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Canada Finance Min Says No Trust-Tax Delay For Telus>TU
18:37 EST Thursday, November 02, 2006
OTTAWA (Dow Jones)--Canadian Finance Minister Jim Flaherty Thursday said telecommunications company Telus Corp. (TU) won't be given a grace period before new rules to tax trusts take effect.
"We had to draw the line somewhere and we drew the line at those trusts that were publicly trading as of Oct. 31, 2006, and Telus was not," Flaherty told reporters after a question period in Parliament.
Telus in September announced its plan to convert to an income trust. But the company said it's reassessing the move after Flaherty late Tuesday announced a surprise plan to tax income trusts. Existing trusts will be taxed beginning in 2011. New trusts will start paying taxes next year.
The move roiled the market Wednesday, with the income trust index plunging 12.4%, and the broader market falling 2.4%. The S&P/TSX Composite Index recovered some of the losses Thursday, closing up 0.67% at 12130.73.
Flaherty said he had anticipated the market would fall on the tax plan, and that it was "very unfortunate" and "regrettable" that investors suffered losses.
But he defended his action. "The government has a duty to act in the long-term interests of Canada and Canadians and that's what we did in terms of tax fairness, in terms of making sure that we have a more productive economy going forward," he said.
Flaherty said there has been an acceleration in companies converting to trusts solely for tax reasons. He said he had heard "fairly reliably from several sources" that more conversions were in the pipeline.
"Not only an acceleration of the quantity but also the nature of the trust, moving into telecommunications and then potentially into financial services," he said.
-By Nirmala Menon, Dow Jones Newswires; 613-237-0668; nirmala.menon@ dowjones.com
(END) Dow Jones Newswires
11-02-06 1836ET
Copyright (c) 2006 Dow Jones & Company, Inc.
Canaccord lambastes trust plan
BOYD ERMAN
Thursday, November 02, 2006
Canaccord Capital is at it again, weighing into the debate on income trust taxation with a strongly worded report that accuses the federal government of a “knee-jerk” reaction to income trusts that puts a “for-sale sign on Canadian energy resources.”
Canaccord called the plan by the Conservative minority government to tax trust distributions a threat to the country's energy sector, which will be swallowed by foreigners, a threat to the retirement incomes of seniors and a threat to national unity that will “exacerbate inter-provincial tensions.” The brokerage last year went on the attack when the then-Liberal government considered taxing trusts, calling the idea “morally indefensible” and urging Canadians to contact members of Parliament to urge a halt to any plan to tax trusts.
The investment dealer's research department revived that tactic again this year after the Tory government said it will tax trust distributions to get rid of any tax advantage over regulator corporations. The report contains the e-mail addresses and phone numbers of every member of Parliament, including Prime Minister Stephen Harper.
Don't you just love Alberta????
Greetings Alberta Star Investors,
Please note several viewing opportunities regarding Uranium as listed below:
FRIDAY, November 3, 2006
MARKET MONITOR: Canadian and American Audience
James Dines, Editor of The Dines Letter will be interviewed
by NBR Anchor Paul Kangas about recent stock market performance, the outlook
and some favourite stock picks.
5:30 PM Channel 27 Please Check your local PBS Listing for time and Channel
SATURDAY, November 4, 2006
GLOBAL TELEVISION Canadian Audience Only *****Please Note*****
Kevin Newman looks at the local aboriginal "Sahtu" Deline Nation. The story is about uranium, the mines that produced it, its effect on the local Indians, the atomic bomb (Manhattan Project), the Canadian Gov'ts involvement, and what is happening with uranium and its demand today.
****FILMING WAS SHOT UP AT OUR (ASX) ALBERTA STAR CONTACT LAKE CAMP, THE OFFICE OF ALBERTA STAR in Vancouver, AND IN NEW YORK A CONVERSATION WITH JAMES DINES (THE ORIGINAL URANIUM BUG).******
7:00 PM Global TV **Please Check your local Global Listing for Time and Channel
(Toronto Time)
Regards,
Allan Feldman
Corporate Communications
Alberta Star Development Corporation
www.allnfel@aol.com
Toronto Closing Sector Indexes
17:01 EST Thursday, November 02, 2006
Sector Indexes .
Consumer Discretionary 109.24 up 0.52 or 0.48%
Consumer Staples 184.52 up 1.51 or 0.83%
Health Care 46.12 off 0.34 or 0.73%
Telecom Services 89.81 off 0.47 or 0.52%
Utilities 193.00 off 1.51 or 0.78% .
Sub-Industry Indexes .
Gold 305.83 up 2.44 or 0.80%
Mining 587.68 up 4.84 or 0.83%
Real Estate 219.64 off 3.36 or 1.51% .
(END) Dow Jones Newswires
TORRENT TO PRESENT AT THE PIPES CONFERENCE NOVEMBER 7 & 8 IN NEW YORK CITY
Portland, Oregon - November 2, 2006 – Torrent Energy Corporation (the Company) (OTCBB: TREN) will present at the 4th Annual PIPEs Conference 2006 being held in New York City at the Waldorf-Astoria Hotel on November 7 and 8, 2006.
John Carlson, President of Torrent Energy will be presenting Tuesday November 7 at 10:30am EST in the conference room “Norse” and again on the same day at 1:30pm EST in the conference room “Gramercy”. On Wednesday Mr. Carlson will be presenting at 10:30am EST in conference room “Metropolitan East”.
About Torrent Energy Corporation
Torrent Energy Corporation is a growing exploration company focusing on developing non-conventional natural gas reserves in the Northwestern United States. The Company’s primary objective is to create value for stakeholders by applying strong technical expertise to projects. The current focus of the Company’s Washington subsidiary, Cascadia Energy Corp., is on the exploration of the Chehalis Basin project in southwestern Washington where the Company currently has a land portfolio that includes over 155,000 acres of prospective land. The Company’s Oregon subsidiary, Methane Energy, is focused on the Coos Bay Basin project in southwestern Oregon State where it holds substantial lease commitments.
For more information please visit www.torrentenergy.com.
On behalf of the Board of Directors,
TORRENT ENERGY CORPORATION
John Carlson, President & CEO
For more information contact:
Bruce Nurse, Corporate Communications
info@torrentenergy.com
1-800-676-TREN (8736)
Ear on the Street
Astral Media (ACM.A : TSX : $38.69)
Downgrade based on share price appreciation
Desjardins Securities maintains "hold", 12-month target price is $43.00
ATCO Ltd. (ACO.X : TSX : $41.45)
Q3 EPS beats expectations
Scotia Capital Markets maintains "sector underperform", 12-month target price is $42.00
Agnico-Eagle Mines (AEM : TSX : $42.19)
Higher zinc and copper price
Blackmont Capital maintains "hold", 12-month target price is raised to $42.00
Arctic Glacier Income Fund (AG.UN : TSX : $11.83)
New Street coverage
Scotia Capital Markets maintains "sector perform", 12-month target price is $14.25
Algoma Steel (AGA : TSX : $33.21)
Positioned to report strong Q3
Scotia Capital Markets maintains "sector outperform", 12-month target price is $51.00
Altus Group Income Fund (AIF.UN : TSX : $11.00)
Misplaced fear on the surveying business
Canaccord Adams maintains "buy", 12-month target price is $16.75
Alcan Inc. (AL : TSX : $51.50 | NYSE : US$45.38)
Q3 in line
Blackmont Capital maintains "buy", 12-month target price is US$55.00
Desjardins Securities maintains "top pick", 12-month target price is US$71.80
RBC Capital Markets maintains "outperform", 12-month target price is US$66.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $60.00
BCE Inc. (BCE : TSX : $28.32)
Government to close trust window
Haywood Securities downgrades to "sector underperform", 12-month target price is cut to $28.00
Birchcliff Energy (BIR : TSX : $4.35)
$26 million in equity financing
Canaccord Adams maintains "buy", 12-month target price is $6.00
Biomira Inc. (BRA : TSX : $1.43)
Acquires early-stage biotech company
GMP Securities maintains "reduce", 12-month target price is $1.20
Buhler Industries (BUI : TSX : $5.50)
CEO to sell up to 2.25 million shares
Blackmont Capital maintains "sell", 12-month target price is $5.15
Mahalo Energy (CBM : TSX : $2.51)
Highlighted by M&A activity
GMP Securities maintains "buy", 12-month target price is $7.00
Canfor Corporation (CFP : TSX : $11.27)
To distribute 30% of pulp partnership
RBC Capital Markets maintains "sector perform", 12-month target price is $9.50
Scotia Capital Markets maintains "sector perform", 12-month target price is $11.90
Cinram International (CRW.UN : TSX : $21.72)
Government plans to tax income trust more like corporations
Credit Suisse maintains "outperform", 12-month target price is $35.00
Canadian Tire Corporation (CTC.A : TSX : $71.35)
Sale of Sheppard distribution facility
Scotia Capital Markets maintains "sector perform", 12-month target price is $73.50
Centurion Energy International (CUX : TSX : $8.85)
A possible sale of the company
GMP Securities maintains "buy", 12-month target price is $11.00
Labopharm Inc. (DDS : TSX : $5.74)
Q3 preview
Canaccord Capital maintains "buy", 12-month target price is $12.00
Domtar Inc. (DTC : TSX : $7.50 | NYSE : US$6.60)
Q3 beats expectations
Desjardins Securities maintains "hold", 12-month target price is raised to $8.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is US$7.25
TD Newcrest maintains "hold", 12-month target price is raised to $8.00
Dynatec Corp. (DY : TSX : $1.79)
Two additional partners for Ambatovy
Scotia Capital Markets maintains "sector perform", 12-month target price is $1.90
Enbridge Income Fund (ENF.UN : TSX : $12.55)
Q3 in line
Scotia Capital Markets maintains "sector perform", 12-month target price is $14.00
EPCOR Power L.P. (EP.UN : TSX : $27.26)
Q3 DCPU exceeds expectations
Scotia Capital Markets maintains "sector outperform", 12-month target price is $33.50
Fairborne Energy Trust (FEL.UN : TSX : $10.70)
Completes $100 million debt financing
CIBC World Markets maintains "sector perform", 12-month target price is $13.50
Fraser Papers (FPS : TSX : $6.90)
Improved Q3
Scotia Capital Markets maintains "sector underperform", 12-month target price is $6.50
FirstService Corp. (FSV : TSX : $26.80 | FSRV : NASDAQ : US$23.60)
Q2 in line
RBC Capital Markets maintains "outperform", 12-month target price is US$28.00
TD Newcrest maintains "buy", 12-month target price is cut to $33.00
Fortis Inc. (FTS : TSX : $25.89)
Strong Q3
Canaccord Adams maintains "buy", 12-month target price is $28.00
CIBC World Markets maintains "sector perform", 12-month target price is raised to $26.00
