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Suncor earnings more than double
Thursday, October 26, 2006
CALGARY — Suncor Energy Inc. reported third-quarter net profit of $682-million, or $1.48 per share, up from $315-million, or $0.69 a share, in the same period one year ago. Suncor says the results were driven by rising oil ands production, high oil and gas prices and stronger refining margins in the U.S.
More to come...
I don't know about the oil but this does it for me.
I realy wouldn't want that to happen to often.
World sees a resource giant in Canada
JOHN PARTRIDGE
Wednesday, October 25, 2006
There is no gap between perception and reality when it comes to Canada's image among foreign investors as a global resource powerhouse, Toronto-Dominion Bank economists say.
What's more, with a consensus forming around the notion that the world has entered a new era of higher commodity prices — driven largely by the rapid industrialization of China and India — the reality is almost certain to persist, the economists said in a special report issued Wednesday. That is despite a short-term downward correction as the U.S. economy, which consumes as much as 20 per cent of most global commodities, continues its mid-cycle slowdown.
This in turn means the Canadian resource sector will continue to provide investors with attractive long-term equity returns.
In short, hewing wood and drawing water are not so bad after all, the report says, even though some observers were writing off the sector as recently as the late 1990s as part of the supposedly dying “old economy” that was being supplanted by information technology and other so-called “new economy” industries.
“The resource sector is a vital generator of living standards in Canada and boats a strength and diversity that is matched by few nations around the world,” said report co-author Derek Burleton, an associate vice-president and senior economist at TD.
The TD report notes that oil and gas, mining and other resource industries and related downstream manufacturing and service industries account for 13 per cent of Canada's gross domestic product and one million jobs, second only to financial services, which accounts for 19 per cent of GDP.
Globally, this ties Canada with Finland for second place after Norway, where the sector accounts for 30 per cent of economic output.
The report also points out that since 2003, the first full year of the commodity rally, the S&P/TSX composite index has returned roughly 14 per cent a year on a compound annual basis, outpacing other major world equity indexes in Japan, Australia, Germany, France, the United States and Britain.
As well, Canadian-listed companies lead the world in raising equity for exploration and mineral development, TD says, while about 20 per cent of all mineral exploration spending is targeted for Canada, “surpassing all other countries.”
Among other key numbers the report cites are that, last year, Canada's natural resources accounted for:
• About 25 per cent of total corporate operating profit.
• 40 per cent of the $67-billion in private non-housing investment.
• 9 per cent of total labour income.
• Almost two-thirds of the approximately $40-billion in direct foreign investment.
• 40 per cent of total Canadian exports.
“Even more impressively,” the report says, “with exports of energy, forestry and minerals far outstripping imports, Canada is running a massive $93-billion trade surplus in the resource sector.
“Indeed, without the resource sector, Canada's sizeable $58-billion surplus would transform into a $38-billion shortfall.”
Mr. Burleton admitted that he was surprised at the sector's domestic and global stature.
“The thing that surprised me the most was the diversity,” he said when reached in Toronto. “You look at the list of where Canada places . . . and it's stunning. You've got top seven finishes in almost every major category.
“Russia may come close in terms of how broad-based its strengths are, but if you then also consider political risk and access to the U.S. market, then I do think Canada is a neck ahead of other countries.”
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LOL
I don't know.
Now that work will be slowq through the winter. I'm going to start doing some more research.
Will keep you posted.
Could be a good long term play in the retirewment account.
Titanium Corporation is featured in the October 2006 issue of the Oilsands Review. The article titled "Tailings Twist" highlights the unique potential for the oil sands to become a significant source of titanium and zircon to supply world markets. A copy of the article can be found on our website by clicking on the link below:
http://www.titaniumcorporation.com/s/Announcements.asp?ReportID=151132
Red Hill Energy (RH/TSX.V $0.82)
www.redhillenergy.com
Note: For reference our last overview of RH was September 5th
www.stockhouse.ca/shfn/editorial.asp? edtID=18672
Rio Tinto Boosts Confidence in Mongolia
I had an update to our Premium Subscribers on RH September 21st that included the following:
"We had a very good contact at this mining conference (Discover Mongolia 2006) and hear this week that there is some serious tire kicking happening by several of the international mining companies".
By fortunate coincidence, this past week a critically important announcement came out of Mongolia concerning Ivanhoe Mines and the stock jumped 31% - adding almost $700 million to the market cap as $200 million worth of buying came in. It was on this news:
"World No. 2 miner Rio Tinto (RIO) will pay $303 million for a nearly 10 percent stake in in Canada's Ivanhoe Mines Ltd. (IVN.TO), giving it a share in the huge Oyu Tolgoi copper and gold mining complex in Mongolia that could grow to an investment of as much as $1.5 billion
Turning Point for Mongolia
This is a major shot in the arm for confidence in Mongolia and the Ivanhoe news release included the following comment: "...this will bring worldwide attention to the development of Mongolia as a democratic and rapidly developing Asian economy."
As I discussed on the 21st and in a subsequent update, there are several majors in Mongolia looking at mining projects held by Canadian companies. It should not be ruled out that Red Hill has been approached in one form or another concerning their major coal project and possibly future projects that they have access to (keeping in mind they have been in Mongolia for years and were one of the major sponsors and organizers of the mining conference held a couple months ago).
Last weeks news with Ivanhoe is critically important to mining in Mongolia - and in particular, the small number of public companies doing business there. Ivanhoe's announcement concerns a massive gold/copper project but energy is equally important in this region. I believe Red Hill has a very strong chance of attracting a partnership with a major on their coal project - either before year end or in Q1/07. With Rio Tinto now moving into the country, foreign investors should soon look at Mongolia completely different. It may not turn overnight but if RH can land one of the major International coal players, the stock could test old highs early next year.
Even if they don't, we can now breathe a lot easier holding exposure to Mongolia.
Charts, News, Etc. for Red Hill
Danny Deadlock
Microcap.com
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email: microcap@telus.net
web: http://www.microcap.com
Companies featured in the current edition of the newsletter: ADSX, ARGA, CPPT, EMIS, ENZ, FMTI, GNBT, GSHF, HYTM, HSOA, IMMG, NTST, OXMI, PTCH, QTXB, SFP, SLS, UDTT, USAT, VOIP
Solid earnings reports, reassuring news on inflation and declining energy prices provided the necessary ingredients for the Dow to eclipse 12,000 for the first time ever, as the Dow built on recent gains, which has seen it advance 12% this year, to close at 12,0002, up 55 points. The Nasdaq fell 4 points, reducing its year to date gains to 6.2%. The S&P 500 added 5 points, increasing year to date gains to 9.6%. The Russell 2000 also finished the week up 5 points increasing its year to date average to 13.2%. Once again, small cap stocks continue to outpace their larger peers.
