology and Presentation
Sproule utilized different methodologies to evaluate the contingent resource. Volumes of CBM gas in place were calculated using coal gas content, density, thickness and area. The calculation of shale gas volumes is significantly more complex. The Woodford and Caney shales are both "organic shales" and as such, have sorbed gas, similar to a CBM reservoir as well as conventional "free gas" stored in the pore space.
The Company provided Sproule with gas composition, sorption data, reservoir pressure data, geophysical logs and core data on both the Caney and Woodford shale to facilitate the evaluation of free and sorbed gas volumes. This data was obtained from wells drilled on the Company's lands to minimize extrapolation from data taken further away. Using this data, Sproule calculated free gas using standard volumetrics and sorbed gas using gas content, thickness, density and area. It should be noted that the data as provided was consistent with other published shale gas data in the basin.
Sproule evaluated Mahalo's contingent resource on the basis of low, best and high estimates as defined in the Canadian Oil and Gas Evaluation Handbook ("COGEH").
Low estimate: This is considered to be a conservative estimate of the quantity that will actually be recovered from the accumulation.
Best estimate: This is considered to be the best estimate of the quantity that will actually be recovered from the accumulation.
High estimate: This is considered to be an optimistic estimate of the quantity that will actually be recovered from the accumulation.
Discovered Resources
COGEH defines discovered resources as "those quantities of oil and gas estimated on a given date to be remaining in, plus those quantities already produced from, known accumulations". It should be noted that Sproule has estimated "original gas in place", a quantity which the Company deems to be equivalent to the term "discovered resource".
The following table summarizes the discovered resource volumes presented as original gross gas in place in the Sproule reports. Company interest gross gas in place was calculated by Mahalo using original gas in place multiplied by the Company's estimated working interest.
Discovered Resource Company Interest Gross Gas
in Place
(Bcf - Billion Cubic Feet) (Bcf - Billion Cubic Feet)
----------------------------------------------------------
Low Best High Low Best High
Estimate Estimate Estimate Estimate Estimate Estimate
-------- -------- -------- -------- -------- --------
Caney Shale 10,341.6 12,051.0 13,710.6 2,612.8 3,044.6 3,463.9
Woodford Shale 1,863.3 2,162.7 2,424.8 451.2 523.6 587.1
-------- -------- -------- -------- -------- --------
USA 12,204.9 14,213.7 16,135.4 3,064.0 3,568.2 4,051.0
-------- -------- -------- -------- -------- --------
Horseshoe
Canyon Coal 71.5 71.5 71.5 54.9
Mannville Coal 205.2 290.1 342.3 178.4 243.3 297.6
-------- -------- -------- -------- -------- --------
Canada 276.7 361.6 413.8 178.4 298.2 297.6
-------- -------- -------- -------- -------- --------
Grand Total 12,481.6 14,575.3 16,549.2 3,242.4 3,811.5 4,348.6
Low Estimate Best Estimate High Estimate
------------------ ------------------- -------------------
Technic Technic Technic
Estimat -ally Estimat -ally Estimat -ally
-ed Recover -ed Recover -ed Recover
Recovery -able Recovery -able Recovery -able
Factor Sales Gas Factor Sales Gas Factor Sales Gas
(%) (Bcf) (%) (Bcf) (%) (Bcf)
------------------------------------------------------------
Caney
Shale 0 0 5.5 157.4 14 455.8
Woodford
Shale 0 0 5.0 24.6 11 60.8
Horseshoe
Canyon Coal 20-25 10.3 50-52 25.5 75-82 38.7
Mannville
Coal 5-40 23.3 20-55 76.4 40-65 145.0
------ ------ -------
Grand Total 33.6 283.9 700.3
Estimated Estimated
Peak Ultimate Ultimate
Production Raw Gas Capital Spacing
Per Well Recovery Costs Per (Wells per
(Mcf/d) (Bcf/Well) Well (M$) Section)
Caney Shale (1) 500-1,500 1.4-2.5 2,200-3,750 8-16
Woodford
Shale (1) 1,500-5,000 2.5-3.5 3,000-4,500 2-6
Horseshoe
Canyon Coal 90-300 0.15-0.6 275-350 6-8
Mannville
Coal (2) 1,500-3,000 1.8-2.7 3,200-4,000 1-2
Mystique Energy Inc.
TSX-V: MYS
December 14, 2006
Mystique Energy Issues Options to Non-Management Staff
CALGARY - Mystique Energy, Inc. announces that the directors of Mystique have approved the issuance of 1,392,500 options to non-management staff to purchase common shares of Mystique at an exercise price of $0.25. Options were not granted to officers or directors. The options were granted under the terms of Mystique's option plan which was approved by shareholders at the 2006 annual general meeting.
With the granting of these options, Mystique will have 59,840,682 shares outstanding, and 5,713,775 options, totaling 65,554,457 shares fully diluted.
About Mystique:
Based in Calgary, Mystique is involved in the exploration and exploitation of petroleum reserves in western Canada.
Disclaimers:
Use of the term barrels of oil equivalent "boe" may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
This news release may contain forward-looking information. Actual future results may differ materially from those contemplated. The risks, uncertainties, and other factors that could influence actual results are described in documents filed with regulatory authorities.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For further information:
Vic Luhowy,
President & Chief Executive Officer
Mystique Energy, Inc.
Tel: (403) 261-3634
Fax: (403) 265-3348
vic@mystiqueenergy.ca
www.mystiqueenergy.ca
Could be... Depends on who you talk to though.
Stock Anaylst sure sounds more sophsicated than Paid Basher.
Bearish Canadians. One Street maven thinks it's a lot of bull
Derek DeCloet
Friday, December 15, 2006
Kenneth Fisher likes a lot of things about Canada. He likes the economy, the stock market, even the weather, thanks to the mild spell that this week gripped the Centre of the Universe. But there's one thing about the place he doesn't quite get: the melancholy attitude of the investing public.
“Do you notice,” he asked, “that Canadians tend to be more permanently bearishly biased than Americans?”
No one would accuse Mr. Fisher, the long-running Forbes columnist and founder of Fisher Investments, of being “bearishly biased” about anything. He's usually bullish on the stock market and usually right, judging by his track record and the $30-billion (U.S.) or so that others have given him to manage (BCE and the University of Toronto are among his customers).
But what he's really best at is stirring the pot, and he has done it well in his latest book, The Only Three Questions that Count, which takes many of the beliefs that people hold about the stock market and trashes them. (The first of his three questions is, “What do you believe that is actually false?”)
In an interview during a Toronto pit stop, he said: “I start from the premise that a tremendous amount of conventional investing wisdom is simply passed down over time — and accepted — without any real scientific query as to whether it's valid or not.”
Here's one example: When stocks are selling at high price-earnings ratios, it's a sign the markets are getting expensive and the risk of a correction is high. Baloney, Mr. Fisher says.
Sure, it's the lesson everyone took when the equity bubble began leaking air about six years ago. But high P/Es are an unreliable indicator. The U.S. stock market looked expensive in 1998 and 1999, and the Standard & Poor's 500 rose 51 per cent over those two years. High multiples ruled in 1922, in 1935 (Depression-era profits were low), in 1963, in 1996. And each of those years, the market roared.
Ready for more heresy? Here's a beaut: America's problem isn't that it has too much debt. It's that it doesn't have enough. Government borrowing has gone up, true — but so has the nation's wealth in equal measure. In the United States, at least, deficits are generally good for stock market returns and surpluses are lousy, Mr. Fisher's research shows.
Then there's the belief, a favourite chestnut of Wall Street strategists, that the U.S. consumer is finished because he's got way too much personal debt. Another myth, Mr. Fisher says. The personal savings rate excludes capital gains — which means that, according to U.S. government statisticians, “Bill Gates has never saved much of anything his whole life.”
But we've found a snag in Mr. Fisher's bullish case. Everyone knows that interest rates are near historic lows, and therefore must go higher, which squeezes the stock market. Right? Wrong again, he says. He pulls out a pen and draws a chart. The data, which are in the book, show that since 1800, long-term U.S. government bonds have paid about 5 per cent, on average. That's not much higher than where yields are right now. “Yet I think people have a bias to think that rates are low . . . as opposed to thinking of this” — he points to the spike in the 1970s and early '80s — “as the bizarre.” Why? Because nobody remembers what interest rates were in the 1850s. But anyone who's older than 45 remembers that they were crippling in 1981.
So getting back to those bearish Canadians: Mr. Fisher thinks the conventional wisdom is wrong here, too. On Bay Street, it's dead easy to find people who fear this rally has run strong enough and long enough that it's getting dangerous. Investment managers worry because the S&P/TSX composite index has nearly doubled in four years. They worry because, in the past 18 months, it has barged through the 10,000 mark, then 11,000, 12,000 and, this week, 13,000. They worry because corporations are enjoying profit margins unlike any they've seen since Nehru jackets were in style. And they wonder how much longer it can last.
But, Mr. Fisher says, what do the worrywarts know? “I don't think most of these people would have bet, three or four years ago, that things would work out as they have, because they would have been conservative then.” Check the facts. The TSX has an “earnings yield” of more than 6 per cent (that is, companies are earning about $6 for every $100 in market capitalization). Ten-year government bonds yield about 4 per cent, thanks to low inflation and Ottawa's fiscal probity.
To Mr. Fisher, that says Canadian stocks are a good deal — yes, even now— even if they're nowhere near as cheap as equities in Japan, the United Kingdom or continental Europe. “I think the Canadian market goes up [in 2007]. I just don't think it goes up as much as the rest of the world does.” Long live the bull.
ddecloet@globeandmail.com
Saskatchewan looms large on nuclear landscape
ERIC REGULY
Friday, December 15, 2006
Forget the oil sands. If you want to find the real action, go to Saskatchewan's extreme north, where about two dozen junior mining companies are staking land and poking holes in the ground looking for uranium. You can bet the nuke-happy leaders of North Korea and Iran can find the region on a map.
Known as the Athabasca Basin (not to be confused with the Athabasca tar sands), the area has some of the richest uranium ore grades on the planet. Australia's famous Olympic Dam uranium mine, owned by BHP Billiton, has a 0.4-per-cent grade. In Athabasca, grades of 20 per cent or more are not uncommon. Saskatchewan's Cameco, the world's largest pure uranium play, with a market value of $16.2-billion, operates the industry's largest high-grade uranium mine at McArthur River; the grade is 21.2 per cent. Cameco's Cigar Lake project, the largest undeveloped uranium reserve, is almost as rich. A recent flood at the project will ensure that it remains in limbo for several years.
You can see why the juniors are tripping over themselves to find the next McArthur River or Cigar Lake. They have plenty of encouragement from investors, who throw money at the companies with alacrity and watch the investments soar like nuclear-tipped missiles. Purepoint Uranium, to pick but one name from the clutter, was a 30-cent stock in September. It traded yesterday at 94 cents. Even the biggies are on the move. Cameco is up 25 per cent over the past year, in spite (or perhaps because) of the Cigar Lake disaster. With the development on hold, already tight uranium supplies will get even tighter.
Uranium prices explain the dot-com-like performance of some of the uranium shares. Uranium spot prices collapsed in the 1980s, after the disasters at the Three Mile Island and Chernobyl nuclear plants. The end of the Cold War didn't help. With no pressing need to obliterate the Soviet Union, the U.S. government sold millions of pounds of uranium to commercial generators. At one point, the price went as low as $7 (U.S.) a pound. While the government intends to unload more inventory, demand has climbed so much that the price has moved up relentlessly since about 2003. The latest spot price was about $65. Add in production shortfalls — Canada and Australia, the countries that dominate the market, will produce less this year than in 2005 — and you can find forecasts for $100 uranium.
Driving the price is the nuclear revival. For the first time in decades, dozens of nuclear plants are under construction, most in Asia, and many more are contemplated. Ontario wants to build one or two new plants. Alberta is considering a nuke to provide heat and energy to the oil sands. Reactors take a long time to build and operate for decades. There is no sense getting started on the multibillion-dollar projects unless there is security of fuel supply. Uranium isn't exactly scarce. But the lead times on mine development can be horrendous, for environmental, safety, regulatory and technical reasons. The easy-access open-pit mines are being replaced by deep mines; Cigar Lake's main reserve is 430 metres below the surface.