RBC Capital Markets maintains "outperform", 12-month target price is $31.00
TD Newcrest maintains "hold", 12-month target price is raised to $25.00
Far West Mining (FWM : TSX : $3.85)
Good drilling results from Santo Domingo
Blackmont Capital maintains "hold", 12-month target price is cut to $4.75
Gaz Metro LP (GZM.UN : TSX : $16.74)
Green Mountain Power approves merger with GZM
Scotia Capital Markets maintains "sector perform", 12-month target price is $18.25
Home Equity Income Trust (HEQ.UN : TSX : $12.11)
Q3 ahead of forecasts
RBC Capital Markets maintains "outperform", 12-month target price is $13.70
Harris Steel Group (HSG : TSX : $28.00)
Rising earnings estimates
Blackmont Capital maintains "hold", 12-month target price is $29.75
Hardwoods Distribution (HWD.UN : TSX : $4.86)
Q3 slightly below expectations
Scotia Capital Markets maintains "sector perform", 12-month target price is $6.00
Intrepid Mines (IAU : TSX : $0.84)
Equipment problems impact costs
Blackmont Capital maintains "buy", 12-month target price is $1.40
Imperial Oil (IMO : TSX : $37.86)
Profitable Quarter
Canaccord Capital maintains "buy", 12-month target price is $45.00
CIBC World Markets maintains "sector perform", 12-month target price is $39.00
Desjardins Securities maintains "hold", 12-month target price is $35.00
Scotia Capital Markets maintains "sector underperformer", 12-month target price is $45.75
TD Newcrest maintains "buy", 12-month target price is $48.00
Kimber Resources (KBR : TSX : $2.32)
Resolution to proxy battle
Blackmont Capital maintains "buy", 12-month target price is $5.25
Manitoba Telecom Services (MBT : TSX : $45.00)
Income trust value revision
Haywood Security maintains "sector perform", 12-month target price is reduced to $47.00
RBC Capital Markets maintains "outperform", 12-month target price is $54.00
MacDonald Dettwiler & Assoc. (MDA : TSX : $41.61)
Strong Q3 results
Canaccord Capital maintains "buy", 12-month target price is $60.00
Credit Suisse First Boston maintains "outperform", 12-month target price is $60.00
GMP Securities maintains "hold", 12-month target price is $46.50
RBC Capital Markets maintains "top pick", 12-month target price is $55.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $42.00
MI Developments Inc. (MIM.A : TSX : $41.16 | MIM : NYSE : US$36.29)
Application dismissed
Scotia Capital Markets maintains "sector underperformer", 12-month target price is $39.00
Marsulex Inc. (MLX : TSX : $8.25)
Income trust value revision
Blackmont Capital maintains "buy", 12-month target price is decreased to $9.75
Metallica Resources (MR : TSX : $3.70)
Blasting permitted
Blackmont Capital maintains "buy", 12-month target price is $4.25
Canaccord Capital maintains "buy", 12-month target price is increased to $5.65
Morguard Real Estate Inv Trust (MRT.UN : TSX : $11.35)
Q3 inline
RBC Capital Markets maintains "outperform", 12-month target price is increased to $12.50
Pan American Silver (PAA : TSX : $25.31)
Metal price review
Blackmont Capital maintains "buy", 12-month target price is increased to $41.00
Parkland Income Fund (PKI.UN : TSX : $32.23)
Strong marketing margins
RBC Capital Markets maintains "outperform", 12-month target price is "under review"
Potash Corp. of Saskatchewan (POT : TSX : $144.99 | NYSE : US$127.79)
Mine flood positive
Scotia Capital Markets maintains "sector ouperformer", 12-month target price is increased to $164.00
Resolve Business Outsourcing (RBO.UN : TSX : $7.57)
Exceeding expectations
RBC Capital Markets maintains "sector perform", 12-month target price is $9.50
Rogers Communications (RCI.B : TSX : $67.37)
Strong performance
Canaccord Capital maintains "sell", 12-month target price is increased to $55.00
Desjardins Securities maintains "top pick", 12-month target price is increased to $80.00
GMP Securities maintains "buy", 12-month target price is increased to $73.00
Haywood Security maintains "outperform", 12-month target price is increased to $80.00
RBC Capital Markets maintains "top pick", 12-month target price is increased to $81.00
TD Newcrest maintains "buy", 12-month target price is increased to $82.00
Research In Motion (RIM : TSX : $131.48 | RIMM : NASDAQ : US$115.96)
Higher forecasts
Scotia Capital Markets maintains "sector ouperformer", 12-month target price is increased to $161.00
Russel Metals (RUS : TSX : $28.05)
Continued margin expansion
CIBC World Markets maintains "sector ouperformer", 12-month target price is decreased to $31.00
Scotia Capital Markets maintains "sector perform", 12-month target price is increased to $30.50
SNC-Lavalin Group (SNC : TSX : $29.74)
Sale of its defence / munitions business expected to close shortly
RBC Capital Markets maintains "outperform", 12-month target price is $38.00
Sherritt International (S : TSX : $11.27)
Operating earnings from metal division increased by 79% qoq and 150% yoy
Desjardins Securities maintains "buy", 12-month target price is raised to $13.15
GMP Securities maintains "buy", 12-month target price is raised to $15.35
RBC Capital Markets maintains "sector perform", 12-month target price is $11.00
sxr Uranium One (SXR : TSX : $12.11)
Uranium one advances towards production in Q1/07
Canaccord Adams maintains "speculative buy", 12-month target price is raised to $13.50
Teck Cominco Ltd. (TCK.B : TSX : $80.00 | TCK : NYSE : US$70.54)
Q3 down owing to lower zinc sales
Canaccord Adams reiterates "buy", Target price is $90.00
CIBC World Markets maintains "sector outperform", 12-month target price is $95.00
GMP Securities maintains "buy", 12-month target price is $100.00
Haywood Securities maintains "sector outperform", 12-month target price is $100.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $80.00
TD Newcrest maintains "buy",12-month target price is $95.00
Talisman Energy (TLM : TSX : $18.02 | NYSE : US$15.97)
Talisman plans to operate two rigs in Alaska this coming winter drilling season
Scotia Capital Markets maintains "sector outperform", 12-month target price is $26.75
TSO3 Inc. (TOS : TSX : $2.57)
Remains a favourite
Canaccord Capital maintains "buy", 12-month target price is $5.50
TransCanada Corp. (TRP : TSX : $36.40 | NYSE : US$32.10)
Q3 Powers past expectations
Canaccord Adams maintains "buy", 12-month target price is $40.00
CIBC World Markets maintains "sector outperform", 12-month target price is raised to $41.00
RBC Capital Markets maintains "outperform", 12-month target price is $44.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $41.00
TD Newcrest maintains "buy", 12-month target price is raised to $41.00
TELUS (T : TSX : $56.92)
Government puts a stop to trusts
Haywood Securities downgrades to "underperform", 12-month target price is cut to $62.00
RBC Capital Markets maintains "outperform", 12-month target price is cut to $64.00
UE Waterheater Income Fund (UWH.UN : TSX : $13.05)
Announces better than expected distribution increase
CIBC World Markets maintains "sector outperform", 12-month target price is $15.75
TD Newcrest maintains "buy", 12-month target price is $16.50
Workbrain Corp (WB : TSX : $8.65)
Workbrain sued by Utah based park city group for patent infringement
RBC Capital Markets maintains "sector perform", 12-month target price is $10.00
Wescast Industries (WCS.A : TSX : $12.08)
Weak results due to weak margins
Scotia Capital Markets maintains "sector underperform", 12-month target price is $15.75
TD Newcrest maintains "reduce", 12-month target price is cut to $10.00
Yellow Pages Income Fund (YLO.UN : TSX : $12.25)
Government introduces taxation on trusts
RBC Capital Markets places recommendation and target "under review"
Yukon Zinc (YZC : TSX-V : $0.29)
Expects to complete an optimization study for the wolverine project later this month
Blackmont Capital upgrades to "buy", 12-month target price is raised to $0.70
Didn't they try this last year???
Russia proposes doubling gas price to Georgia
Financial Times
MOSCOW/TBILISI, Nov 2 (Reuters) - Russia's gas monopoly Gazprom is seeking to more than double gas prices for Georgia from 2007, a company official said on Thursday amid a simmering political crisis between the two states.
The official said Gazprom wanted Georgia to pay $230 per 1,000 cubic metres, up from $110 now. If the price is agreed the impoverished country will have to match the bills of top rich European nations, which pay roughly the same price.
"This is our proposal. A deal has yet to be reached," the Gazprom official said.
Georgia's Finance Ministry said on Tuesday the price of gas for 2007 would be discussed at a meeting between Georgian officials and Gazprom in November-December.
On Thursday, Georgia's state minister for economic reforms, Kakha Bendukidze, said the increase was expected and had little economic motivation.
"I don't know if this price is final but to me it is clear that this is not a market price, this is a political decision," Bendukidze told Reuters.
Georgia is heavily dependent on Russia for exports and imports. And relations with its giant northern neighbour, rocky since pro-Western President Mikhail Saakashvili swept to power in 2004, have since plunged to unprecedented lows.
A ban on key Georgian exports, wine and mineral water, has been in place for months, with Russia citing health concerns.
The Kremlin then froze air, sea and postal links last month after Georgia briefly detained four Russian officers on spying charges and accused Tbilisi of plotting to use force to restore control over two separatist regions.
POLITICAL DECISION
Bendukidze said Tbilisi was keen to see what price Gazprom offers to Georgia's neighbours - Azerbaijan and Armenia.
David Bakradze, general director of Itera-Georgia, one of the country's largest gas consumers, said his firm had not yet been officially notified about the price increase.
Georgia consumes around 2 bcm of gas a year, of which Gazprom supplies around 1.5 bcm. Itera-Georgia will buy 360 million cubic metres from Gazprom next year, up from 250 million cubic metres this year.
Gazprom, the world's largest gas producer, has said it will stop subsidising economies in the former Soviet Union and will seek payments closer to its European export prices, which currently stand at around $230-250 per 1,000 cubic metres.
On Wednesday, Russian and Georgian foreign ministers held the first talks since the latest wave of the tensions began.
Russian news agencies said that President Vladimir Putin, who previously expressed willingness to make efforts to improve ties between the two countries, has refused to meet Georgia's foreign minister Gela Bezhuashvili.
But Russian business daily Kommersant quoted Bezhuashvili as saying that the meeting between him and Putin has not been on the agenda.