A tame Consumer Price Index report last week, as well as declining crude oil prices (November contract down $2.07 per barrel) supported recent gains by the indexes. While many pundits feared that third quarter earnings would end the string of double-digit earnings growth, results to date suggest another quarter of robust increases. The 138 of S&P 500 companies that have reported results to date have shown profit growth of 15.6%. With few companies warning about fourth quarter results, prospects for the fourth quarter appear bright.
What should investors look for in the upcoming week? Earning season continues to flow steadily with more market moving companies announcing earnings results. Monday, before the bell, will be busy as investors can expect to see announcements from AT&T (NYSE: T), Halliburton (NYSE: HAL), Ford Motor Company (NYSE: F), and Xerox (NYSE: XRX). The action continues over the course of the day with a mid-day announcement from American Express (NYSE: AXP) and after the market closes as Kraft Foods (NYSE: KFT), Amgen (Nasdaq: AMGN), and Texas Instruments (NYSE: TXN) post results. Tuesday, pre-market announcements from Bell South (NYSE: BLS), railroad operator Burlington Northern Santa Fe Corp (NYSE: BNI), Countrywide (NYSE: CLC), DuPont (NYSE: DD), Lockheed Martin (NYSE: LMT), and appliance giant Whirlpool (NYSE: WHR) will set the stage for trading that day. Insurance provider Aflac (NYSE: AFL) and e-commerce company Amazon (Nadaq: AMZN) announce earnings after the bell on Tuesday. Look for earnings announcements from Boeing (NYSE: BA), Colgate Palmolive (NYSE: CL), automobile giant General Motors (NYSE: GM), Reynolds American (NYSE: RAI), and waste services provider Waste Management (NYSE: WMI) before the market open on Wednesday. Anheuser Busch (NYSE: BUD) announces earnings mid-day and Symantec (Nasdaq: SYMC) reports its numbers after the bell. Thursday action begins with pre-market announcements from insurance provider Aetna (NYSE: AET), Auto Nation (NYSE: AN), Blockbuster (NYSE:BBI), Comcast (Nasdaq: CMCSA), Dow Chemical (NYSE: DOW), Exxon Mobil (NYSE: XOM), Kellogg (NYSE: K), Royal Caribbean (NYSE: RCL), and US Airways (NYSE: LCC). Microsoft (Nasdaq: MSFT) and SunMicrosystems (Nasdaq: SUNW) announce earnings after the close on Thursday. As the week comes to a close, investors can expect to see announcements from Avon (NYSE: AVP) and Chevron (NYSE: CVX) before the open on Friday.
The economic news for next week will be tame and without a specific focus, but investors can expect to see news pick up by mid-week. September Existing Home Sales will be announced mid-morning Wednesday, followed shortly by Crude Inventories. The big news for the day, and the week, will be the announcement of the FOMC policy statement in the early afternoon on Wednesday. Expectations are that the Fed will again leave interest rates unchanged, and likely not alter its language on monetary policy. September Durable Orders and the weekly unemployment claims will be announced before the market opens on Thursday. Look for the September Help Wanted Index and September New Home Sales announcements before noon on Thursday. Other economic news for Thursday includes a speech by Fed Gov Randall Kroszner on banking regulations and Gary Stern, President Federal Reserve Bank of Minneapolis, will attend the World Bank conference as a panel member. Friday’s announcements include the widely watched Q3 GDP & Chain Deflator and the October Michigan Sentiment Index.
The conference schedule for next week is short and begins Sunday with the five-day Oracle OpenWorld event held in San Francisco. Monday conferences include the two-day Johnson Rice & Company Consumer Conference in New Orleans. The two-day Sanders Morris Harris Middle Market Investor Growth Conference will begin Monday in New York. Home Solutions of America (NASDAQ: HSOA) will present at the event on Tuesday at 10 a.m. The two-day Financial Research Associates Biofuels Finance & Investment Seminar in New York begins Tuesday.
Hythiam, Inc. (NASDAQ: HYTM), a healthcare services management company that licenses the PROMETA™ physiological protocols designed to treat substance dependence, announced via an 8K last week that it had inked its first license agreement for direct third party reimbursement of Hythiam’s PROMETA Protocols for alcoholism and stimulant dependence. The filing detailed that the third-party payor provides medical and behavioral health services for a specific patient population, with a high prevalence of both alcoholism and stimulant dependence, of approximately 5,500 individuals. Hythiam will receive its negotiated government reimbursement rate of $2,500 per individual treated for substance dependency with the PROMETA Protocols. It is expected that treatment of patients will commence immediately upon the completion of training. We believe that this agreement represents a milestone event for the company, and positions it to enter into additional deals with licensees that are even more significant. Moreover, with Prometa's success within this patient population, broader reimbursement for similar populations throughout the U.S. can be achieved. Shares ended the week at $7.34, up 88 cents.
Volume Alert: Shares of small appliance maker Salton, Inc. (NYSE: SFP), jumped 15 percent on Friday on more than 10 times average volume, after one of the company’s largest shareholders said in an regulatory filing that it would like to acquire the company. Harbinger Partners, which owns 15% of the company’s stock on a convertible basis, recently acquired small appliance maker and rival Applica Inc. Harbinger, which has representation on Salton’s Board of Directors, has proposed a merger of the companies in a move that would likely reduce costs significantly. Salton recently announced fiscal results for its fourth quarter and year ended July 1, 2006. Salton reported net sales of $129.5 million and a loss of $50.8 million or ($3.57) per share for its fiscal 2006 fourth quarter compared to net sales of $151.2 million and a loss of $28.8 million or ($2.53) per share for the fiscal 2005 fourth quarter. Net sales decreased domestically by $29.7 million. The loss in the 2006 fourth quarter included a pretax charge of $21.9 million for non-cash intangible asset impairments associated with certain trade names and a $3.4 million non-cash valuation allowance against certain foreign deferred tax assets. Salton's sales were $636.0 million for the year ended July 1, 2006 compared to $781.7 million in fiscal 2005, a reduction of $145.7 million. Domestic sales declined by $124.2 million due to the impact of the sale of the tabletop product lines in September 2005, inventory shortages, vendor and customer uncertainty, post-holiday overstocks at retailers and planned product discontinuation. Despite the weak results, Salton dramatically improved its balance sheet. It had, at year-end, approximately $293 million in indebtedness, net of approximately $44 million of cash, swap valuation and accrued interest on senior secured notes compared to $429.3 million as of July 2, 2005, net of approximately $21.9 million of cash and swap valuation. The company said that additional revenue from new product offerings as well as continued cost reductions are designed to return it to profitability. Shares ended the week up $0.21 at $2.35.