For investors, there is no shortage of choice. Merrill Lynch alone keeps tabs on about 70 uranium companies, most of which are Canadian and Australian, with some representation from Russia, the United States, South Africa and the former Soviet republics.
Evaluating the companies can be hard. The analysts tend to favour the ratio that divides enterprise value by reserves. Net present value — the present value of the future cash flows, minus the initial investment — is probably the better measure. That's because of the projects' potentially long delays and enormous production costs. What's buried in the ground isn't the only thing that matters.
Geography is a big factor. In Saskatchewan, investors are pretty much assured that a monster deposit will turn into a mine. The question is when. The regulatory hurdles can delay production for years.
Companies that discover uranium in other parts of the world, such as Southern Africa, might be able to start production far sooner because of lax environmental regulations. But dealing with the local government can be a long, dreary voyage into the unknown.
Take Khan Resources, which hit the TSX in August with an offering price at $1.50 (Canadian) a share and now trades at more than double that price. It owns 58 per cent of an existing, though inactive, uranium mine in northeastern Mongolia. It has no exploration risk even though analysts classify it as an “exploration” company. It wants 100 per cent but isn't exactly sure how it will get it or what stake the Mongolian government might insist on taking.
For investors thinking of playing the uranium market, the bad news is that the easy gains have been made. The good news is that the nuclear revival is just getting started and uranium prices show no sign of going back to their old levels. There are still plenty of opportunities to make a buck on a commodity that spent almost 20 years in the dead zone.
ereguly@globeandmail.com
China, US Sign Pact To Build 4 Nuclear Reactors In China
01:18 EST Saturday, December 16, 2006
BEIJING (AP)--China and the U.S. signed a deal Saturday that is meant to pave the way for Westinghouse Electric Co. to build four civilian nuclear reactors in China.
China is building scores of new nuclear power plants, seeking the latest technology from industry leaders while working to shore up its own expertise.
"This is an exciting day for the U.S. nuclear industry," Energy Secretary Samuel Bodman was quoted as saying in a statement. "It is an example that if we work together we can advance not only our trade relations but also our common goal of energy security."
The deal was signed on the sidelines of a meeting of five major oil importing nations hosted by China.
Westinghouse, the U.S. unit of British Nuclear Fuels PLC, had been vying with the French nuclear group AREVA (427583.FR) and Russia's AtomStroyExport to win the lucrative contract for building facilities at Sanmen, in the eastern province of Zhejiang, and at Yangjiang in southern China's Guangdong province.
(END) Dow Jones Newswires
12-16-06 0118ET
Copyright (c) 2006 Dow Jones & Company, Inc.
What pays better and what are the job differences?
Paid Basher vs Stock Analyst?
If I'm at home in front of the 'puter. I gotta trade. Simple as that.
Nothing else gets done here during market hours.
So I know where you are coming from.
You think that we should follow the Pros lead and start makin' some money on the side?
I see he was at it again last night.
You should get a laptop.
Yep. Sick isn't it?
EnCana cut to ‘sell' at Citigroup
ROMA LUCIW
Friday, December 15, 2006
A major U.S. brokerage has slapped a ‘sell' rating on EnCana Corp., a bearish assessment based on skyrocketing costs, reduced spending and the notion that things are unravelling quickly for Canada's largest energy company.
“While EnCana appears to be taking prudent steps to reduce capital spending and divert excess cash towards shareholders, we are concerned that the company is struggling against a portfolio that is more than fully valued,” Citigroup Inc. analyst Gil Yang, based in New York, wrote in a research note.
He downgraded EnCana all the way from ‘buy' to ‘sell', and chopped his price target 22 per cent to $47 (U.S.) from $60, citing concerns about the quality of the Calgary-based company's portfolio. The analyst also trimmed his fourth-quarter, 2007 and 2008 earnings estimates.
Shares of EnCana, which have risen 8.6 per cent so far this year in Toronto, fell $3.60 (Canadian) or 5.93 per cent to $57.09 on Friday. The New York-traded stock lost $2.34 (U.S.) or 4.47 per cent to $50.01. It has risen 11 per cent in 2006.
EnCana itself lowered its 2007 guidance on Thursday, forecasting that output will be about 713,000 barrels a day after royalties, down from 717,000 expected this year. The company also said it would cut spending by 6 per cent as it spends less on drilling in 2007 and transfers half of its oil sands business to a partner.
EnCana's board did, however, decide to double the quarterly dividend in 2007, leading to an annual payout of 92 cents (Canadian), up from 46 cents.
Mr. Yang noted that the “disappointing” 2007 forecast for 1 per cent overall production growth is lower than the goal EnCana executives had set out just five weeks ago at an investor day in Calgary and New York.
Just over a month ago, the company changed course and introduced a new strategy of building value. At the time, it looked to increase natural gas production by 5 per cent each year, down from an earlier goal of 10 per cent, and to return excess cash to shareholders.
As of Thursday, the company is forecasting 2007 production growth of just 3 per cent for natural gas and a 5 per cent decline for oil, an overall target of 1 per cent growth.
“Our biggest concern is that despite the effort on capital discipline, the company has already made in 2006, finding and development costs appear to have sky rocketed by 25 to 50 per cent in 2006,” Mr. Yang said. That rise is happening in an inflationary environment of only 12 to 15 per cent this year.
Operating costs at EnCana are rising rapidly as well, and the company's efforts to farm out acreage to other firms will take time to pay off.
“Even in the absence of the problems the company appears to have in its portfolio, we feel that EnCana shares are fully valued,” Mr. Yang said. “With our lack of confidence that the portfolio can deliver adequate returns in the current environment, we think that the stock is overvalued.”
Analysts who follow EnCana stock are divided on its prospects. According to those tracked by Bloomberg, 14 have a “buy” rating, nine have a “hold,” and four have a “sell.”
With files from reporter David Ebner.
Iraq To Meet Iran, Kuwait On Cross-Border Oil Fields -Min
12-14-06 13:04ET
ABUJA, Nigeria -(Dow Jones)- Iraqi officials are to meet representatives from Iran later this month and Kuwait after that to discuss sharing oil production contracts in cross-border fields, Iraq's oil minister said Thursday.
Speaking at a press briefing on the side of a Organization of Petroleum Exporting Countries meeting here, Hussein al-Shahristani said: "We will meet in a sitting committee...with Iran in December" to examine data on the fields.
Al-Shahristani added the parties will then "select a company in a bidding round to assess the reserves."
Separately, Al-Shahristani said some $1 billion of a $1.6 billion loan granted by the Japan Bank for International Cooperation would be invested in a new fluid catalytic cracking unit at Basra's refinery.
An FCC unit produces lighter products such as gasoline from heavier crude fractions.
He said some of the loan would also be used for a new pipeline and floating terminal in the Gulf and the processing of gas, which is currently flared off.
In addition, the minister said he expects a new hydrocarbon law, which would enable the signature of the first national oil contracts since the overthrow of Saddam Hussein, to be enacted in January.
He said all contracts signed under Saddam and since would be reviewed.
The new contracts would be overseen by an Iraq Petroleum Council that will define the rules of licensing qualifications as well as which companies could prequalify.
He said most details of the law had been agreed with the Kurds in the oil-rich north, who controversially have set up a separate licensing process, though there remained sticking points on the council's decision procedures.
-By Benoit Faucon, Dow Jones Newswires; +44-20-7842-9266; benoit.faucon@ dowjones.com
(END) Dow Jones Newswires
12-14-061304ET
http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20061214%5cACQDJON200612141304DOWJONESDJONLIN...
Undervalued Stock #1 ========== ------------ Cimarex Energy Co. (NYSE: XEC) ------------ Insider Name: F. H. MerelliInsider Position: ChairmanInsider Action: 20,900 shrs on 12/11/2006Insider Total Holding: 387,200 shrs -------------------------------------------------------Undervaluation Merits... P/E Ratio = 7.0 (Industry Average 13.2)P/S Ratio = 2.23 (Industry Average 5.76)P/B Ratio = 1.08 (Industry Average 3.0)P/CF Ratio = 4.20 (Industry Average 12.2) -------------------------------------------------------Other Merits... Dividend Yield = 0.40% -------------------------------------------------------Other Drawbacks... Recent Analyst DowngradeMissed Analyst Earnings Estimates Last Quarter ------------ Cimarex Energy Co. (NYSE: XEC)
Awwwwwwww. Thats a bummer. :(
Undervalued Stock #2 ========== --------- Church & Dwight Co. Inc. (NYSE: CHD) --------- Insider Name: Matthew FarrellInsider Position: VP Finance and CFOInsider Action: 2,500 shrs on 11/22/2006 to 11/24/2006Insider Total Holding: 37,500 shrs -------------------------------------------------------Undervaluation Merits... P/E Ratio = 21.4 (Industry Average 24.7)P/S Ratio = 1.47 (Industry Average 2.72)P/CF Ratio = 15.30 (Industry Average 16.6) -------------------------------------------------------Other Merits... Dividend Yield = 0.70%Exceeded Analyst Earnings Estimates for Past 5 Quarters -------------------------------------------------------Other Drawbacks... Recent Analyst Downgrade --------- Church & Dwight Co. Inc. (NYSE: CHD)
Undervalued Stock #1 ========== --------- Reynolds American, Inc. (NYSE: RAI) --------- Insider Name: Hugo H G L PowellInsider Position: DirectorInsider Action: 7,600 shrs on 12/1/2006Insider Total Holding: 7,600 shrs -------------------------------------------------------Undervaluation Merits... P/E Ratio = 16.1 (Industry Average 16.8)P/B Ratio = 2.75 (Industry Average 6.68) -------------------------------------------------------Other Merits... Dividend Yield = 4.60%Exceeded Analyst Earnings Estimates for Past 2 Quarters --------- Reynolds American, Inc. (NYSE: RAI)
Ear on the Street
ARC Energy Trust (AET.UN : TSX : $22.94)
Downgrade based on price appreciation
CIBC World Markets downgrades to "sector perform", 12-month target price is $25.25
Angiotech Pharmaceuticals (ANP : TSX : $9.98 | ANPI : NASDAQ : US$8.69)
FDA panel says DES benefits outweight risks
Blackmont Capital maintains "buy", 12-month target price is US$14.00
Avenir Diversified Income Tr. (AVF.UN : TSX : $6.60)
Stock retreated to pre-announcement levels
Blackmont Capital maintains "buy", 12-month target price is $9.00
Aurora Energy Resources (AXU : TSX : $13.50)
Additional drill results expands high-grade zone in Michelin
Canaccord Adams maintains "hold", 12-month target price is $15.00
National Bank Financial maintains "outperform", 12-month target price is $16.50
Bear Ridge Resources (BER : TSX : $3.95)
$24 million flow-through financing enhances balance sheet
BMO Capital Markets maintains "outperform", 12-month target price is $5.00
Bonterra Energy Income Trust (BNE.UN : TSX : $27.00)
Upgrade based on valuation
CIBC World Markets upgrades to "sector perform", 12-month target price is $30.00
Calfrac Well Services (CFW : TSX : $22.01)
Board approves $76 million 2007 capital plan
RBC Capital Markets maintains "sector perform", 12-month target price is $24.00
CanWest Global Communications (CGS : TSX : $10.92)
New Zealand results in line
Desjardins Securities maintains "hold", 12-month target price is $11.00
National Bank Financial maintains "outperform", 12-month target price is raised to $13.50
Certicom Corp. (CIC : TSX : $5.33)
Q2 EPS meets expectations
CIBC World Markets maintains "sector perform", 12-month target price is $10.00
TD Newcrest maintains "buy", 12-month target price is $8.50
CIBC (CM : TSX : $96.99 | NYSE : US$84.35)
Great Q4 EPS
Blackmont Capital maintains "hold", 12-month target price is raised to $99.00
BMO Capital Markets maintains "outperform", 12-month target price is raised to $104.00
Credit Suisse upgrades to "outperform", 12-month target price is raised to $103.00
Desjardins Securities maintains "buy", 12-month target price is raised to $99.00
RBC Capital Markets upgrades to "outperform", 12-month target price is $105.00
TD Newcrest maintains "hold", 12-month target price is raised to $100.00
Compton Petroleum (CMT : TSX : $11.43)
Revises 2006 production outlook again
Canaccord Adams downgrades to "sell", 12-month target price is cut to $11.25
Canadian Oil Sands Trust (COS.UN : TSX : $30.78)
2007 guidance in line
CIBC World Markets maintains "sector perform", 12-month target price is $26.00
Countryside Power Income Fund (COU.UN : TSX : $6.20)
The banks are in control
RBC Capital Markets maintains "underperform", 12-month target price is $7.00
Crew Energy Inc (CR : TSX : $13.10)
2007 guidance
TD Newcrest maintains "buy", 12-month target price is raised to $15.00
Churchill Corporation (CUQ : TSX : $5.85)
CEO resigns
Blackmont Capital maintains "buy", 12-month target price is $7.00
Canadian Western Bank (CWB : TSX : $49.97)
Q4 in line
Blackmont Capital upgrades to "buy", 12-month target price is raised to $54.00
BMO Capital Markets maintains "outperform", 12-month target price is $53.00
Desjardins Securities maintains "buy", 12-month target price is raised to $55.00
TD Newcrest maintains "hold", 12-month target price is raised to $49.00
Dalsa Corp. (DSA : TSX : $12.30)
CEO set to resign, company is now in search of replacement
Blackmont Capital maintains "buy", 12-month target price is $20.70
Domtar Inc. (DTC : TSX : $8.59 | NYSE : US$7.48)
Initiating coverage
Credit Suisse initiates coverage with a "outperform", 12-month target price is US$10.00
Eldorado Gold (ELD : TSX : $6.57)
A step closer to resource conversion at Efemcurku
Raymond James maintains "market perform", 12-month target price is $6.75
Energy Metals (EMC : TSX : $9.16)
Moor lake delivers positive results
Raymond James maintains "outperform", 6-12 month target price is $11.00
Emergis (EME : TSX : $5.54)
Sings agreement to process Ontario drug benefit program
CIBC World Markets maintains "sector perform", 12-month target price is $6.00
Enerplus Resources Fund (ERF.UN : TSX : $52.97)
Trust no longer above average value
CIBC World Markets downgrades to "sector perform", 12-month target price is $57.00
Fording Canadian Coal Trust (FDG.UN : TSX : $27.51)
2007 coaking coal pricing brightens a bit.