PM defends going back on promise
STEVEN CHASE AND BRIAN LAGHI
Thursday, November 02, 2006
OTTAWA — The Stephen Harper government mounted an aggressive defence Wednesday of its decision to break an election promise by taxing income trusts, saying the economic landscape had changed dramatically since this year's ballot.
Both the Prime Minister and his Finance Minister, Jim Flaherty, were forced to justify the tax as investors anxious about the measure drove the benchmark Standard & Poors/TSX composite down 294.2 points, or 2.4 per cent, to 12,050.39, and Opposition Liberals accused the Tories of lying because they reneged on a pledge to avoid taxing trusts.
The income-trust sector, meanwhile, warned that the tax could spell the end of an investment vehicle that until this week had a market value of more than $200-billion.
Mr. Harper told the House of Commons that his party's campaign promise didn't take into account the latest wave of companies converting to trusts.
“Lots has changed with income trusts in the past year, including tax holidays for major corporations that this government does not and will not support,” Mr. Harper said. “The commitment of this party was not that we would have no taxes for Telus. It was not that we would have no taxes for BCE.”
But federal Liberals blasted the Tory decision, calling it a breach of trust, and said Canadians will suffer heavy financial losses. The Liberals also threw back at Mr. Harper his own words during the election campaign, when he said a Conservative government would not impose any new taxes.
“Canadians who voted for the Prime Minister did so based on a deception. What is equally concerning, they invested their life savings based on a false promise,” said Opposition Leader Bill Graham.
Mr. Flaherty defended the stock market-shaking tax as the only way to stop a domino effect of mass corporate conversions to trusts, which pay few corporate taxes. “It was not entirely speculative to think, ‘Well, if one of the banks [converts] to an income trust, they all will.' Then where will we be?” he told The Globe and Mail's editorial board.
He said Telus Corp. and BCE Inc.'s decisions to convert to trusts were the last straw.
Investor reaction to the trust tax drove down the unit prices of trusts and share prices of companies such as Telus and BCE. Shares of Telus fell $8.78 to close at $56.15 a share on the Toronto Stock Exchange, and BCE's shares dropped $3.60 to $28.10 a share.
Mr. Flaherty said the Tories were worried about more major conversions — perhaps including a financial institution or an energy company — and had been lobbied by chief executives who didn't want to be forced to convert to trusts.
“They were reluctantly and regretfully doing this,” Mr. Flaherty said.
Income trusts pay little or no corporate tax, instead shovelling out the bulk of earnings to investors, who are taxed individually. Critics said Ottawa and the provinces never recouped all the lost revenue and ended up losing hundreds of millions of dollars in revenue each year.
The income-trust sector warned that the Conservative move could mean extinction for this investment vehicle.
“It could potentially shut it down,” said George Kesteven, president of the Canadian Association of Income Funds. “I don't think they understand entirely the consequence of what they have done.”
Despite the opposition outrage, the Liberals were not willing to say how they would vote on the legislation, while the NDP and the Bloc Québécois appeared to offer qualified backing for the idea.
Mr. Harper later accused the Liberals of not supporting tax relief for seniors, a policy Mr. Flaherty also announced Tuesday in an effort to cushion the blow of the new trusts tax, which is being absorbed in large part by Canadian senior citizens.
But the announcement still sparked complaints to MPs' offices.
Lee Richardson, the Conservative member for Calgary Centre, said he has received a number of calls from brokers and trusts alike who are upset with the decision.
“We've been getting a lot of e-mails and a lot of calls all day and the majority are opposed,” he said.
He added that the move was the right one and that large corporations should have assumed that the government would move, particularly after large corporations started getting into the game.
The move drew praise from Bank of Canada Governor David Dodge, who said it levelled the playing field between trusts and corporations.
“The actions that the government took regarding the tax treatment of income trusts would appear to eliminate the tax incentive to use one form of corporate organization over another,” he said. “Businesses now face a level playing field in choosing the form of corporate organization that allows capital to be allocated to its most efficient use.”
Housing starts set for three-year slide
TAVIA GRANT
Thursday, November 02, 2006
Housing starts will likely decline over the next three years, while the blistering pace of price increases is expected to slow, a housing report predicted Thursday.
Starts are seen dropping 7.5 per cent next year and another 10.9 per cent between 2007 and 2010, Canada Mortgage and Housing Corp. said.
Price increases, meantime, are set to slow from their blistering pace. This year, prices are expected to rise an average of 11.5 per cent -- the highest increase since 1989. In 2007 however, higher listings and lower sales mean price growth will slow to 5.7 per cent, the national housing agency said.
A strong labour market and a boom in the West has prompted a flurry of real-estate activity in recent years. That may start to ease next year, the report said.
"In 2007, starts will resume their downward trend when home ownership demand is dampened due to the continued erosion of the pent-up demand that built up during the 1990s and the rise in mortgage carrying costs," said Bob Dugan, CMHC's chief economist.
Starts are expected to reach 227,900 units this year on the back of record activity in Alberta and fall to 210,900 units next year.
Existing home sales, which are seen lower than last year, are forecast to fall further in 2007. That said, the level of sales will still be the third highest on record, CMHC said.
That is true. I'm not going to whine about it.
There are other things other than trusts.
Like the Frankfurt exchange.
Life is just full of suprises.
Was cold and frosty. The rain is supposed to start today for about a week.
Took a few days off work to relax.
So here I am.
Cursin' the Gov't.
I was going to load the RRSP with all trusts. Glad I didn't.
I think that we should stick to the pennies. That way we don't expecxt too much.
Been cold here in the Morn' too.
Monday it was about -08
Mornin' John.
Explaination for it's valuation:
Teaching Math In 1950: A logger sells a truckload of
lumber for $100. His cost of production is 4/5ths of the
price. What is his profit?
Teaching Math In 1960: A logger sells a truckload of
lumber for $100. His cost of production is 4/5ths of the
price, or $80. What is his profit?
Teaching Math In 1970: A logger exchanges a set "L" of
lumber for a set of "M" of money. What is the cardinality of the set "P" of profits?
Teaching Math In 1980: A logger sells a truckload of
lumber for $100. His cost of production is $80 and his
profit is $20. Your assignment: Underline the number 20.
Teaching Math In 1990: By cutting down beautiful forest
trees, the logger makes $20. What do you think of this way
of making a living? Topic for class participation after
answering the question: How did the forest birds and
squirrels feel as the logger cut down the trees. (There
are no wrong answers)
Teaching Math In 2000: A logger sells a truckload of
lumber for $100. His cost of production is $120. How does
Arthur Anderson determine that his profit margin is $60?
Teaching Math in 2005: El hachero vende un camion carga
por $100. La cuesta de production es
Trying to do math with the Gov'ts calculations....
Who the F**k knows.
Anglo Swiss seeks parent of diamondiferous dike
Anglo Swiss Resources Inc (C:ASW)
Shares Issued 68,402,688
Last Close 10/27/2006 $0.06
Monday October 30 2006 - Street Wire
by Will Purcell
A drill program on a property north of Lac de Gras will test an intriguing target near the diamondiferous LI-201 kimberlite. First, Leonard Danard's Anglo Swiss Resources Inc. will have to find the money. The drill targets lie at the northern end of the Lac de Gras kimberlite cluster and the LI-201 body proved significantly diamondiferous in a test during the late 1990s. It will get a new look as well. A diamond find will be crucial to the project, as Anglo Swiss must spend increasing amounts of cash under its option deal with New Shoshoni Ventures Ltd.
The plan
Anglo Swiss completed a geophysical survey over the Lac de Gras property and collected another round of till samples. The work revealed several targets slated for drilling from the ice next spring. The company plans to retest the LI-201 dike to get a better notion of its size and diamond content, but that body lies on land, and it could become a summer program.
Kennecott Canada Exploration Inc. discovered LI-201 in 1997, when Tahera Corp. still held the ground. At the time, the partners thought the body was a pipe, about 80 metres in diameter. Two drill holes produced 280 kilograms of kimberlite and the rock produced 60 diamonds larger than a 0.15-millimetre cut-off. The size distribution was encouragingly coarse, as three stones sat on a 0.5-millimetre screen and one of the diamonds apparently was of commercial interest.
The find did not interest Kennecott or Tahera because of its small size and they abandoned the ground a few years ago. Anglo Swiss's partner believes the body is a kimberlite dike trailing away from a larger body, and the latest geophysical data provides a likely target for that larger pipe. That feature lies under a small lake, so the company will test it early next year, along with a few nearby features. As well, the uncertainties about the size, geometry and diamond content of LI-201 make it worth a new look.
The cash problem
Anglo Swiss picked up its option to earn 60 per cent of the play in the spring of 2005 and it completed the required $200,000 in exploration during the first year of the deal. The company must spend $400,000 in the second year and another $800,000 in the third year. To earn its initial 50-per-cent share, Anglo Swiss must also spend $1.6-million by mid-2009. The company can earn another 10 per cent by spending a few more millions after that.
Anglo Swiss will undoubtedly want to prove or kill its targets early, allowing it the chance to walk away before spending large amounts of cash on the project. The company's shares traded below a dime through the summer and early fall, and a diamond find would provide a welcome boost and allow the company to attract new backers.
Anglo Swiss will need to drill several holes to warrant a program, and that would cost at least a few hundred thousand dollars. The company had a working capital deficiency of about $250,000 at the start of summer, so it will have to complete a new share sale over the next few months to get a drill turning.
Anglo Swiss dropped one-half cent to six cents Friday on 73,000 shares.
TORRENT ACQUIRES 25,664 ACRE LEASE IN CHEHALIS BASIN AREA
Seattle, Washington – October 31, 2006 – Torrent Energy Corporation (the “Company”) (OTCBB: TREN) is pleased to announce the following developments from its wholly owned operating subsidiary, Cascadia Energy Corp. (“Cascadia”).
On October 10, 2006 our wholly owned operating subsidiary, Cascadia Energy Corp., entered into an Oil & Gas Lease on 25,664 acres of lands in southwestern Washington. The initial term of the lease is 4 years under standard industry terms. With the addition of this lease Cascadia’s current acreage now includes 40,637 acres under four to six year terms and 115,237 acres under lease option terms that include approximately $500,000 in exploration commitments prior to November 2007. Cascadia has a 60% interest in these lands and is operator of the Chehalis Basin project.
Cascadia has completed moving into a new office in Portland, Oregon which combines its land, exploration, operations and financial groups into one location. Address and phone information can be accessed on the Company’s new website www.cascadiaeenergy.com.