Volume Alert: Shares of life sciences company Forbes-Medi-Tech Inc. (NASDAQ: FMTI) surged 7.3% last week on more than five times average volume, as investors have begun to focus on upcoming results from its Phase 2 clinical trial of cholesterol-lowering drug FM-VP4 which are expected to be announced in VP4 was recognized last week as one of "Windhover's Top 10 Unpartnered Cardiovascular Projects" for 2006 in a selection by an independent committee assembled by Windhover Information, a leading provider of business information products and services to senior executives in the pharmaceutical, biotechnology, and medical device industries. Results from the company’s first Phase 2 trial of VP4 were disappointing due to factors, we believe, relating to trial design rather than the drug’s efficacy. The primary objective of this trial is to determine the effect of two doses of FM-VP4, 450mg and 900mg, given for 12 weeks, compared to placebo, on low density lipoprotein-cholesterol (LDL-C). The goal of this trial is to demonstrate a minimum of 15% reduction from baseline in LDL-C at Week 12. Significant growth in sales of cholesterol absorption inhibitors confirms the strength of the alternative therapy market for cholesterol lowering. FM-VP4 is one of few other inhibitors in development and, as such, has the potential to achieve a significant market share. Shares ended the week up $0.17 at $2.50.
Volume Alert: Shares of drug delivery company Emisphere Technologies (NASDAQ: EMIS) surged 7.6% last week on more than three times average volume, as investors have bid the stock higher in anticipation of the company announcing results from its Phase II oral insulin trial. The double-blind placebo controlled trial, which consists of 140 patients, was conducted in India. The trial was completed in September, and results are expected to be reported shortly. With approximately 25% of the float short, a favorable outcome could send shares soaring. The stock ended the week at $10.35, up 73 cents.
As we speculated last week, Home Solutions of America, Inc. (NASDAQ: HSOA), a provider of recovery, restoration and rebuilding/remodeling services, filed an 8K in which it provided the results of the audit of Fireline Restoration, a privately held restoration services company it acquired in August. The audited results contained few surprises, as Fireline showed dramatic growth in revenue ($4 million in fiscal 2003 which increased to $53 million in fiscal 2005), followed by a decline in revenue during the first half of 2006 ($18.6 million for the first six months) due to the absence of hurricanes. These results suggest that the acquisition could be mildly accretive in fiscal 2006, although they say nothing about HSOA’s overall prospects for the second half of the year, or whether it will meet its aggressive guidance of revenue for the full year of $160 to $165 million and diluted EPS of 56-60 cents. The acquisition of Fireline, however, will provide the company with the necessary pool of labor to complete larger projects, and should help the company meet its financial targets this year. While it is difficult to be an aggressive buyer of the stock until the company provides greater visibility into the second half of its fiscal year, which could occur when it presents at the Sanders Morris Investor Conference on Tuesday, it is unlikely that the stock would trade at significantly lower levels if the company is able to meet its financial targets, even with the acquisition included. Note that short interest is approximately 39% of the float. Shares ended the week at $5.57, down 54 cents.
Generex Biotechnology Corporation (NASDAQ: GNBT), a leader in the area of buccal drug delivery, filed its Form 10-K Annual Report for the fiscal year ended July 31, 2006 last week. The statements rt disclosed that Generex had cash, cash equivalents, and short-term investments in excess of $52 million which was the strongest financial position in the company's history. Unlike previous reports, the auditor's report in respect of those financial statements does not include a "going concern" qualification. The company also recently made a podium presentation at the 2006 Canadian Diabetes Association (CDA) Professional Conference and Annual Meetings in Toronto, Canada. The stock ended the week down $0.28 at $2.06.
Netsmart Technologies, Inc. (NASDAQ: NTST), a leading provider of enterprise-wide software for health and human services organizations, announced that the company had been awarded contracts totaling approximately $1.9 million over periods of up to three years for state-level behavioral healthcare software and services implementations in New York, Hawaii, Idaho and Arizona. Netsmart will continue to provide ASP hosting services to the State of New York Office of Alcoholism and Substance Abuse Services (OASAS) in support of the rollout of the Netsmart Avatar software. The three-year agreement for ASP hosting is designed to minimize up-front costs and software hosting and maintenance resource requirements for OASAS. OASAS has implemented Avatar PM (Practice Management) and Avatar CWS (Clinician Workstation) to support their day-to-day registration, billing and clinical documentation needs. In addition to Avatar software, Netsmart will support OASAS's use of Crystal reports. The company will also provide licensed software, integration tools and implementation services, including HL7 interfaces, for the MediWare WORx(TM) medication management system for the State of Hawaii Department of Health. The MediWare system contract is an amendment that increases the products and services to be provided under an existing three-year agreement for a Netsmart- implemented integrated clinical management system designed to enable the state to effectively serve behavioral healthcare clients statewide. The stock ended the week up $0.24 at $13.32.
VeriChip Corporation, a subsidiary of Applied Digital (NASDAQ: ADSX), a leading provider of identification and security technology, announced that 67 new healthcare facilities agreed to adopt the VeriMed Patient Identification System Network at the recently completed American College of Emergency Physicians Conference in New Orleans last week. The new healthcare facilities agreed to use the VeriMed reader as standard protocol to scan patients that arrive in emergency rooms unconscious, delirious or confused. The company continues to provide readers to hospitals and other healthcare facilities at no charge as part of its efforts to "seed" the infrastructure for the VeriMed patient identification system. The new healthcare facilities bring the total number of hospitals and healthcare facilities that have agreed to adopt the VeriMed System, to 252, well ahead of the company’s forecast. The VeriMed System, which consists of a hand-held radio frequency identification (RFID) scanner, an implantable RFID microchip, and a secure patient database, is being used to help rapidly identify and provide access to important health information on participating patients who arrive at the emergency department unconscious, delirious, or unable to communicate. The stock ended the week down 2 cents at $1.64.