TD Newcrest upgrades to "hold", 12-month target price is increased to $24.00
Gateway Casinos Income Fund (GCI.UN : TSX : $17.15)
Delta to manage the new Burnaby Casino opening Q2/2008
Blackmont Capital places both rating and target price "under review"
Gildan Activewear (GIL : TSX : $58.26 | NYSE : US$50.69)
Acceleration capacity for anticipated growth
BMO Nesbitt Burns maintains "outperform", 12-month target price is increased to $68.00
CIBC World Markets maintains "sector outperform", 12-month target price is US$59.00
Desjardins Securities downgrades to "buy", 12-month target price is increased to $70.00
National Bank Financial downgrades to "sector perform", 12-month target price is $62.00
Raymond James maintains "strong buy", 6-12 month target price is increased to US$51.25
Great Lakes Hydro Inc. Fd. (GLH.UN : TSX : $18.65)
Strong relative price performance
RBC Capital Markets downgrades to "sector perform", 12-month target price is $20.00
Goldcorp Inc. (G : TSX : $33.52 | GG : NYSE : US$29.29)
Ultimate 25% reserve addition
Canaccord Capital maintains "buy", 12-month target price is US$37.50
Desjardins Securities maintains "buy", 12-month target price is $40.25
Garda World Security Corp (GW : TSX : $20.67)
Garda acquires Kroll's international security group
Desjardins Securities maintains "buy", 12-month target price is $29.25
National Bank Financial maintains "outperform", 12-month target price is $25.50
Harris Steel Group (HSG : TSX : $43.00)
Preliminary discussion with third party for potential sale
Blackmont Capital upgrades to "buy", 12-month target price is increased to $ 44.00
Raymond James upgrades to "outperform", 6-12 month target price is $45.00
Cossette Communication Group (KOS : TSX : $9.25)
Q4 ahead of expectation
National Bank Financial maintains "sector perform", 12-month target price is $10.50
LionOre Mining International (LIM : TSX : $11.80)
Issued production targets and guidance on major expenses for FY07
Credit Suisse maintains "neutral " target price is $11.00
RBC Capital Markets maintains "sector perform", target price is $11.00
TD Newcrest maintains "buy", target price raised to $14.00
MacDonald Dettwiler & Assoc. (MDA : TSX : $40.30)
Announces HIP licensing deal for new home sales
CIBC World Markets maintains "sector outperform", target price is $55.00
NAL Oil & Gas Trust (NAE.UN : TSX : $13.51)
Recent distribution cut
CIBC World Markets upgrades to "sector outperform", target price is $16.25
Newport Partners Income Fund (NPF.UN : TSX : $5.70)
NPF owns 80% of Murray demolition, which has acquired Quantum Environmental for $50million
Blackmont Capital maintains "sell", target price raised to $5.50
Nevsun Resources (NSU : TSX : $2.91)
Operations improving at Tabakoto
Blackmont Capital maintains "speculative buy", target price is $4.00
North West Company Fund (NWF.UN : TSX : $16.81)
Reported Q3 EBITDA of $25.6 million
CIBC World Markets upgrades to "sector outperform", target price raised to $18.00
National Bank Financial maintains "sector perform", 12-month target price is raised to $16.00
Jean Coutu Group (PJC) (PJC.A : TSX : $12.74)
Industry consolidation speculation
National Bank Financial maintains "sector perform", 12-month target price is $12.00
Penn West Energy Trust (PWT.UN : TSX : $37.26)
Benefited from a flight to quality
CIBC World Markets downgrades to "sector perform", target price is $41.00
Research In Motion (RIM : TSX : $146.15 | RIMM : NASDAQ : US$127.17)
To report Q3/F07 on December 21, 2006
Canaccord Adams reiterates "buy", target price is US$180.00
Energy Savings Income Fund (SIF.UN : TSX : $12.92)
Another distribution increase
RBC Capital Markets maintains "top pick", 12-month target price is $15.00
Saskatchewan Wheat Pool (SWP : TSX : $8.49)
Reported fiscal Q1/07 EPS loss of $0.06
BMO Nesbitt Burns maintains "market perform", target price is $8.50
National Bank Financial maintains "sector perform", 12-month target price is $8.50
Transat A.T. (TRZ.B : TSX : $29.75)
Building its market share in Ontario to over 40% is a priority
RBC Capital Markets maintains "sector perform", 12-month target price is raised to $33.00
Fireswirl Technologies Inc. (TSXV: FSW) is an innovator in the emerging mobile commerce (M-Commerce) market - forecasted to be worth $80 billion annually by 2009. The company's technology has broad applications for content providers requiring multiple payment interfaces, multi-currency and multi-language capabilities. Fireswirl has also positioned itself to benefit from the ongoing evolution in the online gaming industry. The company's feature-rich suite of gaming software and networking solutions appeals to governments and their licensed agents in the 60 countries where online gambling is compliant.
Fireswirl recently signed an agreement with WestSMS to jointly develop and market an online "play for free" membership service featuring Texas Hold'em poker games and tournaments in the Xinjiang Province, China. In contrast to online gambling, this joint venture will derive revenue from memberships and advertising.
Fireswirl also has a patent pending for SMILES (Secure Mobile Integrated Lottery Enterprise System), a tool that allows users to access a prepaid account to buy lottery tickets over their cellular phones. This technology has appeal across many industries seeking M-Commerce payment solutions for the sale of products and services over cellular phones and other mobile communications devices.
Website http://www.fireswirl.com
So what night is "amateur" night???
Ear on the Street
Alberta Clipper Energy (ACN : TSX : $6.01)
2007 budget update
BMO Capital Markets maintains "outperform", 12-month target price is $7.50
AGF Management (AGF.B : TSX : $25.85)
Strong investment market
CIBC World Markets maintains "sector perform", 12-month target price is raised to $28.00
Alamos Gold Inc. (AGI : TSX : $9.85)
Mulatos ramp-up complete
Haywood Securities maintains "sector outperform", 12-month target price is $12.00
Angiotech Pharmaceuticals (ANP : TSX : $9.85 | ANPI : NASDAQ : US$8.56)
FDA panel provides no surprise
Blackmont Capital maintains "buy", 12-month target price is US$14.00
CIBC World Markets maintains "sector outperform", 12-month target price is US$13.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is US$16.00
TD Newcrest maintains "hold", 12-month target price is US$10.50
Avenir Diversified Income Tr. (AVF.UN : TSX : $6.73)
Sell-off provides buying opportunity
Canaccord Adams maintains "buy", 12-month target price is $9.00
Axcan Pharma (AXP : TSX : $16.75 | AXCA : NASDAQ : US$14.60)
To provide 2007 financial guidance today
TD Newcrest maintains "hold", 12-month target price is US$14.00
Bulldog Resources (BD : TSX : $5.28)
Strong light oil growth
BMO Capital Markets maintains "outperform", 12-month target price is raised to $6.25
Boardwalk REIT (BEI.UN : TSX : $43.40)
Soaring Alberta apartment rents
Blackmont Capital downgrades to "sell", 12-month target price is $37.50
Desjardins Securities maintains "top pick", 12-month target price is $49.30
Bank of Nova Scotia (BNS : TSX : $51.65)
Q4 in line
Blackmont Capital maintains "buy", 12-month target price is $55.00
Desjardins Securities maintains "buy", 12-month target price is $57.00
RBC Capital Markets maintains "sector perform", 12-month target price is $53.00
Scotia Capital Markets upgrades to "sector outperform", 12-month target price is raised to $58.00
TD Newcrest maintains "action list buy", 12-month target price is raised to $57.00
Buhler Industries (BUI : TSX : $5.10)
Q4 weaker than expected
Blackmont Capital maintains "sell", 12-month target price is cut to $4.90
Raymond James maintains "underperform", 6-12 month target price is $4.95
CIBC (CM : TSX : $96.25)
Q4 cash EPS beats expectations
RBC Capital Markets maintains "outperform", 12-month target price is $105.00
Canadian Oil Sands Trust (COS.UN : TSX : $30.90)
2007 guidance shows higher production costs
BMO Capital Markets maintains "outperform", 12-month target price is cut to $34.00
Crew Energy Inc (CR : TSX : $12.86)
Higher capital spending in 2007
Raymond James maintains "strong buy", 6-12 month target price is $20.00
Corriente Resources (CTQ : TSX : $4.52)
Protest in Ecuador
Desjardins Securities maintains "buy", 12-month target price is $7.90
Canadian Western Bank (CWB : TSX : $49.75)
Downgrade due to stock price appreciation
BMO Capital Markets downgrades to "market perform", 12-month target price is $53.00
Dundee Wealth Management (DW : TSX : $12.91)
To purchase minority interest in DWM
GMP Securities maintains "buy", 12-month target price is $14.75
E4 Energy (EFE : TSX-V : $1.32)
2007 guidance in line
Canaccord Adams maintains "buy", 12-month target price is $2.00
Evertz Technologies (ET : TSX : $13.62)
Q2 to be reported today
Raymond James maintains "market perform", 6-12 month target price is $16.00
RBC Capital Markets maintains "outperform", 12-month target price is $17.00
Fording Canadian Coal Trust (FDG.UN : TSX : $26.78)
In rally mode
CIBC World Markets maintains "sector underperform", target price raised to $23.00
Forzani Group (FGL : TSX : $18.35)
Reports strong Q3 with FD EPS of $0.35
BMO Capital Markets maintains "outperform", 12-month target price is raised to $23.00
CIBC World Markets maintains "sector underperform", target price raised to $15.00
Desjardins Securities maintains "hold", target price raised to $16.00
Raymond James maintains "outperform", 6-12 month target price raised to $21.00
Scotia Capital Markets reiterates "sector outperform", 12-month target price is $21.50
TD Newcrest upgrades to "buy", 12-month target price raised to $22.00
Finning International (FTT : TSX : $45.33)
Expected economic slowdown in the U.S. in 2007 should improve equipment supply
RBC Capital Markets maintains "outperform", target price is $51.00
Groupe Laperriere & Verreault (GLV.A : TSX : $30.77)
Financing for significant membrane system sale
Blackmont Capital maintains "buy", 12-month target price is $35.00
Iamgold Corp. (IMG : TSX : $10.37 | IAG : NYSE : US$9.08)
Recently completed Cambior acquisition
Canaccord Adams maintains "buy", target price is US$13.00