Torrent’s President & CEO, John Carlson, states “We have now consolidated a large land position in the Chehalis Basin and have completed much of the internal geological and geophysical groundwork necessary to identify exploration leads within the Basin. We will be fine-tuning these leads in the coming weeks in anticipation of picking the initial four drilling locations, filing for drilling permits and securing a rig to be on location in late 2006 or early in 2007. We expect the Chehalis Basin project to add significant value to the Company’s shareholders once the first drilling program begins and the prospective exploration targets are fully evaluated.“
Saxon Oil Completes First Hudson Hills Well
DALLAS, TEXAS -- Saxon Oil Company Ltd. (TSX-V: SXN) is actively engaged in several oil and natural gas projects and prospects. Most notable is the Hudson Hills prospect in Central Texas. In early October Saxon completed its first well in the prospect. The well is averaging 30 bbls of oil per day during its first few weeks of production. In addition, Saxon, which holds a 75% working interest in the prospect, has drilled two wells adjacent to the first well that should be on production shortly. Saxon has leased approximately 2,000 acres in this area and will continue development of this prospect.
Saxon used a new completion technique called Radial Jet Drilling at Hudson Hills. This technology cuts one-inch holes approximately 300 feet horizontally into the prospective producing formation, creating a larger drainage area for the flow of oil and gas. This new technique has the potential to increase a well's ability to drain the surrounding reservoir. We will continue to experiment with this technology on other wells in the area.
Success at Hudson Hills was part of the impetus behind Saxon's recent acquisition of the 1,000 acre Heatherwood prospect neighboring Hudson Hills. Saxon anticipates drilling its first Heatherwood well before the end of the year and a second well shortly thereafter. Saxon currently holds a 100% working interest in this prospect.
The primary zone of interest in both the Heatherwood and Hudson Hills prospects is the Upper Cretaceous Navarro sandstone formation, a shallow oil-bearing sand ranging in depth from 2,800 to 4,000 ft. Saxon plans to leverage its experience in and understanding of the geographical area and geological formation, together with the operational techniques being implemented and refined on the Hudson Hills prospect, to lower operating costs and maximize ultimate recovery of reserves in Heatherwood.
In Washita County, Oklahoma, we are in the final stages of completing the Seger Indian Well #2-22 on the Cobb Creek prospect. The completion has been delayed while we wait on a compressor to be delivered to the well site. At this time, we do not think the well will be as strong as we originally anticipated. We believe the well has suffered some near-wellbore damage that is impeding flow. We are exploring other options with the well, but deem the well commercially viable enough to go ahead and complete now. Further, by completing the well we will retain our lease on the Cobb Creek prospect, which consists of 1,973 acres.
Saxon has committed to participate in two West Texas wildcat wells to be drilled in later this year. These wells will be drilled to the Ellenberger formation, known as a high-reserve formation when hydrocarbons are present.
Saxon owns a 10% interest in Preset Drilling Company, a shallow niche driller. Preset has three rigs running in Oklahoma and the Texas Panhandle. The newest rig is contracted to a major oil company for the next two years, on a day-rate basis.
In other company news, Saxon's Board of Directors appointed William Payne to the Board, replacing Larry Van Hatten, who resigned due to a conflict of interest with a new business affiliation. We want to thank Larry for his past contributions to the company as a member of its Board of Directors and Audit Committee. He will remain a consultant to the company. Mr. Tom Davis, a current Saxon board member, will head Saxon's Audit Committee.
Over the past few months Saxon has been in serious discussions with several companies about jointly developing acreage in the Barnett Shale. After a thorough due diligence, we have opted not to pursue these opportunities at this time. The high costs for leases, drilling rigs, and other equipment and services, coupled with the reduced selling price for natural gas, does not make the Barnett Shale as an attractive opportunity as it was a year ago. We continue to review prospects in many other areas, particularly in Central Texas where we believe there are number of shallow oil plays, similar to Hudson Hills and Heatherwood, which better fit our risk profile and growth strategy. In short, Saxon Oil remains firmly committed to finding and developing proper prospects that maximizes shareholder returns.
Saxon Oil Company is an independent energy company engaged in the acquisition, development and production of oil and natural gas reserves. Saxon is headquartered in Dallas, Tex., with operations in Texas, Oklahoma, Louisiana, and North Dakota.
Ear on the Street
Alliance Atlantis Commun. (AAC.B : TSX : $38.91)
The potential value in a takeout scenario
TD Newcrest maintains "action list buy", 12-month target price is raised to $46.00
Aeroplan Income Fund (AER.UN : TSX : $16.19)
Introduction of election of Aeroplan miles option for Tango fliers
Blackmont Capital downgrades to "sell", 12-month target price is $15.00
Angiotech Pharmaceuticals (ANP : TSX : $10.66 | ANPI : NASDAQ : US$9.46)
To report Q3 on November 1
Raymond James maintains "strong buy", 6-12 month target price is US$19.00
Aur Resources (AUR : TSX : $22.04)
Strong Q3
BMO Capital Markets downgrades to "market perform", 12-month target price is $24.00
Canaccord Adams maintains "buy", 12-month target price is $28.00
CIBC World Markets maintains "sector outperform", 12-month target price is $26.00
Credit Suisse maintains "neutral", 12-month target price is $21.00
Desjardins Securities maintains "hold", 12-month target price is raised to $25.30
GMP Securities maintains "buy", 12-month target price is raised to $24.35
Raymond James maintains "market perform", 6-12 month target price is $25.00
RBC Capital Markets maintains "underperform", 12-month target price is raised to $24.00
TD Newcrest downgrades to "hold", 12-month target price is $25.00
Bombardier Inc. (BBD.B : TSX : $3.72)
To issue €1.8 billion Euro bond
Canaccord Adams maintains "sell", 12-month target price is "under review"
Bank of Nova Scotia (BNS : TSX : $48.80)
Mexican unit reports earning up 30%
CIBC World Markets maintains "sector perform", 12-month target price is $54.00
Biovail (BVF : TSX : $17.45 | NYSE : US$15.52)
To report Q3 on November 9
BMO Capital Markets maintains "outperform", 12-month target price is US$19.50
Canada Bread Co. (CBY : TSX : $53.00)
Q3 misses
RBC Capital Markets maintains "underperform", 12-month target price is $53.00
Custom Direct Income Fund (CDI.UN : TSX : $7.80)
Q3 slightly misses
TD Newcrest maintains "buy", 12-month target price is cut to $11.50
Calpine Power Income Fund (CF.UN : TSX : $10.87)
Long-term toll agreement for the CEC
Desjardins Securities maintains "hold", 12-month target price is raised to $11.25
Canfor Corporation (CFP : TSX : $11.83)
Weak Q3 as expected
Desjardins Securities maintains "buy", 12-month target price is cut to $12.50
Raymond James maintains "market perform", 6-12 month target price is $12.50
RBC Capital Markets maintains "sector perform", 12-month target price is $9.50
TD Newcrest maintains "hold", 12-month target price is $11.50
CanWest Global Communications (CGS : TSX : $10.85)
To report Q4 on November 2
CIBC World Markets maintains "sector perform", 12-month target price is $11.50
Cineplex Galaxy Inc Fund (CGX.UN : TSX : $13.90)
To report Q3 on November 2
Raymond James maintains "outperform", 6-12 month target price is $16.00
Cangene Corp. (CNJ : TSX : $8.30)
Chair of board is retiring
RBC Capital Markets maintains "sector perform", 12-month target price is $11.00
Crescent Point Energy Trust (CPG.UN : TSX : $20.02)
Proposed reorganization
CIBC World Markets maintains "outperform", 12-month target price is $24.00
Consumers Waterheater Fund (CWI.UN : TSX : $16.00)
Q3 in line
BMO Capital Markets maintains "market perform", 12-month target price is raised to $15.50
CIBC World Markets maintains "sector perform", 12-month target price is raised to $16.00
TD Newcrest maintains "hold", 12-month target price is $16.00
Calloway REIT (CWT.UN : TSX : $28.80)
To acquire 16 shopping centres and development properties
Desjardins Securities maintains "buy", 12-month target price is $30.50
Duvernay Oil Corp (DDV : TSX : $33.72)
A strong niche player
Canaccord Adams maintains "buy", 12-month target price is $50.00
Dorel Industries (DII.B : TSX : $29.10 | DIIB : NASDAQ : US$25.95)
To report Q3 on November 3
RBC Capital Markets maintains "sector perform", 12-month target price is $30.00
Descartes Systems Group (DSG : TSX : $4.13 | DSGX : NASDAQ : US$3.66)
e-Manifest filing to be required for trucks crossing into the U.S.
GMP Securities maintains "buy", 12-month target price is $6.00
Energy Metals (EMC : TSX : $8.35)
Positive exploration results from Uranium Project in Texas
Raymond James maintains "strong buy", 6-12 month target price is $9.00
Emergis (EME : TSX : $5.52)
e-health expected to drive growth
CIBC World Markets maintains "sector outperform", 12-month target price is $6.25
Fraser Papers (FPS : TSX : $6.76)
Momentum slowing for most paper grades
RBC Capital Markets maintains "underperform", 12-month target price is $5.25
Gammon Lake Resources (GAM : TSX : $14.65 | GRS : AMEX : US$13.05)
Construction at Ocampo nearing completion
BMO Capital Markets maintains "outperform", 12-month target price is $25.00
Gateway Casinos Income Fund (GCI.UN : TSX : $18.22)
Odds remain in favour of limited near-term growth
RBC Capital Markets maintains "sector perform", 12-month target price is $18.50
Groupe Laperriere & Verreault (GLV.A : TSX : $26.00)
To report Q2 on November 2
BMO Capital Markets maintains "outperform", 12-month target price is $32.00
Great-West Lifeco (GWO : TSX : $31.55)
Reports Q3/06 on Wednesday, November 1
TD Newcrest maintains "hold", 12-month target price is $31.00
Home Equity Income Trust (HEQ.UN : TSX : $13.80)
Well positioned to capitalize on the pending retirement of baby boomers
RBC Capital Markets maintains "outperform", 12-month target price is cut to $15.00
Industrial Alliance Ins & Fin (IAG : TSX : $32.90)
Higher individual insurance new business could put pressure on earnings growth
TD Newcrest maintains "hold", 12-month target price is $35.00
International Forest Products (IFP.A : TSX : $6.30)
Earnings declined sequentially due to weaker U.S. housing activity
CIBC World Markets maintains "sector outperform", 12-month target price is $8.50
TD Newcrest maintains "buy", 12-month target price is $7.50
ING Canada (IIC : TSX : $57.60)
Increasing excess capital puts focus on M&A or a special dividend
TD Newcrest maintains "buy", 12-month target price is $63.00
Inmet Mining (IMN : TSX : $53.60)
Commencement of Production at Las Cruces still on target for early 2008
Blackmont maintains "hold", 12-month target price is $54.00
Desjardins Securities maintains "hold", 12-month target price is $56.40
Raymond James reiterates "outperform", 6-12 month target price is $70.00
RBC Capital Markets maintains "top pick", 12-month target price is $65.00
IPSCO Inc. (IPS : TSX : $103.83 | NYSE : US$92.38)
The NS acquisition will add value
BMO Capital Markets maintains "market perform", 12-month target price is raised to $123.00
Cossette Communication Group (KOS : TSX : $7.91)
Francois Duffar to step aside from day-to-day operations
Desjardins Securities reiterates "hold", 12-month target price is $10.00
MacDonald Dettwiler & Assoc. (MDA : TSX : $41.89)
Base business sound, HIP to provide upside
CIBC World Markets maintains "sector outperform", 12-month target price is $55.00
Dundee Securities maintains "market underperform", 12-month target price is $36.60
Manulife Financial (MFC : TSX : $36.22 | NYSE : US$32.24)
To report Q3/06 results on Thursday, November 2
TD Newcrest maintains "buy", 12-month target price is $42.00
Marsulex Inc. (MLX : TSX : $8.65)
Earnings growth is being driven by Stablex and Petcoke services acquisitions.
