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Been lookin' for more plays that aren't energy or metals.
TZT should do well. Apparently you don't have to be in the line of sight for their wireless to work. Every other one out has to be. They may have the competition beat.
I know TIC is metals, But it may be a good long term hold in the RRSP.
Diamond Tree Energy Ltd.
TSX: DT
November 10, 2006
Diamond Tree announces third quarter 2006 results
CALGARY - Diamond Tree Energy Ltd. announced its results today for the six and nine month periods ended September 30, 2006. In the third quarter of 2006, the Company reported funds flow of $6.65 million ($0.26 per diluted share) and earnings of $2.55 million ($0.10 per diluted share). This compares with funds flow from continuing operations of $9.0 million ($0.44 per diluted share) and net earnings from continuing operations of $3.5 million ($0.17 per diluted share) in the third quarter of 2005.
Overall production declined in the third quarter to 1,571 barrels of oil equivalent per day (boe/d) compared to 2,565 boe/d in the same quarter of 2005. While significant, it is important to note that much of this reduction relates to Diamond Tree's Niton, Alberta property, a situation which is expected by management to rectify itself over the first half of 2007. In addition, the Company has an estimated 950 boe/d of production behind pipe awaiting startup, most of which is attributable to Diamond Tree's Sinclair, Alberta property, where the Company has a five-section farm-in agreement. The majority of the capital requirements required to reach this stage on the Sinclair wells have been made, with the delays relating to third-party infrastructure bottlenecks. Management believes production from these wells will commence before month's end. With some of Diamond Tree's temporarily shut-in production coming back on stream during October, current production is estimated to be 2,000 boe/d.
-------------------------------------------------------------------------
Three Three Nine Nine
Financial Months Months Months Months
(000's except Ended Ended Ended Ended
per share and September September % September September %
boe figures) 30, 2006 30, 2005 Change 30, 2006 30, 2005 Change
-------------------------------------------------------------------------
Petroleum & natural
gas sales $ 6,302 $15,057 (58) $24,701 $31,478 (22)
-------------------------------------------------------------------------
Funds flow from
continuing
operations 6,646 8,992 (26) 17,631 18,010 (2)
-------------------------------------------------------------------------
per share - basic 0.30 0.48 (38) 0.79 0.97 (19)
-------------------------------------------------------------------------
per share - diluted 0.26 0.44 (41) 0.71 0.89 (20)
-------------------------------------------------------------------------
Net earnings from
continuing
operations 2,549 3,541 (28) 3,950 6,274 (37)
-------------------------------------------------------------------------
per share - basic 0.12 0.19 (37) 0.18 0.34 (47)
-------------------------------------------------------------------------
per share - diluted 0.10 0.17 (41) 0.16 0.31 (48)
-------------------------------------------------------------------------
Field netback
per boe(1) 22.19 40.65 (45) 28.92 34.23 (16)
-------------------------------------------------------------------------
Funds flow
per boe(1) 45.99 38.11 21 32.85 31.20 5
-------------------------------------------------------------------------
Undeveloped land &
seismic -
acquisition cost 14,826 7,838 89
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Common shares
outstanding
-------------------------------------------------------------------------
weighted average
- basic 22,446 18,558 21 22,391 18,494 21
-------------------------------------------------------------------------
weighted average
- diluted 24,685 20,280 22 24,962 20,237 23
-------------------------------------------------------------------------
total outstanding 22,754 22,241 2 22,754 22,241 2
-------------------------------------------------------------------------
Operations
-------------------------------------------------------------------------
Average daily
production
-------------------------------------------------------------------------
Crude oil &
NGL (bbl/d) 462 1,117 (59) 548 744 (26)
-------------------------------------------------------------------------
Natural gas
(mcf/d) 6,653 8,688 (23) 8,508 8,224 3
-------------------------------------------------------------------------
Barrel of oil
equivalent
(boe/d) 1,571 2,565 (39) 1,966 2,114 (7)
-------------------------------------------------------------------------
Average product
prices
-------------------------------------------------------------------------
Crude oil & NGL
($/bbl) 60.77 68.60 (11) 61.41 61.67 0
-------------------------------------------------------------------------
Natural gas
($/mcf) 6.08 10.02 (39) 6.68 8.44 (21)
Zapata Energy Corporation
TSX-V: ZCO
November 10, 2006
Zapata Releases Q3 Operating Results
CALGARY, ALBERTA - Zapata Energy Corporation announced today that production is estimated to have averaged 3,060 barrels of oil equivalent per day (boe/d) in the third quarter of 2006 compared with 2,778 boe/d in the same quarter of 2005, an increase of 10%. This increase was achieved in spite of plant turnarounds, wet weather and constraints due to pipeline and gas plant capacity.
During the third quarter, Zapata participated in drilling 8 (6.1 net) wells, resulting in 3 (2 net) gas wells, 3 (3 net) oil wells and 2 (1.1 net) abandonments. One well, which tested in excess of 2 mmcf/d, is currently being tied in with initial production rates estimated at 1.2 mmcf/d. A new oil pool discovery has been put on production with expected rates of 100 boe/d. Additional drilling is planned to delineate and develop the pool.
Zapata exited the third quarter of 2006 producing 3,225 boe/d split evenly between natural gas and crude oil. Lack of compression, pipeline and gas plant capacity for solution gas is currently restricting 200 boe/d of production of both oil and gas in two of Zapata's fields. In addition, Zapata has approximately 600 boe/d (75% gas) behind pipe, of which 500 boe/d is expected to be on production by the end of the year with the balance expected to come on stream in the first quarter of 2007.
For the remainder of 2006, Zapata intends to concentrate its field activities on tying in production and working to remove production constraints by adding pipeline and compression capacity. Zapata expects to drill up to 10 wells in the fourth quarter, all concentrating on oil.
Zapata is a junior oil and gas production company operating in western Canada and trades on the TSX Venture Exchange under the symbol "ZCO".
This press release may include forward-looking statements which are statements other than of historical fact, such as information regarding drilling potential and production forecasts. Factors that could cause actual results to differ materially from our expectations include exploration and development risks, commodity prices and operating hazards. A barrel of oil equivalent (boe), derived by converting gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil, may be misleading, particularly if used in isolation. A boe conversion is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.
CONTACT INFORMATION:
Zapata Energy Corporation
George Paulus
President
(403) 261-7355
Email: invest@zapata.ca
Website: www.zapata.ca
Connacher Oil and Gas Reports Strong Financial Results for Q3 as Great Divide Oil Sands Project Moves Closer to Production
Calgary, Alberta – Connacher Oil and Gas Limited continued to strengthen its overall operating and financial results and financial condition in the third quarter of 2006. This was achieved through growth in conventional production, strong refinery operations and timely equity and debt financing. Meanwhile, Connacher is executing its oil sands development plans with significant progress on its great divide project. Field site preparation and construction, shop construction of major equipment and mechanical and civil design work are all advancing favorably. The first 15 steam-assisted gravity drainage (“SAGD”) well pairs are to be drilled in late 2006 and early 2007.
For the third quarter of 2006, Connacher’s Montana refinery showed expanded throughput, improved margins and higher utilization rates. In the meantime, conventional production in Alberta and Saskatchewan was a steady 3,256 boe/d. The company reported record cash flow from operations of $15 million for the third quarter compared with $9.5 million for the second quarter of 2006, and $2 million for the third quarter of 2005. Earnings also reached record levels at $6.8 million. These strong financial results are anticipated to continue and be expanded considerably in upcoming years when production from pod one is initiated and additional pod development and related production is introduced in a sequential manner during the balance of the decade.
Highlights for Third Quarter 2006
• Q3 2006 revenue up 3,227 percent to $103 million compared to Q3 2005 levels; nine months 2006 revenue up 2,421 percent to $167 million
• Q3 2006 cash flow of $15 million ($0.08 per share), an increase of 656 percent over 2005; nine months 2006 cash flow at $26.2 million ($0.15 per share), up 739 percent over $3.1 million last year
• Q3 2006 earnings of $6.8 million ($0.03 per share) compared to a loss in 2005; nine months 2006 earnings of $3.7 million, up 799 percent
• Q3 2006 conventional production up 265 percent to 3,256 boe/d, compared to 891 boe/d in 2005; nine months 2006 production at 2,626 boe/d, up 194 percent
• Montana refinery performs well with higher throughput, better margins
• GLJ reserve and resource estimates for Great Divide oil sands properties expanded significantly
• $30 million of new flow through equity and US$195 million of new debt facilities placed to provide capital for Great Divide and for refining operations
• Great Divide field construction well underway
FINANCIAL ($000’s except per share amounts)
Three months ended Nine months ended
September 30 September 30
-------------------------------------------------------------------------
% %
2006 2005 Change 2006 2005 Change
-------------------------------------------------------------------------
FINANCIAL ($000's except
per share amounts)
Total revenue 103,108 3,222 3,100 167,984 6,818 2,364
Cash flow from
operations before
working capital
changes(1) 14,957 1,978 656 26,184 3,120 739
Per share, basic(1) 0.08 0.02 300 0.15 0.03 400
Per share, diluted(1) 0.08 0.02 300 0.14 0.03 367
Net earnings (loss)
for the period 6,771 (1,034) 755 3,686 410 799
Per share, basic 0.03 (0.01) 400 0.02 - -
Per share, diluted 0.03 (0.01) 400 0.02 - -
Capital expenditures
and acquisitions 41,449 2,870 1,344 376,564 14,567 2,485
Cash on hand 14,450 67,708 (79)
Working capital
(deficit)(2) (39,942) 67,440 (159)
Shareholders' equity 378,730 113,208 235
Total assets 527,028 118,788 344
OPERATING
Conventional daily
sales volumes
Crude oil - bbl/d 1,084 808 34 926 713 30
Natural gas - mcf/d 13,028 497 2,521 10,198 1,077 847
Barrels of oil
equivalent - boe/d(3) 3,256 891 265 2,626 893 194
Conventional selling
prices
Oil - $/bbl 62.53 53.40 17 56.83 42.62 33
Natural gas - $/mcf 5.33 1.88 184 5.58 1.21 361
Barrels of oil
equivalent - $/boe(3) 42.16 49.48 (15) 41.70 35.50 17
Refining(4)
Sales revenue 93,752 - 144,719 - -
Margins 13,510 - 17,373 - -
Margins (%) 14.4 - 12.0 - -
Common shares
outstanding (000's)
Weighted average
Basic 193,587 103,851 86 179,948 96,018 87
Diluted 200,572 106,397 89 187,135 101,073 85
End of period
Issued 197,878 134,236 47
Fully diluted 213,491 142,873 49
Movin' right along!
