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I've never felt better!!!!!!!!!
Read all about it!!!
Oh. Maybe I'm the one that needs glasses.
What black mess do you see up there?
The water is blue and the cities are black to me.
Foreigners sell Canadian equities
ROMA LUCIW
Thursday, November 16, 2006
Foreign investors bailed out of Canadian equities in September, reversing a pattern of heavy buying in place since January.
Statistics Canada said Thursday that foreign investors sold $3.1-billion worth of Canadian securities in September, contrary to economists' expectations for a modest rise, and the worst month since last December. The lion's share of the selling — $2.75-billion — was of stocks, while $664-million was bonds.
David Watt, a senior economist at BMO Nesbitt Burns Inc., said that as energy and other commodity prices slide, foreign investors are pulling their money out of energy-heavy stock indexes like the Toronto Stock Exchange. He expects falling resource prices will also pressure October's numbers, but said the "shock value" impact of Ottawa's Halloween night decision to change the tax structure of income trusts won't be surface until November.
"If foreigners decided to sell off and stay away, the number could be pretty dismal," Mr. Watt said. "But there are still four years of cash distributions left so maybe some of the money that left will come back in."
September's data mark a turnaround from July and August, Statscan noted, when foreign investors snapped up $1.7-billion in Canadian equities.
Shares of this country's mining, and oil and gas firms topped the sell-off list in September, Statscan said. Investors from the European Union were the largest sellers, offloading $4-billion in Canadian equities.
The "significant capital outflow from Canada" will likely "prove negative for the Canadian dollar," said Rishi Sondhi, an economist with the Royal Bank of Canada. The loonie finished yesterday's session at 87.57 cents (U.S.), losing 0.24 of a cent.
Meanwhile, Canadian investors retained their appetite for foreign investment. They picked up $2.61-billion (Canadian) worth of international securities in September, a fall from the near-record high of $12.4-billion in August.
In all, purchases of foreign securities for the first nine months of this year hit a record $61.6-billion, just shy of the annual high $63.9-billion in 2000, Statscan said.
Canadians have been adding foreign stocks, bonds and money market paper to their holdings after last year's removal of foreign-content limits for pension and retirement savings accounts.
Canadians bought $1.4-billion in foreign bonds in September and $1.1-billion in foreign money market paper, the third consecutive month of strong purchases for these instruments, resulting in a record third-quarter investment of $5-billion.
They did, however, curb their buying of foreign shares, with purchases falling to $98-million in September from $5.2-billion in August.
"We have seen a large portfolio outflow from this country because Canadians are enamoured with foreign stocks and bonds," Mr. Watt said.
Essential Energy Services Trust
TSX: ESN
November 15, 2006
Essential Energy Services Trust Announces November Distribution
CALGARY, ALBERTA - Essential Energy Services Trust ("Essential" or the "Trust") is pleased to announce its cash distribution for the month of November will be $0.083 per trust unit, which is consistent with the previous monthly distributions. The distribution will be paid on December 15, 2006 to unitholders of record on November 30, 2006. The ex-distribution date is November 28, 2006.
Essential is an energy service trust that provides a range of essential production services to oil and gas producers across western Canada from northeast British Columbia to southwest Saskatchewan including service rigs, coil tubing, rod rigs, swab rigs, vacuum truck, pressure truck, tank truck, hydro-vac, steaming and hot oiling along with other related services. Essential focuses on post drilling production maintenance and enhancement services to ensure stable cash flows for Essential's unitholders.
Forward-Looking Statements: Certain information set forth in this press release, including a discussion of future plans and operations, contains forward looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. Actual results, performance or achievement could differ materially from those expressed in or implied by these forward-looking statements.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
CONTACT INFORMATION:
Essential Energy Services Trust
President
James Burns
President & CEO
(403) 263-6778
http://www.essentialenergy.ca
Or
Essential Energy Services Trust
Duncan Au
Vice President
It's workin'
93.9 For Diesel here.
The 'shrooms that I had for breaky are makin' my mouth dry.
Nope!!!!!!!!!!!!!!!!!!!!
Ya. We also get our prices in LITERS. Not Gallons.
Makes a big difference!!!!!!!!!!!!!!!!!!!!!!
Time for a rye an' coke?
Crescent Point Energy Trust
TSX - CPG.UN
November 14, 2006
Crescent Point Energy Trust Announces Third Quarter 2006 Results
Calgary, AB - Crescent Point Energy Trust is pleased to announce its operating and financial results for the third quarter and nine months ended September 30, 2006.
FINANCIAL AND OPERATING HIGHLIGHTS
-------------------------------------------------------------------------
($000, except trust Three months ended Nine months ended
units, per trust September 30 September 30
unit and per boe % %
amounts) 2006 2005 Change 2006 2005 Change
-------------------------------------------------------------------------
Financial
Cash flow from
operations(1) 52,774 33,275 59 145,292 76,361 90
Per unit(1)(2) 0.78 0.88 (11) 2.36 2.21 7
Net income 39,588 10,506 277 62,029 5,056 1127
Per unit(2) 0.58 0.28 107 0.97 0.12 708
Cash distributions 39,890 19,329 106 108,955 51,756 111
Per unit(2) 0.60 0.53 13 1.80 1.55 16
Payout ratio (%)(1) 76 58 18 75 68 7
Per unit (%)(1)(2) 77 60 17 76 70 6
Net debt(1)(3) 212,073 119,110 78 212,073 119,110 78
Capital acquisitions
(net)(4) 61,738 53,084 16 505,927 142,767 254
Development capital
expenditures (4) 31,921 8,550 273 79,956 27,024 196
Weighted average
trust units
outstanding (mm)
Basic 65.4 35.8 83 59.3 32.8 81
Diluted 67.8 37.6 80 61.5 34.6 78
-------------------------------------------------------------------------
Operating
Average daily
production
Crude oil and NGL
(bbls/d) 17,940 9,200 95 17,238 8,712 98
Natural gas (mcf/d) 20,193 19,981 1 19,638 17,421 13
-------------------------------------------------------------------------
Total (boe/d) 21,305 12,530 70 20,511 11,616 77
-------------------------------------------------------------------------
Average selling
prices(5)
Crude oil and NGL
($/bbl) 66.14 67.36 (2) 62.22 58.65 6
Natural gas ($/mcf) 5.49 8.34 (34) 6.29 7.49 (16)
-------------------------------------------------------------------------
Total ($/boe) 60.90 62.75 (3) 58.31 55.23 6
-------------------------------------------------------------------------
Netback ($/boe)
Oil and gas sales 60.90 62.75 (3) 58.31 55.23 6
Royalties (12.97) (12.86) 1 (12.65) (10.90) 16
Operating expenses (9.56) (7.83) 22 (8.74) (7.73) 13
Transportation (1.31) (1.00) 31 (1.23) (1.02) 21
-------------------------------------------------------------------------
Netback prior to
realized financial
instruments 37.06 41.06 (10) 35.69 35.58 -
Realized loss on
financial instruments (4.90) (8.59) (43) (4.76) (8.18) (42)
-------------------------------------------------------------------------
Netback 32.16 32.47 (1) 30.93 27.40 13
PEG moves to acquire a base for expansion in the Canadian well services market
HOUSTON, TX and CALGARY, Nov. 16 /CNW/ - Production Enhancement Group, Inc. (TSX: WIS) ("PEG" or the "Company") today announced it has signed a letter of intent ("LOI") to acquire Dynastar Energy Services, Ltd.