Blackmont Capital maintains "buy", 12-month target price is $10.00
Masters Energy (MSY : TSX : $4.05)
Q3/06 results as expected
Dundee Securities maintains "market outperform", 12-month target price is $5.00
Norbord Inc. (NBD : TSX : $8.12)
Q3/06 EPS of $0.05
Desjardins Securities maintains "buy", 12-month target price is $8.75
Raymond James maintains "outperform", 6-12 month target price is $9.00
RBC Capital Markets maintains "sector perform", 12-month target price is $8.75
TD Newcrest reiterates "buy", 12-month target price is $10.50
Northbridge Financial (NB : TSX : $31.21)
Q3/06 results on November 2; clean quarter ahead?
TD Newcrest maintains "hold", 12-month target price is raised to $34.00
Northern Orion Resources (NNO : TSX : $4.98 | NTO : AMEX : US$4.43)
Aqua Rica feasibility updated
Canaccord Adams maintains "hold", 12-month target price is cut to $5.00
Opta Minerals Inc (OPM : TSX : $3.40)
Q3 report immanent
Blackmont Capital maintains "buy", 12-month target price is $4.75
Paladin Resources (PDN : TSX : $5.12)
Initiating coverage
GMP Securities initiates "buy", 12-month target price is $7.00
Peak Energy Services Trust (PES.UN : TSX : $8.79)
Initiating coverage
TD Newcrest initiates "hold", 12-month target price is $8.50
Parkland Income Fund (PKI.UN : TSX : $34.12)
Solid quarter expected
Raymond James maintains "outperform", 6-12 month target price is increased to $33.50
Research In Motion (RIM : TSX : $131.99 | RIMM : NASDAQ : US$117.31)
Anticipated demand for Pearl
BMO Capital Markets maintains "outperform", 12-month target price is US$130.00
Rothmans Inc. (ROC : TSX : $20.57)
Earnings decline
Blackmont Capital maintains "hold", 12-month target price is $21.00
BMO Capital Markets maintains "market perform", 12-month target price is $22.50
Strongco Income Fund (SQP.UN : TSX : $15.08)
Q3 disappoints
BMO Capital Markets maintains "market perform", 12-month target price is cut to $16.00
Canaccord Adams upgrades to "buy", 12-month target price is cut to $19.00
Desjardins Securities maintains "buy", 12-month target price is cut to $22.00
Stantec Inc. (STN : TSX : $22.67)
Q3 preview on regional housing starts
Dundee Securities maintains "outperform", 12-month target price is $26.70
Sierra Wireless (SW : TSX : $13.47 | SWIR : NASDAQ : US$11.99)
Strengthen position across the board
Dundee Securities maintains "outperform", 12-month target price is $21.00
Teranet Income Fund (TF.UN : TSX : $10.50)
Initiating coverage
Desjardins Securities initiates "buy", 12-month target price is $12.50
Total Energy Services (TOT.UN : TSX : $13.12)
Initiating coverage
TD Newcrest initiates "buy", 12-month target price is $17.00
TimberWest Forest Corp. (TWF.UN : TSX : $13.54)
Q3 weaker than expected
CIBC World Markets maintains "sector perform", 12-month target price is decreased to $14.00
RBC Capital Markets maintains "sector perform", 12-month target price is $14.00
TD Newcrest maintains "hold", 12-month target price is decreased to $14.00
Wellco Energy Services (WLL.UN : TSX : $8.95)
Initiating coverage
TD Newcrest initiates "hold", 12-month target price is $9.20
Yellow Pages Income Fund (YLO.UN : TSX : $14.94)
Low Q3 preview
Blackmont Capital maintains "buy", 12-month target price is $19.00
Dundee Securities maintains "outperform", 12-month target price is $18.50
RBC Capital Markets upgrades to "outperform", 12-month target price is $17.00
Sleep Country Canada (Z.UN : TSX : $26.00)
Q3 stronger than expected
BMO Capital Markets maintains "market perform", 12-month target price is $26.00
Canaccord Capital maintains "buy", 12-month target price is $30.00
TD Newcrest "buy", 12-month target price is $31.00
Time to start buying again.
Titanium Corporation begins final phase
of oil sands Pilot Program
First phase completed on time and within budget
Toronto, Ontario....November 1, 2006...Titanium Corporation Inc. [“Titanium”, TSX-V:TIC] is pleased to announce that it has completed the first phase of its 2006 Pilot Program on-site in Fort McMurray, Alberta, to isolate a heavy minerals concentrate from fresh oil sands tailings on time and within its original budget of C$3 million. Titanium now begins the final stage of the Pilot Program to optimize recovery and separation of zircon minerals from this heavy minerals concentrate at its state-of-the-art facility in Regina.
The first phase of the 2006 Pilot Program involved the operation of a pilot heavy minerals concentrator on-site in Fort McMurray at the oil sands tailings site and was crucial to finalizing Titanium’s process flow sheet to achieve optimum heavy minerals recovery and separation from mined oil sands tailings.
The second, and final, stage of the process involves further separation of the heavy minerals concentrate produced at Titanium’s pilot concentrator through zircon separation circuits at its Regina facility. Titanium expects to finalize the results of its Pilot Program during the first quarter of 2007.
Titanium's engineering team redesigned the heavy minerals recovery process flow sheet following technical work carried out last year to focus the first phase of project development on the production of zircon. An expansion phase to produce titanium minerals will follow Titanium’s planned commercial zircon facility.
Zircon continues to remain in high demand world-wide and has experienced significant price increases. Zircon has averaged US$725 per tonne for the first half of 2006. It is anticipated that demand will continue to grow and potentially exceed supply.
About Titanium Corporation
Titanium Corporation Inc. is a Canadian company developing a commercial minerals recovery project in the Fort McMurray, Athabasca oil sands region. Through extensive research, including the construction and operation of pilot processing facilities, the Company has developed proprietary processes and technology to recover valuable titanium-bearing minerals and zircon from oil sands tailings. Titanium Corporation’s technology could be applied to existing and planned mined oil sands projects with the objective of creating a new sustainable minerals industry for Canada. Titanium Corporation Inc. shares trade on the Toronto Venture Exchange (TSX.V) under the symbol TIC. For more information, please visit our website www.titaniumcorporation.com.
I've only got two.
Cos.UN
CCR.UN.