SLS International (AMEX: SLS), the leading provider of premium quality sound systems for professional, cinema and home entertainment markets, announced that a dismissal has been entered by the Los Angeles Superior Court with regards to a lawsuit that had been filed against SLS and other parties by Jimmy Iovine and Andre Young. The lawsuit claimed that SLS had breached an oral contract relating to the design and promotion of certain patent pending headphone technology owned by SLS International. SLS was the only defendant dismissed from the lawsuit. The company feels that the dismissal will allow the company to move forward with other possible licensing agreements for its patent pending noise canceling headphone technology and other patented products. The stock ended the week down 2 cents at $0.19.
VoIP, Inc. (OTCBB: VOII),a leading provider of Voice over Internet Protocol (VoIP) communications solutions for service providers, resellers and consumers, announced that it has completed the first phase of its restructuring, streamlining operations, reducing its overall level of indebtedness and raising additional capital. The initiatives are expected to improve the company's balance sheet and enhance operating results. The company will continue to pursue initiatives to increase efficiency. The company announced that it has terminated its Marketing and Distribution Agreement with Phone House, Inc., under which it was responsible for the wholesale distribution, marketing and selling of low-margin prepaid telephone calling cards by Phone House, Inc. VoIP has also entered into an agreement with certain investors where they converted approximately $7 million in debentures into common stock, and separately raised $2.3 million via a private placement, providing working capital for the continued development and marketing of its VoiceOne suite of services. Shares ended down a cent from last week and closed at $0.41
Specialty pharmaceutical company Auriga Laboratories, Inc. (OTCBB: ARGA) said last week that it had filed a new provisional patent application for a novel expectorant treatment option for inclusion in several of the company's proprietary prescription drug products as well as strategic new indications. The recent filing employs select, innovative drug delivery technologies to administer the active ingredient and select combinations in prescription and potentially over-the-counter respiratory products. This will allow Auriga to further extend market exclusivity for its proven pharmaceutical brands. The company also recently finalized an agreement with River's Edge Pharmaceuticals that significantly expands its product portfolio with an exclusive license to five new prescription dermatological product formulations. The agreement marks Auriga's third major product acquisition or exclusive license in less than two months. It also enables the company to add the $5 billion dermatology marketplace to the growing list of medical therapeutic segments addressed by its products and development programs. Americans make more than 35 million visits to dermatologists each year, resulting in millions of prescriptions to address skin disorders and conditions. The agreement calls for River's Edge to present Auriga with five single source dermatology pharmaceutical formulations for launch in the 1st quarter of 2007. The stock ended the week up 4 cents at $1.55.
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 the company has received an initial payment from an exploration affiliate of a multi-billion dollar company to provide its proprietary satellite-based STeP® technology report to locate diamonds in a more than 1,000 square kilometer area in the Republic of Congo. The September 2006 service contract also provides for the company to receive, in addition to its undiscounted service rates out of project revenues, a 1% free participation interest and a 5% working interest in the project. The company has begun its preliminary analysis of the contracted prospect to determine the location of the kimberlite pipe(s) which is the potential source of the alluvial diamonds already found in the license area. The company’s co-venturer has already built a campsite to support the exploration activities. In preparing its analysis, the company utilizes proprietary STeP technology, which is based on interpretation of satellite data, to effectively identify kimberlite pipes containing diamonds, and for finding other natural resources subsurface, including oil and gas, gold and even water. The stock ended up 2 cents at $0.22.
GS AgriFuels Corporation announced the conversion by environmental business development company, and majority shareholder, GreenShift Corporation (OTCBB: GSHF), of its GS AgriFuels preferred stock into common stock. The conversion brings the company’s outstanding common stock to about 28 million shares, of which GreenShift holds 26 million. This amount does not include the impact of the GS AgriFuels' June 2006 financing agreements with Cornell Capital Partners, LP, pursuant to which Cornell agreed to provide GS AgriFuels with $22 million in financing to support GS AgriFuels' development efforts. Under the relevant financing agreements, Cornell agreed to purchase $22 million in GS AgriFuels debentures that are convertible into GS AgriFuels common stock at $3.00 per share. Cornell provided an initial $5.5 million of this amount in June 2006 and agreed to provide the balance in line with GS AgriFuels satisfaction of key benchmarks in its development plans. The company also recently announced its execution of an agreement to acquire NextGen Fuel, Inc., a producer of modular, continuous-flow multi-feedstock biodiesel process equipment based on NextGen's patent-pending process intensification technology. Under the terms of the acquisition agreement, GS AgriFuels will acquire 100% of the stock of NextGen in return for about $20 million. The closing of the acquisition is subject to GS AgriFuels' completion of financing and the agreement is terminable if the acquisition does not close on or before November 15, 2006. GS AgriFuels is currently developing several sites for the construction of its planned agrifuel production facilities. GS Carbon Trading, Inc. announced that its TerraPass division teamed up last month with Expedia to decrease the amount of carbon emissions released into the environment from air travel. GS AgriFuels Corporation also announced its execution of an agreement to merge with GS Energy Corporation. GreenShift Corporation, which currently owns about 90% of GS AgriFuels and about 80% of GS Energy in the form of preferred stock, will exchange its GS Energy stock for GS AgriFuels stock such that GreenShift will own about 85% of GS AgriFuels after completion of the merger. Shares ended the week unchanged at $0.12.
Volume Alert: Shares of IMPART Media Group, Inc. (OTCBB: IMMG), an innovator in the creation of out-of-home digital advertising content and information network management, surged 64% on more than 10 times average volume last week, after the company announced that it had been named supplier for Microsoft Corporation's in-store interactive marketing initiatives for both the ZUNE™ personal media player and upcoming, Vista™ operating system release. The merchandising system employs an LCD touch screen and is based on the Microsoft XP Embedded(TM) platform -- delivering a rich media experience to the consumer -- at the point-of-sale. IMMG also said that it had recently reduced operating costs and overhead by approximately $100,000 per month. The stock ended the week up $0.32 at $0.82.