("Dynastar"), a coiled tubing services company operating from two service locations in southern Alberta. PEG intends to integrate Dynastar into PEG's
WISE(TM) Well Intervention group and establish the Company's Northern Territory, encompassing western Canada and the northern U.S. Rocky Mountains area, to complement PEG's already successful and expanding Southern Territory in the Texas, Louisiana, Mississippi and Gulf of Mexico region. Dynastar owners Kirby Nicholson and Terry Troidl intend to remain with the Company as Vice President, Northern Territory, and Senior Operations Officer, Northern Territory, respectively. The transaction, which is subject to a number of conditions, including satisfactory completion of due diligence and Toronto Stock Exchange approval, is expected to close in approximately four months.
PEG plans to use Dynastar's two southern Alberta service locations, in Brooks and near Calgary, as the foundation for the expansion of the Company's Northern Territory region. Also, PEG intends to open at least one additional service location in western Canada soon. PEG will deploy at least one new patented WISE multifunction coiled tubing unit, two integrated WISE site-generated nitrogen units and other well intervention systems and tools to each of the three service locations.
Philip Crawford, PEG's President and CEO, stated, "With the acquisition of Dynastar, we gain a foothold in Canada and open up a new market for our patented WISE multifunction coiled tubing technology. We will take advantage of this opportunity by aggressively adding new service locations and deploying additional equipment. We are very pleased that Kirby and Terry, with their experience and knowledge of the western Canada market area, will be joining the PEG management team to implement this plan. They and their employees are a valuable addition to our company."
Kirby Nicholson, co-owner of Dynastar, said, "The addition of WISE coiled tubing and site-generated nitrogen technologies, pressure pumping services, and wireline capabilities will greatly enhance our well intervention service portfolio. We look forward to bringing exciting WISE multifunction technology to western Canada and helping to grow PEG's Northern Territory."
This acquisition follows PEG's July 2006 receipt of a Canadian patent for the Company's WISE multifunction coiled tubing technology, which combines multiple capabilities - such as coiled tubing and nitrogen generation - in a fit-for-purpose platform with a single power source and control system. PEG also holds U.S. patents for the WISE technology. WISE coiled tubing units are streamlined and lightweight compared to conventional equipment, reducing the amount of surface equipment and the number of personnel required for coiled tubing well intervention services. The modular units, which can be combined on a trailer or transported as individual skids, offer significant economic and operational advantages, particularly in remote locations and during the spring break-up, when it is difficult for conventional coiled tubing units to access wells.
About Production Enhancement Group
Production Enhancement Group, a Houston-based energy services company incorporated in Alberta, Canada, trades on the TSX under the symbol WIS. PEG owns patented WISE(TM) multifunction coiled tubing technologies and markets a full range of coiled tubing and pressure pumping services.
WISE is a trademark of Production Enhancement Group, Inc.
Disclaimers
The TSX does not accept responsibility for the adequacy or accuracy of
this release.
This release and PEG's website referenced in this release contain forward-looking statements, including expectations of future components of cash flow and earnings. Investors are cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of PEG. These risks include, but are not limited to the risks associated with the oil and gas industry, commodity prices, and exchange rate changes. Industry related risks could include, but are not limited to operational risks in exploration, development, and production, delays or changes in plans, and health and safety risks, including, without limitation, costs and expenses. The risks outlined above should not be construed as exhaustive. Investors are cautioned not to place undue reliance on any forward-looking information. PEG undertakes no obligation to update or revise any forward-looking statements.
%SEDAR: 00023366E
For further information: visit www.productionenhancement.com or contact:
Chester J. Jachimiec, EVP, Finance & Acquisitions, Production Enhancement Group, Inc., (281) 282-1812, cjachimiec@productionenhancement.com; Ken Wetherell, Investor Relations, Iradesso Communications Corp., (403) 503-0144 x224, kwetherell@iradesso.com
But then again T seems to be getting a bit wierd too.
http://www.investorshub.com/boards/read_msg.asp?message_id=14738250
You're the only one who wears a thong here too.
Although Ed seems like he is leaning that way.
Ya. That sure is a good chunk of change. Whats it going to cost 5 years from now. $300.00 to fill up?
The last time I filled up I paid .93.6 I'll see what it costs today.
It jumped to over a buck about 4 days ago. Went from about 94 to a buck 2
Ya. And I might as well take a few more days off. Just in case it happens again.
Ottawa will block CRTC on Internet phone rules
HEATHER SCOFFIELD
Wednesday, November 15, 2006
Toronto — Industry Minister Maxime Bernier confirmed his free market credentials in Toronto on Wednesday, thumbing his nose at the federal telecommunications regulator by removing regulations on Internet-based telephone services.
The result could be significantly lower telephone bills for consumers and businesses across Canada as Mr. Bernier said he would no longer require the former regional telephone monopolies to include an extra tariff on their internet phone services.
That means newcomers, such as Vonage Canada Inc. and cable giant Rogers Communications Inc., will soon face stiffer competition from the former monopolies.
“Barriers to entry in this market are very low — there is no reason to regulate it,” Mr. Bernier told the Economic Club of Toronto.
“It is time to have a level playing field from which consumers and small businesses will benefit.”
The decision signals that Mr. Bernier will aggressively move forward with his plan to overhaul Canada's highly regulated telecom sector, even though the Conservatives have only a minority government.
A CRTC spokesman contacted Tuesday ahead of the speech wouldn't comment on VoIP or Mr. Bernier's intentions. It has been years since a minister intervened to overrule a CRTC decision, according to one official.
Mr. Bernier and the Canadian Radio-television and Telecommunications Commission are both trying to foster competition in VoIP — and in telecom services in general — but have had different ideas about how to do so. The minister, a staunch advocate for free markets, wants to let consumers determine the winners and losers, while the regulator wants to approve prices for Internet-based telephony in the same way it does for conventional phone services.
VoIP-based phone services have been taking thousands of customers away from established phone firms such as Bell Canada and Telus Corp. For consumers, Internet-based calling has meant more competition and lower prices in a market traditionally dominated by regional monopolies that had their prices set through the CRTC.
The big phone companies told the CRTC last year during VoIP hearings that more competition and less regulation would be good for consumers and the industry. Even though local phone markets were opened up for competition seven years ago, the large incumbents still control about 97 per cent of the market.
Many of the telcos' rivals, however, warned the CRTC that the telcos shouldn't be allowed to use VoIP as a “loss leader” that would deter competition through artificially low prices.
Analysts, however, say the battle for the VoIP market is a flashpoint in a larger, high-stakes war between two converging sectors: cable and telephone. Technology is overhauling telecommunications as the two sectors increasingly roll out similar products in a domestic industry worth more than $20-billion.
With files from The Globe and Mail's Simon Tuck in Ottawa.
I left work yesterday @ 10:30 AM.
Good day for me to stay at home today.
2 degrees here now. Was stormin' yesterday power was going off all day.
Today.
From Thursday morning to Friday morning we expect : 50+ mm of rain.