Ear on the Street
Angiotech Pharmaceuticals (ANP : TSX : $10.65 | ANPI : NASDAQ : US$9.49)
Lingering stent thrombosis concerns
National Bank Financial maintains "sector perform", 12-month target price is changed to $9.50
Axia NetMedia (AXX : TSX : $3.20)
To report Q1 on November 7
Canaccord Adams maintains "buy", 12-month target price is $3.50
BFI Canada Income Fund (BFC.UN : TSX : $30.32)
To report Q3 on November 6
Blackmont Capital maintains "buy", 12-month target price is $31.00
Bank of Nova Scotia (BNS : TSX : $49.39)
Grupo Scotiabank will account for 12% of the bank's earnings
Dundee Securities maintains "neutral", 12-month target price is $51.00
COM DEV International (CDV : TSX : $6.33)
$24 million new contract
GMP Securities maintains "buy", 12-month target price is $7.60
Haywood Securities maintains "sector outperform", 12-month target price is $7.25
Canfor Corporation (CFP : TSX : $11.72)
Q3 misses
CIBC World Markets maintains "sector underperform", 12-month target price is $8.00
Desjardins Securities maintains "hold", 12-month target price is $12.50
Dundee Securities maintains "outperform", 12-month target price is $13.25
Raymond James maintains "market perform", 6-12 month target price is cut to $10.50
Canfor Pulp Income Fund (CFX.UN : TSX : $12.50)
Downgrade based on share appreciations
Desjardins Securities downgrades to "hold", 12-month target price is $12.50
Canadian Tire Corporation (CTC.A : TSX : $71.73)
Sale of Leslie & Sheppard site
RBC Capital Markets maintains "outperform", 12-month target price is $83.00
Denison Mines Inc. (DEN : TSX : $21.75)
The impact of Cigar Lake floods on Uranium prices
Raymond James maintains "market perform", 12-month target price is increased to $21.50
Dynatec Corp. (DY : TSX : $1.88)
Announcement of partners in the Ambatovy project
CIBC World Markets maintains "sector outperform", 12-month target price is raised to $3.00
Energy Metals (EMC : TSX : $9.02)
The impact of Cigar Lake floods on Uranium prices
Raymond James maintains "strong buy", 12-month target price is increased to $11.50
Emergis (EME : TSX : $5.53)
A soft Q3 is expected
RBC Capital Markets maintains "outperform", 12-month target price is $6.00
Enbridge Income Fund (ENF.UN : TSX : $14.21)
Q3 beats expectations and annual distribution rate increased by $0.04/unit
RBC Capital Markets maintains "underperform", 12-month target price is $13.50
EPCOR Power L.P. (EP.UN : TSX : $31.11)
Q3 slightly misses
Canaccord Adams maintains "hold", 12-month target price is $31.00
RBC Capital Markets maintains "underperform", 12-month target price is $32.00
Evertz Technologies (ET : TSX : $15.50)
Downgrade based on share appreciations
Raymond James downgrades to "market perform", 6-12 month target price is $16.00
First National Financial (FN.UN : TSX : $14.60)
Higher placement fee expected
RBC Capital Markets maintains "outperform", 12-month target price is raised to $16.00
Fraser Papers (FPS : TSX : $6.95)
Q3 loss narrows
CIBC World Markets maintains "sector underperform", 12-month target price is cut to $4.00
TD Newcrest maintains "reduce", 12-month target price is $6.00
HudBay Minerals (HBM : TSX : $19.24)
China continues as a net importer of Zinc metal in September
Blackmont Capital maintains "buy", 12-month target price is raised to $26.00
Desjardins Securities reiterates "buy", 12-month target price is $22.00
Holloway Lodging REIT (HLR.UN : TSX-V : $5.11)
Acquisition and development pipeline is huge and accretive
Canaccord Adams initiates coverage with a "buy", 12-month target price is $6.50
Iamgold Corp. (IMG : TSX : $9.44)
IMG share of production at Sadiola was 46,000 oz
Blackmont Capital maintains "buy", 12-month target price is $16.00
Desjardins Securities maintains "buy", 12-month target price is $18.90
Inmet Mining (IMN : TSX : $55.30)
Q3 Results light on deferral of some Zinc production to 2007
Canaccord Adams reiterates "buy", 12-month target price is $70.00
CIBC World Markets maintains "sector outperform", 12-month target price is $65.00
Credit Suisse maintains "outperform", 12-month target price is raised to $65.00
GMP Securities maintains "buy", 12-month target price is $67.00
RBC Capital Markets maintains "top pick", 12-month target price is $65.00
TD Newcrest maintains "buy", 12-month target price is raised to $65.00
Continental Minerals (KMK : TSX-V : $1.44)
Infill and exploration drilling in the Xietongmen deposit is complete
Blackmont Capital maintains "buy", 12-month target price is raised to $8.50
MacDonald Dettwiler & Assoc. (MDA : TSX : $41.29)
U.K. Real estate activity has been robust of late
RBC Capital Markets maintains "top pick", 12-month target price is $55.00
Methylgene Inc. (MYG : TSX : $4.00)
New Street coverage
Blackmont Capital initiates coverage with a "buy", 12-month target price is $8.00
Norbord Inc. (NBD : TSX : $8.32)
Housing market affects Norbord's third quarter results
Dundee Securities maintains "market neutral", 12-month target price is $9.50
Northgate Minerals Corp. (NGX : TSX : $3.68)
Production at Kemess was as expected
Blackmont Capital maintains "buy", 12-month target price is raised to $5.75
Petrolifera Petroleum (PDP : TSX : $22.92)
Argentina established oil water contact
GMP Securities maintains "hold", 12-month target price is $25.00
Phoenix Oilfield Hauling (PHN : TSX-V : $0.96)
Acquisition of new assets
Blackmont Capital downgrades to "hold", 12-month target price is decreased to $1.15
Potash Corp. of Saskatchewan (POT : TSX : $139.53 | NYSE : US$124.78)
Shut down of Potash mine
RBC Capital Markets maintains "outperform", 12-month target price is US$137.00
Quadra Mining Ltd. (QUA : TSX : $9.45)
Files shelf prospectus
Dundee Securities maintains "neutral", 12-month target price is "under review"
RBC Capital Markets maintains "sector underperformer", 12-month target price is $10.50
Richelieu Hardware (RCH : TSX : $23.60)
Initiating coverage
Blackmont Capital initiates "buy", 12-month target price is $24.00
RONA Inc. (RON : TSX : $22.73)
Initiating coverage
Blackmont Capital initiates "buy", 12-month target price is $28.00
Royal Utilities Income Fund (RU.UN : TSX : $12.45)
Q2 results in line
RBC Capital Markets maintains "sector perform", 12-month target price is increased to $12.50
Silver Standard Resources (SSO : TSX : $27.02)
High grade gold and silver values
Blackmont Capital maintains "buy", 12-month target price is $36.00
Strathmore Minerals (STM : TSX-V : $2.63)
The impact of Cigar Lake floods on Uranium prices
Raymond James downgrades to "outperform", 12-month target price is increased to $3.00
Sherwood Copper (SWC : TSX-V : $3.72)
Revised copper forecast
Blackmont Capital maintains "buy", 12-month target price is $5.60
sxr Uranium One (SXR : TSX : $12.77)
The impact of Cigar Lake floods on Uranium prices
Raymond James upgrades to "strong buy", 12-month target price is increased to $16.00
Teck Cominco Ltd. (TCK.B : TSX : $83.14)
EPS below expectations
Blackmont Capital maintains "buy", 12-month target price is $95.00
Desjardins Securities maintains "top pick", 12-month target price is $95.50
RBC Capital Markets maintains "outperform", 12-month target price is $92.00
TELUS (T : TSX : $64.79)
Healthy economic growth set to cushion
National Bank Financial maintains "outperform", 12-month target price is $68.00
TimberWest Forest Corp. (TWF.UN : TSX : $13.40)
Diminished distributable cash
Dundee Securities maintains "outperform", 12-month target price is $16.00
Ur-Energy (URE : TSX : $3.92)
The impact of Cigar Lake floods on Uranium prices
Raymond James upgrades to "outperform", 12-month target price is $4.80
UE Waterheater Income Fund (UWH.UN : TSX : $15.00)
Increased distributions by 10%
RBC Capital Markets maintains "sector perform", 12-month target price is $16.00
Workbrain Corp (WB : TSX : $8.90)
Stable end market
Blackmont Capital maintains "hold", 12-month target price is $10.00
Western Oil Sands Inc (WTO : TSX : $28.87)
Net asset value increase
CIBC World Markets maintains "sector perform", 12-month target price is increased to $32.00
Yellow Pages Income Fund (YLO.UN : TSX : $15.13)
Strong Q3
Blackmont Capital maintains "buy", 12-month target price is $19.00
UPDATE: Marathon In Hunt For Canadian Oilsands Partner
15:27 EST Wednesday, November 01, 2006
NEW YORK -(Dow Jones)- Marathon Oil Corp (MRO) expects to detail soon the formal process through which it intends to secure a partner in Canada's rich Athabasca oilsands, company executives said this week.
Marathon wants to move forward in its quest for a Canadian oilsands partner, senior vice president of business development David Roberts said Tuesday in a post-earnings conference call with analysts.
"We're going to make an announcement on the process that we're going to use to get to an end game" in the coming days, Roberts said, adding that Marathon would favor an integrated "reserve-to-products" venture.
"Marathon is well positioned to provide the downstream solution to a number of Canadian providers," Roberts said.
Houston-based Marathon is the fourth-largest U.S.-based integrated oil and gas company and the fifth-largest U.S. refiner. It owns seven refineries in Illinois, Michigan, Ohio, Kentucky, Minnesota, Texas and Louisiana.
Marathon spokeswoman Angelia Graves confirmed the company's near-term intent to detail the process being used to evaluate an arrangement that would link Marathon's refineries to a Canadian oilsands partner, but she declined to specify a timeframe.
"We see something coming soon that explains the process," she said Wednesday.
Likely partners may be Husky Energy (HSE.T) and Devon Energy (DVN), with Western Oil Sands (WTO.T) and OPTI/Nexen as other possible partners, JP Morgan analyst Jennifer Rowland wrote in a note to clients.
Rowland is of the belief that Marathon is willing to make substantial modifications to increase the amount of heavy crude it can process at its plants in Detroit, Catlettsburg, Kentucky, and Robinson, Illinois.
Canadian Natural Resources (CNQ), seen by some as a possible partner for Marathon, said Wednesday that it wasn't in discussions with potential partners.
Marathon's interest in a Canadian oilsands partnership is well known.
At an October investor event held by Canadian pipeline company Enbridge Inc. ( ENB), president and chief executive Pat Daniel said it was only a matter of time before Marathon inked a deal.
"It's no secret at all that they are looking very hard at further western Canadian crude oil moving into that market," he said. "Obviously, there's a lot of competition for supply, so we think that quite logically they at some point will do some kind of a deal."
Marathon was rumored to be among the potential partners in talks for an oilsands joint venture with EnCana Corp. (ECA) before the Canadian producer struck a deal with ConocoPhillips (COP) in early October.
Under the ConocoPhillips-EnCana deal, the companies will operate two partnerships on a 50-50 basis. The Calgary-based production partnership involves two of EnCana's projects and will be run by the Canadian company. The companies aim to increase output of bitumen to 400,000 barrels a day from 50,000 barrels a day by 2015 at an estimated cost of $5.4 billion.
The other venture will involve ConocoPhillips' Wood River refinery in Roxana, Ill., and its Borger, Texas, plant. The two companies plan on spending $5.3 billion to expand heavy oil processing capacity at these facilities to 550,000 barrels a day from about 60,000 barrels a day by 2015. As part of the investment, total throughput at these plants will increase by a third.
-By Yvonne Ball; Dow Jones Newswires; 201-938-5289; yvonne.ball@dowjones.com,
-Beth Heinsohn; Dow Jones Newswires; 201-938-4435; beth.heinsohn@dowjones.com
(Norval Scott in Calgary contributed to this article)
(END) Dow Jones Newswires
11-01-06 1526ET
Copyright (c) 2006 Dow Jones & Company, Inc.
Priszm Canadian Income Fund tries to shelter investors
KEITH McARTHUR
Wednesday, November 01, 2006
Fast food operator Priszm Canadian Income Fund expects its unit holders to be “significantly protected” from a new tax on income trusts.
“We want to reassure our Unitholders that due to our unique nature of owning our restaurant operations, Priszm believes our cash distributions are significantly protected from these proposed changes to our tax treatment,” said John Bitove, chairman and chief executive officer of Priszm, which owns and operates 484 restaurants under the KFC, Taco Bell and Pizza Hut banners.
Late Tuesday, federal finance minister Jim Flaherty slapped a tax on distributions from income trusts to stem a growing loss of tax revenue.
A government backgrounder on the new tax states that some trusts choose to distribute capital amounts to their unitholders in addition to, or instead of, income.
“A ‘return of capital' is not deductible by the trust and is not included directly in the income of the unitholder,” the backgrounder states. “Instead, it reduces the unitholder's cost of their investment. These effects do not change under the proposed measures.”
Priszm said that in 2005, 58.5 per cent of its distributions were considered return on capital, with similar levels expected over the next few years.
“While the ministry of finance has not yet definitively advised as to the quantity or extent of the changes, we believe that our structure will continue to provide one of the highest levels of tax protection to income trust investors in Canada,” Mr. Bitove said.