LionOre Mining International (LIM : TSX : $12.20)
Issues 2007-2008 guidance
BMO Capital Markets maintains "outperform", 12-month target price is $15.00
Manitoba Telecom Services (MBT : TSX : $43.85)
A prime takeout candidate
BMO Capital Markets maintains "market perform", 12-month target price is $48.00
RBC Capital Markets maintains "outperform", target price is $54.00
MDS Inc. (MDS : TSX : $20.22 | MDZ : NYSE : US$17.74)
To report Q4/06 results on December 14 2006
Raymond James maintains "market perform", 6-12 month target price is $20.25
Scotia Capital Markets maintains "sector perform", 12-month target price is $25.00
Metallica Resources (MR : TSX : $4.47 | MRB : AMEX : US$3.90)
$30 million bought deal financing
BMO Capital Markets maintains "market perform", 12-month target price is not given
Metro Inc. (MRU.A : TSX : $36.36)
Strike ends; Ontario negotiations continue
Scotia Capital Markets reiterates "sector perform", target price is $39.00
TD Newcrest maintains "buy", 12-month target price is $41.00
Newport Partners Income Fund (NPF.UN : TSX : $5.74)
Buying back up to 5% of public float
Blackmont Capital maintains "sell", 12-month target price is $5.50
Nexen (NXY : TSX : $61.56)
2007 capital budget at $2.9 billion, down 15% YoY
Haywood Securities maintains "sector outperform", target price is $75.00
Pengrowth Energy Trust (PGF.UN : TSX : $19.22)
Largest ever trust acquisition
CIBC World Markets "sector perform", 12-month target price is increased to $21.00
TD Newcrest upgrades to "hold", 12-month target price is increased to $18.00
Patheon Inc. (PTI : TSX : $5.77)
Flat revenues expected to be flat
Desjardins Securities maintains "hold", 12-month target price is $6.50
Scotia Capital Markets maintains "sector underperform", 12-month target price is $6.00
Rider Resources Ltd. (RRZ : TSX : $8.59)
Proposed deal with Shiningbank terminated
GMP Securities maintains "buy", 12-month target price is $12.00
Shiningbank Energy Income Fund (SHN.UN : TSX : $15.37)
Terminating offer to acquire rider resources
TD Newcrest maintains "hold", 12-month target price is $16.00
Silver Standard Resources (SSO : TSX : $36.15)
Initial resource shown at Snowfield
Blackmont Capital maintains "buy", 12-month target price is increased to $42.00
TD Bank (TD : TSX : $67.20)
Waiting on a catalyst but valuation remains strong
Blackmont Capital maintains "hold", 12-month target price is $67.35
CIBC World Markets maintains "sector outperform", 12-month target price is $77.00
Desjardins Securities maintains "top pick", 12-month target price is $76.50
RBC Capital Markets maintains "outperform", 12-month target price is $84.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $81.00
TriStar Oil & Gas (TOG : TSX : $5.91)
Acquires Saskatchewan light oil company
BMO Capital Markets maintains "outperform", 12-month target price is raised to $8.00
GMP Securities maintains "buy", 12-month target price is $9.00
Haywood Security maintains "sector outperform", 12-month target price is $9.00
TD Newcrest maintains "buy", 12-month target price is $8.00
TELUS (T : TSX : $55.10)
Hard to see upside
RBC Capital Markets maintains "outperform", 12-month target price is $64.00
TimberWest Forest Corp. (TWF.UN : TSX : $15.52)
Price appreciation risk higher
CIBC World Markets downgrades to "sector perform", 12-month target price is $13.50
Canadian Satellite Radio (XSR : TSX : $6.35)
Focus on ECM market
Desjardins Securities maintains "hold", 12-month target price is $10.00
Micron Enviro Systems Inc. (OTCBB: MENV) (Frankfurt: NDDA--- WKN: A0J3PY) ("Micron") is pleased to announce that it has been informed by the operator that drilling is set to commence on one of its Alberta Oils Sands Prospects that it has interest in. Micron has forwarded all monies relating to drilling and seismic operations and it is anticipated that drilling and seismic will both be completed in December 2006. The seismic operations and test drilling will enable Micron to delineate the potential size of the oil sands resource in place. This prospect is in close proximity to Petrobanks Whitesands Project that they have reported has 1.6 billion barrels of bitumen in place.
Bernie McDougall, President of Micron stated, "This is the single most important event in the companys history since entering the massive Alberta Oil Sands. Having the operations including a test well and seismic operations to be underway is the event we have been waiting for almost a year to start. As it stands, Micron is one of if not the smallest market capitalized company in the world class Alberta Oil Sands. We are currently trading more than 60% percent below our recent high despite having more assets and now having operations commencing. We are extremely excited about the future of MENV through the final days of 2006 and into 2007. We anticipate that 2007 may also bring additional projects that may add significantly to our future growth."
The Oil Sands of Canada hold recoverable reserves of 175 billion barrels with a proven reserve life of 480 years and another 130 billion barrels of potential reserves, which is second only to Saudi Arabia's 262 billion barrels. As a comparison, the United States has only 29 billion barrels of recoverable reserves and has decreasing domestic production while their demand is increasing by 1-2% every year. Canada is in an optimal position to supply oil to the U.S. with its favorable political climate, close proximity and being one of the few non-OPEC countries which can grow its oil production. It is expected that over 100 billion dollars will be spent on developing the Alberta Oil Sands in the coming years.
In 2006, Micron added three additional Alberta Oil Sands leases consisting of 4 new sections in the world-class Athabasca Oil Sands region of which two of these new sections are within 5 miles of Micron's existing Athabasca Oil Sands Prospect. These two new sections are close to the existing Oil Sands leases held by Connacher Oil and Gas's Great Divide Prospect, as well as to other major Oil Sands projects by Devon, EnCana, and ConocoPhilips. The other new Alberta Oil Sands lease acquired consists of two contiguous sections that lie just southwest of the announced Royal Dutch Shell Plc Oil Sands leases which in 2006 were purchased for approximately $400 million.
Micron is planning to re-initiate a marketing plan to create additional awareness for the company as the oil and gas operations start up. There has been very little marketing since Micron changed its symbol to MENV, therefore management feels the market may not be aware of what Micron is doing. This plan will primarily be email based and will target 100 percent opt-in private and institutional investors that trade stocks in Micron's price range. This marketing plan will include increasing Microns presence in Europe with a focus on Germany. Mr. McDougall further stated When you look at how the European market has benefited companies such at Universal Ppty Dev WKN: A0ETWH, we feel that Micron will benefit substantially from increasing our European presence."
Micron is an emerging oil and gas company that has exposure to four separate leases in the Athabasca Oil Sands of Alberta, Canada, which is the largest Oil Sands region in the world, and has minor production from multiple conventional oil and gas wells. Micron's goal is to become a junior oil and gas producer that focuses on the exploration, discovery and delivery of gas and oil to the North American marketplace. Micron continues to look for additional projects that would contribute to building Micron's market capitalization, including additional Oil Sands projects.
If you have any questions, please call Micron at (604) 646-6903. If you would like to be added to Micron's update email list, please send an email to info@micronenviro.com requesting to be added.
Contact:
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Citigroup: Gold confounds skeptics, nickel, zinc shortages continue unabated
By: Dorothy Kosich
Posted: '13-DEC-06 08:00' GMT © Mineweb 1997-2006
RENO, NV (Mineweb.com) --Citigroup Research analysts Monday declared that the mining/metals sector “is vacillating between bouts of dismal late-cycle gloom, and gleeful soft-landing anticipation for 2007, spiced with M&A.”
Analysts John Hill, Alexander Hacking and Graham Wark termed copper’s defiance above $3 /lb “nothing sort of profound, in our view, considering the speculative exodus, pervasive technical sell signals and steady inventory build. …Certainly, the dollar’s slide has played a supportive short-term role for metals and broader commodities, although the underlying drivers cast questions on growth and physical off take.”
Citigroup’s research has shown that “the tight internal correlations between the metals are breaking down, nickel and zinc seeing unabated shortages, while copper and aluminum have seemingly swapped roles due to supply response and Chinese import/export tax changes. …Gold continues to frustrate the skeptics, and appears well-positioned on a combination of macro and supply/demand factors.”
Hill noted that gold has been resurgent, driven by seasonally stronger fabrication, the end of the central bank selling year, and the prospects for continued dollar weakness. He estimated that the total gold held in the five principal physical gold-backed ETFs as of December 4 was 19.1 million ounces, valued at $12.4 billion. Citigroup gold forecasts for 2007/08 are $700/750 per ounce. Due to the interplay between investment demand and fabrication, Citigroup declared “we would not be surprised to see a test of the old highs of $850 per ounce.”
However, Hill cautioned that a key test for gold “will be whether it can make headway in Euro and Yen terms.”
While other metal prices remain strong and micro-indicators supportive, Citigroup said “we do not expect prices to rise from current spot levels (gold excepted). This sets up a stock-picker’s market in a challenging, cooling environment which would normally be hostile for metals.”
Among the metals and mining companies favored by Citigroup are Freeport McMoRan for copper, and gold miners Newmont Mining and Barrick.