Ear on the Street
Alliance Atlantis Commun. (AAC.B : TSX : $38.62)
Fine tuning estimates
CIBC World Markets "sector outperform", 12-month target price is $42.00
AltaGas Income Trust (ALA.UN : TSX : $24.30)
Alberta power drives strong Q3
CIBC World Markets maintains "sector perform", 12-month target price is increased to $26.00
TD Newcrest maintains "hold", 12-month target price is $24.00
Alexis Nihon REIT (AN.UN : TSX : $13.93)
Operating challenges
Canaccord Capital maintains "hold", 12-month target price is increased to $14.50
Allied Properties REIT (AP.UN : TSX : $21.11)
Solid Q3
Canaccord Capital downgrades to "hold", 12-month target price is increased to $21.50
Desjardins Securities maintains "hold", 12-month target price is increased to $21.40
Scotia Capital Markets maintains "sector perform",12-month target price is $20.20
Aecon Group (ARE : TSX : $6.73)
Strongest quarter
Canaccord Capital maintains "hold", 12-month target price is increased to $6.35
Anooraq Resources (ARQ : TSX-V : $0.90 | ANO : AMEX : US$0.82)
Signs of life
Raymond James maintains "outperform", 6-12 month target price is $1.50
Axia NetMedia (AXX : TSX : $3.49)
Strong FCF
Canaccord Capital maintains "buy", 12-month target price is increased to $3.75
BFI Canada Income Fund (BFC.UN : TSX : $25.10)
Strengthening underlying business
Raymond James maintains "outperform", 6-12 month target price is decreased to $28.50
Boston Pizza Royalties (BPF.UN : TSX : $15.10)
Q3 in line with expectations
CIBC World Markets maintains "outperform", 12-month target price is $14.50
Brookfield Properties (BPO : TSX : $41.54)
Strong growth
CIBC World Markets maintains "sector outperform", 12-month target price is increased to $71.00
BPO Properties (BPP : TSX : $64.00)
Higher Occupancy
TD Newcrest maintains "hold", 12-month target price is increased to $70.00
The Brick Group Income Fund (BRK.UN : TSX : $7.78)
Q3 weaker than expected
CIBC World Markets maintains "sector ouperformer", 12-month target price is $10.00
TD Newcrest maintains "hold", 12-month target price is $7.50
Baytex Energy Trust (BTE.UN : TSX : $21.31)
Q3 In line
Raymond James maintains "outperform", 6-12 month target price is $24.00
Cascades Inc. (CAS : TSX : $14.30)
Earnings slightly low
CIBC World Markets maintains "outperform", 12-month target price is increased to $13.00
Desjardins Securities maintains "hold", 12-month target price is increased to $13.75
Scotia Capital Markets maintains "sector perform", 12-month target price is $15.00
TD Newcrest maintains "hold", 12-month target price is $14.00
Mahalo Energy (CBM : TSX : $2.25)
Non-core asset sale
Raymond James upgrades to "strong buy", 12-month target price is $4.50
Calfrac Well Services (CFW : TSX : $19.73)
Results as expected
TD Newcrest maintains "hold", 12-month target price is $25.00
CML Healthcare Income Fund (CLC.UN : TSX : $13.04)
Rare trading window
Raymond James upgrades to "outperform", 6-12 month target price is $14.00
Canetic Resources Trust (CNE.UN : TSX : $15.45 | CNE : NYSE : US$13.66)
Low production
Scotia Capital Markets maintains "sector perform", 12-month target price is $15.00
Crombie REIT (CRR.UN : TSX : $13.05)
Good forecasts
Scotia Capital Markets maintains "sector perform", 12-month target price is $12.80
Crew Energy Inc (CR : TSX : $12.82)
Gas price expected to climb further
Dundee Securities maintains "outperform", 12-month target price is $23.00
TD Newcrest maintains "buy", 12-month target price is decreased to $14.50
Canadian Tire Corporation (CTC.A : TSX : $74.00)
Great fundamentals
Raymond James downgrades to "market perform", 12-month target price is increased to $78.00
Cominar REIT (CUF.UN : TSX : $21.83)
Q3 in line
Canaccord Capital maintains "buy", 12-month target price is increased to $23.00
Scotia Capital Markets maintains "sector ouperformer", 12-month target price is $23.00
Duke Energy Income Fund (DET.UN : TSX : $9.71)
New projects
CIBC World Markets maintains "sector perform", 12-month target price is increased to $10.50
Scotia Capital Markets maintain "sector perform", 12-month target price is $11.50
Ember Resources (EBR : TSX : $3.05)
Stronger-than-expected Q3 due to accounting changes
Raymond James maintains "outperform", 6-12 month target price is $3.75
EGI Financial Holdings (EFH : TSX : $9.45)
Q3 EPS beats expectations
CIBC World Markets maintains "sector perform", 12-month target price is $11.00
Dundee Securities maintains "outperform", 12-month target price is $10.80
Enerflex Systems (EFX.UN : TSX : $10.43)
Q3 was skewed by trust conversion costs
Raymond James maintains "strong buy", 6-12 month target price is cut to $17.00
easyhome (EH : TSX : $15.25)
Q3 same-store sales back on track
Raymond James maintains "outperform", 6-12 month target price is $20.00
Fort Chicago Energy Partners (FCE.UN : TSX : $10.11)
Strong Q3
Canaccord Adams maintains "hold", 12-month target price is $10.25
CIBC World Markets maintains "sector underperform", 12-month target price is $9.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $10.75
TD Newcrest maintains "hold", 12-month target price is raised to $9.50
First Calgary Petroleums (FCP : TSX : $7.44)
Gas marketing agreement with Sonatrach
Canaccord Adams places both rating and target price "under review"
First Capital Realty (FCR : TSX : $25.85)
New Street coverage
TD Newcrest initiates coverage with a "buy", 12-month target price is $28.00
Movie Distribution Income Fund (FLM.UN : TSX : $8.25)
Strong Q3
TD Newcrest maintains "buy", 12-month target price is $9.00
First Quantum Minerals (FM : TSX : $64.50)
High operating costs
TD Newcrest maintains "hold", 12-month target price is cut to $65.00
Freehold Royalty Trust (FRU.UN : TSX : $14.34)
Q3 in line
CIBC World Markets maintains "sector perform", 12-month target price is $16.75
TD Newcrest upgrades to "buy", 12-month target price is cut to $15.50
Fortis Inc. (FTS : TSX : $26.84)
Acquires Caribbean Utilities
Scotia Capital Markets maintains "sector underperform", 12-month target price is $27.50
Finning International (FTT : TSX : $40.79)
A new organizational structure for the U.K. operations
Raymond James maintains "strong buy", 6-12 month target price is $44.75
Gateway Casinos Income Fund (GCI.UN : TSX : $14.83)
Increased competition
Blackmont Capital maintains "sell", 12-month target price is $12.50
CGI Group (GIB.A : TSX : $7.67 | GIB : NYSE : US$6.79)
To report Q4 on November 14
Scotia Capital Markets maintains "sector ouperformer", 12-month target price is $10.00
Golf Town Income Fund (GLF.UN : TSX : $11.29)
Strong Q3
CIBC World Markets maintains "sector outperform", 12-month target price is raised to $13.00
GMP Capital Trust (GMP.UN : TSX : $19.55)
New value drivers
Westwind Partners upgrades to "hold", 12-month target price is $19.00
Goldcorp Inc. (G : TSX : $32.25 | GG : NYSE : US$28.46)
Big growth in the next four years
CIBC World Markets upgrades to "sector outperform", 12-month target price is cut to US$40.00
Highpine Oil & Gas (HPX : TSX : $16.40)
Q3 meets expectations
Canaccord Adams maintains "buy", 12-month target price is cut to $22.00
Quebecor World (IQW : TSX : $13.24 | NYSE : US$11.76)
Restructuring of U.S. catalogue announced
Desjardins Securities reiterates "sell", target price is US$9.00
The Keg Royalties Income Fd (KEG.UN : TSX : $12.50)
Q3 slightly beats expectations
CIBC World Markets maintains "sector outperform", 12-month target price is $13.50
Killam Properties Inc (KMP : TSX : $2.65)
Q3 misses
Blackmont Capital maintains "buy", 12-month target price is cut to $3.15
Desjardins Securities maintains "buy", 12-month target price is $3.20
Scotia Capital Markets maintains "sector perform", 12-month target price is $3.20
LionOre Mining International (LIM : TSX : $10.26)
Excellent Q3
CIBC World Markets maintains "sector perform", 12-month target price is raised to $10.50
Desjardins Securities maintains "buy", 12-month target price is $12.45
TD Newcrest maintains "buy", 12-month target price is raised to $12.00
Liquor Stores Income Fund (LIQ.UN : TSX : $17.70)
Strong Q3
Raymond James maintains "market perform", 6-12 month target price is $17.00
Livingston Intl Income Fund (LIV.UN : TSX : $20.24)
Q3 reported yesterday
Blackmont Capital maintains "hold", 12-month target price is $19.00
Linamar Corp. (LNR : TSX : $12.92)
Weak Q3
CIBC World Markets maintains "sector outperform", 12-month target price is cut to $15.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $17.75
TD Newcrest downgrades to "reduce", 12-month target price is cut to $12.00
Newalta Income Fund (NAL.UN : TSX : $26.40)
A cautious outlook for the oilfield division due to softening drilling activity
Canaccord Adams maintains "hold", target price lowered to $28.25
CIBC World Markets maintains "sector outperform", target price is $37.00
Newport Partners Income Fund (NPF.UN : TSX : $5.91)
Yet to report a payout ratio sub 100%
Blackmont Capital reiterates "sell", 12-month target price is lowered to $5.00
Northland Power Income Fd (NPI.UN : TSX : $11.65)
Announced third quarter distributable cash flow of $0.28 per unit vs. $0.25 last year
Canaccord Adams maintains "hold", target price is $12.00
Osprey Media Income Fund (OSP.UN : TSX : $5.45)
Management reduced distribution to $0.77 per unit from $0.90 per unit in the last quarter
CIBC World Markets maintains "sector outperform", target price is $6.00
Potash Corp. of Saskatchewan (POT : TSX : $155.36 | NYSE : US$137.39)
More Russian Potash woes short term
Scotia Capital Markets maintains "sector outperform", 12-month target price is $170.00
PrimeWest Energy Trust (PWI.UN : TSX : $24.89 | PWI : NYSE : US$22.00)
Q3/06 cash flow from operations totalled $1.17 per unit vs. $1.36 per unit a year ago
Dundee Securities maintains "market outperform", 12-month target price is $27.00
Scotia Capital Markets maintains "sector underperform", 12-month target price is $24.00
Quebecor Inc. (QBR.B : TSX : $31.15)
Results supported by continued strength at Videotron
TD Newcrest maintains "buy", 12-month target price is raised to $37.00
QLT Inc. (QLT : TSX : $9.63 | QLTI : NASDAQ : US$8.53)
Positive Aczone Phase lV Data
Scotia Capital Markets maintains "sector underperform", 12-month target price is US$4.00
Quadra Mining Ltd. (QUA : TSX : $9.61)
Clearer outlook on the production issues at Robinson
Dundee Securities maintains "market neutral", 12-month target price is $10.40
Rubicon Minerals (RMX : TSX : $0.95)
Drill programs underway in red lake and Newfoundland
Blackmont Capital maintains "buy", 12-month target price is $2.10
Vector Aerospace Corp (RNO : TSX : $4.85)
Reported strong Q3 FD EPS of $0.11
CIBC World Markets maintains "sector outperform", target price raised to $6.50
Saputo Inc. (SAP : TSX : $36.52)
Strong Canadian growth
Raymond James maintains "market perform", 6-12 month target price is $37.50
Shoppers Drug Mart (SC : TSX : $47.39)
Reports strong Q3/06 numbers once again
Blackmont Capital maintains "buy", 12-month target price raised to $54.00
CIBC World Markets maintains "sector outperform", target price raised to $52.00
Shaw Communications (SJR.B : TSX : $35.47)
Subscriber growth looks strong in the cable sector
Canaccord Adams maintains "buy", target price is $40.00
Stantec Inc. (STN : TSX : $22.42 | SXC : NYSE : US$19.86)
California approves $43B in Infrastructure borrowing
Dundee Securities maintains "market outperform", 12-month target price is $26.70
Trinidad Energy Services (TDG.UN : TSX : $12.13)
Q3 numbers continue upwards march
Blackmont Capital reiterates "buy", 12-month target price is $14.50
Canaccord Adams maintains "buy", target price is $20.50
TD Newcrest upgrades to "buy", 12-month target price is $15.00
TLC Vision Corporation (TLC : TSX : $4.85 | TLCV : NASDAQ : US$4.30)
Refractive business holds firm, but begins to feel industry pressure
Scotia Capital Markets maintains "sector perform", 12-month target price lowered to US$6.00
Sino-Forest Corp. (TRE : TSX : $6.30)
Q3 Preview
Dundee Securities maintains "market outperform", 12-month target price is $8.00
TransCanada Corp. (TRP : TSX : $37.40)
Achieved solid growth in earnings and dividends
CIBC World Markets maintains "sector outperform", target price is $41.00
Tournigan Gold (TVC : TSX-V : $2.58)
Drilling extends uranium mineralized zone at Jahodna
Canaccord Adams maintains "buy", target price is $3.20
Workbrain Corp (WB : TSX : $9.40)
Scheduled to introduce several new product modules over the next quarter
CIBC World Markets maintains "sector perform", target price is $9.00
Scotia Capital Markets maintains "sector underperform", 12-month target price is $9.00
Yamana Gold Inc. (YRI : TSX : $13.42 | AUY : AMEX : US$11.80)
Q3 gold production of 88,781 oz at a cash cost of $337
Blackmont Capital maintains "buy", 12-month target price is raised to $17.75
Canaccord Adams maintains "buy", target price is US$15.25
Raymond James maintains "strong buy", 6-12 month target price is $16.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $13.00
Toronto, Canada. November 10, 2006. Tiomin Resources Inc. ("Tiomin" orthe "Company") (TSX: TIO) reports today that the Government of Kenya("GoK") has issued public notices in the Kenya Gazette stating itsintention to acquire the land of the seven farmers, controlling eightplots of land, in the area of the Kwale Special Mining Lease. The sevenfarmers are the only ones, out of a total of 378 farmers that areaffected by the GoK land acquisition program, who are opposed to thecompensation agreement. In addition, under a separate notice, the Commissioner of Lands gavenotice that a compensation hearing will be held on December 21, 2006.Tiomin has received a legal opinion stating that obtaining access tothe land is not related to the compensation hearing. The Companyunderstands that the GoK has the authority to give unrestricted accessto the mining property before the hearing date. Tiomin is encouraged by the GoK's decisive actions and continues tocooperate with the GoK to advance the project according to schedule. For further information, please contact Tiomin at (416) 350-3776 RobertJackson, President, ext. 230, or Laurie Gaborit, Investor Relations,ext. 222 (lgaborit@tiomin.com). Visit the Company's website atwww.tiomin.com. Certain of the information contained in this news release constitute"forward-looking statements" within the meaning of the PrivateSecurities Litigation Reform Act of 1995. Such forward-lookingstatements, including but not limited to those respect to the prices ofrutile, zircon, ilmenite, estimated future production, estimated costsof future production and the Company's sales policy, involve known andunknown risks, uncertainties and other factors which may cause theactual results, performance or achievements of the Company to bematerially different from any forecast results, performance orachievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual prices of rutile, zirconand ilmenite, the actual results of current exploration, developmentand mining activities, changes in project parameters as plans continueto be evaluated, as well as those factors disclosed in the Company'sdocuments filed from time to time with the Ontario SecuritiesCommission.
Last time I looksed she was still going down!
Later.
A new energy-sector playbook
DEBORAH YEDLIN
Friday, November 10, 2006
CALGARY — Since it seems unlikely that oil patch executives will get Finance Minister Jim Flaherty to spare energy trusts from new taxation, let's look at what this will mean for the entire energy sector.
Simply put, it's going to change how business is done.
Not only will the trust taxation have a huge impact on the strategy of the junior companies, but also existing energy trusts will have to wean themselves from a steady diet of acquisitions.
Let's look at it in terms of Before Trusts -- BT -- and After Trusts -- AT.
The traditional BT model was this: Companies would start as juniors, explore, develop and often acquire similar-sized entities in order to grow. Those that didn't succeed through exploration and development had to grow by acquisition and were often penalized by the market. And because commodity prices were much lower at that time, companies would often spend more than their cash flow on these activities, tapping the financial markets when necessary (and if investors were interested). This cycle gave rise to a rich intermediate field of energy companies.
In the AT world, the life cycle for a junior oil and gas company has gone from being in the three- to five-year range to as short as 18 months. The juniors adopted a strategy of either growing to a size where production was in the range of 5,000 barrels of oil equivalent a day and then putting up the for-sale sign, or continuing to the 10,000 boe/d threshold, spinning out the portion that was less prospective into a trust and hiving off the exploration-type assets into a new exploration company.
The reasoning has been that it's easier to add value in terms of reserves, production and cash flow as a smaller company than it is beyond that 10,000 boe/d mark.
The buyers of the juniors have been the trusts needing to replace depleted assets. And because of the relative valuation gap -- thanks to the market giving the trusts a higher trading multiple compared with the juniors, due in large part to the tax angle -- buying other companies was relatively easy.
The trusts, notes Paul Ziff of Ziff Energy Group, have been aided by a confluence of positive factors.
"In addition to robust trading values and the tax advantage, the trusts benefited from a lower dollar, rising commodity prices, stable costs and low interest rates," Mr. Ziff said from his Houston office.
Today, the only bit that's really left from that laundry list of positive variables is the low interest rate environment.
Rising valuations for junior oil and gas companies in the past year or so have made this acquisition game a bit trickier, but the fact remains these companies were a key page in the trust playbook, helping to maintain a reasonable amount of reserves (also known as reserve life index or RLI) and ensure stable cash distributions.
At this juncture, just 10 days after the federal government's bombshell, consensus is building in the investment community that those companies more reliant on the acquisition game are the ones likely to be hardest hit by the changes. That's because their cost of capital has gone up and using their paper to buy other companies is no longer as cheap as it once was.
Moreover, because the business model was about development and exploitation, not exploration, these companies tend to lack the geosciences expertise to build meaningful exploration programs. It's not like hiring geologists, geophysicists and the like is easy these days; universities are not turning out enough people in these disciplines, and the experienced folks have been retiring in the past 10 years. Whereas at this time last year there was huge incentive to go to a trust because of the compensation opportunities, today the playing field is much changed.
That's not the only AT aspect that has changed dramatically.
The Western Canadian basin is that much older and this means two things. First, the big pools, which result in low exploration and development costs because of economies of scale, are harder to find. The number of wells that are being drilled here and in the United States and the fact that all this activity is simply replacing production, not adding to it, tell a big part of the story.