Despite the reassurance Priszm Canadian Income Fund units were under pressure on Wednesday along with the rest of the sector. Priszm units were off 9.9 per cent, or $1.29 per unit, at $11.72
Petro-Canada buying interest in two Syrian gas fields
Wednesday, November 01, 2006
LONDON — Petro-Canada said Wednesday it has completed a deal to buy a 90 per cent interest in the Ash Shaer and Cherrife natural gas fields in central Syria for $54-million.
Under the agreement with a subsidiary of Marathon Oil Corp., Petro-Canada becomes operator of the gas fields and has the option to buy Marathon Oil's remaining 10 per cent within five years, subject only to approval by the government.
According to the terms of the production sharing contract, Petro-Canada is obligated to develop and produce an estimated 80 million cubic feet per day of natural gas from the Ash Shaer and Cherrife fields, with first gas expected to be delivered in 2010.
Petro-Canada shares traded Wednesday at $47.17, down 71 cents, at the Toronto Stock Exchange.
Clear and present danger' prompted trust move
SCOTT DEVEAU
Wednesday, November 01, 2006
Rumours that income trust conversions deals could spread into other sectors of the Canadian economy prompted the Tories' surprise decision to slap new taxes on trust distributions, Finance Minister Jim Flaherty said Wednesday.
Speaking to the editorial board of The Globe and Mail, Mr. Flaherty said that when BCE announced plans to follow Telus' decision to convert to an income trust, the government feared a domino effect would occur in other sectors of the economy.
“Both companies had indicated that the primary reason they were converting was the tax situation, not business reasons,” Mr. Flaherty said.
“We see them converting solely to avoid paying corporate taxes and that's a clear and present danger to fairness in the Canadian tax system. I felt we needed to act.”
But, the Finance Minister wouldn't go into details about which companies or sectors were rumoured to be considering the move.
“I can't say with certainty, because I don't make these decisions,” Mr. Flaherty said. “We had concerns in other sectors in the Canadian economy, including financial institutions and the energy sector that would be large.”
While the move was lauded by both the Bloc Quebecois and the NDP, it was panned Wednesday by the opposition Liberals, who criticized the government for breaking a central election promise and for betraying the trust of Canadians.
The Tories promised in their election platform to preserve income trusts by not imposing any new taxes on them, after accusing the Liberals of attacking retirement savings.
“The Prime Minister broke a core electoral promise,” said Liberal finance critic John McCallum. “As a direct consequence of breaking that promise, in the space of less than an hour, he has destroyed literally billions of dollars of the wealth of Canadians.”
Mr. McCallum later said the move was the “single biggest blow” to Canadians' wealth ever dealt by a finance minister, referring to the day as “Black Wednesday.”
The TSX opened dramatically lower on the news before clawing back at least some of the losses.
On Tuesday, the Conservatives announced they would start taxing trusts as corporations, effective immediately for new trusts and beginning in the 2011 tax year for existing trusts.
The effective tax rate to be paid by trusts on distributions will start at 34 per cent, to mirror federal and provincial taxes on companies, and drops to 31.5 per cent by 2011. Ottawa will remit to the provinces a 13-percentage-point share of the revenue.
Mr. Flaherty acknowledged the move would force Telus and BCE to reconsider their plans to convert to trusts that would have ranked as the largest in Canadian history. The federal government stood to lose $1.1-billion from its tax base as a result of the proposed deals.
The trust tax is certain to hurt the retirement savings of millions of Canadians who rely on returns from trusts, including many seniors, whom the Tories consider a key voting group.
In order to cushion the blow, the Tories also announced $1-billion in annual tax breaks for seniors by allowing them to split their pension incomes and by increasing tax credits for low-and middle income seniors.
Prime Minister Stephen Harper defended the government's decision to break its election promise during a raucous Question Period Wednesday.
“The commitment of this party is not that we would have no taxes for Telus. It wasn't that we would have no taxes for BCE. It wasn't that we would have no taxes for foreign investors or no taxes for major corporations. It was a commitment to protect the income of seniors,” Mr. Harper said.
In speaking with the Globe, the Finance Minister acknowledged the political risk in making the move, but he said it was necessary.
“For a minority government, it would have been much easier to duck an issue like this,” Mr. Flaherty said. “It just reinforces our degree of commitment.”
The Finance Minister acknowledged Wednesday that the government could refuse to let financial institutions convert to trusts under the Bank Act.
“We could say no, but then why would we say no to one sector of the economy when other sectors of the economy are going down that road?”
He also said he was hearing from business leaders that they were being pushed to convert to an income trust in order to maximize returns for their stakeholders.
“It was not entirely speculative to think, ‘Well, if one of the banks goes, they all will,'” he said. “Then where will we be?”
Mr. Flaherty said he will unveil the Tories' economic plan alongside its fiscal update in coming weeks and that an income-trust model for the Canadian economy would run counter to the productivity and competitiveness plan he has in the works.
He said he had no choice but to move on the tax issue because he feared that increasing numbers of corporations preparing to convert to trusts threatened Ottawa's tax base.
The Finance Minister also said the decision was motivated by the issue of tax fairness and the fear that Canada's economy slipping further into the income-trust model would be out of step with global economic trends.
“Increasingly, individuals and families in Canada are shouldering the burden,” Mr. Flaherty said. “Income trust acceleration would significantly increase that.”
Interactive
Flaherty feared domino effect in trust move
SCOTT DEVEAU
Wednesday, November 01, 2006
A rumoured income trust conversion deal rivalling the size of the recent BCE announcement prompted the Tories' move to slap new taxes on the trust distributions, Finance Minister Jim Flaherty said Wednesday.
Speaking to the editorial board of The Globe and Mail, Mr. Flaherty said that after BCE announced its plans to follow Telus' decision to convert to an income trust, the government feared a domino effect would occur in other sectors.
“Both companies had indicated that the primary reason they were converting was the tax situation, not business reasons,” Mr. Flaherty said.
Mr. Flaherty said rumours had circulated that other companies were set to follow suit. He wouldn't identify the companies or sectors involved but alluded to fallout in the finance and energy fields.
He said he had no choice but to move on the tax issue because he feared that increasing numbers of corporations preparing to convert to trusts threatened Ottawa's tax base.
“I apologize for the surprise, but it was essential it was a surprise,” Mr. Flaherty said.
On Tuesday, the Conservatives went back on one of their election promises and announced they would start taxing trusts as corporations, effective immediately for new trusts and beginning in the 2011 tax year for existing trusts.
The effective tax rate to be paid by trusts on distributions will start at 34 per cent, to mirror federal and provincial taxes on companies, and drops to 31.5 per cent by 2011. Ottawa will remit to the provinces a 13-percentage-point share of the revenue.
Mr. Flaherty acknowledged this would force Telus and BCE to reconsider their plans to convert to trusts that would have ranked as the largest in Canadian history.
The TSX opened dramatically lower on the news.
I don't follow too mant trusts.
Mornin' T.
Freakin' Gov't. They sure know how to rain on a parade.
TSX falls 300 points at the open
TAVIA GRANT
Wednesday, November 01, 2006
9:33am ET — Market Open
S&P/TSX composite index opens down more than 315 points.
Premarket
Canadians stocks are set to slide Wednesday, led by companies poised to convert into income trusts such as BCE Inc. and Telus Corp., after the federal government said it plans to start taxing the structure.
Telecom and energy sectors will likely lead the decline, analysts said. BCE shares were set to fall $2.70 to $29 and Telus may fall $19.93 or 30 per cent to $45, according to early bids on the Toronto Stock Exchange. For Telus, that would equate to a loss of about $7-billion in market value.
Interlisted stocks trading in the U.S. premarket Tuesday morning are already under pressure, as the quotes below illustrate:
• Precision Drilling — $25.78 (down from $28.66 at Tuesday's close)
• Enerplus — $49.50 (down from $54.30)
• Pengrowth — $17.90 (down from $19.60)
• Fording — $23.19 (down from $25.42)
• Penn West — $33.51 (down from $37.52)
Finance Minister Jim Flaherty said after the markets closed that distributions paid by existing income trusts would be taxed in four years time, while companies that convert to the trust structure “after today,” would see their distributions taxed beginning in their 2007 tax year.
The move will pummel markets because the prospect of trust conversions had sent shares soaring this year. BCE and Telus were among those companies who recently announced plans to convert. BCE said Wednesday the telephone company will reassess its income trust plans in the coming days.
“In addition to the hit in income trusts, which we expect will take roughly 2-to-3 per cent off the TSX composite (concentrated in the energy & telecoms sectors), we expect to see pressure on the Canadian dollar due to the popularity of trusts among non-residents,” said David Wolf, chief economist at Merrill Lynch Canada Inc.
The Canadian dollar weakened to 88.09 cents from yesterday's Bank of Canada close of 89.04 cents.
Royal Bank of Canada said in a note that trust market values could fall as much as 20 per cent today, “maybe more as time passes.”
The sector has a market capitalization of about $200-billion.
Among other companies, Extendicare Inc., one of Canada's largest operators of retirement and nursing homes, said late Tuesday it will delay going ahead with the reorganization until it had completed a full study of Mr. Flaherty's plan.
Mr. Flaherty did not provide details on the size of the tax to be levied on unitholders.
“Trusts are going down in value, because over time they are not going to be as tax efficient,” said Fred Pynn, president of Bissett Investment Management in Calgary, in an interview yesterday.
Ottawa appears to be taking a leaf out of the playbook used by Australia in the 1980s to stamp out trusts, Mr. Pynn added.
“Taxes on income trusts were adjusted over time to the point where it just didn't make sense ... as a structure.”
Shares of BCE and Telus and other companies that have announced their intentions to convert to the trust structure, or are simply considered trust candidates, could plunge. BCE, which revealed plans for conversion in recent weeks, was on track to become the largest trust in the country by market value.
Mr. Flaherty said Tuesday that he does not expect the proposed conversions of BCE and Telus to proceed.
“Telus and BCE are not going to happen,” Mr. Flaherty predicted. “It's up to them whether they happen or not but there'll be a new set of rules.”
The government is scrambling to close a loophole that could have meant millions of dollars in lost corporate tax revenue.
According to a recent report by tax expert Jack Mintz, income trusts would have cost Ottawa and the provinces $1.1-billion in lost tax revenue annually if Telus and BCE were to convert to the corporate-tax-avoidance structure.
Mr. Mintz said that Canada's tax-leakage problem has doubled in two years — from $540-million annually in 2004 — despite efforts to solve it.”
“This is becoming a bigger headache for Ottawa and the provinces,” said Professor Mintz, of the University of Toronto's Rotman School of Management.
Income trusts pay little or no corporate taxes, but instead shovel out the bulk of earnings and cash flow to investors.