USA Technologies, Inc.(OTCBB: USAT), a developer of cashless vending and energy management products, announced the EnergyMiser® Conversion Program to aid vending machine owners and operators nationwide with conversion of their installed vending machines to meet ENERGY STAR requirements. The EnergyMiser Conversion Program is a comprehensive turnkey package of services and technology provided by USA Technologies for bottlers to capitalize on the new ENERGY STAR Refurbishment Program. This announcement came days after the Environmental Protection Agency announced the Rebuilt Beverage Vending Machine Program under which older and existing machines will be able to qualify for ENERGY STAR eligibility and carry the ENERGY STAR label. There are four million refrigerated vending machines in the U.S. alone, and of that installed base, approximately 200,000 are refurbished and remanufactured each year and USA Technologies has developed three critical services required to convert a used refrigerated vending machine into an ENERGY STAR vending machine. USA Technologies is listed as one of five vending machine manufacturers and component suppliers on the EPA's ENERGY STAR web site for the rebuilt program. The stock ended down $0.25 at $6.20.
Junior oil and gas producer, Patch International Inc. (OTCBB: PTCH), reported that it has agreed to participate in a natural gas prospect located in northeast British Columbia by way of farmin and option. The company has entered into a Participation and Option Agreement with an Area of Mutual Interest ("AMI") covering 35 square miles of land in northeast BC, located south of Fort St. John, called the Eight Mile Prospect ("Eight Mile"). PTCH has committed to drill and complete two wells in the initial program with drilling to commence during October 2006. The drilling of each commitment well will result in the earning of the section on which the commitment well is located plus an additional contiguous section. PTCH will have a continuous option following the drilling of the two commitment wells to earn a further interest in the remaining sections. The Farmor holds a 100% interest in 21 sections (21 square miles) within the AMI and the majority of the farm-out lands are contiguous. Under the terms of the Agreement, PTCH will pay 20% of the Farmor's share of drilling and completion costs. For each earning well, PTCH will earn 20% of the Farmor's working interest in the section, subject to a 12% convertible overriding royalty before payout and a 12% working interest after payout and a 12% working interest in a second contiguous section. Patch’s share of equipping and tie in costs will be based on its after payout working interest. Drilling of the proposed locations will target natural gas in the Triassic Doig formation as the primary zone with secondary targets in the Charlie Lake and Halfway zones. Shares ended down at penny at $0.84.
On the Wires: Auriga Laboratories, Inc. (OTCBB: ARGA) announced the appointment of biopharmaceutical industry veteran, Stephen C. Glover to the company's Board of Directors, where he will provide important background and advice as Auriga expands its prescription drug marketing and product development programs. Enzo Biochem, Inc. (NYSE: ENZ), developer of innovative health care products based on molecular biology and genetic engineering techniques, announced the appointment of Gary C. Cupit, PharmD, to the newly created position of President of Enzo Therapeutics, Inc. Dr. Cupit is a senior executive with 20 years experience in the pharmaceutical industry who formerly headed Global Search and Evaluation in Business Development and Licensing for Novartis Pharmaceutical Company. Oxford Media, Inc. (OTCBB: OXMI), a leading developer of scalable, turnkey hybrid digital VOD and PPV entertainment systems, announced that it has appointed WiMAX visionary Hooman Honary as its Chief Technology Officer. Mr. Honary played an integral role in the development of wireless technology and strategies during his tenure at both Intel Corporation and Broadcom Corporation. Small appliance maker Salton, Inc. (NYSE: SFP), announced that William B. Rue has decided to retire from his positions as President and Chief Operating Officer and Director of the company, effective immediately. Mr. Rue will continue as consultant to the company for a transition period assisting in its business operations. QuantRx Biomedical Corporation (OTCBB: QTXB), a medical technology company with leading edge products targeting worldwide health needs, announced that its company information will be made available via Standard & Poor's Market Access Program
END USER CORN HEDGE
The corn fundamentals for the coming year remain quite bullish, and unless there is a major derailment in the demand, the market faces a significant challenge of producing several good crops in a row in order to alleviate the tightness which looks to occur for this season and maybe next. The USDA last week pegged corn production at 10.905 billion bushels as compared to 2006/07, down from the average trade estimate at 11.137 billion. Planted and harvested acreage estimates were adjusted lower by 800,000 acres, and yield was adjusted lower by 1.2 bu/acre from September. Usage is still projected at 985 million bushels "above" production. Keep in mind, a 5 million acre increase in corn planted acreage for next year with a yield of 157 bu/acre would produce a crop near 12.06 billion bushels as compared with usage estimates near 12.3 billion bushels.
Ending stocks are now pegged at just 996 million bushels as compared with trade estimates which ranged from 1.139-1.300 billion. This stocks/usage ratio of 8.4% is the lowest since the 1995/96 season when prices hit all time highs. In addition, this is only the third time since at least 1970 in which the ratio is under 10%. World ending stocks were pegged at just 89.5 million tonnes from 124.55 million tonnes for 2005/2006 and 130.53 million tonnes for 2004/2005. This is the lowest world ending stocks since 1983 and would result in the lowest stocks/usage (12.4%) since 1973, when it was at 11.8%. China exported 10,000 tonnes of corn in September to bring the total for the year to 2.29 million tonnes, down 68% from last year.
Corn end users for the 2007/2008 season are in a difficult spot. Prices are already at $3.20 and ethanol consumption is on the rise, beginning stocks will be tight and producers in the southern and western fringes of the Corn Belt are rushing to plant wheat on land which corn users had hoped would go to corn. Call coverage is very expensive and the market is likely to see significant price volatility between now and next April, when the crop is planted.
Corn end users for the 2007/08 season can buy 1 Dec 07 corn futures near 320, sell 1 Dec 07 corn 320 put at 34 and buy 6 Dec 07 corn 260 puts at 7 each. The net cost of the hedge is 8 cents. (If this is too high, consider buying only 5 puts or selling a Dec 07 corn 440 call at 14 cents so the spread is a credit, but this will limit upside coverage to 447!) If the market rallies, the hedger is covered. If the market falls to 270 into early next year, the 320 put would be trading near 58 cents for a 24 cent loss but the 260 puts would be priced around 20 cents, for a gain of 78 cents. As a result, the hedger will be up 54 cents on the hedge on a 50 cent break in futures. If the market were to fall to 240 into early next year, the 320 put would be trading near 81 cents for a 47 cent loss but the 260 puts would be near 34 cents for a gain of 162 cents. As a result, the hedger will be up 115 cents on the hedge on an 80 cent break in futures. This strategy offers significant flexibility on a sharp break into late this year or on a sharp rally over the near term. Corn producers can also use the strategy but should not buy futures as they are naturally long.