Second, because the easy stuff has been found, going after the more complicated geological formations takes longer, is more expensive and often requires new extraction methods. Not every company has the stomach, expertise or balance sheet for the deep wells of the sort Talisman Energy drills in the Alberta Foothills.
As the march toward trust-taxation day in 2011 begins, expect a sorting out in the energy trust world. Those companies with a strategy that already includes exploration, and discipline when it comes to watching their pennies, are the ones that will survive. The rest will be swallowed up -- either by the stronger trusts or by the traditional exploration and development types taking advantage of the valuation differential.
In short, it's going to be tough for some companies that have been trusts, or the juniors that looked to the trust sector for an exit strategy and now find themselves having to grow production beyond the sellout threshold, to simply take out the old playbook and start on the 35-yard line. Nope. The yardsticks have definitely moved closer to their own end zone.
dyedlin@globeandmail.com
Mornin' Guys.
Got to go to work.
Later.
My take so far is that they are after renewable energy. Wind farming, ethanol, Hydrogen. From what I read they don't want too many nukes.
I don't think that the Dems will make too much noise until they have their own President in the house.
I think that Nukes are still a good bet. Re China.
Soon India and China will catch up to the US in the global ecomnomy.
Some nice winter sceenery.
Ear on the Street
ARC Energy Trust (AET.UN : TSX : $23.14)
Expects production to average 63,400 boe/d in Q406
Raymond James maintains "outperform", 6-12 month target price is $25.00
Arctic Glacier Income Fund (AG.UN : TSX : $12.06)
Q3/06 results expected November 10
TD Newcrest maintains "buy", 12-month target price lowered to $13.00
Amtelecom Income Fund (AMT.UN : TSX : $10.46)
Acquisition of people's still accretive after refinancing
Canaccord Adams maintains "buy", 12-month target price lowered to $12.00
Angiotech Pharmaceuticals (ANP : TSX : $9.60 | ANPI : NASDAQ : US$8.51)
Partner Boston Scientific provides TAXUS guidance
Scotia Capital Markets reiterates "sector outperform", 12-month target price is US$16.00
ATS Automation Tooling Systems (ATA : TSX : $12.64)
Elkcorp up for sale?
Blackmont Capital reiterates "buy", 12-month target price is $15.00
Banro (BAA : TSX : $15.93)
Banro updates Twangiza
Raymond James maintains "strong buy", 6-12 month target price is $18.00
Brookfield Asset Management (BAM.A : TSX : $51.23 | BAM : NYSE : US$45.36)
Higher income from real estate
CIBC World Markets maintains "sector perform", 12-month target price is increased to US$48.45
BFI Canada Income Fund (BFC.UN : TSX : $26.70)
Impresive Q3 results
Blackmont Capital maintains "buy", 12-month target price is $28.50
Raymond James maintains "outperform", 6-12 month target price is $26.50
Bema Gold (BGO : TSX : $5.76 | NYSE : US$5.10)
Deal announced with Kinross
Blackmont Capital maintains "buy", 12-month target price is $7.75
Raymond James maintains "outperform", 12-month target price is $6.75
RBC Capital Markets maintains "sector perform", 12-month target price is $6.75
Boralex Power Income Fund (BPT.UN : TSX : $9.13)
Strong hydrology boost
Canaccord Capital maintains "hold", 12-month target price is $9.00
The Brick Group Income Fund (BRK.UN : TSX : $8.15)
Expecting neutral quarter
TD Newcrest maintains "hold", 12-month target price is $7.50
CAE Inc. (CAE : TSX : $10.20)
Strong Q2 expected
Dundee Securities maintains "outperform", 12-month target price is $11.50
Cargojet Income Fund (CJT.UN : TSX : $8.80)
Government announcement clouds strong quarter
RBC Capital Markets maintains "outperform", 12-month target price is increased to $10.00
Cinram International (CRW.UN : TSX : $21.56)
Lower forcasts following Q3
RBC Capital Markets maintains "outperform", 12-month target price is $28.00
Canadian Tire Corporation (CTC.A : TSX : $75.19)
Strong on all business segments
RBC Capital Markets maintains "outperform", 12-month target price is increased to $89.00
Churchill Corporation (CUQ : TSX : $4.85)
Unexpectedly strong Q3
Blackmont Capital places both rating and target price "under review"
The Data Group Income Fund (DGI.UN : TSX : $9.35)
Q3 preview with Relizon update
TD Newcrest maintains "buy", 12-month target price is $11.25
Deepwell Energy Service Trust (DWL.UN : TSX : $8.90)
Pipeline rupture
Raymond James maintains "outperform", 12-month target price is $9.00
EnCana Corp. (ECA : TSX : $55.50 | NYSE : US$49.10)
Inline Q3 and promising outlook
Desjardins Securities maintains "hold", 12-month target price is US$48.00
Raymond James maintains "strong buy", 6-12 month target price is $49.20
Scotia Capital Markets maintains "sector perform", 12-month target price is US$60.00
Enerflex Systems (EFX.UN : TSX : $10.00)
Reduced margin assumptions
RBC Capital Markets maintains "outperform", 12-month target price is decreased to $14.00
Eldorado Gold (ELD : TSX : $5.36 | EGO : AMEX : US$4.75)
Q3 in line
Blackmont Capital maintains "hold", 12-month target price is $6.00
CIBC World Markets maintains "sector ouperformer", 12-month target price is US$8.60
Desjardins Securities maintains "buy", 12-month target price is $9.40
Dundee Securities maintains "outperform", 12-month target price is $6.40
Haywood Security maintains "sector ouperformer", 12-month target price is $8.25
Raymond James maintains "outperform", 6-12 month target price is $6.10
TD Newcrest maintains "buy", 12-month target price is US$6.00
Ensign Energy Services (ESI : TSX : $17.87)
Encouraging Q3 , descouraging Q4
Canaccord Capital maintains "buy", 12-month target price is $26.00
Raymond James maintains "outperform", 6-12 month target price is $24.00
RBC Capital Markets maintains "sector perform", 12-month target price is $23.00
Scotia Capital Markets maintains "sector perform", 12-month target price is decreased to $20.00
TD Newcrest maintains "buy", 12-month target price is $23.00
Equitable Group Inc. (ETC : TSX : $28.55)
Strength through diversification
Blackmont Capital maintains "buy", 12-month target price is $36.00
FNX Mining Company (FNX : TSX : $15.49)
Exploring and and planning to develop the Levack Footwall deposit in Sudbury
Dundee Securities maintains "market outperform", 12-month target price is $18.40
RBC Capital Markets initiates coverage with a "outperform", target price is $19.00
Four Seasons Hotels (FSH : TSX : $93.10 | FS : NYSE : US$82.49)
A friendly going private transaction
Raymond James downgrades to "underperform", 6-12 month target price raised to US$82.00
GBS Gold International (GBS : TSX : $3.38)
Company intends to commit A$6-7 million per annum in exploration over next few years
Haywood Securities initiates coverage with a "sector outperform", 12-month target price is $5.35
Granby Industries Income Fund (GBY.UN : TSX : $5.12)
Proposed trust tax legislation has driven down business trust valuations
TD Newcrest maintains "reduce", 12-month target price lowered to $3.50
Great Lakes Hydro Inc. Fd. (GLH.UN : TSX : $18.58)
Reported recurring distributable cash flow of $0.25 versus $0.13 last year
Canaccord Adams maintains "buy", 12-month target price is $19.50
Cdn. Hotel Income Properties (HOT.UN : TSX : $14.29)
Anouther good quarter
Raymond James maintains "outperform", 6-12 month target price is $14.50
Intermap Technologies (IMP : TSX : $5.10)
Revenues at $9.4 million in Q3/06
Canaccord Adams maintains "speculative buy", target price is $10.00
IPSCO Inc. (IPS : TSX : $101.50 | NYSE : US$89.77)
Acquisition of NS Group - pending
Desjardins Securities reiterates "buy", 12-month target price is raised to $130.00
Kaboose Inc (KAB : TSX : $1.98)
Delivers a record quarter
Dundee Securities maintains "market outperform", 12-month target price is raised to $2.65
Kinross Gold (K : TSX : $13.28 | KGC : NYSE : US$11.75)
To aquire Bema gold
Blackmont Capital maintains "buy", 12-month target price raised to $20.00
CIBC World Markets maintains "sector outperform", target price is US$18.00
Desjardins Securities maintains "top pick", target price is lowered to $24.00
TD Newcrest maintains "buy", 12-month target price is $16.00
LionOre Mining International (LIM : TSX : $9.71)
Higher nickel price forecast
Blackmont Capital maintains "buy", 12-month target price is raised to $13.50
Manitoba Telecom Services (MBT : TSX : $43.33)
Revenue decline worsens
Canaccord Adams maintains "sell", 12-month target price is $35.00
Desjardins Securities upgrades to "buy", 12-month target price is $49.00
Haywood Securities maintains "sector perform", 12-month target price is $47.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $47.00
TD Newcrest maintains "hold", 12-month target price raised to $47.50
Miranda Technologies (MT : TSX : $13.95)
Solid Management team and a strong growth outlook
Raymond James initiates coverage with a "outperform", 6-12 month target price is $17.50
Methanex Corp. (MX : TSX : $26.14 | MEOH : NASDAQ : US$23.16)
Methanex enters Chinese DME Markets
Canaccord Adams maintains "sell", 12-month target price is $16.00
CIBC World Markets maintains "sector perform", 12-month target price is US$25.00
Raymond James maintains "underperform", 6-12 month target price is US$17.00
Northstar Aerospace (NAS : TSX : $5.00)
Poised for growth
Dundee Securities maintains "outperform", 12-month target price is $6.45
Northbridge Financial (NB : TSX : $30.66)
Q3 better than expected
RBC Capital Markets maintains "outperform", 12-month target price is $36.00
Novadaq Technologies (NDQ : TSX : $7.65)
Q3 worse than expected
Blackmont Capital maintains "buy", 12-month target price is $15.00
Open Text (OTC : TSX : $21.48 | OTEX : NASDAQ : US$19.04)
Q1 EPS in line
Canaccord Adams maintains "hold", 12-month target price is US$20.00
CIBC World Markets maintains "sector perform", 12-month target price is US$20.00
Desjardins Securities upgrades to "buy", 12-month target price is raised to US$22.00
Raymond James maintains "outperform", 6-12 month target price is raised to US$23.00
RBC Capital Markets maintains "outperform", 12-month target price is US$23.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is US$23.00
TD Newcrest maintains "buy", 12-month target price is raised to US$23.00
Pan American Silver (PAA : TSX : $24.93 | PAAS : NASDAQ : US$22.07)
Q3 misses
RBC Capital Markets maintains "outperform", 12-month target price is US$37.00
Premium Brands Income Fund (PBI.UN : TSX : $9.85)
Almost debt-free
Raymond James maintains "outperform", 6-12 month target price is cut to $11.25
Power Corp of Canada (POW : TSX : $34.63)
To report Q3 on November 10
TD Newcrest maintains "buy", 12-month target price is raised to $38.00
Power Financial Corp. (PWF : TSX : $36.71)
To report Q3 on November 10
TD Newcrest maintains "hold", 12-month target price is raised to $39.00
RioCan Real Estate Investment (REI.UN : TSX : $24.76)
Q3 meets expectations
Canaccord Adams maintains "hold", 12-month target price is raised to $24.50
Desjardins Securities maintains "buy", 12-month target price is $26.25
Raymond James maintains "outperform", 6-12 month target price is raised to $26.50
RBC Capital Markets maintains "sector perform", 12-month target price is $25.50
Scotia Capital Markets maintains "sector perform", 12-month target price is $24.30
TD Newcrest maintains "buy", 12-month target price is raised to $27.00
Vector Aerospace Corp (RNO : TSX : $4.86)
Q3 reported yesterday
CIBC World Markets maintains "sector outperform", 12-month target price is $6.10
SemBioSys Genetics (SBS : TSX : $3.35)
Q3 in line
Raymond James maintains "strong buy", 6-12 month target price is $3.16
Shoppers Drug Mart (SC : TSX : $45.88)
Possible CEO change
Desjardins Securities downgrades to "hold", 12-month target price is $48.00
Saxon Financial Inc (SFI : TSX : $21.90)
Positive quarter beats expectations
Dundee Securities maintains "outperform", 12-month target price is $27.00
Energy Savings Income Fund (SIF.UN : TSX : $13.95)
Government tax proposal
Canaccord Capital downgrades to "hold", 12-month target price is decreased to $15.25
TD Newcrest maintains "buy", 12-month target price is decreased to $16.00
Softchoice Corp. (SO : TSX : $10.30)
To report Q3 next week
Raymond James upgrades to "outperform", 6-12 month target price is $12.00
Supremex Income Fund (SXP.UN : TSX : $8.15)
Q3 to be reported today
TD Newcrest maintains "buy", 12-month target price is $9.25
Tucows (TC : TSX : $1.01 | TCX : AMEX : US$0.90)
Q3 meets expectations
Desjardins Securities maintains "buy", 12-month target price is $1.80
TLC Vision Corporation (TLC : TSX : $5.10 | TLCV : NASDAQ : US$4.51)
To report Q3 today
Scotia Capital Markets maintains "sector perform", 12-month target price is US$7.00
Workbrain Corp (WB : TSX : $8.75)
To report Q3 today
Blackmont Capital maintains "hold", 12-month target price is $10.00
Westshore Terminals Inc. Fund (WTE.UN : TSX : $10.41)
Weak Q3 due to rising cost
RBC Capital Markets maintains "sector perform", 12-month target price is $11.00
TD Newcrest maintains "hold", 12-month target price is $10.00
That's a sad lookin' Arc. Looks like I got Spotted fever!
Well I'd stay away from it if it has spots.
You could double your money. But I gave up on that dream.
Companies featured in the current edition of the newsletter: ADSX, CLRI, CPPT, CYTR, EEEI, EMIS, ENZ, FSN, GNBT, GSHF, HSOA, HYTM, IMMG, ISON, LANW, PTCH, SOG, SWTS, VOII
Two of the factors that have supported the robust gains the market has generated over the past three months reversed course last week, as rising energy prices and renewed concerns about inflations caused a wave of profit-taking to set it. The Dow ended the week down 104 points, closing below the 12,000 mark at 11,986 and in the process paring its yearly gain to 11.8%. The S&P 500 finished the week down 13 points and decreased its year to date gain to 9.4 %. The Nasdaq dipped 19 points last week, decreasing its year to date gain to 5.7% and the Russell 2000 fell 13 points decreasing its year to date gain to 11.5%.