The girls just gave him a wedgie.
Trusts worried over new crackdown
SINCLAIR STEWART, BOYD ERMAN AND STEVEN CHASE
Thursday, November 16, 2006
TORONTO AND OTTAWA — The battered income trust sector is bracing for a potential crackdown on its ability to finance acquisitions by selling units, a move that could strangle growth and force many trusts to convert to a corporate structure long before a four-year moratorium is set to expire.
Finance Department officials, under siege by lawyers and trust executives demanding clarity on the issue, are working on new rules that could be published within the next two weeks, sources said.
While the guidelines aren't complete, bureaucrats have sparked concern by suggesting that, in some cases, trusts may not be able to increase their equity base by more than 15 per cent, according to lawyers working on behalf of trusts.
In other words, if a $100-million trust wanted to raise cash for a deal, it would be limited to selling or issuing just $15-million worth of new units — a far more stringent threshold than the industry had been expecting after Ottawa's recent blockbuster move to tax trusts.
Finance has sent a so-called “comfort letter” to at least one trust that was seeking guidance on a pending financing, in which it suggested the 10- to 15-per-cent range would likely be acceptable, sources said.
This range could create uncertainty for a company like Pengrowth Energy Trust, which was contemplating a purchase of assets from ConocoPhillips that would have required it to issue units equal to about 18 per cent of the trust's market value. Pengrowth chief executive officer Jim Kinnear declined to comment on any transaction or a comfort letter, other than to say his company has had correspondence with Ottawa.
Another transaction that may be on the bubble is Shiningbank Energy Income Fund's plan to buy most of the assets of Rider Resources Ltd. in a share swap that would increase Shiningbank's outstanding units by about 27 per cent, investment bankers said.
Trusts have been seeking clarity on how much growth they can pursue ever since Finance Minister Jim Flaherty stunned investors on Halloween with a proposal to clamp down on the trust sector by hitting it with a new tax.
While he said trusts would be permitted “normal growth,” he did warn that any “undue expansion” could cause Ottawa to revisit its policy. The question for many trusts, not to mention their lawyers, is what constitutes “normal?”
In a conference call organized by Canaccord Capital Inc., lawyers from Bennett Jones LLP in Calgary told clients that they have had feedback from Ottawa about the purported 15-per-cent limit. One of the lawyers mentioned the comfort letters, and said the dialogue has not been encouraging for the sector, according to people on the call.
The federal government has not set down precise rules for trust takeovers, leaving CEOs, lawyers and investment bankers to take their best guess at how to structure deals.
Bankers say they have numerous trusts that have been left in the lurch and unable to forge ahead with acquisitions or financings.
Sources in Ottawa say the government intends to put “reasonable” rules in place that allow trusts some flexibility over the next four years.
“The department has received several enquiries relating to this section of the backgrounder, and has received submissions or has met or will be meeting with several firms, or their representatives, on this issue,” Finance spokeswoman Suzanne Prebinski said.
Mr. Flaherty's spokesman said the government plans to announce the rules in the near future, but has made no decisions and is not giving trusts advance notice of what the new rules will be.
Finance is “doing some consulting and talking to some people in the industry, but they are not sharing information and no announcement has been made,” Dan Miles said.
“I am sure there's going to be some speculation out there about how the details will unfold but no decision has been made and we are in the process of finalizing those details.”
The fear of a restriction on financing is particularly acute in the oil patch, where some trusts depend on acquisitions to replenish a declining asset base and maintain their level of cash distributions.
“To most of these royalty trusts, that is a silver-lined wooden stake in their heart — just to make sure they have you, whether you are a vampire or a werewolf,” said Trinidad Energy Services Income Trust CEO Mike Heier.
For Trinidad Energy, which is a well-driller that has grown by acquisitions, such a tight limit would mean “we can't do anything. The smallest thing we're looking at is a third our size,” Mr. Heier said.
He said that means the only option for trusts is “to unwind. There's no staying status quo. They are intent on destroying the trusts.”
But because trust CEOs like Mr. Heier are still not sure of the tax implications of changing back to a corporation — it's unclear whether unitholders have to pay capital gains tax triggered by any change, for example — they feel boxed in.
“We don't have a way out until they give us some more clarity,” he said. “It's disgusting.”
Salmonella scare sparks Hershey recall
Fears of contamination at a Canadian chocolate factory prompts voluntary action.
A variety of Hershey chocolate products and candies in Canada were voluntarily recalled Sunday because of fears of salmonella contamination at a factory.
There have been no reported illnesses associated with the products, Hershey said in a statement.
Salmonella generally causes a nonfatal, diarrhea-causing illness. Other symptoms can include nausea, vomiting, abdominal cramps, fever and headache. There are about 2,500 types of salmonella.
Hershey brand chocolate bars, chocolate chips, Oh Henry! bars, Reese's peanut butter cups and Cherry Blossom sweets were among the affected products.
None of the recalled products was produced for Halloween or Christmas.
Canadian Food Inspection Agency officials said they were told by Hershey that it doesn't appear there was a widespread delivery of the affected products to stores.
It was unclear where in Canada the affected products may have ended up, and it was not immediately known how long that will take to find out, said Marie-Andree Lefebvre, a CFIA spokeswoman. The recall did not affect Hershey products sold in the United States, the CFIA said.
The recall involves chocolate produced at the Smiths Falls, Ontario, factory between Oct. 15 and Nov. 10, Lefebvre said.
The recalled chocolate and candy can be identified by date codes found on the back of each package -- the affected date codes range from 6417 to 6455.
Consumers should check codes on chocolate bars they purchase as not every product on store shelves are affected.
"For example it's not all the Oh Henry! bars that are affected by this recall," Lefebvre said.
Hershey officials did not immediately return telephone calls Sunday.
Production at the plant in Smiths Falls was shut down last week, and the company did not say when it will resume.
Hershey (HSY, news, msgs), based in Hershey, Pa., is the largest candy maker in the United States.
So there is realy no point in RRSPs.
Might as well pay thge taxws as you go and put the cash in your mattress.
Halliburton Given Contract To Rebuild Cheney
WASHINGTON, DC
Halliburton was awarded an $85.5 million contract to rebuild damaged U.S. Vice President Dick Cheney Monday. "We are proud to serve the executive branch in their hour of need," CEO David J. Lesar wrote in a statement released later that day. "Due to our vast experience with oil-well fires and refinery mishaps, we are well-versed in the sort of reinforcement, rewiring, and exoskeleton refitting Mr. Cheney so desperately needs." The Department of Ways and Means defended awarding the contract to Halliburton on the grounds that they had done the original work on Cheney in the 1970s.
TIC
Canada woos mine partners from China
GEOFFREY YORK
Tuesday, November 14, 2006
Beijing — In a renewed effort to woo Chinese mining money, Canada is handing out stacks of detailed geological maps and data sheets to anyone who wanders past its booth at the annual China mining conference in Beijing.
The maps — giving the precise locations of everything from copper and gold finds to uranium and zinc deposits — were quickly snapped up by the scores of Chinese mining executives who crowded around the Canadian booth Tuesday.
It was a clear signal that the new Conservative government in Ottawa is throwing open its doors to Chinese miners, despite the political furor over a failed Chinese corporate bid to acquire Noranda Inc. in 2004.