Ear on the Street
AEterna Zentaris (AEZ : TSX : $6.54 | AEZS : NASDAQ : US$5.67)
Interim data from Phase II trial of cancer drug perifosine announced
Canaccord Adams maintains "buy", 12-month target price is US$8.00
Angiotech Pharmaceuticals (ANP : TSX : $9.72 | ANPI : NASDAQ : US$8.42)
Completion of US$325 million debt financing
Blackmont Capital maintains "buy", 12-month target price is US$14.00
Bell Aliant (BA.UN : TSX : $27.26)
Government may deregulate the local telephone prices
CIBC World Markets maintains "sector underperform", 12-month target price is $29.00
Brookfield Asset Management (BAM.A : TSX : $55.31 | BAM : NYSE : US$47.91)
BPO raises 2007 guidance
BMO Capital Markets maintains "market perform", 12-month target price is raised to US$53.00
BCE Inc. (BCE : TSX : $30.28)
Government may deregulate the local telephone prices
CIBC World Markets maintains "sector outperform", 12-month target price is $32.00
Brookfield Properties (BPO : TSX : $44.85 | NYSE : US$38.88)
To issue 30 million shares
Scotia Capital Markets maintains "sector underperform", 12-month target price is US$35.50
Cameco Corp. (CCO : TSX : $44.70)
Analysts see higher uranium price coming
RBC Capital Markets upgrades to "top pick", 12-month target price is $67.00
Chartwell Seniors Housing REIT (CSH.UN : TSX : $13.09)
Q3 in line
BMO Capital Markets maintains "market perform", 12-month target price is cut to $14.00
CV Technologies (CVQ : TSX : $3.15)
F06 net income better than expected
RBC Capital Markets maintains "sector perform", 12-month target price is $4.75
Etruscan Resources (EET : TSX : $4.10)
New Street coverage
CIBC World Markets initiates coverage with a "sector outperform", 12-month target price is $6.25
European Goldfields Limited (EGU : TSX : $4.77)
Analysts increase commodity prices forecast
RBC Capital Markets maintains "outperform", 12-month target price is raised to $7.00
Frontera Copper (FCC : TSX : $5.45)
Analysts forecast higher copper price
RBC Capital Markets maintains "outperform", 12-month target price is raised to $9.00
First Quantum Minerals (FM : TSX : $65.01)
Analysts increase commodity prices forecast
RBC Capital Markets maintains "outperform", 12-month target price is raised to $90.00
FNX Mining Company (FNX : TSX : $17.46)
Analysts increase commodity prices forecast
RBC Capital Markets maintains "outperform", 12-month target price is raised to $24.00
Finning International (FTT : TSX : $45.68)
Won two heavy equipment contracts
RBC Capital Markets maintains "outperform", 12-month target price is $51.00
Grey Wolf Exploration (GWE : TSX : $2.82)
Increased 2007 exit guidance
BMO Nesbitt Burns upgrades to "outperform", 12-month target price is increased to $3.50
Great-West Lifeco (GWO : TSX : $33.58)
European market is key to drive growth
Scotia Capital Markets maintains "sector outperform", 12-month target price is $37.00
HudBay Minerals (HBM : TSX : $21.63)
Analysts increased Zinc forecasts
Desjardins Securities upgrades to "top pick", 12-month target price is increased to $27.15
RBC Capital Markets maintains "outperform", 12-month target price is increased to $29.00
H&R Real Estate Invest. Trust (HR.UN : TSX : $25.05)
Soft Q3
BMO Capital Markets maintains "market perform", 12-month target price is raised to $27.00
Husky Energy (HSE : TSX : $79.33)
Steady production growth fuelled by prudent spending
BMO Nesbitt Burns maintains "outperform", 12-month target price is $82.00
Desjardins Securities maintains "buy", 12-month target price is $85.00
RBC Capital Markets maintains "outperform", 12-month target price is $83.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $85.00
Inmet Mining (IMN : TSX : $66.05)
Copper and Zinc expected to hold
RBC Capital Markets maintains "outperform", 12-month target price is increased to $90.00
Legacy Hotels Real Estate Tr. (LGY.UN : TSX : $9.38)
Increasing NAV
CIBC World Markets upgrades to "sector perform", 12-month target price is increased to $11.40
LionOre Mining International (LIM : TSX : $12.23)
Continued Nickel strength
RBC Capital Markets upgrades to "outperform", 12-month target price is $20.00
Methylgene Inc. (MYG : TSX : $4.25)
Interim results from Phase l/ll for MDS and AML
Blackmont Capital maintains "buy", 12-month target price is $8.00
NovaGold Resources (NG : TSX : $19.23)
Initiating coverage
RBC Capital Markets initiates coverage with a "sector perform", 12-month target price is $22.00
Parkbridge Lifestyle (PRK : TSX : $5.25)
Strong internal and external growth
Desjardins Securities maintains "top pick", 12-month target price is increased to $6.95
Shiningbank Energy Income Fund (SHN.UN : TSX : $15.15)
Shiningbank and Rider terminate proposed transaction
BMO Nesbitt Burns maintains "market perform", target price is $16.50
CIBC World Markets maintains "sector perform", target price lowered to $16.00
RBC Capital Markets maintains "sector perform", target price is $15.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $14.50
Sherwood Copper (SWC : TSX-V : $3.70)
Geophysical survey highlights new potential at the Minto project, Yukon
Blackmont capital maintains "buy", 12-month target price is $5.60
Southwestern Resources (SWG : TSX : $8.75)
Increased Boka 1 resource estimates
Canaccord Adams maintains "buy", target price is $12.85
Raymond James maintains "strong buy", 6-12 month target price is $20.00
Teck Cominco Ltd. (TCK.B : TSX : $89.80 | TCK : NYSE : US$77.88)
Increased target on higher metal price forecast
Desjardins Securities downgrades to "buy", target price is raised to $97.85
RBC Capital Markets maintains "outperform", target price raised to $100.00
TriStar Oil & Gas (TOG : TSX : $5.87)
Acquires small private producer for $16.5 million
Scotia Capital Markets maintains "sector perform", 12-month target price is $7.20
TimberWest Forest Corp. (TWF.UN : TSX : $15.40)
Downgraded on price appreciation
Raymond James downgrades to "market perform", target price raised to $14.50
Western Prospector Grp (WNP : TSX-V : $4.39)
Dewatering of Gurvanbulag has been completed
Haywood Securities maintains "sector outperform", target price raised to $5.60
Junior Mining
Tiomin announces delay of its mineral sands project in Kenya
By: Frank Jomo
Posted: '13-DEC-06 19:00' GMT © Mineweb 1997-2006
BLANTYRE (Mineweb.com) --As foreshadowed here on Mineweb on November 22nd, Tiomin Resources Inc. (TSX: TIO) announced yesterday that construction of its Kwale mineral sands project in the east African country of Kenya has been delayed to allow the Kenyan government resolve land wrangles with resident farmers, provide access to the project site and fulfill remaining conditions required by the contractual arrangements between Tiomin, the government and the lenders to the Project.
According to a press release issued by the Toronto based company and posted on its website, the Kenyan government is required pursuant to the contractual arrangement between it and the company to deliver the land required for the project.
“On November 10, 2006, the Government of Kenya issued public notices in the Kenya Gazette stating its intention to acquire the land of the seven farmers that control eight plots of land located within the area of the Kwale Special Mining Lease who have not voluntarily accepted an offer from the government to acquire their land,” reads part of the press release. “The seven farmers, who are opposed to the Government of Kenya approved compensation agreement for the acquisition of their land, initiated court action against the government and Tiomin's subsidiary, Tiomin Kenya Limited.”
According to the press release, the seven farmers have claimed, amongst other things, that the Government does not have the constitutional power to order the compulsory acquisition of their land, subject to appropriate compensation. It says the parties failed to reach an out of court settlement and that the judge's ruling on the seven farmers’ claims is expected on or about December 21, 2006.
“The Project’s senior lenders have issued a letter to Tiomin stating that they would not be in a position to disburse funds for the Project if there are, at any time, incomplete legal processes that may impact title and access to the land required for the Project.
“Tiomin cannot predict when all of these legal issues will be resolved to the lenders’ satisfaction. The continued lack of access to the Project site is preventing the Company from proceeding with the construction of the Project and it can no longer meet the previously published development schedule and budget,” says the press release.
Following the announcement of the delay to start the Kwale mineral sands project, media reports indicate that shares in Tiomin Resources Inc. sank 33 percent on Tuesday – the day the statement was issued. South Africa’s Business Day reports that on the Toronto market, Tiomin stock closed down 6.5 cents to 13 cents in trading of more than 20 million shares. A year ago, the stock traded just under 40 cents.
The company says it is a condition of the loan agreements provided to Tiomin Kenya Limited that the Government of Kenya meet certain conditions – primarily related to delivery of the Project site – in order for Tiomin to drawdown in early February 2007.
“As of today, insufficient progress has been made by the Government of Kenya to satisfy such conditions, including a failure to gazette the Fiscal Agreement (signed in February 2005) for the Project, to negotiate acceptable port tariffs with Tiomin Kenya Limited, to exempt the Project from certain stamp duty and withholding taxes, and to modify the existing mining lease to encompass all land required for the Project.”
Last month Mineweb reported the threat by the company that it would pull out of the project if the government there failed to given it access to the land by early December. The company planned to complete host resettlement in March 2007.
According to the company its titanium and zircon mine holds proven and probable reserves of about 117 million tones in its Central and South dunes. The company expects the mine to produce 330,000 tones of ilmenite, 75,000 tones of rutile and 40,000 tonnes of zircon per year.
The company expects the mine to generate more than $40m in pre-tax operating cash flow during the first six years of operation in its life span of 11 years.
The latest development has put spanners in the works of the company on the Kwale project having secured in mid-2006 US$155 million in debt finance for the mineral sands project. The Standard Chartered Bank, WestLB and Caterpillar Finance also made available US$80 million to Tiomin after it secured US$40 million from the African Development Bank and US$35 million in subordinated debt from Jinchuan Group Ltd. It also secured a cost-overrun facility with Netherlands Development Finance for this project whose viability stands threatened following wrangles in the east African nation.
China’s iron ore consumption growth rate declining
By: Dorothy Kosich
Posted: '14-DEC-06 08:00' GMT © Mineweb 1997-2006
RENO, NV (Mineweb.com) --The world’s largest producer and consumer of steel, China, may be buying less iron ore from foreign suppliers including due to increased domestic production.
Meanwhile, critical iron ore price negotiations have commenced as analysts predict a moderate price increase in 2007, despite China’s strong objection to last year’s 19% price increase.
The official Chinese government news agency Xinhua reported that customs figure show the nation’s iron ore imports dropped 1.3% year-on-year to 21.97 million tons in October, a 22% decrease from September 2006 imports. While total imports from January to October 2006 rose 21.7% to 269 million tons over the previous year, the rate of increase was the slowest in recent years.
Domestic production rose substantially in the first nine months of 2006 with large mine production increasing 37.7% over the same period of the previous year for a total of 406 million tons. This, in turn, decreased China’s dependence on overseas suppliers. Industry consultants Mysteel predicted that domestically mined iron ore will continue to command a larger share of the Chinese market.
India exported 46.75 million tons of iron ore to China during the first nine months of this year, capturing 26.56% of the total Chinese market. However, the world’s largest iron ore miners, including Rio Tinto, BHP Billiton and CVRD, are considered likely to demand a price increase based on tight supplies and unquenchable demand.
Mysteel Deputy Manager Jia Liangqun predicted that the iron ore price will increase 3% to 5% next year as China replenishes its iron ore stocks.
Commodity prices being driven upwards by urbanization and emerging markets
By: Tessa Kruger
Posted: '13-DEC-06 19:00' GMT © Mineweb 1997-2006
JOHANNESBURG (Mineweb.com) --Rapid urbanisation in the developing world and the integration of emerging market labour in the global economy are driving a structural, favourable shift in natural resource prices relative to manufactured goods and traded services.
Emerging market countries are dominant in ownership of natural resources, which gives them substantial pricing power and strategic opportunities, says Jonathan Garner, global emerging markets equity strategist of RMB Morgan Stanley in a new report on Emerging Market Strategy Initiation.
Garner said in his view, urbanisation in the emerging world and the integration of emerging market labour into the global economy are crucial to understanding the strong recent price gains in natural resource prices.
“Returns will tend to rise to any factor of production where supply does not expand as quickly as the time period of bringing a labour-intensive manufacturing plant into being.
“For this reason, we are living in a world where prices of manufactured goods and services are falling, but commodity prices are on the rise. And we expect this to continue over the medium term.”
While much market commentary focuses on absolute commodity prices, it is relative shifts that reflect true underlying economics and determine financial market outcomes.
The biggest gain in relative prices has been in upstream products. The price relative of the oil price against US autos rose by 175% since late 1998, the relative copper price charted against the price deflator for US telephony services increased by 120% over the same period, and steel, a midstream product, rose 77% in price relative to US household goods.
The large relative price shifts are the result of demand factors, such as urbanisation in the emerging world, but also the “inelastic” supply response of primary commodity markets – relative to manufactured goods and services markets.
Garner said that governments and companies who control resource assets have considerable market power. Barriers to enter this market, includes the geography and availability of natural resources and the funding and skill resource necessary to generate additional supply.
These barriers are not present in manufactured goods and traded services, which are generally characterised by low barriers to entry and the abundance of skilled emerging market labour.
“This is a deep structural feature of the modern global economy.
“Unless or until price signals are strong enough to prompt technological innovation that will do away with hydrocarbons in energy supply, the use of copper in phones or platinum in catalytic converters, the trend for relative prices to continue to shift in favour of upstream resources seems set to continue.”
Emerging market countries possessed 94% of global proven oil reserves in 2005, but consumed only 32% of current production. Saudi Arabia, Kuwait and Iran combined possess 42% of proven reserves.