With more than 80% of the companies in the S&P 500 having already reported results, third quarter profits have climbed by over 18% thus far. However, with many companies becoming more cautious in their outlooks, fourth quarter gains are expected to be more limited, rising at 10%, which is down from 12.8% at the beginning of October and 14.7% at the start of the second half of the year. Certainly, there have been several high-profile companies that have been cautious about Q4 prospects. Wal-Mart (NYSE: WMT0 reported a skimpy 0.5% October same store sales gain, and over the weekend said that it would begin holiday discounting early, in an ominous sign for retailers. However, the remaining chain store sales released last week were slightly better than expected, even if the results were mixed.
However, if the market’s attention was distracted from inflation and energy by the recent flurry of earnings reports, it returned to those two areas last week. While October employment data showed the unemployment rate fell to a five-year low of 4.4%, hourly earnings rose a solid 0.4% renewing concerns about inflation. The 10-year note rose 5 basis points in yield, as it appears less likely that the Fed will reduce rates near-term. Stoking further concerns about inflation, FedEx announced plants to increase air shipment rates by 5.5% at the beginning of the year. Although oil prices ended the week little changed at $59 a barrel, a $1.26 per barrel increase on Friday due to fears of supply disruptions in Nigeria.
What should investors look for in the upcoming week? Earnings Season has begun to taper down and although many of the major companies have announced earnings, a few major players have yet to report results. Monday, natural gas and energy provider El Paso Corporation (NYSE: EP) and AES Corporation (NYSE: AES) report before the market opens. Look for engineering and construction services provider Fluor Corporation (NYSE: FLR) to announce earnings after the market closes Monday. Before the bell announcements on Tuesday include Anadarko Petroleum (NYSE: APC), Nortel Networks (NYSE: NT) and consumer products company Sara Lee (NYSE: SLE). Western Refining (NYSE: WNR) will announce earnings after the bell on Tuesday. Of course, investors will be focused on the outcome of Tuesday’s mid-term election as well. Announcements pick up the pace again Wednesday before the market opens with reports from Polo Ralph Lauren (NYSE: RL), Federated Department Stores (NYSE: FD) and Cablevision (NYSE: CVC). Investors can expect to see announcements from World Fuel Services (NYSE: INT), News Corp (NYSE: NWS) and Cisco Systems (Nasdaq: CSCO) after the bell Wednesday. Look for reports from Goodyear Tire (NYSE: GT), JC Penny (NYSE: JCP), Viacom (NYSE: VIA), and Reliant Energy (NYSE: RRI) before the open Thursday. Kohl’s (NYSE: KSS) and Walt Disney (NYSE: DIS) will announce earnings and close out the week for earnings reports Thursday after the market closes.
The economic news for next week will be tame and will not necessarily reflect a specific focus, but there will be some interesting economic events in the upcoming week. Investors can expect to see the first announcements beginning Tuesday. Look for the September Consumer Credit Report after the market closes. Weekly Crude Inventories will be announced mid-morning Wednesday. Thursday closes the week for economic news with announcements for October Agriculture Export Prices and October Oil Import Prices, as well as the weekly unemployment claims and September Trade Balance reported before the market opens. Later that morning, expect to see the announcement for September Wholesale Inventories. Some key economic events that are likely to pique the interests of investors include Chicago Fed President Michael Moskow speaking about the economy in Chicago on Monday and Indianapolis on Thursday, as well as a speech on the economic outlook by Cleveland Fed President Pianalto in Pittsburgh on Monday.
The conference schedule for next week will be slightly more active than in recent weeks. Monday marks the commencement of the three-day Rodman & Renshaw 8th Annual Healthcare Conference to be held at the Palace Hotel in New York. Generex Biotechnology Corporation (NASDAQ: GNBT) will present on Monday morning. Clearant, Inc. (OTCBB: CLRI) and CytRx Corporation (NASDAQ: CYTR) are scheduled to present Tuesday morning. Drug delivery company Emisphere Technologies, Inc. (NASDAQ: EMIS), will present on Wednesday morning. Monday also marks the beginning of the three-day CIBC World Markets 17th Annual Healthcare Conference at the Waldorf-Astoria in New York City. The two-day Robert W. Baird & Company Industrial Conference in Chicago begins Tuesday. Nesbitt Burns holds an Interactive Entertainment Conference on Tuesday. The two-day UBS Building & Building Products CEO Investor Conference in New York begins Wednesday. Thursday marks the commencement of the two-day Prudential Equity Group Technology Meetings at the Grand Hyatt in New York and also wraps up the conference schedule for the week.
Earnings Preview: Hythiam, Inc. (NASDAQ: HYTM), a healthcare services management company that licenses the PROMETA™ physiological protocols designed to treat substance dependence, will report third quarter results for the period ended September 30, 2006 on Thursday after the market closes. Recently, in an 8K filing the company said that it had entered into its first license agreement for third-party reimbursement of its PROMETA treatment for alcohol and stimulant dependence. Third quarter results are expected to reflect some seasonality in the treatment community, as fewer addicts seek treatment during the summer months. The stock is much more likely to react to comments the company makes about its ability to secure additional third-party payors agreeing to reimburse for treatments. Despite the stock advancing more than 64% since the beginning of August, we continue to believe that the company is in the early stages of a substantial opportunity to change the way addiction is treated. Note that short interest represents approximately 24% of the float. Shares ended the week up $0.23 at $8.38.
Generex Biotechnology Corporation (NASDAQ: GNBT), a leader in the area of buccal drug delivery, said last week that it has sponsored an episode of the Medical Missions for Children talk show "Plain Talk About Health." The episode, entitled "A Discussion about the Global Impact of an Avian Influenza Pandemic," is scheduled to first air on the Medical Broadcasting Channel. The episode, which will air an aggregate of 18 times on MBC in the month of November, 2006, is co-hosted by Tommy Thompson, United States Secretary of Health & Human Services, and Mary Alice Williams, an award-winning writer, anchor, correspondent, and television host. Medical Missions for Children (MMC) is dedicated to serving the medical needs of catastrophically ill children in underserved communities around the world. Through the use of its Global Telemedicine & Teaching Network™ (GTTN), a satellite and Internet-based communications platform, MMC facilitates the real-time treatment of remote, critically ill children. The GTTN also broadcasts an extensive program of medical education and supports dialogue exchange among a global network of medical specialists. The stock ended the week at $2.14, up a dime.
Volume Alert: Shares of CytRx Corporation (NASDAQ: CYTR), a biopharmaceutical company focused on developing products primarily in the area of small molecules and ribonucleic acid interference (RNAi), soared 21% last week on more than four times average volume, as investors focused on the company’s RNAi platform after peer company Sirna (NASDAQ: RNAI) was acquired by Merck & Co. for $1.1 billion. Merck's planned purchase of Sirna was seen by many observers as a validation of RNAi and the smaller companies developing a new class of drugs based on it. CytRx previously announced plans to spin off its RNAi platform into a separate publicly traded company. CYTR also said that its lead drug candidate arimoclomol has been granted orphan medicinal product status for the treatment of amyotrophic lateral sclerosis (ALS) by the European Commission. This orphan medicinal product status grants CytRx market exclusivity in the European Union (EU) for 10 years in the event that arimoclomol receives marketing approval, and provides for incentives such as reduced fees for protocol assistance and scientific advice. The European Commission grants orphan medicinal product status to promote the innovation of drugs that are developed to treat, prevent or diagnose diseases or conditions that affect no more than five in 10,000 persons in the EU. Arimoclomol received orphan drug status from the U.S. Food and Drug Administration for the treatment of ALS in May 2005. Orphan drug status in the U.S. holds numerous potential benefits, including opportunities for grant funding toward clinical trial costs, tax advantages, FDA user-fee benefits, seven years of U.S. market exclusivity should the FDA grant marketing approval for the drug and an added mechanism for more frequent communication with the FDA. The stock ended the week at $1.60, up $0.28 from last week’s closing price.
Electro Energy, Inc. (NASDAQ: EEEI), a developer and manufacturer of advanced rechargeable batteries, announced today that the company received a contract for approximately $1 million from Sandia National Laboratories in Albuquerque, NM, which is operated for the U.S. Department of Energy by Sandia Corporation. The 24-month contract is to develop and demonstrate large-scale battery systems for utility type applications, including back-up power and energy storage, peak shaving and power conditioning systems. Electro Energy will develop bipolar NiMH battery modules to provide optimized performance in the areas of capacity, efficiency, rate capability, heat generation/removal, and demonstrate complete systems in on-site customer applications. The new contract continues the company’s long-standing relationship with Sandia and the Department of Energy and confirms once again the Electro Energy’s leadership in developing cutting edge battery technology. Electro Energy Inc., headquartered in Danbury, Connecticut, was founded in 1992 to develop, manufacture and commercialize high-powered, rechargeable bipolar nickel-metal hydride batteries for use in a wide range of applications. Its Colorado Springs operation supplies aerospace-grade high quality nickel cadmium batteries and components for satellites, aircraft and other specialty applications. Shares ended down $0.27 at $1.33, reflecting weakness in the alternative energy sector.
Drug delivery company Emisphere Technologies, Inc. (NASDAQ: EMIS), recently announced results from its 90-day, Phase 2 study of its oral insulin product utilizing its eligen® oral delivery technology. The four-arm study evaluated the safety and effectiveness of low and high fixed doses of oral insulin tablets versus placebo in patients with Type 2 Diabetes Mellitus on existing oral metformin monotherapy. The trial focused on the safety of oral insulin, specifically noting incidents of hypoglycemia, as well as the occurrence of insulin antibodies. The efficacy component of the trial was designed to measure changes in Hemoglobin A1c (HbA1c) over 90 days, the standard for evaluating glucose control in Type II diabetics. An additional objective was to confirm that insulin delivered orally could be administered as a fixed dose product without the need to conduct glucose monitoring or titrate the insulin dose. The study met the company's objectives for both safety and efficiency. During the study, there were no significant differences in number of hypoglycemic events, serious adverse events, or insulin antibody formation for the orally administered insulin compared to placebo. There were no hypoglycemic events in any of the high responder patients as measured by HbA1c. There were no insulin antibodies in any of the three oral insulin arms. The patients in all three active arms saw no change in weight and no nighttime hypoglycemic events. So why did the stock fall so hard? Perhaps because the eligen technology did not demonstrate statistical significance across the entire study. However, the company said in its conference call that it believed the results were strong enough to partner the product. EMIS will present additional data on the clinical trial at its presentation at the Rodman and Renshaw Conference. The stock ended the week at $5.94, down $2.94.
Fusion Telecommunications International, Inc. (AMEX: FSN), a provider of advanced VoIP services, announced that it has registered more than 750,000 subscribers from more than 100 countries since launching its free Efonica VoIP services this past June. In addition, Fusion now has more than 10,000 paid Efonica subscribers who have purchased paid services. Efonica offers subscribers its patent-pending worldwide Internet area code™, which when dialed allows subscribers to speak with each other for free. Subscribers can simply register their existing landline or mobile telephone number as their Internet telephone number and immediately begin to make calls to and from any combination of PCs, Internet phones, wifi phones, and regular telephones (with a SIP adapter), connected to either a wireless, broadband or dial-up Internet connection. Efonica also offers a full suite of premium features designed to enhance a subscriber's communications experience. Fusion provides its Efonica branded VoIP, Internet access, and other Internet services to, from, in and between emerging markets in Asia, the Middle East, Africa, Latin America and the Caribbean. Fusion currently provides services to consumers, corporations, international carriers, government entities, and Internet service providers in over 100 countries. Shares ended the week up $0.03 at $1.55.
Enzo Biochem, Inc. (NYSE: ENZ), a developer of innovative health care products based on molecular biology and genetic engineering techniques, filed a shelf registration last week under which it may periodically sell up to $100 million in common stock, according to a regulatory filing late Friday. The company said it plans to use the proceeds for acquisitions among other reasons. Recently, the company significantly increased its management team, perhaps in anticipation of such an event. Shares ended the week up $0.13 at $13.75.
Earnings Preview: Applied Digital (NASDAQ: ADSX), a leading provider of identification and security technology, will report results third quarter results for the period ended September 30, 2006 on Thursday after the market closes. Perhaps more significantly, the company’s majority-owned subsidiary, Digital Angel Corp., which will report results earlier in the day, will update investors on the strategic alternatives it is pursuing. A significant announcement there, such as the sale of the company or potential merger, could be a catalyst for ADSX’s stock. In addition, ADSX is likely to update investors on the IPO of its VeriChip unit, which still could be completed by the end of the year. In other news, VeriChip Corporation, a subsidiary of ADSX, announced the VeriMed Physician Network grew by 73 physicians as a result of exhibiting at the PriMed East Medical Conference held this past October in Boston. The PriMed Conference marks the third large medical conference for primary care physicians in the past month in which VeriMed, the first and only FDA-approval implantable RFID microchip system for patient identification and access to healthcare information has been exhibited. The VeriMed Physician Network has now grown to more than 1,100. Recently, the company announced that 67 healthcare facilities agreed to participate in the VeriMed Patient Identification System Network at the American College of Emergency Physicians (ACEP) Conference in New Orleans. These healthcare facilities agreed to use the VeriMed reader as standard protocol to scan patients that arrive in emergency rooms unconscious, delirious or confused. That brings the total number of hospitals and healthcare facilities that have agreed to adopt the VeriMed System to 258. Shares ended the week up $0.08 at $2.31.
Isonics Corporation (NASDAQ: ISON), a developer of innovative solutions for the homeland security and semiconductor markets, said in an 8-K filing last week that the company has formed a joint venture to accelerate technology development and drive commercialization activities in connection with a previously announced agreement with Lucent Technologies Inc. Under that previously announced agreement, Isonics and Lucent agreed to develop next generation Infrared imaging and night vision surveillance technology based on pioneering research by Lucent's Bell Labs at its micro electro-mechanical systems and nanotechnology fabrication facility. The joint venture was established through Isonics' acquisition of an initial 90% ownership interest in SenseIt Corp. in exchange for assigning to SenseIt all of Isonics' interest under the Lucent Agreement. The assignment has been approved by Lucent. Christopher Toffales, who owns the other 10%, will serve as President and Chief Executive Officer of SenseIt. Toffales is an experienced and well-regarded executive in the industry. The stock ended at $0.62, down $0.06.