While in opposition, Tory MPs questioned the Chinese bid for Noranda, suggesting that it should be blocked because of possible human rights abuses by China Minmetals Corp., the state-owned company that spearheaded the bid.
Those concerns seem to be forgotten now. Gary Lunn, the federal Minister of Natural Resources, made a strong pitch to Chinese mining executives Tuesday. “I would like to encourage Chinese investment in Canada,” he told the mining conference in Beijing.
“Partnering with Canadian companies can help you secure the minerals and metals that China needs to fulfill its economic development,” he said. “We invite Chinese mining companies to jointly explore and develop these and other deposits in Canada.”
After the failed bid for Noranda, many Chinese investors were convinced that the deal was killed by hostile politicians in Ottawa. For a long time afterward, this perception cast a negative shadow over China's potential interest in investing in Canada. It's a perception the Conservative government now seems keen to dispel.
“We're absolutely trying to attract investment, we think it's important, and we made that point in a number of meetings here,” Mr. Lunn said in an interview Tuesday. “We've had some very positive discussions. We think the model that works very well is to partner with a Canadian company. That's what we've said in all of our meetings, and it's been well received.”
He refused, however, to discuss the ramifications of the Noranda bid. Nor would he explain whether “partnering” could include any future Chinese acquisitions of Canadian companies.
Provincial politicians, too, are trying to lure mining investment from China. Two provincial cabinet ministers — from B.C. and Saskatchewan — are scheduled to speak to the conference today.
“As China's economy continues its fast pace of growth . . . its need for natural resources will increase,” Saskatchewan Industry and Resources Minister Eric Cline says in the text of a speech he is due to deliver today. “Saskatchewan has those resources and is a trading jurisdiction. I look forward to increasing our already close ties to China.”
Canadian miners, meanwhile, are increasingly active in developing projects in China. But there are still widespread concerns about Chinese barriers to investment, including the difficulty of converting an exploration licence into a mining licence after a foreign investor discovers a large mineral deposit. Mr. Lunn said he raised this issue Tuesday in a meeting with China's Minister of Land and Resources.
“It's in their interest and our interest that we create certainty for the mining industry. But we've seen progress in foreign investment protection, especially at the central government. The difficulty seems to be especially with the local governments.”
UPDATE: Silver Spike To $15 Is 'very Possible,' Says GFMS
21:11 EST Tuesday, November 14, 2006
SAN FRANCISCO (Dow Jones) -- Hedge-fund hunger could drive silver back up to $ 15 an ounce in the next few months, even as demand from fabricators of the precious metal is forecast to drop this year, said GFMS Ltd. late Tuesday.
The London-based researcher, whose report feeds a market eager for more data on the metal, forecast demand from fabricators will fall just over 3% this year from last year's revised level.
But investment demand, which has driven prices higher in the past year, should keep rising and could drive silver back up to $15 an ounce over the next few months, it said.
"Investment demand remains the main driver of the price," said GFMS analysts in a statement.
It anticipates "significant price volatility," but over the next few months it said a spike to $15 an ounce is "very possible." Investment demand could top a net 2,500 metric tons this year, it said.
The firm released its midyear report to media in conjunction with a presentation at the Silver Institute's annual dinner in New York Tuesday night.
For the first ten months of the year, spot silver prices average $11.24 an ounce in London trading, a 58% rise from a year ago. The metal closed at $12.85 an ounce at the London fixing on Tuesday, according to spot prices posted on GFMS' Website.
Speculative buying, mainly by hedge funds ahead of the launch of a silver exchange-traded fund, dominated investor demand early in the year, the consultancy said.
Heavy profit-taking plus investment in the fund roiled silver markets after Barclays Global Investors launched iShares Silver Trust (SLV) on April 27, said GFMS.
Shares of the silver ETF represent 10 ounces of the metal held in a vault.
Silver prices have dropped sharply since May, but they've been climbing in recent weeks.
Strong investor appetite contrasts with a drop in physical demand for the metal.
Industrial demand, which was strong over the first half, has slowed recently. GFMS expects industrial demand to rise nearly 1% this year, to a new record level, but fall in 2007 "under the impact of much slower growth in global industrial production" and a weaker year for electronics.
Photographic use of silver should drop by nearly 11% this year, cooled by the trend away from print photography and toward digital photography.
Jewelry and silverware fabrication demand should drop 8% this year. The problem? Record local prices in India. Plus, Indian consumers increasingly favor investing in bullion rather than high-carat jewelry, GFMS said.
Supply to edge up
On the supply side, GFMS said it expects mine production to rise by 0.6%, or 125 metric tons, in 2006. But next year, it sees a 500 metric-ton gain, with strong growth forecast into 2008.
Scrap supply is expected to be flat this year, partly because a large share of silver scrap supply is from recycled photographic products.
Government sales should rise modestly, it said.
(END) Dow Jones Newswires
11-14-06 2110ET
Copyright (c) 2006 Dow Jones & Company, Inc.
N otable 52-Week Lows:
AutoCanada Income Fund ACQ.UN $ 8.06
ARC Energy Trust AET.UN $ 19.59
ACTIVEnergy Income Fund AEU.UN $ 9.04
Alberta Focused Inc. & Grwth. AFZ.UN $ 6.50
Brompton Adv Eq Wght Oil & Gas AOG.UN $ 6.71
Alliance Split Income Trust ASI.UN $ 15.51
BG Income + Growth Split Trust BDS.UN $ 8.76
Bestar BES $ 0.17
BluMont Man Alter Yield Fund BMY.UN $ 7.71
Boston Pizza Royalties BPF.UN $ 13.50
Brascan SoundVest Rising Distr. BSD.UN $ 7.00
Brascan SoundVest Focus Busn BSF.UN $ 7.25
BlackWatch Energy Services BWT.UN $ 6.30
Criterion Business Trust TA CBT.UN $ 5.21
Canadian Energy Services CEU.UN $ 5.56
Brompton Top 50 CGF.UN $ 6.72
Canetic Resources Trust CNE.UN $ 14.17
Core IncomePlus Fund COZ.UN $ 7.61
Crescent Point Energy Trust CPG.UN $ 15.08
C1 Energy CTT $ 0.75
Canexus Income Fund CUS.UN $ 6.10
Daylight Resources Trust DAY.UN $ 9.75
Digital Dispatch Systems DD $ 2.50
Delphi Energy DEE $ 2.64
Duke Energy Income Fund DET.UN $ 9.01