In contrast, the United States consumed 25% of current production in 2005, while it possessed only 2% of reserves.
There is also an imbalance between China’s reserves at just 1.3% of global total reserves, and its consumption at 8.5% of the global total.
“Our analysis does not take into account the diverse forms in which global oil and gas majors develop and exploit resources in co-operation with emerging market governments.
“But it reflects the reality that as relative prices shift in favour of oil, and reserves dwindle in the developed world, emerging market governments are increasingly able to exercise market power in their relationships with global oil majors.”
Both the Saudi Arabian and Russian governments, buoyed by strong fiscal positions, have felt able to review oil major access to domestic expansion projects.
Emerging market countries are also dominant in natural gas. They possess 85% of reserves but consume only 32% of current production. Russia alone has 27% of global gas reserves, the majority of which is controlled by Gazprom, while the US has just 3% of reserves but consumes 23% of annual global production.
As in the case of oil, global gas majors are seeking access to the resource base of the emerging world. The Qatari government has been open to foreign investment by Exxon Mobil, Total and the Japanese trading companies Mitsui and Marubeni holding minority stakes in both the upstream production assets and downstream LNG plant
But in other countries, there is very little foreign involvement in the sector, or, access appears to become more difficult.
For example, the Russian government has rejected Shell and its Japanese partners’ projections of cost over-runs for the Sakhalin-2 project, threatened criminal prosecution for environmental damages and sought a 25% stake in the project for Gazprom.
Do hedge funds see gold as an alternative currency?
By: Dorothy Kosich
Posted: '14-DEC-06 08:00' GMT © Mineweb 1997-2006
RENO, NV (Mineweb.com) --Citing a potential hedge fund paradigm shift for gold as an alternative currency, Toronto’s National Bank Financial (NBF) Tuesday revised its gold price forecast upward from $600/oz to $650/oz in 2007.
Analyst Tanya Jakusconek and associates Susan Muir and Farooq Hamed suggested that the current 5 1/2 year rally in gold prices “may represent a paradigm shift for gold as it has taken on a new role as an alternative currency (portfolio diversification) and has the potential to play a larger role as a foreign reserve asset.” As proof, she noted that fund buying now accounts for more than 900 tonnes of gold internationally.
“On the central bank front, there may be demand potential from governments looking to bring their reserves more in line with the world average, including the Chinese government, which is being pressured to diversify its foreign reserves away from the U.S. dollar and into other assets,” according to NBF’s analysis. “Another repegging of the yuan to the U.S. would also be positive for gold.”
Jakusconek said NBF has predicated its outlook on a positive mix of historic price drivers and gold market fundamentals. The historic price drivers include the U.S. dollar, expectations of higher inflation and lower real interest rates. “On the demand side, gold market fundamentals include the continued strong investment demand (gold is increasingly being viewed as an alternative asset to currencies) and current accounts for 912 tonnes (ETFs/COMEX/CBOT) and steady fabrication demand/jewelry demand,” NBF said.
Meanwhile, Jakusconek declared that “the dehedging trend has become entrenched and is continuing, and mine output is leveling off over the next several years (next wave of large new mines does not come into production until 2010 or later).”
NBF asserted that its new 2007 forecast of $650/oz gold is in line with a consensus average of 24 brokers. The bank also raised cash costs for all companies “as the higher gold price assumes mining of lower-grade material, which generally results in higher costs.” Jakusconek’s top picks continue to be Goldcorp in the senior group and Agnico-Eagle and Eldorado Gold in the mid-tier producers
National Bank also raised its 2007 silver price forecast from $12/oz to $13/oz. Jakusconek said NBF’s silver estimates are based on a 50 to 1 ratio with gold.
Mineweb always carries details of at least 20 independently written top mining, mining finance, metals and mining sector analysis articles on its homepage as well as a fast news feed to keep you right up to date with what is going on in the mining and metals sectors worldwide. These are continuously updated through the day. Click here to go to Mineweb's home page and access the latest news and comments on developments in mining and metals worldwide.
Ear on the Street
Astral Media (ACM.A : TSX : $39.64)
Continues its share repurchase program
Desjardins Securities maintains "hold", 12-month target price is $43.00
Agnico-Eagle Mines (AEM : TSX : $49.20 | NYSE : US$42.60)
Analysts forecast higher metal price
RBC Capital Markets maintains "sector perform", 12-month target price is raised to $53.00
Axcan Pharma (AXP : TSX : $16.66 | AXCA : NASDAQ : US$14.41)
2007 guidance in line
Blackmont Capital maintains "hold", 12-month target price is US$15.50
BMO Capital Markets maintains "market perform", 12-month target price is US$15.00
RBC Capital Markets maintains "sector perform", 12-month target price is $16.50
BCE Inc. (BCE : TSX : $29.61)
2007 guidance solid and 11% dividend increase
CIBC World Markets maintains "sector outperform", 12-month target price is raised to $34.00
Desjardins Securities maintains "hold", 12-month target price is $33.50
Haywood Securities maintains "sector underperform", 12-month target price is $31.00
RBC Capital Markets maintains "sector perform", 12-month target price is $32.00
Bear Creek Mining (BCM : TSX-V : $9.95)
Drill results expands the Santa Ana silver footprint
Haywood Securities maintains "sector outperform", 12-month target price is $12.60
Bioteq Environmental Techn. (BQE : TSX-V : $2.12)
Completion of $20 million financing
Canaccord Adams maintains "buy", 12-month target price is $2.50
Brick Brewing Co. (BRB : TSX : $2.11)
Strong performance appears elusive in short-term
Blackmont Capital downgrades to "hold", 12-month target price is cut to $2.00
Baytex Energy Trust (BTE.UN : TSX : $21.81 | BTE : NYSE : US$18.88)
2007 capital program in line
RBC Capital Markets maintains "sector perform", 12-month target price is $19.00
Celestica Inc. (CLS : TSX : $9.43 | NYSE : US$8.15)
Q4 profit warnings
BMO Nesbitt Burns downgrades to "market perform", 12-month target price is decreased to US$9.50
CIBC World Markets maintains "sector perform", 12-month target price is cut to US$10.50
RBC Capital Markets maintains "sector perform", 12-month target price is US$8.00
TD Newcrest maintains "hold", 12-month target price is cut to US$9.00
Cangene Corp. (CNJ : TSX : $7.76)
Q1 EPS ahead of expectations
RBC Capital Markets maintains "sector perform", 12-month target price is $10.00
Canadian Oil Sands Trust (COS.UN : TSX : $31.61)
Early turnaround for Coker 8
BMO Capital Markets maintains "outperform", 12-month target price is $34.00
Canaccord Adams maintains "buy", 12-month target price is $33.00
CIBC World Markets maintains "sector perform", 12-month target price is $26.00
Crescent Point Energy Trust (CPG.UN : TSX : $17.03)
Revised merger terms
Canaccord Adams maintains "buy", 12-month target price is $21.00
CIBC World Markets downgrades to "sector perform", 12-month target price is cut to $18.75
RBC Capital Markets maintains "sector perform", 12-month target price is $15.75
Cognos Inc. (CSN : TSX : $48.60 | COGN : NASDAQ : US$42.03)
Solid Q3
RBC Capital Markets maintains "outperform", 12-month target price is US$44.00
Corriente Resources (CTQ : TSX : $4.61)
Positive exploration results from the Panantza property
Desjardins Securities maintains "buy", 12-month target price is $7.90
CryoCath Technologies (CYT : TSX : $2.33)
Initial results of Arctic Front feasibility study
Blackmont Capital maintains "sell", 12-month target price is $2.00
Dundee REIT (D.UN : TSX : $36.59)
Equity offering funds to grow acquisition pipeline
RBC Capital Markets maintains "outperform", target price is $38.25
TD Newcrest maintains "buy", 12-month target price raised to $41.00
Eldorado Gold (ELD : TSX : $6.38 | EGO : AMEX : US$5.51)
Eldorado provides 2007 production guidance
Blackmont Capital maintains "hold", 12-month target price is $6.00
Canaccord Adams maintains "hold", target price is US$5.75
Haywood Securities maintains "sector outperform", target price is $8.25
Evertz Technologies (ET : TSX : $13.98)
Reported sales of $46.7 million
BMO Nesbitt Burns maintains "outperform", target price is $17.00
RBC Capital Markets maintains "outperform", target price is $17.00
CHC Helicopter (FLY.A : TSX : $24.79 | FLI : NYSE : US$21.45)
Q2 hurt by higher cost
RBC Capital Markets maintains "underperform", 12-month target price is $25.00
Forsys Metals (FSY : TSX : $3.59)
To acquire remaining 10% in TECO which will give Forsys 100% shareholding in the Valencia license
Canaccord Adams maintains "buy", target price is $4.65
Finning International (FTT : TSX : $46.21)
Management released 2007 guidance of $2.80-$2.95
BMO Nesbitt Burns maintains "outperform", target price raised to $54.00
Desjardins Securities maintains "buy", target price is $50.00
RBC Capital Markets maintains "outperform", target price is $51.00
TD Newcrest maintains "buy", 12-month target price raised to $52.00
Groupe Laperriere & Verreault (GLV.A : TSX : $30.30)
Announced the purchase of a number of pulp process technologies from Metso
Blackmont Capital maintains "buy", 12-month target price is $35.00
Desjardins Securities reiterates "buy", target price is $33.00
Goldcorp Inc. (G : TSX : $33.45 | GG : NYSE : US$28.99)
Target raised on revised base metal price forecasts
RBC Capital Markets maintains "outperform", target price raised to US$35.00
Grey Wolf Exploration (GWE : TSX : $3.15)
Clarification relating to 2006 exit guidance
BMO Nesbitt Burns maintains "outperform", target price is $3.50
Garda World Security Corp (GW : TSX : $21.95)
Garda reported 3Q FY07 EPS of $0.20
Desjardins Securities maintains "buy", target price lowered to $28.00
Inter Pipeline Fund (IPL.UN : TSX : $8.45)
2007 Capital budget released
BMO Nesbitt Burns downgrades to maintains "market perform", 12-month target price is $8.50
Cossette Communication Group (KOS : TSX : $9.50)
Finally showing signs of growth
Desjardins Securities maintains "buy", 12-month target price is $12.00
Laurentian Bank of Canada (LB : TSX : $29.63)
Operations modest improvements
BMO Nesbitt Burns maintains "market perform", 12-month target price is $31.00
Desjardins Securities maintains "hold", 12-month target price is $32.00
Nova Chemicals Corp (NCX : TSX : $31.52 | NYSE : US$27.28)
Positive catalysts remain in place
RBC Capital Markets maintains "outperform", 12-month target price is decreased to US$38.00
Pan American Silver (PAA : TSX : $29.64 | PAAS : NASDAQ : US$25.63)
Revised metal price forecasts
RBC Capital Markets maintains "outperform", 12-month target price is US$40.00
Pacific Northern Gas (PNG : TSX : $18.55)
Filed rate applications
BMO Nesbitt Burns maintains "outperform", 12-month target price is $20.00
Pure Energy Services (PSV : TSX : $11.95)
Initiates coverage
TD Newcrest initiates coverage with a "buy", 12-month target price is $16.50
Pacific & Western Credit (PWC : TSX : $11.50)
Initiates coverage
Blackmont Capital initiates coverage with a "hold", 12-month target price is $13.00
Q9 Networks Inc. (Q : TSX : $12.00)
No surprised and still on track
BMO Nesbitt Burns maintains "market perform", 12-month target price is increased to $13.80
Haywood Security maintains "sector outperform", 12-month target price is $14.50
TD Newcrest maintains "buy", 12-month target price is increased to $15.00
Sobeys Inc. (SBY : TSX : $39.25)
Cheapest global food retailer despite good performance
BMO Nesbitt Burns upgrades to "outperform", 12-month target price is increased to $ 49.00
TD Newcrest maintains "hold", 12-month target price is $40.00
Somerset Entertainment (SOM.UN : TSX : $2.23)
Credit facility revisions appears neutral.