Home Solutions of America, Inc. (NASDAQ: HSOA), a provider of recovery, restoration and rebuilding/remodeling services, announced that it has entered into a new $60 million credit facility with a consortium of financial institutions, led by Texas Capital, experienced in providing credit to construction companies. The new facility, which replaces the company's previous $10 million credit facility, will support the company's working capital requirements that the company will have due to an increase in work during the fourth quarter and fiscal 2007 and reduces the overall borrowing costs. Home Solutions also announced that it has acquired privately-held Associated Contractors II, LLC ("Associated") for 1.5 million shares of common stock and performance-based incentives. Although the acquisition is expected to be neutral to earnings during the company's 2006 fourth fiscal quarter, it is expected to be accretive in fiscal 2007. Associated is one of the leading contractors involved in rebuilding Louisiana and is one of three contractors approved to participate in the rebuilding of NASA's Stennis Space Center located in Kiln, Mississippi under a three-year $270 million agreement. Associated currently has a backlog of $22 million in existing contracts. Despite the news, the stock’s gains were muted, as investors await the company’s third quarter results scheduled to be released on or about November 13th. Note that the company’s stock trades for its lowest trailing 12-month P/E multiple in more than three years. The stock ended the week up $0.43 at $5.71.
VoiceOne™ Communications, LLC, a subsidiary of VoIP, Inc. (OTCBB: VOII), a leading provider of Voice over Internet Protocol (VoIP) communications solutions for service providers, resellers and consumers, announced that that the company is providing its patented Click-to-Call technology to power what could be the largest Click-to-Call promotional campaign ever developed, for the NFL Network, the first 24-hour, seven-day-a-week television network dedicated solely to the NFL. The overall campaign was created by the NFL Network's ad agency Media Storm, which incorporates VoiceOne's Click-to-Call Voice over IP (VoIP) technology, created and patented by VoIP, Inc. The Click-To-Call portion of the promotional campaign makes it easy for viewers to sign up for the NFL Network on DirecTV, DISH Network or Verizon's FiOS TV service. Customers can simply click on one of the NFL Network banner ads that will be placed on various sites, including DirecTV, DISH, Verizon, Yahoo! and CBS Sportsline, and immediately receive a call from the service provider of their choice. VoiceOne will receive a fee each time a user clicks on the banner ad and uses the company's technology to place a call. VoiceOne is steadily building its base of commercial customers for its Click-to-Call technology. The company provides a comprehensive portfolio of advanced telecommunications technologies, enhanced services, broadband products, and fulfillment services to the communications industries. The stock ended the week up $0.02 at $0.38.
GS AgriFuels Corporation, about 90% owned by environmental business development company GreenShift Corporation (OTCBB: GSHF), announced the closing of its acquisition of NextGen Fuel, Inc., a producer of modular, continuous-flow multi-feedstock biodiesel process equipment based on NextGen's patent-pending process intensification technology. GS AgriFuels acquired 100% of the stock of NextGen for about $21.3 million, of which $17 million was paid at the closing with $4.3 million of which is to be paid upon NextGen achieving sales milestones. NextGen's biodiesel process technology utilizes innovative and proprietary process intensification techniques to accelerate and enhance traditional biodiesel reaction kinetics, thus decreasing process time, reducing energy and raw material needs, and increasing product quality. These benefits translate to reduced up-front capital and ongoing operating costs by as mush as 50% versus traditional technologies. Additionally, NextGen's systems can be manufactured and shipped to customers in as quickly as 12 weeks from the time of order. NextGen currently offers turn-key biodiesel production plants rated for 5 million gallons per year and 10 million gallons per year, but the modular and continuous-flow aspects of the technology make scaling plants up or down easy and cost-effective. GS AgriFuels was founded to produce and sell clean fuels from agriproducts in innovative ways. GS AgriFuels' business model is based on the manufacturing and sales of proprietary biodiesel equipment and the use of new technologies to produce biodiesel and ethanol from non-traditional feedstocks such as corn oil and cellulosic biomass through the utilization of several new proprietary technologies, including innovative desiccation, process intensification, gasification, catalytic, and carbon capture technologies, synergistically at small-scales to enable the refining of many forms of biomass into clean fuels at Integrated Multi-Fuel ("IMF") production facilities. Shares ended the week unchanged at $0.12.
A Dow Jones Newswire story last week highlighted the opportunities for Language Access Network (OTC: LANW), a leader in video interpretation. The report said that Dr. Charles Vialotti recalls a Korean cancer patient who was referred to Holy Name Hospital in Teaneck, N.J., after refusing surgery, chemotherapy and radiation therapy elsewhere. Communication was a problem, but he was able to converse with Holy Name Hospital doctors through an interpreter who appeared on a TV screen, said Vialotti, director of radiation oncology. Doctors learned that the man had not understood the nature of his illness or the consequences of refusing treatment. His treatment was implemented within a week, after the perception had been that he was uncooperative for six or seven months of refusing therapy said the doctor. The man is now doing well, as a result of the hospital using LANW’s interpretation services. LANW introduced its video service as a pilot project at the Ohio State University Medical Center's emergency room about 18 months ago. The company aims to expand nationwide in the next few years and to become profitable in 2008. Its interpreters are based in Columbus, Ohio. Shares ended the week at $3.80, up 40 cents.
Kitchen Labs, an innovator in appliance technology, said last week that it selected E&M/Impart Media Advertising for the direct response promotion of "The Fresh Box," its vacuum seal, food storage unit. E&M/Impart Media Advertising is the direct response business unit of IMPART Media Group, Inc. (OTCBB: IMMG), an innovator in the creation of out-of-home digital advertising content and information network management. The company believes that the ultimate goal of Kitchen Labs is to use direct response to generate profitable sales, but as the campaign expands, the awareness created will be instrumental in supporting the sale of "The Fresh Box" at retail. Kitchen Labs is one of 5 new agency client accounts using direct to consumer marketing to expand their businesses. E&M has launched an aggressive new business effort and the results have been very impressive. E&M is wholly focused on contributing significantly to the revenue goals and strategic market positioning of Impart Media. Kitchen Labs manufactures non-metal storage containers with electric vacuum pumps for household and kitchen use, containers for storing food and other perishables and household items, containers for marinating foods, all featuring an electric vacuum pump. The stock ended the week down $0.16 at $0.65.
CompuPrint, Inc. (OTCBB:CPPT), an energy technology company that combines satellite-based technology with traditional exploration services, which does business through Terra Insight Corporation, its wholly owned subsidiary, announced that it has received the second payment of $375,000 from a major oil and gas exploration and production company in connection with its previously announced $2.5 million service contract. This second payment represents a progress payment on the August 2006 contract earned after delivery of the first stage STeP® analysis report for an off-shore African oil and gas drilling prospect. In preparing its analysis, the company utilizes proprietary STeP technology which is based on interpretation of satellite data to effectively identify oil and gas as well as other minerals subsurface, on or off-shore. Shares ended at $0.20, unchanged from last week.
Junior oil and gas producer Patch International Inc. (OTCBB: PTCH) reported that the drilling activity on the company's natural gas project in northeastern British Columbia is currently proceeding ahead of schedule. The operator has informed Patch that the well is currently drilling in the target formation at 1930 meters and when the total depth of 2020 meters is reached, the operator will then immediately proceed to logging. Patch also announced last week that it has entered into a Farmout and Option Agreement in the Medicine Hat Area of Alberta. The Prospect is Shallow Oil with the Test Well to commence on or before the end of 2006. The company is participating in the drilling and completion as to forty (40%) percent Working Interest and, in the event the well is successful, interest reduces to twenty (20%) percent. Upon completion of the Test Well, Patch has an option to conduct a 3-D Seismic Program or, alternatively, proceed to drill the Option Well. In the event that the company elects to proceed with a 3-D Seismic Program, the election to commence a well on the Option Lands will be extended accordingly. An area of mutual interest has been established and an active acquisition program is currently underway. Should drill results be positive and in view of reduced Spacing Unit Requirements, it is possible up to eight to sixteen wells could be drilled on the project with Patch holding a twenty (20%) percent Working Interest. The stock ended the week down $0.04 at $0.95.
Junior oil and gas producer Strategic Oil & Gas, Ltd. (TSX Venture: SOG) provided an update of its Canadian and Wyoming exploration projects. The company has been advised by Gladius Energy Inc. that as a result of the success of its initial multi-well drill program in the Chedderville area of Alberta, an additional well has been spudded on earned lands. Strategic holds a 26.5% interest in the oil well which is expected to take three weeks to drill. In addition, the company's most recent wells in the Strachan and Pembina areas in Alberta are currently being completed and are expected to be in production prior to year end. In Pinedale, Wyoming the water zone encountered in the first well which was drilled (October 11/06 news) has now been isolated by a packer assembly. The well is currently producing 415 mcf/d of gas, 5 bbls/d of condensate and 40 bbls/d of water from the Mesa Verde and Lance formations and he second well is currently producing at a rate of 350 mcf/d of gas with 5 bbls/d of condensate and 100 bbls/d of water. Although the first two Pinedale wells has not met expectations, the company believes that the Jonah/Pinedale lands represent significant potential and discussions have begun to pursue alternative strategies to further the development of the project. Strategic continues to evaluate further prospects in the Western Canadian Sedimentary Basin and the Western United States. Shares ended the week up $0.13 at $1.18.
Sweet Success Enterprises, Inc. (OTCBB: SWTS), which has relaunched a product line made popular by Nestle’s to tap into the rapidly growing demand for convenient and nutritious beverages, announced that it has shipped its Power Blend all-natural energy drink to GNC, the largest global specialty retailer of nutritional supplements, for sales in stores nationwide. Power Blend, a juice-based energy drink fortified with Maca, Ginseng, and Guarana, is expected to be available at approximately 2,500 GNC stores for the holiday season. GNC, headquartered in Pittsburgh, Pa., is the largest global specialty retailer of nutritional products; including vitamin, mineral, herbal and other specialty supplements and sports nutrition, diet and energy products. The stock ended down a penny at $0.74.
A recent survey that confirms consumers on average spend 32% more per vending transaction when using a credit card confirmed the potential for USA Technologies, Inc. (OTCBB: USAT), a developer of cashless vending and energy management products, at the NAMA National Vending Expo in Orlando, Florida. The survey results were unveiled at USA Technologies' cashless vending education session attended by 50 vending operators, bottlers and the media, making it one of the most popular events at the convention. The seminar included speaker presentations from USA Technologies business partners, including MasterCard and Mid Atlantic Vending. The company announced during the expo that the Bank of America was using its e-Port cashless payment product line in beverage vending machines to become the first bank to target the $40 billion beverage vending market for credit card and other cashless payment transactions. USAT also announced the establishment of the USAT Capital Corp, LLC to help customers purchase and lease its full line of products. The company reported it had already closed a $100,000 sale through the corporation, and recently closed another sale for $500,000. Shares ended the week down $0.45 at $6.00.
On the Wires: CytRx (NASDAQ: CYTR) said that company president and CEO Steven A. Kriegsman received the Lou Gehrig Memorial Award from the Muscular Dystrophy Association. The award was presented in recognition of CytRx's dedication to finding a cure for amyotrophic lateral sclerosis. Language Access Network (OTC: LANW) announced the addition of James L. Ginter, Ph.D. to the company's Board of Directors. Dr. Ginter has served as a consultant to several organizations on a wide variety of research and management problems.
Are you looking into them??
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Kodiak Prepares for Winter Drilling at Caribou **
Based on very encouraging results from its Phase I exploration program at Caribou Lake, Kodiak Exploration Limited is preparing for a Phase II winter drill program to test several high-priority nickel-sulphide targets along the base of the Caribou Lake intrusion. Phase I established the presence of a large layered mafic intrusion highly anomalous in nickel, copper, cobalt and platinum group elements ("PGEs"). Phase II drilling will focus on large geophysical targets, many of which underlie significant concentrations of nickel-copper sulphides intersected during Kodiak's Phase I reconnaissance shallow drill program.
Kodiak's Phase I shallow drilling intersected significant volumes of primary disseminated, net-textured and massive nickel, copper and cobalt sulphides in 33 of 50 holes which tested the upper part of the Caribou Lake layered intrusion to a maximum depth of 180 metres along a nickel-copper-cobalt trend 9 kilometres in length. These results have helped the company identify numerous strong targets for the upcoming winter program. Set out below is a table of highlights from the 2006 drill program which shows numerous significant intersections containing copper and nickel sulphides over widths up to 69.71 metres (in Hole CL-06-39).
It is considered highly unusual and a very encouraging exploration result to find such large quantities of nickel and copper sulphides in the upper part of a mafic intrusion. Kodiak considers the degree of mineralization demonstrated by the shallow drilling to indicate that the intrusion was saturated with copper, nickel and cobalt sulphides at the time of emplacement, and that there is significant potential for large pools of higher grade sulphides at depth. Pentlandite granules, seen in many core samples from the iron-rich marginal and upper parts of the intrusion, are an additional indication that the original melt was nickel-rich. Since economic concentrations of nickel form by gravitational settling of liquid nickel sulphides, significant concentrations of nickel sulphides are considered likely to have pooled in traps formed by structural depressions along the base of the Caribou Lake intrusion. It is those traps which are the targets of Kodiak's planned Phase II drill program.
Using a combination of 3D magnetic imaging and analysis of deep conductivity responses from high-resolution VTEM data, Kodiak's geophysicists have identified multiple structural traps where copper, nickel and cobalt sulphides may have pooled at various depths below upper portion of the intrusion tested by the Phase I drill program. Individual targets range from 200 to 500 metres long and from 200 to 700 metres wide, and any one of these is large enough to host a significant ore body.
Twelve of 25 targets identified to date have a cumulative length of 4.5 kilometres and a cumulative width of 3.6 kilometres. Interpretation of data is ongoing, and is expected to result in the identification of additional targets. A working 3D model showing the targets identified to date, and how they correlate with the results of the Phase I exploration program, will be posted on Kodiak's Web site at www.kodiakexp.com
Many of the Phase II drill targets lie beneath areas where nickel, copper and cobalt sulphides have been found on surface or in shallow drillholes, and several lie below surface fractures filled with high-grade hydrothermally remobilized niccolite, which could indicate the presence of prolific nickel sources at depth. A large structural trap of particular interest has been identified in the area beneath VTEM anomaly 5, which measures 700 metres east-west by 400 metres north-south. Above that structural trap, drill hole CL-06-39 intersected 69.71 metres of nickel sulphides, and drill hole CL-06-38 bottomed in disseminated copper and nickel sulphides at a depth of 177.7 metres. Kodiak plans to drill this high priority structural target early in the Phase II program
1 A total of 33 of 50 holes contain sulphide intersections with more than 0.1% nickel and/or 0.1% copper
2 niccolite and sulphides
3 hole bottomed in mineralization
4 hole started in mineralization
In a recently completed petrographic study of 95 rock and drill core samples, nickel specialist Dr. Walter Peredery, P.Geo. identified pentlandite in 15 of 95 samples of marginal olivine gabbro and ultramafic rock from the middle part of the intrusion. Pentlandite occurs in the form of exsolution lamellae in pyrrhotite, as well as in granules 0.1-0.2 mm in size. As noted above, the presence of pentlandite granules in the upper and marginal parts of the intrusion is considered to be evidence of a nickel-rich system, providing further evidence that the Caribou Lake intrusion could host a significant nickel orebody at depth.