Davis & Henderson Income Fund DHF.UN $ 14.05
DHX Media DHX $ 1.35
diversiTrust Energy Income Fund DTN.UN $ 7.68
EnerVest Diversified Income EIT.UN $ 5.34
Energy Split Corp. II EN $ 12.25
Enerplus Resources Fund ERF.UN $ 44.30
Energy Split Corp. ES $ 16.00
Essential Energy Services ESN.UN $ 5.04
First Asset Pipes & Power EWP.UN $ 6.91
Faircourt Split Five Trust FCF.UN $ 19.25
Faircourt Split Seven Trust FCN.UN $ 17.00
Faircourt Split Trust FCS.UN $ 8.25
Fording Canadian Coal Trust FDG.UN $ 21.50
Fairborne Energy Trust FEL.UN $ 8.85
Fairquest Energy FQE $ 3.50
Freehold Royalty Trust FRU.UN $ 13.15
FET Resources FTX $ 26.75
Glendale International GIN $ 2.80
Gentry Resources GNY $ 4.11
Global Telecom Split Share GT.A $ 0.08
Grey Wolf Exploration GWE $ 2.70
Harvest Energy Trust HTE.UN $ 25.11
Imaging Dynamics Company IDL $ 2.23
KCP Income Fund KCP.UN $ 6.90
The Keg Royalties Income Fund KEG.UN $ 11.25
Cunningham Lindsey Group LIN $ 2.36
Impax Energy Services MPX.UN $ 6.30
Multi Select Income Trust MST.UN $ 8.86
MAXIN Income Fund MXZ.UN $ 12.26
NAL Oil & Gas Trust NAE.UN $ 12.40
Brompton Eql. Wght. Oil & Gas OGF.UN $ 7.41
Precision Drilling PD.UN $ 25.08
Peak Energy Services Trust PES.UN $ 5.52
Peyto Energy Trust PEY.UN $ 16.60
Pengrowth Energy Trust PGF.UN $ 17.12
Progress Energy Trust PGX.UN $ 11.10
Paramount Energy Trust PMT.UN $ 12.40
Polyair Inter Pack PPK $ 1.60
Petrowest Energy Services PRW.UN $ 6.82
PrimeWest Energy Trust PWI.UN $ 22.19
PrimeWest Energy PWX $ 15.26
Resolve Business Outsourcing RBO.UN $ 5.86
Real Resources RER $ 14.55
Rider Resources RRZ $ 8.20
Strategic Energy Fund SEF.UN $ 8.80
STRUTs SG.UN $ 6.82
Shiningbank Energy Income Fund SHN.UN $ 13.75
Sound Energy Trust SND.UN $ 4.83
Sustainable Production Energy SPU.UN $ 5.96
Trilogy Energy Trust TET.UN $ 10.81
Thunder Energy Trust THY.UN $ 5.19
Tax Optimized Return Trust TO.A $ 9.11
TUSK Energy TSK $ 2.72
True Energy Trust TUI.UN $ 7.50
Vicwest Income Fund VIC.UN $ 10.38
Vault Energy Trust VNG.UN $ 5.29
Wescast Industries WCS.A $ 12.03
Wellco Energy Services WLL.UN $ 6.38
Welton Energy WLT $ 0.89
Zargon Energy Trust ZAR.UN $ 25.50
Quite a few trusts hitting the lows.
I'd enjoy anything that involves you and pain.
Ear on the Street
Alliance Atlantis Commun. (AAC.B : TSX : $38.22)
Q3 in line
CIBC World Markets maintains "sector outperform", 12-month target price is $42.00
Desjardins Securities maintains "buy", 12-month target price is $46.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $46.50
TD Newcrest maintains "action list buy", 12-month target price is $46.00
Barrick Gold Corp. (ABX : TSX : $33.19 | NYSE : US$29.08)
Lower production and official cost guidance
Canaccord Adams downgrades to "hold", 12-month target price is cut to US$37.50
ACE Aviation Holdings (ACE.B : TSX : $38.96)
Q3 well below expectations
Desjardins Securities maintains "buy", 12-month target price is $41.75
Scotia Capital Markets maintains "sector underperform", 12-month target price is $40.00
Ag Growth Income Fund (AFN.UN : TSX : $13.18)
Q3 miss
Canaccord Adams downgrades to "sell", 12-month target price is cut to $12.35
TD Newcrest maintains "buy", 12-month target price is cut to $16.00
Arctic Glacier Income Fund (AG.UN : TSX : $11.15)
Q3 below estimates
Scotia Capital Markets maintains "sector perform", 12-month target price is $13.00
TD Newcrest maintains "buy", 12-month target price is $13.00
Aurizon Mines (ARZ : TSX : $3.35 | AZK : AMEX : US$2.95)
Encouraging drill results from Casa Berardi
Dundee Securities maintains "outperform", 12-month target price is raised to $4.30
ATS Automation Tooling Systems (ATA : TSX : $12.44)
Q2 to be reported today
Scotia Capital Markets maintains "sector perform", 12-month target price is $16.00
Atlantic Power (ATP.UN : TSX : $10.49)
Q3 beats expectations
CIBC World Markets maintains "sector perform", 12-month target price is $11.00
RBC Capital Markets maintains "sector perform", 12-month target price is $11.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $11.00
Boralex Inc. (BLX : TSX : $8.02)
Q3 EPS misses
GMP Securities maintains "buy", 12-month target price is $11.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $10.00
Airboss of America (BOS : TSX : $4.66)
Q3 sales miss
GMP Securities maintains "buy", 12-month target price is cut to $6.90
Boyd Group Income Fund (BYD.UN : TSX : $1.06)
Ongoing challenges
Canaccord Adams maintains "sell", 12-month target price is cut to $0.90
CAP REIT (CAR.UN : TSX : $18.99)
Q3 DIPU as expected
Blackmont Capital maintains "hold", 12-month target price is raised to $19.75
Canaccord Adams maintains "hold", 12-month target price is raised to $19.50
CIBC World Markets maintains "sector underperform", 12-month target price is raised to $19.15
Scotia Capital Markets maintains "sector perform", 12-month target price is $19.10
TD Newcrest maintains "hold", 12-month target price is $17.00
Connors Bros. Income Fund (CBF.UN : TSX : $9.55)
Q3 reported yesterday
Blackmont Capital maintains "hold", 12-month target price is $9.00
Calpine Power Income Fund (CF.UN : TSX : $9.67)
Higher CEC short-term re-tolls offset the Island Cogen outage
Desjardins Securities maintains "hold", 12-month target price is $9.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $9.50
TD Newcrest maintains "hold", 12-month target price is $8.50
Canfor Corporation (CFP : TSX : $10.42)
Trading ex dividend
Desjardins Securities maintains "hold", 12-month target price is cut to $10.75
Canfor Pulp Income Fund (CFX.UN : TSX : $10.94)
Upgrade based on recent price decline
Desjardins Securities upgrades to "buy", 12-month target price is cut to $11.60
CI Financial Income Fund (CIX.UN : TSX : $24.47)
Undervalued as a quasi-trust/corporate
Dundee Securities maintains "outperform", 12-month target price is $28.00
Compton Petroleum (CMT : TSX : $11.48)
Q3 below estimates
GMP Securities maintains "buy", 12-month target price is $14.00
Capitol Energy Resources (CPX : TSX : $4.15)
Q3 production in line
RBC Capital Markets maintains "outperform", 12-month target price is $6.25
Commercial Solutions (CSA : TSX : $5.95)
New Street coverage
GMP Securities initiates coverage with a "buy", 12-month target price is $8.00
Centurion Energy International (CUX : TSX : $11.92)
Dana Gas offers $12.00/share
Canaccord Adams downgrades to "hold", 12-month target price is raised to $12.00
GMP Securities maintains "hold", 12-month target price is $12.00
CanWel Building Materials (CWX.UN : TSX : $3.60)
Disappointing Q3
Canaccord Adams downgrades to "hold", 12-month target price is cut to $3.75
Dundee REIT (D.UN : TSX : $36.22)
Solid Q3
Desjardins Securities maintains "top pick", 12-month target price is $40.55
RBC Capital Markets maintains "outperform", 12-month target price is $38.25