RBC Capital Markets maintains "sector perform", 12-month target price is $3.00
Lakeport Brewing Income Fund (TFR.UN : TSX : $20.06)
Another special distribution
RBC Capital Markets maintains "outperform", 12-month target price is $21.00
Talisman Energy (TLM : TSX : $20.24 | NYSE : US$17.50)
Further details on guidance
Blackmont Capital maintains "hold", 12-month target price is $20.50
BMO Nesbitt Burns maintains "outperform", target price is $22.00
Canaccord Capital maintains "buy", 12-month target price is $24.00
Haywood Security maintains "sector outperformer", 12-month target price is $23.00
Transat A.T. (TRZ.B : TSX : $30.79)
Q4 Earnings preview is strong
CIBC World Markets maintains "sector outperform", 12-month target price is increased to $35.50
Yamana Gold Inc. (YRI : TSX : $14.72 | AUY : AMEX : US$12.71)
Metal forecasts revision positive
RBC Capital Markets maintains "sector perform", 12-month target price is US$16.00
December 14, 2006 Trading Symbol: TSX.V-HNC
Hard Creek Nickel Corporation
Radio Interview on December 16, 2006
(VANCOUVER) – Mark Jarvis, President and CEO of Hard Creek Nickel Corporation will be featured in a nine minute interview on Market Matters which broadcasts across Canada on the Corus Radio Network, Saturday, December 16th, 2006 at 11 a.m. (Pacific Time).
Stations which will carry the interview are:
Vancouver – CKNW 980AM Toronto – CFMJ 640AM
Montreal – CINW 940AM Calgary – CHQR 770AM
Edmonton – CHED 630AM Winnipeg – CJOB 680AM
Hamilton – CHML 900AM Victoria – CFAX 1070AM
London – CFPL 980AM Saskatoon – CKOM 650AM
Regina – CJME 980AM Kitchener – CKGL 570AM
Kamloops – CHNL 610AM Kelowna – CKOV 630AM
Astral Mining Corporation (AST.V, Frankfurt WKN# A0JDX3) is very pleased to announce channel sample results from the Phase II infill and extension trenching program at the JJ Main Zone discovery on the Jumping Josephine "JJ" Project in southeastern British Columbia (Figure 1). Trench-02a graded 31.19 g/t* gold over 7m, including 133.91 g/t gold over 1m. The JJ Main Zone now has a cumulative strike length of 270 metres and remains open in both directions.
All surface results from the 2006 summer and fall exploration programs are currently being compiled and a comprehensive Phase I drill program is being planned for early 2007. To view all of the results to date from Astral's summer work programs visit www.astralmining.com.
Highlights from the Phase II trenching include:
• 31.19 g/t* gold over 7m, including 133.91 g/t gold over 1m from Trench 02a (0.91 opt** over 22.97 feet including 3.906 opt over 3.28 feet)
• 25.24 g/t gold over 4m from Trench 02c (0.736 opt over 13.12 feet)
• 14.1 g/t gold over 5m from Trench 03a (0.411 opt over 16.40 feet
• 9.28 g/t gold over 1m from Trench 03b (0.271 opt over 3.28 feet)
*grams per tonne **ounces per ton
The Phase I trenches (October 2 and 16, 2006 and November 14, 2006 News Releases) spaced at 50m along the strike of the zone were infilled during October 2006 with eight trenches on 10m intervals (Figure 2). In addition two trenches north of Trench 04 and one located 50m south of Trench 01 were designed to test for extensions to the JJ Main Zone (Figure 2). Channel sample assays confirm the previously reported high-grade gold values from the central portion of the quartz stockwork zone at JJ Main.
All new Phase II infill and extension channel samples from the quartz stockwork zone at JJ Main reported herein were analyzed using the Metallic gold assay method. Trenching has now identified the auriferous quartz stockwork zone over a strike length of 270m when the dextral fault-offset observed in Trench 03 is restored. Grades exceeding 5 g/t gold were encountered in most trenches between Trench 01 and the eastern zone of Trench 03 over a strike length of 145m when the dextral fault-offset is restored. This trenching confirms the continuity of the mineralized zone, which remains open to the southwest and northeast. A summary of the metallic gold assay results from the new trenching is tabulated below in Table 1.
Table 1: Phase II Infill and Extension Trenching -- Significant Metallic Gold Assays
Trench From To Interval Metallics Grade Interval Metallics Grade
(m) (m) (m) (g/t gold) (ft) (oz/ton)
T00 17 21 5 0.66 16.40 0.019
T01c 8 10 2 2.46 6.56 0.072
T01d 8 9 1 5.43 3.28 0.158
T02a 0 7 7 31.19 22.97 0.910
(including) 2 3 1 133.91 3.28 3.906
and 5 6 1 71.55 3.28 2.087
and 6 7 1 9.71 3.28 0.283
T02b 7 15 8 3.73 26.25 0.109
(including) 12 14 2 8.13 6.56 0.237
T02c 6 10 4 25.24 13.12 0.736
(including) 6 8 2 46.21 6.56 1.348
and 7 8 1 66.91 3.28 1.952
T02c 13 14 1 3.59^ 3.28 0.105^
T02d 9 13 4 1.01 13.12 0.029
18 19 1 3.80^ 3.28 0.111^
T03a 12 17 5 14.1 16.40 0.411
(including) 15 16 1 65.32 3.28 1.905
T03b 13 14 1 9.28 3.28 0.271
T04a 10 15 5 0.42 16.40 0.012
T04b 10 14 4 0.53 13.12 0.015
American notes
Copper, zinc and nickel in U.S. coinage worth more as scrap
By: Dorothy Kosich
Posted: '15-DEC-06 08:00' GMT © Mineweb 1997-2006
RENO, NV (Mineweb.com) --Rising copper, nickel and zinc prices have ordinary Americans literally pondering the melt-down of the U.S. penny and the nickel for scrap.
The problem is real enough to prompt the U.S. Mint to issue regulations to prohibit the melting or treatment of all one-cent and five-cent coins.
In a news release issued Thursday, United State Mint Director Ed Moy said, “We are taking this action because the nation needs its coinage for commerce. We don’t want to see our pennies and nickels melted down so a few individuals can take advantage of the American taxpayer. Replacing these coins would be an enormous cost to taxpayers.”
The news regulations also prohibit the unlicensed exportation of these coins, except for travelers who are allowed to take a maximum of $5 in these coins out of the country. Individuals may ship up to $100 in pennies or nickels out of the country in one shipment for legitimate coinage and numismatic purposes. The regulations are modeled after old Department of Treasury Regulations prohibiting the exportation, melting, or treatment of silver coins between 1967 and 1969, and other regulations prohibiting the exportation, melting or treatment of one-cent coins between 1974 and 1978.
Persons who knowingly violate the regulations could face a maximum prison sentence of five years, or a maximum fine of $10,000 or both. In addition, any coins exported, melted or treated in violation of the regulation are forfeited to the U.S. Government.
The U.S. is seeking public comment on the interim rule, which will be effective for 120 days from the time of publication. During a 30-day comment period from the time of publication, the public can submit written comments to the United States Mint on the regulations. After considering public comment, the Director of the U.S. Mint will then issue a final rule.
The interim rule can be found on the website at www.usmint.gov. Those wishing to provide comment must submit them in writing to the Office of Chief Counsel, United States Mint, 801 9th Street, N.W., Washington D.C. 20220 by January 14, 2007.
Mineweb always carries details of at least 20 independently written top mining, mining finance, metals and mining sector analysis articles on its homepage as well as a fast news feed to keep you right up to date with what is going on in the mining and metals sectors worldwide. These are continuously updated through the day. Click here to go to Mineweb's home page and access the latest news and comments on developments in mining and metals worldwide.
Ear on the Street
Altius Minerals Corp (ALS : TSX-V : $10.65)
Feasibility study complete
Haywood Security maintains "sector outperform", 12-month target price is $15.00
Anatolia Minerals Dev Ltd (ANO : TSX : $4.38)
Top gold stock for 2007
RBC Capital Markets maintains "top pick", 12-month target price is $6.25
Eldorado Gold (ELD : TSX : $6.22 | EGO : AMEX : US$5.41)
Recent share strength prompts rating downgrade
RBC Capital Markets downgrades to "sector perform", 12-month target price is US$6.60
Enbridge (ENB : TSX : $40.15)
Poor valuation outlook
Credit Suisse First Boston downgrades to "neutral", 12-month target price is decreased to $41.00
GBS Gold International (GBS : TSX : $3.80)
Gold doubles Fountain head resources
Haywood Security maintains "sector outperform", 12-month target price is $5.35
Glencairn Gold (GGG : TSX : $0.55)
Emerging gold producer
Blackmont Capital maintains "buy", 12-month target price is decreased to $0.85
High Arctic Energy Services (HWO.UN : TSX : $5.79)
Continues to deploy capital to foreign markets
Canaccord Adams maintains "buy", 12-month target price is cut to $7.75
Imperial Oil (IMO : TSX : $44.21)
Share performance not expected to continue
Canaccord Capital downgrades to "hold", 12-month target price is increased to $48.00
LionOre Mining International (LIM : TSX : $12.92)
Very positive future production numbers
Desjardins Securities maintains "buy", 12-month target price is $16.70
Manitoba Telecom Services (MBT : TSX : $43.43)
No bidders and 2007 guidance
BMO Capital Markets maintains "market perform", 12-month target price is $48.00
Canaccord Adams maintains "sell", 12-month target price is $35.00
Desjardins Securities maintains "hold", 12-month target price is $44.00
Haywood Securities maintains "sector perform", 12-month target price is $47.00
RBC Capital Markets maintains "outperform", 12-month target price is $54.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $47.00
March Networks (MN : TSX : $20.24)
Down 25% since Q2 results
RBC Capital Markets maintains "outperform", 12-month target price is $31.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $26.00
Methanex Corp. (MX : TSX : $29.62 | MEOH : NASDAQ : US$25.61)
Increasing European methanol price
RBC Capital Markets maintains "underperform", 12-month target price is raised to US$23.00
Newalta Income Fund (NAL.UN : TSX : $26.56)
Board approves $120 million 2007 Capex
RBC Capital Markets maintains "sector perform", 12-month target price is $29.00
Nova Chemicals Corp (NCX : TSX : $31.47 | NYSE : US$27.25)
A rebound in polyethylene pricing should benefit earnings
Canaccord Adams maintains "buy", 12-month target price is US$40.00
Excel-Tech Ltd. (NRV : TSX : $1.20)
Positive results summary
Canaccord Capital maintains "buy", 12-month target price is decreased to $2.50
Petro-Canada (PCA : TSX : $51.04 | PCZ : NYSE : US$44.20)
Capital expenditure expected to be flat
RBC Capital Markets maintains "outperform", target price is $58.00
Pengrowth Energy Trust (PGF.UN : TSX : $19.96 | PGH : NYSE : US$17.18)
Acquisition of oil and gas properties and undeveloped land
RBC Capital Markets maintains "sector perform", target price is $18.25
Patheon Inc. (PTI : TSX : $5.10)
Disappointing guidance for flat FY07 revenues, limited insight provided by management
Desjardins Securities maintains "hold", target price lowered to $5.75
Scotia Capital Markets maintains "sector underperform", 12-month target price is cut to $4.50
TD Newcrest maintains "buy", 12-month target price lowered to $6.50
RioCan Real Estate Investment (REI.UN : TSX : $25.65)
Enters U.S. market with $1.5 billion joint venture with Ramco-Gershenson
BMO Nesbitt Burns maintains "market perform", target price raised to $26.00
Scotia Capital Markets maintains "sector perform", 12-month target price is raised to $24.50
TD Newcrest "buy", 12-month target price is $27.00
Research In Motion (RIM : TSX : $152.80 | RIMM : NASDAQ : US$132.05)
To report Q3/07 results on December 21 after market close
RBC Capital Markets reiterates "sector perform", target price is US$140.00
Saputo Inc. (SAP : TSX : $37.81)
SAP profitability improvement should be driven by easing cheese-milk spreads
Desjardins Securities initiates coverage with a "buy", target price is $42.00
Sobeys Inc. (SBY : TSX : $39.50)
Same store sales growth decelerating to +2.4 %
CIBC World Markets maintains "sector underperform", target price is raised to $40.00
Skye Resources (SKR : TSX : $10.54)
$80 million equity financing closed yesterday
TD Newcrest maintains "speculative buy", 12-month target price raised to $15.00
Lakeport Brewing Income Fund (TFR.UN : TSX : $20.35)
Special distribution of $0.35 per unit
Scotia Capital Markets maintains "sector outperform", 12-month target price is $20.50
TransForce Income Fund (TIF.UN : TSX : $12.85)
Challenges ahead for the trucking sector
BMO Nesbitt Burns maintains "outperform", target price is $15.50
TEAL Exploration & Mining (TL : TSX : $4.06)
Emerging copper producer with the development of two mines in 2007
RBC Capital Markets maintains "outperform", target price is $7.00
TransCanada Corp. (TRP : TSX : $39.84 | NYSE : US$34.48)
Filed an application for approvals to construct Canadian portion of the Keystone Pipeline
BMO Nesbitt Burns maintains "market perform", target price is $38.50
The Nasdaq-100 After Hours Indicator, which tracks evening trading of the index's leading technology stocks, rose 4.1 points to end at 1,786.06.