Trusts cost Ottawa and the provinces in forgone corporate taxes. Prof. Mintz estimated the amount would have totalled $2.8-billion a year once Telus and BCE converted their operations into income trusts.
But Canadian governments will recoup about $1.7-billion of that from personal taxes on higher payouts from pension plans and registered retirement savings plans, as well as from withholding taxes on foreign investors owning Canada's income trusts.
The income trusts are “definitely going to go down,” said Barbara Gray, who covers income trusts for Blackmont Capital in Vancouver. How much, she added, will depend on the rate of tax the government imposes.
With files from Globe and Mail staff.
Loonie has biggest drop in four months
TAVIA GRANT
Wednesday, November 01, 2006
The Canadian dollar had its biggest one-day drop in more than four months Wednesday after Finance Minister Jim Flaherty said yesterday he plans to start taxing foreign investors who own income trusts.
“Speculation that overseas holders — around 22 per cent of outstanding income trusts — could pull out of the markets will keep the Canadian dollar under pressure,” said Matthew Strauss, senior currency strategist at RBC Capital Markets, in a note.
The loonie traded at 88.09 cents (U.S.) from yesterday's close of 89.04 cents. It was the biggest one-day drop since June 13.
OK. I'll be serious here.
I think that we should hold on tight to our "CASH" shares.
FTK...........
FTK Conference Notes...
- Steady increasing flow in business. 50% organic growth!
- Proprietary products expanding at a strong pace!
- Lots of emphasis on International sales. Wants to get International sales to equal domestic sales!
- Strong cash flow.
- Has the right to acquire the other 50% of CAVO!
- Expanding Internationally in the chemical business!
- Has a new computer program that can track tool rental.
- The Patented Petrovalve...
"The Petrovalve is an extraordinarily patented successful component in down hole rod pumps."
"This particular valve has many many values to it that one of these day's we'll be in the entire down hole rod pump business where we will have our pump with our valve in it..."
"The reason this valve is so tremendously important is that it increases the flow every stroke, therefore you can reduce the stroke of your pumping and reduce the maintenance cost.
- The Petrovalve is the ONLY valve in the industry that can be placed in a horizontal position and there is a lot of horizontal drilling out there!!!
- CBM...Already doing about $2M a month in the Powder River Zone. Going to expand..."There is a tremendous potential for us to go into a lot of other areas."
- Microemulsions - 250 well study = 60% increase in flowback and 40% increase in gas production over a 6 month period!! HUGE IMO!! Growing at 100% a year!!
- Flotek has pricing power in niche markets for their patented and proprietary products.
- Flotek will do everything they can NOT to dilute shareholders! (They have proven this in the past w/ under 10M shares outstanding.) Future acquisitions will probably be done on debt. (Jerry said he would be very comfortable with a 40% debt to equity ratio). Later on down the line the company may do an offering to pay off debt and to increase liquidity!
- Renegotiating with their credit facilities for more acquisitions they have in mind!
Flotek has a VERY confident CEO, one who is quickly growing this company while increasing profits!
Major growth lies ahead for Flotek in my opinion.
BTW, There is so much more going on with Flotek than what's mentioned here (like the patented gas separator). Hope my notes are accurate. Anyone interested in the company should do their own DD and listen to the conference...
http://www.wsw.com/webcast/smh3/register...
Hey Larry...
Happy Haloween!
Teck Cominco profit climbs
Craig Wong
Monday, October 30, 2006
VANCOUVER — Teck Cominco Ltd. reported a nearly 25 per cent increase in third-quarter profit compared to a year ago due to higher copper and zinc prices, partially offset by lower zinc sales and a lower realized coal price.
The company said it earned $504-million or $2.32 per diluted share for the three months ended Sept. 30. That compared to a profit of $405-million or $1.88 per diluted share in the same period last year.
Quarterly revenue increased to $1.63 billion, up from $1.15 billion a year ago.
The average analyst estimate had been for earnings of $2.65 per share, based on 12 analysts surveyed by Thomson Financial. The average revenue estimate was for $1.75-billion, based on four analysts.
Teck Cominco chief executive officer Don Lindsay said the company managed to ship all of its concentrates from its Red Dog mine in Alaska, but still faced some delays.
“Poor weather conditions delayed the loading of vessels and the timing of shipments resulting in the shifting of some of Red Dog's sales from the third quarter into the fourth quarter of this year and the first quarter of 2007,” Lindsay said in a statement.
The company said the average cash prices for copper and zinc were US$3.48 and US$1.53 a pound respectively in the quarter, compared to US$1.70 and US$0.59 per pound a year ago. Realized coal prices averaged US$109 per tonne compared with US$118 per tonne last year.
Weighing on the results, the company said zinc sales from the Red Dog mine were sharply lower due to poor weather conditions that delayed concentrate shipments.
Red Dog's zinc sales in the third quarter were 80,000 tonnes lower than a year ago, deferring about C$82 million in net earnings to the following two quarters.
The company also took two accounting provisions related to the Antamina operations. They involved the refinancing of the original project debt and an accrual of social contributions pending the finalization of an agreement with the Peruvian government.
In its outlook, the company said it expects strong zinc sales in the fourth quarter, as most shipments from Red Dog delayed in the third quarter will be brought into sales in the fourth quarter.
The company said capital expenditures are estimated to be $120-million in the fourth quarter.
Teck Cominco also said that it expects to record a pre-tax gain of $135-million on the sale of the Inco shares it held after it failed to win its bid for the nickel producer.
In announcing it decision to allow its bid to expire in August, Teck Cominco said it would now move on to the next set of projects, working its way down a 13-item list of potential targets or partners.
At Sept. 30, Teck Cominco had $3.8-billion in cash and temporary investments.
Meanwhile, the company said Monday it will implement the recommendations of the province's chief mines inspector and a report into four deaths at the company's former Sullivan mine earlier this year.
The accident killed environmental consultant Doug Erickson and Teck Cominco employee Bob Newcombe. Paramedics Kim Weitzel and Shawn Currier also died in the rescue attempt.
Last week, Teck Cominco restored temporary power at its Pogo mine site in Alaska that would allow scheduled maintenance and construction work to proceed in its mill.
An additional portable generator was expected to allow the partial restart of underground mining by the end of the month. Underground ore production will be stockpiled on surface until mill operations resume.
Shares in the company, which reported its results after the close of markets, were down $2.43 at $83.50 in trading on the Toronto Stock Exchange.
Teck Cominco Ltd.
..
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Flaherty revives pledge to slash capital gains tax
STEVEN CHASE
Tuesday, October 31, 2006
OTTAWA — The Conservative government is looking at ways to make good on a pledge to provide a break on capital gains taxes in the 2007 federal budget, Finance Minister Jim Flaherty says, after balking last spring at the difficulties involved.
The Tories withheld the measure from the 2006 budget lineup because it needed more work. In March, Mr. Flaherty suggested the measure was "quite challenging to accomplish in the short term."
The minister said yesterday that the Finance Department is studying several options to fulfill the capital gains pledge and is also canvassing Canadians for ideas.
"We obviously want to keep our commitments," Mr. Flaherty said. "We're looking at a series of possibilities, of options, with respect to capital gains . . . we're getting lots of advice on it and it will be one of the considerations that we look at as we prepare the budget for 2007."
The original Tory election platform promised to eliminate taxes on capital gains reinvested within six months, but was roundly criticized as too vague, open-ended and potentially costly.
"Canadians who invest, or inherit cottages or family heirlooms, should be able to sell those assets and plow their profits back into the economy without taking a tax hit," the Conservative platform said.
Tax cut advocates are vowing to keep the pressure on Ottawa for the capital gains relief. "It was the most pro-growth tax measure that was announced by any party in the last campaign," said John Williamson, federal director for the Canadian Taxpayers Federation.
Mr. Flaherty did not detail what options Finance is considering for a capital gains tax break but said the benefit of such a measure is that would free up capital.
"I hear this quite often as I travel in Canada, that we have trapped capital -- if I may call it that," Mr. Flaherty said. "We have people who are not selling assets that they've acquired over the years, particularly publicly traded securities or sometimes recreational properties, because they don't want to pay the capital gains tax -- which would be very large because of the increase in the capital value of the property over time."
When it was unveiled during the election, tax experts suggested the capital gains deferral proposal could cost Ottawa as much as $2-billion annually in forgone revenue unless the government narrowed the plan's scope.
One source familiar with deliberations said the original proposal met significant resistance in the Finance Department. Private sector tax experts said the idea will need to be substantially overhauled.
Len Farber, a former Finance official now working as a senior adviser at law firm Ogilvy Renault, says the original campaign pledge was untenable and potentially costly.
"It's so unwieldy that it's unlikely to be implemented in the way it was stated during the course of the election campaign," Mr. Farber said.
"My view is they wouldn't do it simply because it would be so uncontrollable they wouldn't get a dollar of capital gains," he said. "There would never be a taxable transaction, because taxpayers would always move their money from a transaction that had a capital gain to another asset of equivalent or higher value in order to avoid capital gains tax."
He said other ways of lowering capital gains taxes -- while controlling the revenue loss -- would include increasing the capital gains exemption Canadians get when they sell shares of a small business, from $500,000 today to something more, such as $750,000 or higher.
Toronto-Dominion Bank chief economist Don Drummond, another former senior Finance official, said another alternative would be to create lifetime accounts for Canadians that set limits on the amount of investment assets for which capital gains taxes could be deferred. Ottawa could set a ceiling on the amount of contributions to the account such as $500,000.
Limits on the dollar value would curb the tax revenue deferred and prevent the bulk of the benefits from going to very wealthy Canadians. Such dedicated lifetime accounts could also make it easier for tax collectors to track investments.
"I would guarantee that's one, if not the leading option, for doing it," Mr. Drummond said.
How the capital gains tax works now
Half of the gains made when you sell an asset for a profit are considered taxable. So if you sold shares you bought at $500 for $1,000, you would have to pay taxes on $250.
What the Conservatives have promised
To eliminate taxes on capital gains as long as you take the profits from the sale of an asset and reinvest them within six months. So if you realized a $500 profit on the sale of a stock and reinvested the money right away, there would be no capital gains tax to pay.
A short history of capital gains taxes
The Trudeau government
introduced a tax on capital gains in 1972. The Mulroney government introduced a lifetime capital gains
exemption in 1985, but it was largely
eliminated in 1995 by the finance minister at the time, Paul Martin. Mr. Martin later reduced the tax on capital gains to its current level.
TEXT: ROB CARRICK/THE GLOBE AND MAIL PHOTO: ADRIAN WYLD/CANADIAN PRESS
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