Dr. Peredery's study of the Caribou Lake intrusion describes a number of petrographic features which are typical of many nickeliferous intrusions worldwide. The Caribou Lake intrusion consists of a marginal phase of olivine gabbro, an Upper Layered Series consisting mostly of very coarse grained anorthositic gabbro, a Middle Layered Series which includes a wide variety of ultramafic rocks including magnetite-rich pyroxenite, peridotite and dunite, and a Lower Layered Series consisting of peridotite and olivine pyroxenite. Based on the chemistry and mineralogy of the intrusion, Dr. Peredery considers the Caribou Lake Gabbro to be tholeiitic in character. Major nickeliferous intrusions with tholeiitic chemistry include Noril'sk (Russia) and Duluth (USA).
Lower Layered Series rocks are believed to be the most prospective host for economic concentrations of nickel, copper and cobalt. The petrography of the Caribou Lake intrusion has shown that these rocks are olivine-rich, have a low primary magnetite content (2%) and contain magnesium-rich orthopyroxene and clinopyroxene interstitial to the olivine crystals. The presence of orthopyroxene in these rocks is regarded as significant because it is a possible indication of contamination of the magma. Addition of silica and sulphur to the system causes the formation of orthopyroxene and simultaneous scavenging of nickel from early-formed olivine to form a heavy nickel-sulphide liquid, which in sufficient concentrations can settle in pools along the base of the intrusion.
Kodiak previously announced that it had identified an anomalous "reef", or layer, in the upper part of the intrusion, containing very low amounts of copper and nickel sulphide, but highly anomalous concentrations of PGEs. A study of preliminary geochemical data indicates that within the Caribou Lake intrusion, base metals, magnesium and PGEs all occur in increased concentrations as one moves downward through the intrusion. Ultramafic rocks in the upper part of the Lower Layered Series have been found to contain up to 200 ppb PGEs, compared to an average 50 ppb PGEs contained in the reef previously identified in the upper part of the intrusion. It is now anticipated that the largest concentrations of PGEs are likely to be found with massive sulphide accumulations in the Lower Layered Series rocks along the base of the intrusion. This will be drill-tested during the Phase II program.
Kodiak is eagerly awaiting its upcoming Phase II drill program to test the economic potential of the Caribou Lake intrusion. Geological, geochemical, mineralogical and geophysical evidence all indicate that Caribou Lake has excellent potential to host multiple nickel, copper, cobalt and PGE ore bodies along the 9 kilometre trend.
The property is well located on the shore of Great Slave Lake near Yellowknife, with deep water access to the transcontinental railhead at Hay River. The nearest smelter is 1100 kilometres to the south, at Fort Saskatchewan, Alberta. Kodiak controls the Caribou Lake property 100%.
Drill core was logged on site by Kodiak's consulting geologists, under the supervision of Christopher Marmont, P. Geo. Core was then split under their supervision. One half was retained and stored on site for reference, and one half was sent for analysis. Blanks and duplicates were inserted at regular intervals as quality control. Additional standards, blanks and duplicate analyses were also employed by Acme.
Core samples were delivered to Acme Analytical Laboratories' Yellowknife preparation facility for crushing and pulverizing. Pulps were forwarded to Acme's Vancouver laboratory and assayed for Au, Pt and Pd by Fire Assay-ICP using a 30 gm inquart (method 3B-MS) and for multiple trace element geochemical analysis by ICP-MS using a four acid digestion (method code 1T-MS). Samples exceeding 0.5% copper or nickel and more than 0.1% cobalt were assayed using a hot 4-acid digest and ICP-ES (method code 7TD). Major elements were also determined for the selected samples by fusion-ICP-MS (method code 4A).
The information contained in this document has been reviewed and approved by Dr. Walter Peredery, P. Geo., and Trevor Bremner, P. Geo., who are qualified persons for the Caribou Lake project under the definitions established by National Instrument 43-101. Dr. Peredery and Mr. Bremner are independent consultants to Kodiak.
Note of Interest: Kodiak is also very pleased with the progress of ongoing exploration at its Hercules Gold Project in Ontario. We plan to release further results from this program in the immediate future.
Kodiak is a mineral exploration company with properties located in Canada. Maps, photographs, geological details and additional information may be reviewed on its Web site at www.kodiakexp.com
She's a Russian girl looking for a husband.
Ear on the Street
Barrick Gold Corp. (ABX : TSX : $34.83 | NYSE : US$30.87)
Q3 meets expectations
Blackmont Capital maintains "buy", 12-month target price is $44.50
Desjardins Securities maintains "buy", 12-month target price is US$47.50
Dundee Securities maintains "outperform", 12-month target price is $42.00
GMP Securities maintains "buy", 12-month target price is $50.00
Haywood Securities maintains "sector outperform", 12-month target price is $44.00
TD Newcrest maintains "buy", 12-month target price is cut to US$43.00
ACE Aviation Holdings (ACE.B : TSX : $38.54)
To report Q3 on November 10
Scotia Capital Markets maintains "sector underperform", 12-month target price is $36.50
Aeroplan Income Fund (AER.UN : TSX : $14.54)
To run joint promotion with DaimlerChrysler
Desjardins Securities maintains "hold", 12-month target price is $14.50
ARC Energy Trust (AET.UN : TSX : $22.46)
Q3 in line
Canaccord Adams places both rating and target price "under review"
CIBC World Markets maintains "sector perform", 12-month target price is $25.25
Scotia Capital Markets maintains "sector perform", 12-month target price is $22.50
TD Newcrest maintains "buy", 12-month target price is $24.00
Agrium (AGU : TSX : $32.31 | NYSE : US$28.61)
Poor Q3 EPS
CIBC World Markets maintains "sector outperform", 12-month target price is US$32.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $36.00
Armtec Infra. Income Fund (ARF.UN : TSX : $16.35)
Q3 DCPU above estimates
Scotia Capital Markets maintains "sector outperform", 12-month target price is $17.50
TD Newcrest maintains "buy", 12-month target price is cut to $18.00
Aurora Energy Resources (AXU : TSX : $13.50)
Drilling at jacqures Lake confirms wide zones of near-surface uranium
Canaccord Adams maintains "hold", 12-month target price is $11.70
Badger Income Fund (BAD.UN : TSX : $14.61)
Proposed trust tax changes
Canaccord Adams maintains "buy", 12-month target price is cut to $18.00
BCE Inc. (BCE : TSX : $27.63)
Q3 mixed
Credit Suisse maintains "neutral", 12-month target price is $31.00
Brookfield Properties (BPO : TSX : $41.94 | NYSE : US$37.10)
Q3 basically in line
CIBC World Markets maintains "sector perform", 12-month target price is raised to US$40.00
Raymond James maintains "outperform", 6-12 month target price is raised to US$43.00
Scotia Capital Markets maintains "sector underperform", 12-month target price is US$32.00
Breakwater Resources (BWR : TSX : $1.54)
Q3 misses
CIBC World Markets maintains "sector outperform", 12-month target price is $2.25
GMP Securities maintains "buy", 12-month target price is $2.60
Bioscrypt Inc. (BYT : TSX : $0.57)
Dismal Q3 in line
Desjardins Securities maintains "sell", 12-month target price is $0.50
CAE Inc. (CAE : TSX : $9.94 | CGT : NYSE : US$8.78)
To report Q2 on November 9
Scotia Capital Markets maintains "sector perform", 12-month target price is $10.75
Cameco Corp. (CCO : TSX : $37.91)
Q3 worse than expected
Credit Suisse maintains "outperform", 12-month target price is $46.00
CCS Income Trust (CCR.UN : TSX : $35.00)
Solid Q3
Raymond James maintains "strong buy", 6-12 month target price is $43.00
TD Newcrest maintains "buy", 12-month target price is $43.00
CanWest Global Communications (CGS : TSX : $10.18)
Proposed trust tax changes
Desjardins Securities maintains "hold", 12-month target price is cut to $11.00
GMP Securities maintains "buy", 12-month target price is raised to $12.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $11.25
TD Newcrest maintains "buy", 12-month target price is cut to $12.00
Cineplex Galaxy Inc Fund (CGX.UN : TSX : $11.90)
Q3 ahead of expectations
Raymond James maintains "outperform", 6-12 month target price is $14.50
CI Financial Income Fund (CIX.UN : TSX : $24.28)
Proposed trust tax changes
Credit Suisse maintains "neutral", 12-month target price is cut to $27.00
Celestica Inc. (CLS : TSX : $10.87 | NYSE : US$9.64)
Sell-off is overdone
Scotia Capital Markets maintains "sector perform", 12-month target price is $15.00
Cinch Energy (CNH : TSX : $1.29)
Q3 meets expectations
Canaccord Adams maintains "buy", 12-month target price is $2.50
Cordero Energy (COR : TSX : $6.90)
Q3 in line
Raymond James maintains "outperform", 6-12 month target price is $9.50
Canadian Tire Corporation (CTC.A : TSX : $73.80)
To report Q3 on November 9
Scotia Capital Markets maintains "sector perform", 12-month target price is $73.50
CanWest MediaWorks (CWM.UN : TSX : $7.00)
Solid Q4
CIBC World Markets maintains "sector perform", 12-month target price is $7.50
Scotia Capital Markets downgrades to "sector underperform", 12-month target price is $6.90
TD Newcrest maintains "buy", 12-month target price is $7.25
Cyries Energy Inc. (CYS : TSX : $12.29)
New Street coverage
Canaccord Adams initiates coverage with a "buy", 12-month target price is $17.00
Draxis Health (DAX : TSX : $5.05 | DRAX : NASDAQ : US$4.46)
Solid Q3
Desjardins Securities maintains "buy", 12-month target price is US$5.25
Scotia Capital Markets maintains "sector outperform", 12-month target price is US$6.00
TD Newcrest maintains "action list buy", 12-month target price is US$6.50
Labopharm Inc. (DDS : TSX : $5.68 | DDSS : NASDAQ : US$5.01)
Q3 sales miss
Blackmont Capital maintains "buy", 12-month target price is $9.00
Canaccord Capital maintains "buy", 12-month target price is $12.00
CIBC World Markets maintains "sector outperform", 12-month target price is $10.00
Dundee Securities places the rating "under review", 12-month target price is $7.00
Duke Energy Income Fund (DET.UN : TSX : $10.12)
Proposed trust tax changes
Scotia Capital Markets maintains "sector perform", 12-month target price is $11.50
easyhome (EH : TSX : $15.50)
To report Q3 tomorrow
Blackmont Capital maintains "hold", 12-month target price is $17.00
Emergis (EME : TSX : $5.32)
Light Q3 sales but EPS beats expectations
Credit Suisse maintains "neutral", 12-month target price is raised to $5.50
Fording Canadian Coal Trust (FDG.UN : TSX : $25.04)
Proposed trust tax changes
Credit Suisse maintains "neutral", 12-month target price is $23.00
FNX Mining Company (FNX : TSX : $15.90)
Q3 in line
Scotia Capital Markets maintains "sector perform", 12-month target price is $14.00
Groupe Laperriere & Verreault (GLV.A : TSX : $25.07)
Weak Q2
Blackmont Capital maintains "buy", 12-month target price is $32.00
Raymond James maintains "strong buy", 6-12 month target price is $35.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $31.00
Goldcorp Inc. (G : TSX : $30.34 | GG : NYSE : US$26.78)
Lowers production guidance for second half of 2006
Dundee Securities downgrades to "neutral", 12-month target price is $30.80
TD Newcrest maintains "buy", 12-month target price is cut to US$34.00
Garda World Security Corp (GW : TSX : $20.60)
Acquisition of a traditional security guard company
Desjardins Securities maintains "buy", 12-month target price is $29.25
Dundee Securities maintains "outperform", 12-month target price is $27.00
Harris Steel Group (HSG : TSX : $31.00)
Better than expected Q3
Blackmont Capital maintains "hold", 12-month target price is $29.75
Raymond James maintains "outperform", 6-12 month target price is raised to $34.00
HSE Integrated (HSL : TSX-V : $2.00)
Highly levered to oilfield activities
Blackmont Capital maintains "buy", 12-month target price is cut to $3.00
IGM Financial (IGM : TSX : $47.43)
Q3 comes in as expected
CIBC World Markets maintains "sector perform", 12-month target price is $49.50
GMP Securities maintains "buy", 12-month target price is $56.50
Scotia Capital Markets maintains "sector perform", 12-month target price is $58.00
IPSCO Inc. (IPS : TSX : $100.35 | NYSE : US$88.84)
The NS Group acquisition is progressing
Scotia Capital Markets maintains "sector outperform", 12-month target price is $136.00
K-Bro Linen Income Fund (KBL.UN : TSX : $11.68)
Q3 reported last Friday
Blackmont Capital maintains "buy", 12-month target price is $14.00
KCP Income Fund (KCP.UN : TSX : $7.75)
Weak Q3
TD Newcrest downgrades to "buy", 12-month target price is cut to $8.00
Keyera Facilities Income Fund (KEY.UN : TSX : $18.19)
Proposed trust tax changes
Scotia Capital Markets maintains "sector perform", 12-month target price is $19.50
Kingsway Financial Services (KFS : TSX : $25.60 | NYSE : US$22.66)
Another steady quarter
CIBC World Markets maintains "sector perform", 12-month target price is $28.50
Desjardins Securities maintains "buy", 12-month target price is $32.50
TD Newcrest maintains "hold", 12-month target price is US$23.00
Legacy Hotels Real Estate Tr. (LGY.UN : TSX : $9.12)
Strong long term fundamentals
Canaccord Capital maintains "hold", 12-month target price is increased to $9.25
Raymond James upgrades to "outperform", 12-month target price is $8.92
Scotia Capital Markets maintains "sector perform", 12-month target price is $10.00
TD Newcrest maintains "buy", 12-month target price is $10.00
Labrador Iron Ore Royalty (LIF.UN : TSX : $25.30)
Government taxation surprise
CIBC World Markets maintains "sector outperform", 12-month target price is $30.00
Manulife Financial (MFC : TSX : $38.02 | NYSE : US$33.62)
Strong Q3
Desjardins Securities maintains "top pick", 12-month target price is "under review"
Scotia Capital Markets maintains "sector perform", 12-month target price is $41.00
TD Newcrest downgrades to "buy", 12-month target price is increased to $43.00
MKS Inc. (MKX : TSX : $2.11)
Disappointing Q2 coming
Desjardins Securities downgrades to "sell", 12-month target price is decreased to $2.25
Metallica Resources (MR : TSX : $4.09)
Promising outlook
Canaccord Capital maintains "buy", 12-month target price is $5.65
Methanex Corp. (MX : TSX : $25.90 | MEOH : NASDAQ : US$22.90)
Secures natural gas
Scotia Capital Markets maintains "sector underperformer", 12-month target price is increased to $24.00
Norbord Inc. (NBD : TSX : $8.73)
Downgrade on stock price appreciation
Desjardins Securities downgrades to "hold", 12-month target price is $8.75
Northbridge Financial (NB : TSX : $30.84)
Poor Q3
Scotia Capital Markets downgrades to "sector underperformer", 12-month target price is $35.00
NuVista Energy Ltd (NVA : TSX : $14.11)
Q3 offers no surprises