*Projected changes in option values are based on option pricing models and are not guaranteed.
WHEAT STRATEGIES
While the wheat market seems to have the fundamental setup to eventually challenge the all time highs, the turn lower from a key resistance point on the monthly chart and numerous technical signals that at least a near term top is in place suggests that traders wait for a significant setback to re-enter the market from the long side or aggressive short term traders can play the market from the short side. The steady adjustments lower in production from Australia due to severe drought combined with lower stocks from other key world exporters (EU, US, and other European countries) and news of export controls from Ukraine was enough to drive December wheat up $1.68 1/2 off of the September 15th lows before experiencing a key reversal last week.
The October USDA report for wheat was bullish, as both world and US ending stocks were adjusted lower. The USDA pegged ending stocks for the 2006/2007 season at 418 million bushels as compared with trade expectations near 435 million bushels and with 429 million bushels posted last month. US ending stocks are now at their lowest levels since 1995. World ending stocks for 2006/2007 were pegged at 119.3 million tonnes from 126.4 posted last month, 147.2 last year and 151.4 the previous year. This is the lowest ending stocks since 1981 (112.5 million) and the lowest stocks/usage ratio since at least 1960. Australia production was revised to 11 million tonnes from 19.5 million last month. Some traders believe that their crop is already below 10 million tonnes. EU and China production was also revised lower by 1.29 million and 1.5 million tonnes respectively. The USDA now believes that stocks from key exporting countries will slip below the "tight" level of 1995/1996. A surprise Egyptian tender and news of export sales reaching a marketing year high, in spite of the recent surge in prices (sales hit a marketing year high), supported December wheat to a high of 556 before the reversal last week.
The reversal came from a key resistance point on the monthly chart of 548 1/2 which would be a 0.618 retracement of the break from the all time high to the December 1999 lows. The market was unable to close above this level, and the turn down and follow through selling late last week may confirm that a near term top is in place. Another confirmation of a top would be if the market closes (after this writing) under 525 1/2 on October 20th. The decline in open interest during October is another concern for the bulls and does not leave a good foundation for a move to a higher price level. In addition, the RSI reading on October 11th came in at 89.9 with the market high to date of 531. When futures pushed to a new high of 550 on October 12th, the RSI was at 76.9, and when the market posted a contract and 10-year peak of 556, the RSI reading was at 73.7. The triple RSI divergence on the chart is a classic technical sign of a loss in upside momentum.
The surge higher in prices ahead of the key planting period for the winter wheat crops for the northern hemisphere would suggest the possibility of an enormous surge in production beginning in the spring of 2007. Weather will remain as a significant factor, but the odds at this time strongly favor a build up in world and US ending stocks for the 2007/2008 season. News from the India Farm Minister that this country may not need to import wheat this coming season helped ease the aggressive buying last week, and talk of good rains in the US southern plains and a chance of some rain in some of the growing areas of Australia were factors which helped pressure the market.
Suggested Trading Strategies: 1) Sell December wheat at 533 with an objective of 486 1/2. Risk the trade to 549. 2) Sell the December 550 call near 22 cents with an objective of 0. Risk 6 cents from entry. 3) Sell the July wheat 530 put near 30 cents and buy the July 430 put near 30 cents. Risk 14 cents from entry and exit position when July wheat reaches the 406 downside objective
CRUDE OIL STRATEGIES
Typically, our coverage of markets in this newsletter focuses on imminent market developments, but in this case we feel the need to proclaim that the energy market has probably stopped going down but that prices don't necessarily deserve to rally. However, the importance of energy price direction is quite significant to a number of markets, and it could take some time to actually clean up the excess supply situation. Therefore, we feel it is appropriate to jump the gun and foster the idea that fundamental change is in the air. Given the lack of a definitively optimistic macroeconomic outlook, ongoing slack seasonal demand, hints of a warm El Nino winter and less than impressive coordination among OPEC members, one cannot rule out additional near-term weakness. On the other hand, we are already seeing improving signs from sharp equity market gains, a private forecaster predicting that the coming winter will actually be colder than the prior year by 5% and perhaps mostly importantly that the energy market has now gone an extended period of time without a fresh physical supply disruption! While the market last week seemed to discount the 1 million barrel per day OPEC production cut threat as too little too late, that effort should eventually bear some fruit and in turn begin to tighten supply. We also think that the normal progression toward increased seasonal demand in North America and a gradual upgrade in demand overall will add to the tightening process. In looking at the recent annual US crude oil inventory surplus readings (21 million barrels at the API), it is clear that the market is still presented with a bearish setup, but one should also note that nearby crude oil prices did manage to rally above $80.00, with the US crude oil annual surplus figure at even higher levels. Therefore, the current surplus itself doesn't prevent energy prices from rising but against the backdrop of various other bearish fundamentals, there has been justification for the $22 decline in crude oil from this summer's highs. As a result, we think that the $60.00 December crude oil price level is a "quasi" line in the sand for OPEC producers and that a gradual improvement in the economy ahead will set the stage for the energy market to begin responding to minor supply issues. In fact, with the spec and fund long positioning in crude oil and heating oil leveled by the last two months' declines, structural tightening underway and demand expectations slowly being repaired, it is unlikely that sub-$59.00 crude oil prices will be sustained without a significant failure in the economic outlook.
Suggested Trading Strategies: 1) Sell a December crude oil 63.00 call for 170 and use that money to buy a January crude oil 64.50 call for 240. In the event of a correction or a sideway trade that results in heavy premium decay in the December call, look to liquidate that portion of the trade for a net gain of 120 points and look to hold the January call into the end of November. Risk the combination to a net loss of 195 points and use an upside objective of 450 on the long January call. 2) Buy a February heating oil 220 call for 235, with an objective of 500. Risk the option to a close below 120.