TD Newcrest maintains "buy", 12-month target price is raised to $39.00
Dalsa Corp. (DSA : TSX : $12.21)
New president of Digital Cinema
Scotia Capital Markets maintains "sector perform", 12-month target price is $16.00
Diamond Tree Energy (DT : TSX : $4.40)
Q3 production misses
Haywood Securities maintains "sector outperform", 12-month target price is $6.75
Enerplus Resources Fund (ERF.UN : TSX : $45.79)
Strong Q3
Canaccord Adams maintains "buy", 12-month target price is $52.00
CIBC World Markets maintains "sector outperform", 12-month target price is raised to $57.00
TD Newcrest upgrades to "buy", 12-month target price is $52.00
First Capital Realty (FCR : TSX : $26.67)
Q3 meets expectations
Canaccord Adams maintains "buy", 12-month target price is raised to $28.25
Desjardins Securities maintains "top pick", 12-month target price is $30.35
TD Newcrest maintains "buy", 12-month target price is $28.00
Flint Energy Services Ltd. (FES : TSX : $57.08)
Q3 EPS misses
RBC Capital Markets maintains "sector perform", 12-month target price is cut to $71.00
TD Newcrest maintains "buy", 12-month target price is $82.00
Futuremed Healthcare (FMD.UN : TSX : $9.21)
Q3 reported yesterday
Blackmont Capital maintains "buy", 12-month target price is $12.00
Granby Industries Income Fund (GBY.UN : TSX : $3.66)
Broken trust fairly valued
TD Newcrest maintains "reduce", 12-month target price is $3.50
Gateway Casinos Income Fund (GCI.UN : TSX : $15.40)
Raising targets after strong Q3
Scotia Capital Markets maintains "sector outperform", 12-month target price is $17.50
TD Newcrest maintains "buy", 12-month target price is increased to $17.00
CGI Group (GIB.A : TSX : $7.70)
Q4 to be reported today
RBC Capital Markets maintains "sector perform", 12-month target price is $9.00
Global Alumina (GLA.U : TSX : $1.26)
Neutral Q3 results new lean facility
RBC Capital Markets maintains "underperform", 12-month target price is $1.32
HudBay Minerals (HBM : TSX : $18.60)
Q3 beats expectations
Canaccord Capital maintains "buy", 12-month target price is increased to $22.00
Desjardins Securities maintains "buy", 12-month target price is increased to $25.20
Dundee Securities maintains "outperform", 12-month target price is increased to $24.80
GMP Securities maintains "buy", 12-month target price is $31.50
TD Newcrest maintains "buy", 12-month target price is $23.00
H&R Real Estate Invest. Trust (HR.UN : TSX : $24.23)
Q3 is a bit tight, increase in cash distributions
Canaccord Capital maintains "buy", 12-month target price is increased to $25.50
Scotia Capital Markets maintains "sector perform", 12-month target price is $24.40
IBI Income Fund (IBG.UN : TSX : $11.50)
Strong Q3 ahead of expectations
Canaccord Capital maintains "buy", 12-month target price is decreased to $13.75
Iamgold Corp. (IMG : TSX : $10.31 | IAG : NYSE : US$9.05)
Q3 Results below estimates
Blackmont Capital maintains "buy", 12-month target price is decreased to $15.50
Desjardins Securities maintains "buy", 12-month target price is $18.90
GMP Securities maintains "buy", 12-month target price is $15.00
RBC Capital Markets maintains "outperform", 12-month target price is US$15.00
TD Newcrest maintains "action list buy", 12-month target price is US$16.00
InnVest REIT (INN.UN : TSX : $12.70)
Q3 in line and remains lower value
Canaccord Capital maintains "buy", 12-month target price is increased to $15.25
RBC Capital Markets maintains "outperform", 12-month target price is increased to $14.00
Scotia Capital Markets maintains "sector performer", 12-month target price is $13.35
TD Newcrest maintains "buy", 12-month target price is $14.00
Jazz Air Income Fund (JAZ.UN : TSX : $8.20)
Q3 meets expectations
Desjardins Securities maintains "buy", 12-month target price is $9.75
TD Newcrest upgrades to "action list buy", 12-month target price is $10.00
Kangaroo Media Inc. (KTV : TSX : $3.03)
Q3 in line
Desjardins Securities maintains "buy", 12-month target price is cut to $5.00
Livingston Intl Income Fund (LIV.UN : TSX : $19.61)
Q3 meets expectations
Scotia Capital Markets maintains "sector perform", 12-month target price is $21.00
TD Newcrest upgrades to "buy", 12-month target price is raised to $23.00
Lundin Mining (LUN : TSX : $38.97)
Q3 lighter than expected
CIBC World Markets maintains "sector outperform", 12-month target price is raised to $48.00
GMP Securities maintains "buy", 12-month target price is $45.75
MDS Inc. (MDS : TSX : $20.20 | MDZ : NYSE : US$17.70)
CFO departs
Scotia Capital Markets maintains "sector perform", 12-month target price is $25.00
Medisys Health Group (MHG.UN : TSX : $9.36)
Q3 reported today
Blackmont Capital maintains "hold", 12-month target price is $8.75
Martinrea International (MRE : TSX : $9.63)
Q3 better than expected
CIBC World Markets maintains "sector perform", 12-month target price is raised to $10.75
GMP Securities maintains "buy", 12-month target price is raised to $12.00
RBC Capital Markets maintains "sector perform", 12-month target price is $11.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $12.00
Miranda Technologies (MT : TSX : $12.64)
Soft U.S. market
Desjardins Securities maintains "buy", 12-month target price is $16.00
TD Newcrest maintains "hold", 12-month target price is cut to $14.00
Northstar Aerospace (NAS : TSX : $5.55)
Light Q3
GMP Securities maintains "buy", 12-month target price is cut to $7.30
New Gold (NGD : TSX : $9.99)
Block caving impact on feasibility study grade
GMP Securities maintains "buy", 12-month target price is $12.75
OFI Income Fund (OFB.UN : TSX : $8.35)
Sales momentum continues and reflects high capacity utilization
Scotia Capital Markets "sector underperform", 12-month target price is $9.00
Jean Coutu Group (PJC) (PJC.A : TSX : $11.71)
FTC is expected to approve the Rite Aid merger
Desjardins Securities maintains "buy", 12-month target price is $15.50
Paramount Energy Trust (PMT.UN : TSX : $12.50)
Reports Q3 results, cash flow of $0.72 per unit
Scotia Capital Markets maintains "sector perform", 12-month target price is $13.00
TD Newcrest upgrades to "hold", 12-month target price is $13.00
Power Corp of Canada (POW : TSX : $34.88)
Reported Q3/06 cash operating earnings of $0.58 per share
Scotia Capital Markets maintains "sector perform", 12-month target price raised to $41.00
Provident Energy Trust (PVE.UN : TSX : $11.11 | PVX : NYSE : US$9.77)
Q3/06 results driven by strong midstream results
CIBC World Markets maintains "sector perform", target price is $12.50
Scotia Capital Markets maintains "sector perform", 12-month target price is $11.75
Power Financial Corp. (PWF : TSX : $37.03)
Dividend increased 7%
Scotia Capital Markets maintains "sector outperform", 12-month target price raised to $43.00
QuStream (QVC : TSX-V : $1.70)
To report Q3 tomorrow
Blackmont Capital maintains "buy", 12-month target price is $2.60