Canaccord Capital maintains "buy", 12-month target price is $18.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $17.25
North West Company Fund (NWF.UN : TSX : $16.05)
Expecting volatility
Dundee Securities maintains "outperform", 12-month target price is "under review"
Osprey Media Income Fund (OSP.UN : TSX : $5.70)
Q3 to be reported tomorrow
TD Newcrest maintains "hold", 12-month target price is $5.50
Open Text (OTC : TSX : $20.17 | OTEX : NASDAQ : US$17.84)
Agreed acquisition
CIBC World Markets maintains "sector perform", 12-month target price is US$20.00
Desjardins Securities maintains "hold", 12-month target price is US$20.00
Raymond James maintains "outperform", 6-12 month target price is US$24.00
Scotia Capital Markets upgrades to "sector ouperformer", 12-month target price is US$22.00
Pan American Silver (PAA : TSX : $25.17)
Q3 beats expectations
Blackmont Capital maintains "buy", 12-month target price is $41.00
Pengrowth Energy Trust (PGF.UN : TSX : $19.83)
Solid Q3
Canaccord Capital places both rating and target price is "under review"
CIBC World Markets maintains "sector perform", 12-month target price is $20.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $17.50
TD Newcrest maintains "reduce", 12-month target price is $17.00
Quest Capital Corp. (QC : TSX : $2.84)
Government taxation surprise
Canaccord Capital downgrades to "hold", 12-month target price is decreased to $3.00
Desjardins Securities maintains "buy", 12-month target price is $3.75
Priszm Canadian Income Fund (QSR.UN : TSX : $11.75)
Expecting volatility
Dundee Securities maintains "outperform", 12-month target price is "under review"
Rockyview Energy (RVE : TSX : $3.61)
Initiates coverage
Dundee Securities initiates coverage with a "outperform", 12-month target price is $5.00
Shoppers Drug Mart (SC : TSX : $45.97)
Q3 preview
Scotia Capital Markets maintains "sector outperform", 12-month target price is $53.50
Second Cup Royalty (SCU.UN : TSX : $9.30)
Q3 In-line with expectations
Scotia Capital Markets maintains "sector underperformer", 12-month target price is $8.50
Saxon Energy Services (SES : TSX : $4.42)
Q3 results positive
Raymond James maintains "strong buy", 6-12 month target price is $4.25
Stratos Global (SGB : TSX : $4.90)
Solid Q3
Canaccord Capital maintains "buy", 12-month target price is increased to $6.50
Desjardins Securities upgrades to "buy", 12-month target price is increased to $7.00
TD Newcrest maintains "strong buy", 12-month target price is $8.00
Sterling Resources (SLG : TSX-V : $1.53)
"Boar" is dry
Canaccord Capital maintains "buy", 12-month target price is $4.15
Silver Wheaton (SLW : TSX : $12.28)
Low production
Blackmont Capital maintains "buy", 12-month target price is $15.00
Stantec Inc. (STN : TSX : $23.24)
Solid Q3
Canaccord Capital maintains "buy", 12-month target price is $27.50
Raymond James maintains "outperform", 6-12 month target price is $22.38
Scotia Capital Markets maintains "sector perform", 12-month target price is $24.50
Sherwood Copper (SWC : TSX-V : $3.65)
High grade isolated
Blackmont Capital maintains "buy", 12-month target price is $5.60
Systems Xcellence (SXC : TSX : $18.10 | SXCI : NASDAQ : US$16.09)
Strong Q3
Blackmont Capital maintains "buy", 12-month target price is increased to US$20.50
Desjardins Securities maintains "buy", 12-month target price is $24.00
Taylor NGL LP (TAY.UN : TSX : $8.50)
Strong Q3
CIBC World Markets "sector outperform", 12-month target price is $8.50
TD Newcrest maintains "hold", 12-month target price is $8.00
Talisman Energy (TLM : TSX : $18.16 | NYSE : US$16.04)
Downward revisions
Blackmont Capital maintains "hold", 12-month target price is $20.50
CIBC World Markets maintains "sector ouperformer", 12-month target price is $24.00
Haywood Security maintains "sector ouperformer", 12-month target price is $23.00
Raymond James maintains "strong buy", 6-12 month target price is $25.50
Scotia Capital Markets maintains "sector outperform", 12-month target price is decreased to $26.00
TD Newcrest maintains "hold", 12-month target price is $20.00
Transalta Power Lp (TPW.UN : TSX : $7.81)
Initiates coverage
CIBC World Markets maintains "sector ouperformer", 12-month target price is $8.00
TELUS (T : TSX : $57.38)
Proposed trust tax changes
Credit Suisse maintains "outperform", 12-month target price is $62.00
Uni-Select Inc. (UNS : TSX : $29.30)
Acquisition of Tier Parts
Desjardins Securities maintains "buy", 12-month target price is $37.00
Vitran Corp. (VTN : TSX : $18.93 | VTNC : NASDAQ : US$16.82)
Neutral Q3
Canaccord Capital maintains "buy", 12-month target price is $22.50
Ear on the Street
AlarmForce Industries (AF : TSX : $4.89)
New Street coverage
Haywood Securities initiates coverage with a "sector outperform", 12-month target price is $6.25
Algoma Steel (AGA : TSX : $32.35)
Q3 weaker than expected
CIBC World Markets maintains "sector outperform", 12-month target price is $45.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $44.25
Amtelecom Income Fund (AMT.UN : TSX : $10.31)
Q3 DCPU slightly misses
TD Newcrest maintains "buy", 12-month target price is $11.50
Avenir Diversified Income Tr. (AVF.UN : TSX : $8.90)
Proposed tax on trust
Canaccord Adams maintains "buy", 12-month target price is cut to $9.00
Brookfield Asset Management (BAM.A : TSX : $50.56 | BAM : NYSE : US$44.88)
Q3 higher than expected
RBC Capital Markets maintains "sector perform", 12-month target price is US$49.00
Bombardier Inc. (BBD.B : TSX : $3.96)
Potential Q400 order from Flybe
Dundee Securities maintains "outperform", 12-month target price is $4.95
BFI Canada Income Fund (BFC.UN : TSX : $24.75)
Q3 to be reported today
TD Newcrest maintains "buy", 12-month target price is $26.50
Brookfield Properties (BPO : TSX : $41.91 | NYSE : US$37.12)
Q3 in line
Canaccord Adams maintains "hold", 12-month target price is raised to US$37.00
Canaccord Capital Inc. (CCI : TSX : $17.70)
To report Q2 on November 9
TD Newcrest maintains "hold", 12-month target price is cut to $21.00
CCL Industries (CCL.B : TSX : $28.35)
Aluminium cost can hurt growth
Dundee Securities maintains "outperform", 12-month target price is cut to $34.50
CML Healthcare Income Fund (CLC.UN : TSX : $13.00)
To report Q3 today
Blackmont Capital maintains "buy", 12-month target price is $14.25
Cumberland Resources (CLG : TSX : $5.43 | AMEX : US$4.83)
$87 million equity financing
Dundee Securities maintains "outperform", 12-month target price is $6.60
Canadian National Railway (CNR : TSX : $54.61 | CNI : NYSE : US$48.43)
Q3 beats expectations
Canaccord Adams maintains "hold", 12-month target price is raised to $56.00
Creststreet Power & Income (CRS.UN : TSX : $4.50)
Weak Q3
Scotia Capital Markets maintains "sector perform", 12-month target price is $4.50
Churchill Corporation (CUQ : TSX : $4.55)
To report Q3 this week
Blackmont Capital maintains "hold", 12-month target price is $5.50
Cyries Energy Inc. (CYS : TSX : $12.55)
An intermediate-sized gas-levered producer
Canaccord Adams maintains "buy", 12-month target price is $17.00
Dorel Industries (DII.B : TSX : $31.05 | DIIB : NASDAQ : US$27.54)
Q3 better than expected
Scotia Capital Markets maintains "sector perform", 12-month target price is US$30.50
Emera Inc. (EMA : TSX : $21.50)
Q3 in line
Canaccord Adams maintains "buy", 12-month target price is $24.00
CIBC World Markets maintains "sector perform", 12-month target price is $21.00
Scotia Capital Markets maintains "sector underperform", 12-month target price is $22.00
TD Newcrest downgrades to "hold", 12-month target price is $22.00
Equitable Group Inc. (ETC : TSX : $28.05)
To report Q3 today
Blackmont Capital maintains "buy", 12-month target price is $36.00
Firm Cap Mtg Invest Trust (FC.UN : TSX : $10.40)
Q3 meets expectations
TD Newcrest maintains "buy", 12-month target price is $12.00
Flint Energy Services Ltd. (FES : TSX : $57.50)
$450 million acquisition of Transco
Blackmont Capital maintains "buy", 12-month target price is cut to $81.00
TD Newcrest maintains "buy", 12-month target price is raised to $82.00
Fairfax Financial Holdings (FFH : TSX : $179.00 | NYSE : US$158.94)
Q3 better than expected
Scotia Capital Markets maintains "sector perform", 12-month target price is US$175.00
FNX Mining Company (FNX : TSX : $15.84)
Q3 in line
CIBC World Markets maintains "sector outperform", 12-month target price is $18.00
Dundee Securities maintains "outperform", 12-month target price is "under review"
Groupe Laperriere & Verreault (GLV.A : TSX : $26.36)
Strong H2/07 expected
Dundee Securities maintains "outperform", 12-month target price is cut to $30.75
Gennum Corp. (GND : TSX : $13.50)
A contract with Paratek Microwave
Scotia Capital Markets maintains "sector perform", 12-month target price is $16.00
Gentry Resources (GNY : TSX : $4.65)
New Street coverage
Dundee Securities maintains "outperform", 12-month target price is $6.75
Goldcorp Inc. (G : TSX : $29.28 | GG : NYSE : US$25.96)
The appeal brought by Robert McEwen dismissed
Blackmont Capital maintains "buy", 12-month target price is $34.50
Cdn. Hotel Income Properties (HOT.UN : TSX : $14.00)
Solid Q3
Canaccord Adams maintains "buy", 12-month target price is raised to $15.50
RBC Capital Markets maintains "sector perform", 12-month target price is raised to $14.75
Scotia Capital Markets maintains "sector outperform", 12-month target price is cut to $14.30
TD Newcrest maintains "buy", 12-month target price is $15.00
Heroux-Devtek Inc. (HRX : TSX : $4.89)
Margin expansion continues
CIBC World Markets maintains "sector perform", 12-month target price is raised to $5.50
Innergex Power Income Fund (IEF.UN : TSX : $11.92)
Q3 reported
Dundee Securities maintains "neutral", 12-month target price is $12.29
IGM Financial (IGM : TSX : $47.84)
Strong quarterly results
Dundee Securities maintains "outperform", 12-month target price is $60.00
K-Bro Linen Income Fund (KBL.UN : TSX : $10.35)
Q3 in line
Blackmont Capital maintains "buy", 12-month target price is cut to $13.00
Kinross Gold (K : TSX : $13.60 | KGC : NYSE : US$12.08)
Q3 meets expectations
Blackmont Capital maintains "buy", 12-month target price is $17.50
CIBC World Markets maintains "sector outperform", 12-month target price is US$18.00
Dundee Securities maintains "neutral", 12-month target price is $15.80
Labrador Iron Ore Royalty (LIF.UN : TSX : $25.67)
Proposed tax on trust
RBC Capital Markets maintains "underperform", 12-month target price is cut to $20.50
MEGA Brands (MB : TSX : $25.63)
Rose Art acquisition
CIBC World Markets maintains "sector ouperformer", 12-month target price is $32.00
Morguard Real Estate Inv Trust (MRT.UN : TSX : $11.98)
In-line Q3
Canaccord Capital maintains "hold", 12-month target price is increased to $12.50
Northbridge Financial (NB : TSX : $30.58)
Q3 reports
CIBC World Markets maintains "sector perform", 12-month target price is increased to $31.50
TD Newcrest maintains "hold", 12-month target price is decreased to $33.00
Parkland Income Fund (PKI.UN : TSX : $32.79)
High fuel margins
Scotia Capital Markets maintains "sector underperform", 12-month target price is $27.50
Primaris Retail REIT (PMZ.UN : TSX : $18.44)
In line Q3
Canaccord Capital maintains "buy", 12-month target price is $19.25
RBC Capital Markets maintains "sector perform", 12-month target price is increased to $18.50
RONA Inc. (RON : TSX : $23.21)
Acquisitions to boost growth
Blackmont Capital maintains "buy", 12-month target price is $28.00
Saputo Inc. (SAP : TSX : $36.10)
Q2/07 outlook
TD Newcrest maintains "buy", 12-month target price is $40.00
Shoppers Drug Mart (SC : TSX : $46.16)
Strong Q3
RBC Capital Markets maintains "outperform", 12-month target price is $56.00
Saxon Energy Services (SES : TSX : $4.33)
Government tax on income trusts
Dundee Securities maintains "top pick", 12-month target price is $7.50
Stratos Global (SGB : TSX : $4.84)
Adjusted Q3 EPS beats expectations
Scotia Capital Markets maintains "sector perform", 12-month target price is $5.50
Shiningbank Energy Income Fund (SHN.UN : TSX : $16.28)
Negative Q3
TD Newcrest maintains "hold", 12-month target price is $16.00
SNC-Lavalin Group (SNC : TSX : $29.70)
Strong Q3
RBC Capital Markets maintains "outperform", 12-month target price is increased to $42.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $34.50
Tahera Diamond (TAH : TSX : $1.00)
Negative Q3
TD Newcrest downgrades to "hold", 12-month target price is decreased to $1.20
Teranet Income Fund (TF.UN : TSX : $8.65)
Government tax on income trusts
Scotia Capital Markets maintains "sector perform", 12-month target price is decreased to $9.00
Transalta Power Lp (TPW.UN : TSX : $7.88)
Inline Q3
Canaccord Capital maintains "sell", 12-month target price is decreased to $7.00
TELUS (T : TSX : $57.11)
Wireless looking strong
Haywood Security upgrades to "sector outperform", 12-month target price is increased to $ 64.00
Scotia Capital Markets maintains "sector perform", 12-month target price is increased to $61.00
Vermilion Energy Trust (VET.UN : TSX : $33.78)
Strong Q3
Canaccord Capital maintains "hold", 12-month target price is decreased to $33.00
CIBC World Markets maintains "sector outperform", 12-month target price is $32.87
Scotia Capital Markets maintains "sector perform", 12-month target price is $35.00
TD Newcrest maintains "strong buy", 12-month target price is $36.00
VOXCOM Income Fund (VOX.UN : TSX : $9.35)
Price weakness
RBC Capital Markets upgrades to "outperform", 12-month target price is decreased to $9.50
Wescast Industries (WCS.A : TSX : $12.49)
Conservative sales and margin assumptions
Scotia Capital Markets maintains "sector ouperformer", 12-month target price is $14.24
Wellco Energy Services (WLL.UN : TSX : $7.25)
Strong Q3
Haywood Security maintains "sector ouperformer", 12-month target price is $9.00
TD Newcrest maintains "hold", 12-month target price is $8.00
Uranium Spot (U3O8 : US$60.00), Net Change: $0.00, % Change: 0.00%
Trivia question: Name a commodity to not have exhibited a downward “correction” from recent highs? Bloomberg ran a
story highlighting the interest many hedge funds are taking in uranium. “We’re in an historic uranium shortage,” said one
manager with US$580 million under management. “We’re in a global nuclear revival.” Uranium was up US$4 to $60 (7%) last
week and today’s price is expected to rise (the price will change after we go to press). Cameco’s (CCO) Cigar lake mine is
going to be delayed no less than a year but likely more (some believe indefinitely). It is about 18 million pounds production per
year and represents approximately 12% of annual world supply. Green-house friendly nuclear power plants are experiencing a
revival, as the current level of about 440 reactors is expected to grow to 505 over the next decade. The Reuters-Jeffries CRB
Index of commodities is down about 8% on the year, while uranium is up 66%. We wouldn’t quarrel with the bullish predictions
but we do wonder why, if consensus is so unanimous that prices are going much higher, why don’t they just get there quickly?