MARCH SUGAR
In our last newsletter we explored positioning in the bio-fuel markets of corn, soybean oil and sugar. Even with the continued break in crude oil, sugar prices appear to have reached a level where the trade believes that a few extra tonnes of production over this year's consumption will not apply much pressure to the market. While traditional supply/demand factors look to be in a short term bearish setup, the market seems to have already absorbed the outlook for a bit more supply this season and the technical bullish signals are significant. Without a decisive technical signal of a low, we recommended that traders sell 1 May sugar 11.00 call at 110 and buy 5 of the May 13.50 calls at 22 each. As of October 18th, the position has done well, particularly after the improved action of last week, as the trader was out 103 points on 1 May 110 call but up 345 points on the five 13.50 calls. A 400 point rally into early next year should net about a 539 point gain with this strategy. (Option price scenarios are based on pricing models and are not guaranteed.)
The upside breakout last week was impressive, but so far there has still been no new definitive news as to what might have sparked the upside breakout in London or the bullish technical signals from New York. Traders believe there will be a 2-4 million tonne surplus for the 2006/2007 season, but the fact that a large portion of the increase in stocks could come from India means that the increased supply may not necessarily pressure world prices as much as anticipated. March sugar gapped a major downtrend channel off of the July and September highs. Increasing open interest since the October 4th reversal low adds to the bullish technical action. The structure of the market basis the last Commitment of Traders report with options is also in a positive or bullish setup, and the market seems to have the longer term "story" to attract significant buying interest from funds. Funds were net long 51,332 contracts in the last report. The fund net long position on the last bull surge climbed to over 188,000 contracts before peaking.
There seems to be a general feeling that the break off of the spring highs has been enough to stimulate new demand and that a few million tonnes of surplus on the world market this year is not a big deal, as the sugar will eventually be burned to produce ethanol. The energy markets appear to have stopped going down and have stabilized well above a level which keeps sugar ethanol production as a very profitable venture. Therefore, the sharp rise in ethanol usage around the world should provide a base of support for the sugar market.
Suggested Trading Strategies: 1) Buy March sugar at 11.65 with an objective of 14.55. Risk the trade to 10.86. 2) Buy 2 March sugar 15.00 calls at 18 each and risk 18 points total on the trade. Exit one call at 36 and hold a second call for a run at the 14.55 objective for March sugar. The call should be near 90 points if the objective is hit by early next year.
It seems that some of the pundits who called for an end to the commodity bubble in the wake of the August and September correction are now having second thoughts about the demise of the super cycle in commodity prices. Given past financial coverage of the commodity markets by the mainstream press, one should have expected them to overreact to the threat of slowing in the wake of high oil prices and progressively higher interest rates. The financial world seems to have a historical bias against the commodity markets, and the recent downgrade of CBOT and CME stock in the wake of the recent buyout announcement is typical of the cynical view toward commodities. In MOST markets, seeing merger/buyout activity is usually seen as being extremely favorable towards that particular market segment, as the key players in the arena are apparently seeing such a positive outlook that they are willing to increase their financial investment in that sector. Furthermore, we think that the market is making entirely too much out of the impact of the funds in many commodity markets, as the demand for most commodities remains strong and trading volume on the exchanges is not only posting some seasonal surprises but is also persistently posting new all time records. In fact, the recent downgrade of the CME and CBOT stocks in the wake of the merger announcement not only discounts the potential strategic windfalls from the alliance, but it also seems to completely ignore the hard facts that the exchanges look to continue to book massive revenues off intense global trading interest! One only needs to look to the corn market for an example of the ongoing commodity super cycle potential: this year's US corn crop was at times expected to be the 2nd largest crop ever and the market is also expecting a massive increase in planted area next year, yet that hasn't prevented corn prices from forging a 42% rise "into the period of highest supply". The wheat market is another example of a commodity market that has such strong demand that any hitch in the production cycle is cause for a massive reaction. Since the mid September lows in Kansas City wheat, the wheat market has managed a stellar 21% rise in prices. From last year's lows, Kansas City wheat prices have managed a 53% appreciation. As we have indicated for the last two years, globalization is a major deal for commodity prices, and the combination of increased industrial use off the energy situation and aggressive fund involvement should conspire to leave the commodity super cycle in place. From a shorter term perspective, it does seem like the US economy is beginning to show improved consumer sentiment off the sharp $22 per barrel decline in oil prices and that the market is significantly less concerned about rising interest rates. Furthermore, it is our opinion that either the US and global economies will improve in the coming months, or that oil prices will be forced to fall to an even lower level. On the other hand, in the event that the economy fails to regather momentum in the coming months and oil prices decline further, we will become even more upbeat toward early 2007 economic prospects. It would have been wrong to assume that the great commodity bull camp would simply rage on without periodic corrections, but it is our opinion that it is also wrong to think that demand for commodities is slowing and that the super cycle has run its course. In fact, as long as the world economy and particularly the developing economies remain in an expansionary mode, one should expect most commodity prices to rise over the coming 6 months.
October 23, 2006
Sampling at Severny Returns 48 Metres of 2.27 g/t Au
Centrasia Commences Fall Drill Program at Severny
--------------------------------------------------------------------------------
Centrasia Mining Corp. ("the Company") is pleased to announce assay results from its surface sampling program at the Severny Porphyry Cu/Au prospect ("Severny") on its Bulakashu Property in northern Kyrgyzstan. Continuous chip sampling along new outcrop exposure at Severny returned a mineralized interval of 2.27 g/t Au over 48 metres. The Company anticipates the arrival of a drill rig and the commencement of a minimum1000 metre drill program at Severny during the current week.
Since the Company's last news release (October 5, 2006), an additional 81 sample results have been received. All samples are consecutive, continuous, one metre chip samples collected along a newly constructed drill road at Severny. Of the 81 new sample results from the road cut, four samples assayed greater than 5.0 g/t Au, 32 samples assayed greater than 1.0 g/t Au and 44 of the 81 samples assayed greater than 0.5 g/t Au. Samples B06-715 to762 averaged 2.27 g/t Au over 48 metres, including 1 metre intervals of 10.5 g/t Au, 7.85 g/t Au, 6.61 g/t Au and 6.64 g/t Au. Copper results from these samples were weakly anomalous with 22 of the 48 samples assaying greater than 100 ppm copper. Including the results released today, a total of 357 assays had been received of the 850 collected from Severny during the 2006 exploration program.