Research In Motion (RIM : TSX : $145.13 | RIMM : NASDAQ : US$127.49)
Motorola announced its intention to acquire Good Technology
RBC Capital Markets reiterates "outperform", target price is US$140.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $161.00
Rio Narcea Gold Mines (RNG : TSX : $2.61)
Tasiast construction remains on schedule and on budget
Haywood Securities maintains "sector outperform", target price is $4.25
Royal Host REIT (RYL.UN : TSX : $6.25)
25% distribution boost
RBC Capital Markets reiterates "sector perform", target price lowered to $6.50
Scotia Capital Markets maintains "sector underperform", 12-month target price is $6.50
TD Newcrest maintains "buy", 12-month target price is $7.00
Somerset Entertainment (SOM.UN : TSX : $2.37)
Q3/06 sales remain under pressure
RBC Capital Markets maintains "sector perform", target price lowered to $3.00
Strongco Income Fund (SQP.UN : TSX : $12.95)
New trust valuation
Canaccord Adams maintains "buy", target price lowered to $16.00
Scott's REIT (SRQ.UN : TSX : $9.98)
Acquisitions boost cash flow significantly
Desjardins Securities reiterates "top pick", target price is $11.10
Stelco Inc. (STE : TSX : $20.21)
Management confirmed that the company is making progress on cost cutting
Scotia Capital Markets maintains "sector underperform", 12-month target price lowered to $18.50
Savanna Energy Services (SVY : TSX : $17.09)
Rigs delayed
TD Newcrest downgrades to "hold", target price lowered to $21.00
Trilogy Energy Trust (TET.UN : TSX : $10.88)
Announced it will not proceed with $175 million convertible debenture offering
Canaccord Adams resumes coverage with a "buy", target price is $15.00
Trimac Income Fund (TMA.UN : TSX : $7.33)
Better than expected results from Atlantic Canadian operations
Desjardins Securities upgrades to "buy", target price lowered to $8.50
RBC Capital Markets maintains "outperform", target price is $9.00
TD Newcrest maintains "buy", 12-month target price lowered to $9.00
TORR Canada (TOR : TSX : $0.71)
No excitement anticipated until commissioning of Triton Platform
Blackmont Capital maintains "speculative buy", target price is $1.60
TSO3 Inc. (TOS : TSX : $2.52)
Sales cycle has proven to be longer than expected
Canaccord Adams maintains "speculative buy", target price is $5.50
Total Energy Services (TOT.UN : TSX : $10.98)
Q3 above expectations
Dundee Securities maintains "outperform", 12-month target price is $16.00
Sino-Forest Corp. (TRE : TSX : $6.62)
A US$3.6 million exchange gain in the quarter
Haywood Securities maintains "sector outperform", target price raised to $8.50
Wajax Income Fund (WJX.UN : TSX : $27.67)
Revenues increased by 14.2%
Canaccord Adams upgrades to "buy", target price lowered to $36.00
Desjardins Securities maintains "buy", target price is $36.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $33.00
West Energy Ltd. (WTL : TSX : $5.50)
Q3 CFPS in line
RBC Capital Markets maintains "sector perform", 12-month target price is $7.00
XS Cargo Income Fund (XSC.UN : TSX : $11.25)
Q3 impacted by one-time charges
CIBC World Markets maintains "sector perform", 12-month target price is $12.00
YM BioSciences (YM : TSX : $3.60)
Trials on track
Canaccord Adams maintains "buy", 12-month target price is $6.30
RBC Capital Markets maintains "outperform", 12-month target price is $8.50
Zenas Energy (ZNS : TSX : $2.80)
Q3 better than expected
GMP Securities maintains "buy", 12-month target price is $5.00
STOCKS TO WATCH: Stocks Expected To Move Tuesday
21:11 EST Monday, November 13, 2006
SAN FRANCISCO (Dow Jones) -- Among the companies whose shares are expected to see active trade in Tuesday's session are Wal-Mart Stores Inc., Dillard Department Stores Inc. and Golf Galaxy Inc.
Abercrombie & Fitch Co. (ANF) is expected to report earnings per share of $ 1.10 for the third quarter, according to analysts polled by Thomson First Call.
Agilent Technologies Inc. (A) is expected to post fourth-quarter earnings of 54 cents per share.
Analog Devices Inc. (ADI) is expected to post income of 40 cents per share for the fourth quarter.
D.R. Horton Inc. (DHI) is expected to report earnings per share of 69 cents for the fourth quarter.
Home Depot Inc. (HD) is expected to report third-quarter per-share income of 75 cents.
Saks Inc. (SKS) is expected to post third-quarter earnings of 3 cents per share.
Staples Inc. (SPLS) is expected to report income of 36 cents per share for the third quarter.
Target Corp. (TGT) is expected to report third-quarter earnings of 55 cents per share.
TJX Cos. (TJX) is expected to post per-share income of 46 cents for the third quarter.
Wal-Mart (WMT) is expected to report income of 59 cents per share for the third quarter.
After Monday's closing bell, Dillard (DDS) shares rose 8% when the department store operator said it swung to a profit in its latest quarter.
Watch list
America's Car-Mart Inc. (CRMT) said it expects a second-quarter loss of 16 cents to 20 cents per share. The result includes a per-share after-tax charge of 28 cents due to an increase in the allowance for credit losses related to its finance receivables.
Bob Evans Farms Inc. (BOBE) reported second-quarter net earnings of $13.5 million, or 37 cents a share, compared with $13.2 million, or 37 cents a share, in the same period last year. Excluding gains on the sale of assets, per-share earnings were 36 cents vs. 30 cents last year.
CEC Entertainment Inc. (CEC) said it will restate certain prior financial results to correct accounting errors related to stock-based compensation. The company, which is still reviewing its stock-option granting practices, sees a cumulative pretax financial impact of $20 million to $30 million for additional charges.
China Med Technologies Inc. (CMED) reported second-quarter net earnings of 71.7 million yuan ($9.06 million), or 2.62 yuan (33 cents) per American Depositary Share, compared with 42.9 million yuan, or 1.78 yuan per ADS, in the same period last year.
China TechFaith Wireless Communication Technology Ltd. (CNTF) said it swung to a third-quarter net loss of $6.48 million, or 1 cent a share, or 15 cents per American Depositary Share, as revenue fell and costs and expenses rose.
EBay Inc. (EBAY) has secured a $1 billion line of credit for working capital, capital expenditures, acquisitions and "other general corporate purposes of eBay and its subsidiaries." The credit line may be extended to $2 billion.
General Motors Corp. (GM) said it plans to execute a $1.5 billion senior secured term loan facility with a seven-year maturity. The struggling automaker said the facility is intended to "enhance" its liquidity.
Golf Galaxy (GGXY) shares soared nearly 18% in late trading after the golf retailer agreed to by acquired by Dick's Sporting Goods Inc. (DKS) for $225 million in cash.