Alas, there are no futures on uranium (can you imagine a couple of glow rods being delivered to you doorstep?) and the weekly
price is based on the previous week’s contract prices. Uranium is not based on what a roomful of exuberant and vociferous
traders want to make it but on what real buyers and sellers are willing to pay today. Having said this, there are three major
uranium conferences in Q1 and they tend to have an effect.
We Gotta win some CASH John.
Some guys here are getting expensive tastes.
02 05 19 24 34 39 41
06 09 11 16 17 20 39
12 13 16 24 34 36 40
05 18 24 25 27 29 40
08 14 16 18 21 28 30
10 21 26 32 34 36 46
38 60 63 66
Nortel shares drop more than 10%
CATHERINE McLEAN
Tuesday, November 07, 2006
Nortel Networks Corp. on Tuesday posted a net loss of $99-million (U.S.) as expenses increased, and the telecommunications-equipment company pared its full-year forecast for revenue and profit margins.
The net loss of 2 cents per share in the three months ended Sept. 30, compared with a net loss of 3 cents a share, or $136-million, in the year-earlier period. While revenue rose 17 per cent to $2.96-billion, gross profit as a percentage of revenue slipped to 38 per cent in the quarter from 39 per cent in the same quarter of 2005. Toronto-based Nortel blamed pricing pressure for the decline.
Nortel adjusted its outlook for 2006. The company now expects mid- to high-single digit revenue growth for the full year, compared with an earlier target of high-single digit growth. It is also forecasting a gross margin of between 38 per cent and 39 per cent, down from a previous target of 40 per cent.
Chief executive officer Mike Zafirovski, who took the helm of Nortel a year ago, said he is pleased with growth in the company's revenue and operating margin. "However, we should and will be moving faster," he said in a statement on Tuesday. "Pricing pressures and the speed at which our revenues are shifting to next generation, early cycle products is increasing our challenge to drive profitability improvements."
Mr. Zafirovski said the company is accelerating plans to restructure the business in the face of those competitive pressures. He is trying to boost profitability through a number of actions, including selling some businesses to focus on product areas where Nortel can be a leader, and shifting production and research to lower-cost countries like China.
Nortel is moving to sharply reduce expenses in its general and administrative areas and cut material costs, and has amended its assembly contract with outsourcer Flextronics which has taken over Nortel production facilities, Zafirovski said, and "we are seeing improving trends in our customer and employee satisfaction."
But he has warned the turnaround will take time. Investors have seen their shares slip 29 per cent over the past year. The stock fell 29 cents (Canadian), or 10.74 per cent, to close at $2.41 on Tuesday on the Toronto Stock Exchange.
The stock will get a lift when Nortel consolidates its 4.3-billion shares in December on a 1 for 10 basis. The move is aimed at making the company's shares more attractive to institutional investors and investment funds.
"True shareholder value will be driven by ongoing progress and company performance, but this step helps create a better foundation on which to build," Nortel chief financial officer Peter Currie said on Tuesday in the statement.
Nortel Networks Corp.
..
Did it ever rain here. Got all of Nov's rain already this month.
Oh well. Today was not bad sun came out for a bit hit 15.
Just a BIG bad Gambling den of eniquity.
Calendar Of Canada Earnings Expected This Week
07:00 EST Monday, November 06, 2006
The following Canadian companies are among those tentatively scheduled to report their quarterly earnings during the week of Nov. 6 to Nov. 10.
Period First Call Mean
Monday Nov. 6
Extendicare Inc. (EXE.T) 3Q n/a
Golden Star Resources Ltd. (GSS) 3Q nil
Intermap Technologies Corp. (IMP.T) 3Q n/a
Manitoba Telecom Svcs (MBT.T) 3Q C$0.62
Novadaq Technologies Inc. (NDQ.T) 3Q n/a
Open Text Corp. (OTEX) 1Q 24c
Power Corp. of Canada (POW.T) 3Q C$0.60
Power Financial Corp. (PWF.T) 3Q C$0.61
Saxon Financial Inc. (SFI.T) 3Q n/a
Tesco Corp. (TESOF) 3Q n/a
Triant Holdings Inc. (TNT.T) 3Q n/a
Tucows Inc. (TCX) 3Q n/a
TVI Pacific Inc. (TVI.T) 3Q n/a
Tuesday Nov. 7
Allied Properties REIT (AP.UN.T) 3Q n/a
Axia NetMedia Corp. (AXX.T) 1Q n/a
BPO Properties Ltd. (BPP.T) 3Q n/a
Calfrac Well Services Ltd. (CFW.T) 3Q C$0.60
Easyhome Ltd. (EH.T) 3Q n/a
Ember Resources Inc. (EBR.T) 3Q n/a
Enerflex Systems Ltd. (EFX.T) 3Q n/a
Equitable Group Inc. (ETC.T) 3Q C$0.55
Gerdau Ameristeel Corp. (GNA) 3Q 39c
Guardian Capital Grp Ltd. (GCG.T) 3Q n/a
Killam Properties Inc. (KMP.T) 3Q n/a
LAB Research Inc. (LRI.T) 3Q n/a
Magna Intl Inc. (MGA) 3Q $1.29
MDC Partners Inc. (MDCA) 3Q n/a
Nortel Networks (NT) 3Q 1c
Quebecor Inc. (QBR.B.T) 3Q C$0.51
Quebecor World Inc. (IQW) 3Q 25c
Rona Inc. (RON.T) 3Q C$0.52
Saputo Inc. (SAP.T) 2Q C$0.56
Uni-Select Inc. (UNS.T) 3Q C$0.55
Vector Aerospace Corp. (RNO.T) 3Q n/a
Westaim Corp. (WEDX) 3Q n/a
WFI Industries Ltd. (WFI.T) 3Q n/a
Yamana Gold Inc. (AUY) 3Q n/a
Wednesday Nov. 8
Alexis Nihon REIT (AN.UN.T) 3Q n/a
Atrium Biotechnologies (ATB.T) 3Q C$0.22
Bema Gold Corp. (BGO) 3Q nil
Carmanah Technologies (CMH.T) 3Q C$0.01
Cascades Inc. (CAS.T) 3Q C$0.22
Chartwell Seniors Housing (CSH.UN.T)3Q n/a
Cominar REIT (CUF.UN.T) 3Q n/a
Constellation Software Inc. (CSU.T) 3Q C$0.30
Crombie REIT (CRR.UN.T) 3Q n/a
Digital Dispatch Systems (DD.T) 3Q n/a
Dynetek Industries Ltd. (DNK.T) 3Q n/a
EGI Financial Holdings Inc. (EFH.T) 3Q n/a
Enerchem Intl Inc. (ECH.T) 3Q n/a
Intrinsyc Software Intl (ICS.T) 4Q n/a
Linamar Corp. (LNR.T) 3Q C$0.28
Mediagrif Interactive (MDF.T) 2Q C$0.12
Pason Systems Inc. (PSI.T) 3Q n/a
Points Intl Ltd. (PTS.T) 3Q n/a
Quadra Mining Ltd. (QUA.T) 3Q n/a
Royal Host REIT (RYL.UN.T) 3Q n/a
Shoppers Drug Mart Corp. (SC.T) 3Q C$0.57
Sun-Rype Products Ltd (SRF.T) 3Q n/a
TLC Vision Corp. (TLCV) 3Q 4c
West Energy Ltd. (WTL.T) 3Q n/a
Workbrain Corp. (WB.T) 3Q 2c
Thursday Nov. 9
Axcan Pharma Inc. (AXCA) 4Q 19c
Biovail Corp. (BVF) 3Q 65c
Boralex Inc. (BLX.T) 3Q n/a
CAE Inc. (CGT) 2Q C$0.11
Calian Technologies Ltd. (CTY.T) 4Q n/a
Canaccord Capital Corp. (CCI.T) 2Q n/a
Canadian Apartment Ppties (CAR.UN.T)3Q n/a
Canadian Tire Corp. (CTC.T) 3Q C$1.10
CSI Wireless Inc. (CSY.T) 3Q (C$0.04)
Dundee REIT (D.UN.T) 3Q n/a
Find Energy Ltd. (FE.T) 3Q n/a
Flint Energy Svcs Ltd. (FES.T) 3Q n/a
Fortis Inc. (FTS.T) 3Q n/a
Four Seasons Hotels Inc. (FS) 3Q 29c
Gluskin Sheff + Associates (GS.T) 1Q n/a
Great Canadian Gaming Corp. (GCD.T) 3Q C$0.08
Guest-Tek Interactive (GTK.T) 2Q n/a
Hanfeng Evergreen Inc. (HF.T) 3Q n/a
Highpine Oil & Gas Ltd. (HPX.T) 3Q n/a
IMAX Corp. (IMAX) 3Q 5c
ING Canada Inc. (IIC.LV.T) 3Q C$1.14
Ivanhoe Energy Inc. (IVAN) 3Q n/a
Lions Gate Entertainment (LGF) 3Q (2c)
Mad Catz Interactive (MCZ) 2Q n/a
MediSolution Ltd. (MSH.T) 2Q n/a
MI Developments Inc. (MIM) 3Q n/a
Newfoundland Capital (NCC.A.T) 3Q n/a
Newwest Gold Corp. (NWG.T) 3Q n/a
Niko Resources Ltd. (NKO.T) 2Q n/a
Polaris Minerals Corp. (PLS.T) 3Q n/a
Pure Energy Services Ltd. (PSV.T) 3Q n/a
Rio Narcea Gold Mines (RNO) 3Q 12c
Savanna Energy Svcs Corp. (SVY.T) 3Q C$0.41
SR Telecom Inc. (SRX.T) 3Q n/a
Friday Nov. 10
ACE Aviation Holdings Inc. (ACE.B.T)3Q C$1.47
Alliance Atlantis Commun (AACB) 3Q C$0.30
Anvil Mining Ltd. (AVM.T) 3Q n/a
Calloway REIT (CWT.UN.T) 3Q n/a
First Capital Realty Inc. (FCR.T) 3Q n/a
H&R REIT (HR.UN.T) 3Q n/a
HudBay Minerals Inc. (HBM.T) 3Q C$0.90
IAMGold Corp. (IAG) 3Q 13c
InnVest REIT (INN.UN.T) 3Q n/a
McGraw-Hill Ryerson (MHR.T) 3Q n/a
Miranda Technologies (MT.T) 3Q C$0.20
Northstar Aerospace Inc. (NAS.T) 3Q C$0.07
PLM Group Ltd. (PGL.T) 3Q n/a
Sino-Forest Corp. (TRE.T) 3Q n/a
Stelco Inc. (STE.T) 3Q n/a
Tri-Vision International (TVL.T) 2Q n/a
TSO3 Inc. (TOS.T) 3Q n/a
Warnex Inc. (WNX.T) 3Q n/a
Zenas Energy Corp. (ZNS.T) 3Q n/a
Zi Corp. (ZICA) 3Q n/a
Estimates supplied by First Call are operating income per share based on a survey of three or more analysts.
Figures in parentheses are losses.
(END) Dow Jones Newswires
11-06-06 0700ET
Copyright (c) 2006 Dow Jones & Company, Inc.
The only bad thing is it will end up costing me 36 mill.
You may have the winning ticket on the 649...
But I have thne winning ticket on the "Cougar 69"
I usually do. Cept this last time I missed a few eeks then won another buck.
I only won a buck on my ticket.
Are we in for Wednessdays 36 mill on the 649?
Just enough!
November 2, 2006 - Vancouver, Canada - Endeavour Silver Corp. (EDR: TSX, EDRGF: PNK, and EJD: FSE)
Endeavour Silver Corp. plans to release its third quarter financial results on the morning of Tuesday, November 14, 2006. A conference call to discuss the Q3 results will be held at 1:15 PM Pacific Time (4:15 PM Eastern Time) the same day. To participate in the conference call, please dial the following:
1-877-461-2814 Canada & USA (Toll-Free)
416-695-9753 Toronto area callers
No pass code necessary
A replay of the conference call will be available until November 28, 2006 by dialing 1-888-509-0081 in Canada & USA (Toll-free) or 416-695-5275 in the Toronto area. The required pass code is 634620.
A simultaneous webcast plus a podcast of the conference call will be posted on the home page of the company's website, www.edrsilver.com.
Endeavour Silver Corp. (EDR: TSX, EDRGF: PNK, and FSE: EJD) is a silver mining company focused on the growth of its silver production, reserves and resources in Mexico. The expansion program now underway at the high grade Guanacevi Mines Project in the state of Durango should develop Endeavour into the ranks of the top five primary silver producers.
On Behalf of the Board of Directors,
ENDEAVOUR SILVER CORP.
/s/ "Bradford J. Cooke"
Bradford J. Cooke
Chairman and CEO