Cooper (COO : The Cooper Companies, Inc
News , chart, profile, more
Last: 44.84+0.65+1.47%
8:06pm 12/15/2006
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COO44.84, +0.65, +1.5%) shares fell 9.2% to close at $44.91 following its revised forecast for 2007 revenue of $920 million to $960 million. It previously forecast revenue of $948 million to $1 billion. The company also reported fiscal fourth-quarter results below its own expectations. See full story.
Mamma.com Inc. (MAMA : mamma com inc com
News , chart, profile, more
Last: 4.44+0.39+9.63%
8:10pm 12/15/2006
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MAMA4.44, +0.39, +9.6%) occupied the number two spot on Nasdaq's list of volume movers, behind Sirius Satellite Radio (SIRI : sirius satellite radio inc com
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Last: 3.90+0.11+2.90%
8:10pm 12/15/2006
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SIRI3.90, +0.11, +2.9%) . Sirius shares dipped a penny, to $3.76.
Mamma.com shares climbed 5.1% to $4.5%. They soared 81% during the day after the company said that it's launched a video search engine into beta, in partnership with the Pixsy Media Search platform. Late-traded shares surged 7% to $4.58.
Stock in Atmel Corp. (ATML : Atmel Corp
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Last: 6.28+0.19+3.12%
8:10pm 12/15/2006
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ATML6.28, +0.19, +3.1%) surged 7.6% following by the chipmaker to sell two overseas factories and reduce its workforce in a move to cut costs and pare losses. Read full story.
Shares of ADC Telecommunications (ADCT : a d c telecommunications com new
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Last: 14.89-0.16-1.06%
8:10pm 12/15/2006
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ADCT14.89, -0.16, -1.1%) fell 5% to $13.40. The company said it expects first-quarter sales to be 15% lower than fourth-quarter sales. For fiscal 2007, sales of $1.26 billion to $1.29 billion are expected, with per-share earnings from continuing operations of 53 cents to 63 cents. Analysts polled by Thomson First Call currently expect sales of $1.34 billion on earnings of $1.01 a share.
ADC Telecom's net earnings for the fourth quarter rose to $40.4 million, or 33 cents a share. See more.
Martek Biosciences (MATK : Martek Biosciences Corp
News , chart, profile, more
Last: 24.03+0.23+0.97%
8:10pm 12/15/2006
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MATK24.03, +0.23, +1.0%) climbed 4.6% to close at $24.43 after its pro forma earnings came in at 12 cents a share, higher than Wall Street's estimate of 10 cents. Earnings on a per-share net basis dropped to $641,000, or 2 cents a share. Revenue rose 20% to $67.2 million, more than the $65 million that was anticipated by analysts. Read more.
SAIC (SAI : saic inc com
News , chart, profile, more
Last: 18.70+0.74+4.12%
8:14pm 12/15/2006
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SAI18.70, +0.74, +4.1%) shares shed $19.43. The science and engineering firm forecast 2007 revenue of $8.15 billion to $8.25 billion and per-share earnings continuing operations of 96 cents to 98 cents. Analysts are looking for revenue of $8.22 billion and per-share earnings of 97 cents.
It reported third-quarter net earnings of $98 million, or 28 cents a share, on revenue of $2.14 billion, ahead of analysts' outlook for revenue of $2.11 billion.
Carla Mozee is a reporter for MarketWatch in San Francisco.
FuelCell, Dell, Andersons
PrintE-mailDisable live quotesRSSDigg itDel.icio.usBy MarketWatch
Last Update: 8:30 PM ET Dec 15, 2006
SAN FRANCISCO (MarketWatch) -- Among the companies whose shares are expected to see active trade in Monday's session are FuelCell Energy Inc., Dell Inc. and Andersons Inc.
Applied Signal Technology (APSG : Applied Signal Technology
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Last: 15.94+0.09+0.57%
8:10pm 12/15/2006
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APSG15.94, +0.09, +0.6%) is expected to report earnings per share for the fourth quarter of 22 cents, according to analysts polled by Thomson First Call.
FuelCell. (FCEL : fuelcell energy inc com
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Last: 6.47+0.20+3.19%
8:00pm 12/15/2006
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FCEL6.47, +0.20, +3.2%) is expected to post a per-share loss of 35 cents for the fourth quarter.
Joy Global Inc. (JOYG : joy global inc com
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Last: 44.23-0.33-0.74%
8:10pm 12/15/2006
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JOYG44.23, -0.33, -0.7%) is expected to report per-share income for the fourth quarter of 66 cents.
Oracle Corp. (ORCL : Oracle Corporation
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Last: 17.68-0.34-1.89%
8:00pm 12/15/2006
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ORCL17.68, -0.34, -1.9%) is expected to post second-quarter per-share income of 22 cents.
Piedmont Natural Gas Co. (PNY : Piedmont Natural Gas Company, Inc. (North Carolina)
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Last: 27.86-0.34-1.21%
8:00pm 12/15/2006
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PNY27.86, -0.34, -1.2%) is expected to report first-quarter per-share income of 97 cents.
Steelcase Inc. (SCS : steelcase inc cl a
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Last: 18.10+0.01+0.06%
6:50pm 12/15/2006
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SCS18.10, +0.01, +0.1%) is expected to report earnings of 19 cents per share for the third quarter.
After Friday's closing bell, Dell (DELL : dell inc com
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Last: 26.53-0.34-1.27%
8:10pm 12/15/2006
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DELL26.53, -0.34, -1.3%) said it received a Nasdaq letter on Dec. 15 indicating that the company is not in compliance with continued listing requirements. The computer giant said the letter relates to the company's delayed third-quarter filing. See After Hours column.
Watch list
Andersons (ANDE : Andersons Inc (The)
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Last: 39.93+0.03+0.08%
8:10pm 12/15/2006
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ANDE39.93, +0.03, +0.1%) said it has raised the quarterly cash dividend 5.6% to 4.75 cents per share. The dividend is payable Jan. 22 to shareholders as of Jan. 2.
Boston Scientific Corp. (BSX : Boston Scientific Corporation
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Last: 16.29-0.18-1.09%
8:05pm 12/15/2006
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BSX16.29, -0.18, -1.1%) said it is voluntarily recalling certain lots of the Mach 1 guide catheter in the United States. The medical devices maker said some units of the catheter may contain excess resin that could obstruct a blood vessel if detached during a procedure.
Comverse Technology Inc. (CMVT : Comverse Technology Inc
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Last: 20.93+0.60+2.95%
8:10pm 12/15/2006
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CMVT20.93, +0.60, +3.0%) Chairman Ron Hiram has resigned from the board. Hiram's resignation was tendered in view of the recent appointment of an additional five new independent directors. Also, the company has received an additional Nasdaq delisting notice over the company's delayed Form 10-Q filing for the quarter ended Oct. 31.
Guitar Center Inc. (GTRC : Guitar Center Inc
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Last: 45.68-1.19-2.54%
8:00pm 12/15/2006
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GTRC45.68, -1.19, -2.5%) said its Nov. 22 agreement to buy the assets of Dennis Bamber Inc. has been terminated upon bankruptcy court approval of an alternative bidder for the business.
Imax Corp. (IMAX : imax corp com
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Last: 4.07-0.13-3.10%
8:00pm 12/15/2006
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IMAX4.07, -0.13, -3.1%) said it has determined that a sale or merger of the company will not enhance shareholder value. The Toronto-based entertainment company said it will instead focus on the growth of its network and on strategic business initiatives.
King Pharmaceuticals Inc. (KG : king pharmaceuticals inc com
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Last: 16.28-0.24-1.45%
8:10pm 12/15/2006
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KG16.28, -0.24, -1.5%) said an arbitration panel has decided in favor of Elan Corp. (ELN : Elan Corporation, plc
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Last: 14.15+0.04+0.28%
8:07pm 12/15/2006
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ELN14.15, +0.04, +0.3%) in a dispute related to King's Sonata insomnia drug. The panel ordered King to pay Elan about $49.8 million, plus interest, in milestone payments and other research and development expenses.
Nasdaq Stock Market Inc. (NDAQ : nasdaq stock market inc com
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Last: 35.55+0.25+0.71%
8:10pm 12/15/2006
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NDAQ35.55, +0.25, +0.7%) said it has approved a new employment contract for President and Chief Executive Robert Greifeld, extending his deal through Dec. 31, 2010.
PetSmart Inc. (PETM : PETsMART Inc
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Last: 29.93+0.03+0.10%
8:00pm 12/15/2006
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PETM29.93, +0.03, +0.1%) said it has amended its bylaws to adopt a majority voting standard for the election of directors in uncontested elections. The Phoenix-based retailer of pet products and services said that under the new standard a director in an uncontested election must receive more than 50% of the votes cast.
Power Integrations Inc. (POWI : power integrations inc com
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Last: 25.00+0.04+0.16%
8:00pm 12/15/2006
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POWI25.00, +0.04, +0.2%) said it has informed the Nasdaq that it will not meet the Listing and Hearing Review Council's Dec. 18 deadline to become current in its filings. The company expects its shares to be delisted from the Nasdaq Global Market as of the start of trading on Dec. 19.
Refco Inc. (RFXCQ : refco inc com
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Last: 0.35-0.07-16.67%
8:11pm 12/15/2006
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RFXCQ0.35, -0.07, -16.7%) , the derivatives broker that collapsed in scandal last year, said its Chapter 11 plan was confirmed by a New York bankruptcy court, clearing the way for its businesses to be finally shut down and creditors repaid a portion of what they were owed. See full story.
Private-equity firms Clayton Dubilier & Rice Inc. and Kohlberg Kravis Roberts & Co. are in talks to acquire Royal Ahold NV (NL:33181: news, chart, profile) U.S. foodservice unit in a leveraged buyout, according to a media report.
Standard & Poor's said it's changing the makeup of the S&P 500 and SmallCap 600 indexes after the close of trading Tuesday. Terex Corp. (TEX : Terex Corporation
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Last: 58.13-0.61-1.04%
8:00pm 12/15/2006
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TEX58.13, -0.61, -1.0%) will replace Navistar International Corp. (NAV : Navistar International Corporation
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Last: 33.01-1.14-3.34%
8:12pm 12/15/2006
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NAV33.01, -1.14, -3.3%) in the S&P 500. Mannatech Inc. (MTEX : mannatech inc com
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Last: 14.17+0.18+1.29%
8:10pm 12/15/2006
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MTEX14.17, +0.18, +1.3%) will replace American Italian Pasta Co. (PLB : american italian pasta co cl a
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Last: 10.10-1.15-10.22%
8:00pm 12/15/2006
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Everybody got their tickets for tonights draw???
From Friday evening to Saturday evening we expect : close to 5 cm of snow and 5-10 mm of rain