Max Re Capital Ltd. (MXRE) said it swung to third-quarter net profit of $26.5 million, or 42 cents a share, as losses and expenses dropped. During the same period in the prior year, the net loss was $44.2 million, or 99 cents a share.
NBTY Inc. (NTY) said its fourth-quarter net earnings rose to $37.7 million, or 54 cents a share, from $11.4 million, or 17 cents a share, in the same period last year, due to an improved gross profit and lower interest expense, among other factors. The manufacturer of nutritional supplements said revenue rose 7.5% to $467.9 million from $435.2 million.
99 Cents Only Stores (NDN) said it expects second-quarter earnings to be breakeven, compared with per-share earnings of 2 cents during the same period last year. The operator of discount stores said the decrease is mainly due to $ 1.8 million in temporary labor costs and $2 million in increased consulting and accounting fees.
Regeneron Pharmaceuticals Inc. (REGN) said it has agreed to sell roughly 7.6 million of its common shares.
Sirna Therapeutics Inc. (RNAI) said the third-quarter net loss widened, as research and development costs rose, to $9.56 million, or 13 cents a share, from a net loss of $4.18 million, or 8 cents a share, during the same period in the prior year.
Taleo Corp. (TLEO) said the third-quarter net loss narrowed, as revenue gained, to $757,000 from a net loss of $1.62 million during the same period in the prior year. The per-share loss for shareholders narrowed to 4 cents from $ 16.74 in the prior year as the quarter's weighted average shares rose to 20.4 million from 149,000. Excluding items, quarterly per-share income rose to 4 cents from a penny, while Wall Street had expected 3 cents.
Terabeam Inc. (TRBM) said the third-quarter net loss widened, as revenue fell and operating expenses rose, to $13.7 million, or 63 cents a share, from a net loss of $10 million, or 47 cents a share, during the same period in the prior year.
Triarc Cos. (TRY) (TRY) said it swung to third-quarter net profit of $548, 000, or 1 cent a share, as sales rose. In the same period last year, the Arby's restaurant franchisor posted a net loss of $42.5 million, or 58 cents a share.
United Therapeutics Corp. (UTHR) said its Unither Pharma Inc. subsidiary has settled all patent litigation with Herbalife International Inc. (HLF) . The agreement, for which financial terms were not disclosed, calls for all pending lawsuits to be dismissed.
(END) Dow Jones Newswires
11-13-06 2110ET
Copyright (c) 2006 Dow Jones & Company, Inc.
Weekly Update Microcap.com November 12, 2006
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Bioniche Life Sciences (BNC/TSX $0.65)
www.bioniche.com
52-week High $1.20/ Low $0.60
Shares Outstanding: 39 Million (non diluted)
A followup report this week to Bioniche which was featured late September as a play on E.Coli. This is only one aspect of the company that offers tremendous growth potential and the other I will address this week. The E.Coli report you can find here:
www.stockhouse.com/shfn/editorial.asp? edtID=18752
Biotech Elephant Hunting
Bioniche has been around for 25 years and provides a steady stream of recurring revenue from animal health products (in the range of $20 million annually). This is very important when playing junior biotechs as most have no revenue and rely upon a research pipeline that can take years to mature - if at all. Should Bioniche receive approval soon from the USDA for it's E.Coli treatment in cattle, the market potential will be significant. The really big hit however, may come from their treatment of bladder cancer using Urocidin
They are in a Phase III Trial (Part 1 of 2) thanks to fast-track approval from the FDA earlier this year and this week announced entry of the first patient using Urocidin. Due to the level of interest and enthusiasm shown by their clinical trial sites throughout North America, they expect recruitment to progress quickly.
If the treatment begins to work as they hope, our upside from here is tremendous. The animal health products provide the stability and baseline, E.Coli may provide a significant upside hit in 2007, and Urocidin if successful, would provide the home run.
Bioniche management estimates the market potential for Urocidin to be from $500,000 to $1.5 billion USD, dependent upon pricing and market share.
About Bladder Cancer
According to statistics from Bioniche, bladder cancer is the 7th most common cancer malignancy worldwide (4th most common in men) and is a life- long disease. Non-muscle invasive, the most common form of bladder cancer, is frequently treated with local surgery and, depending on the severity of the cancer, with immunotherapy or chemotherapy to prevent recurrence.
An estimated 200,000 new cases of bladder cancer are diagnosed each year in the United States and Europe. Approximately 70% of these are diagnosed as non-muscle invasive bladder cancer and between 50-60% will have a recurrence in their lifetime. More than 13,000 deaths per year are attributed to bladder cancer in North America alone. The 10- and 20-year survival rates of patients with aggressive grade 3 tumors are 35% and 28%, respectively. The risk of bladder cancer increases with age. More than 60% of people with bladder cancer are between 65 and 85 years old. The average age at diagnosis is between 70 and 75 years - keep in mind the aging baby boomer generation and the impact this will have upon the whole market.
As a result of long-term survival, continued treatment, and the need for lifelong routine monitoring, the cost per bladder cancer patient from diagnosis to death is the highest of all cancers- ranging from $96,000 to $187,000. Overall, bladder cancer is the 5th most expensive cancer to the healthcare system in terms of total medical expenditures, accounting for almost $3.7 billion (2001 values) in direct costs in the United States.
Two Part Study Addresses Large Unmet Need
The study now underway uses Bioniche's proprietary Mycobacterial Cell Wall-DNA Complex (MCC - trademarked Urocidin) for the treatment of non- muscle invasive bladder cancer in patients who are refractory (unresponsive) to Bacillus Calmette-Guerin (BCG), a live, attenuated strain of Mycobacterium bovis and the current standard therapy.
An unmet need exists for the treatment of high risk non-muscle invasive bladder cancer where BCG is currently the standard of care. Toxicity associated with the use of BCG frequently limits the ability of a patient to continue a treatment, and maintenance therapy is discontinued in over 80% of cases. BCG- induced cystitis, which affects more than 45% of treated patients, is one of the main reasons that patients halt therapy. Although uncommon, treatment with BCG may result in disseminated sepsis, which requires aggressive treatment with antimicrobial agents and may result in death.
The current study is the first of two in the Company's Phase III bladder cancer program. The Company expects to start its second Phase III clinical trial - comparing Urocidin to BCG in treatment- naive non-muscle invasive bladder cancer patients (first line therapy) in 2007. This study will involve more than 600 patients in North America and Europe. It is expected that this study will demonstrate that Urocidin is superior to BCG in terms of safety and is at least as efficacious.
Conclusion
Biotechs require patience but Bioniche is one of the better ways I have found to play the junior sector. The existing revenue stream justifies the current market capitalization and therefore reduces the downside risk. The E.Coli and Bladder Cancer treatments not only spread our risk, but provide the Blue-Sky potential a person is looking for in this sector. The official "hits" come from formal approvals but in theory the market would know ahead of time whether or not the bladder cancer treatment is working - or visa versa, that there may be problems. Biotechs can be full of risks, but they can also be very exciting to own, and very lucrative.
Charts, News, Etc. for BNC
Danny Deadlock
Microcap.com
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email: microcap@telus.net
web: http://www.microcap.com