The new road cut exposed a broad zone of andesite with spotty propylitic alteration and pervasive silicification of varying intensity, consisting of fine quartz and quartz-pyrite veinlets. The mineralized interval is situated on the southwest flank of a conductive zone defined by the recently completed dipole-dipole IP/resistivity survey over the Severny target area. Results of the survey defined a large zone of conductivity (1 km by 2 km), ranging from 50-200 metres from surface and open to depth and to the NE. The coincidence of this anomaly and the copper and gold mineralization identified on surface further supports the exploration model of a buried porphyry Cu/Au system at depth.
Centrasia's exploration programs are carried out under the supervision of the Bill Tafuri, P.Geol., the Company's Vice President of Exploration and a "Qualified Person" for the purposes of NI 43-101. Mr. Tafuri has reviewed the technical information presented in this news release. All samples collected by the Company's field staff and transported directly to Alex Stewart Assay and Environmental Laboratories, an ISO 9001, 2000 accredited laboratory based in Kara Balta, Kyrgyzstan for analyses.
Centrasia Mining Corp.'s headquarters is in Vancouver, Canada, with exploration offices in Bishkek, Kyrgyzstan and Almaty, Kazakhstan. The Company is actively engaged in the exploration and acquisition of precious and base metal projects in Central Asia. Centrasia is listed for trading on the TSX Venture Exchange under the symbol "CTM", on the Frankfurt Stock Exchange under the symbol "C8M" and on the OTCBB under the symbol "CTMHF".
To find out more about Centrasia Mining Corp., please visit the Company website at www.centrasiamining.com.
On behalf of the Board of Directors of
CENTRASIA MINING CORP.
Douglas Turnbull
President & C.E.O.
The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.
Forward Looking Statements. This Company Press Release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.
TORRENT COMPLETES DRILLING FIRST WELL AND COMMENCES DRILLING SECOND WELL ON WESTPORT PROJECT AREA
Seattle, Washington – October 24, 2006 – Torrent Energy Corporation (the “Company”) (OTCBB: TREN) is pleased to announce the following developments from its wholly owned operating subsidiary, Methane Energy Corp. (“Methane”).
Methane successfully completed drilling MEC 9-21-26- 13 on October 15, 2006 and the Roll’n Rig #14 was released and commenced moving to the second location at 1-21-26-13. The well was successfully drilled to a depth of 3,025 feet, logged and casing was run and successfully cemented. A total of 85 feet of net coal with corresponding good-excellent mud-gas response was encountered. The gas- bearing coal section occurs between a drill depth of 558 and 1890 feet. The well was drilled through the coal-bearing interval and into a deeper basalt section to test and evaluate fracture porosity and permeability for potential use as a water disposal zone. Based upon drilling behavior, directional drilling reports and preliminary log interpretation, it is believed that a number of fracture zones were encountered in this basalt section.
Methane commenced drilling MEC Westport 1-21-26- 13 at 22:30 PST on October 18, 2006. This well is the second of ten potential new wells to be drilled in Methane’s Westport project area located in Coos County, Oregon. Drilling operations on this well are forecast to run for eight to ten days. The well will be directionally drilled to an estimated total depth (TD) of 3,255 feet. The well is being drilled by Roll’n Oilfield Services’ Rig #14.
Methane has completed moving into a new office in Coquille, Oregon which combines its land, exploration and operations groups into one location. Address and phone information can be accessed on the Company’s website www.methaneenergy.com.
Torrent’s President & CEO, John Carlson, states “It is good to be drilling again and all systems are working to ensure a successful drilling program. We have encountered the expected sections and thicknesses of coal with excellent gas shows in the first well which supports our geological model in the Westport area. A key component of our drilling program will be to test the lower basalt sections in the first 3 wells to identify potential zones for water disposal and we see a potential zone in the first well that will be tested for injectivity before the end of the year.“
About Torrent Energy Corporation
Ear on the Street
Alliance Atlantis Commun. (AAC.B : TSX : $37.05)
A possible sale of interests in the Movie Distribution Income Fund
BMO Capital Markets upgrades to "outperform", 12-month target price is raised to $42.00
Desjardins Securities maintains "buy", 12-month target price is $43.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $44.50
TD Newcrest maintains "action list buy", 12-month target price is raised to $44.00
Agrium (AGU : TSX : $29.13 | NYSE : US$25.86)
Revised Q2 production guidance worse than expected
CIBC World Markets maintains "sector outperform", 12-month target price is US$31.00
RBC Capital Markets maintains "sector perform", 12-month target price is cut to US$29.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $36.00
Amtelecom Income Fund (AMT.UN : TSX : $12.80)
To report Q3 on November 2
TD Newcrest maintains "buy", 12-month target price is $13.50
Boardwalk REIT (BEI.UN : TSX : $35.60)
Management is confident that the gap between market and in-place rents will be closed
BMO Capital Markets maintains "market perform", 12-month target price is raised to $36.00
Bank of Nova Scotia (BNS : TSX : $48.56 | NYSE : US$43.02)
Acquires Jamaica securities dealer
TD Newcrest maintains "action list buy", 12-month target price is $54.00
CanWest Global Communications (CGS : TSX : $10.69 | CWG : NYSE : US$9.44)
Potential for asset sale in Australia and New Zealand
Credit Suisse maintains "outperform", 12-month target price is $13.00
Desjardins Securities maintains "buy", 12-month target price is $11.50
RBC Capital Markets maintains "sector perform", 12-month target price is $11.00
Scotia Capital Markets maintains "sector perform", 12-month target price is $10.50
TD Newcrest maintains "buy", 12-month target price is raised to $12.50
ConjuChem Biotechnologies (CJB : TSX : $1.15)
Results from PC-DAC:Exendin-4 3 mg single dose trial
RBC Capital Markets maintains "underperform", 12-month target price is $1.50
Celestica Inc. (CLS : TSX : $12.88 | NYSE : US$11.41)
To report Q3 on Thursday
Blackmont Capital maintains "buy", 12-month target price is $16.50
CIBC World Markets maintains "sector outperform", 12-month target price is US$14.00
Canadian National Railway (CNR : TSX : $53.09 | CNI : NYSE : US$47.05)
Q3 ahead of expectations
RBC Capital Markets maintains "outperform", 12-month target price is $63.00
Canexus Income Fund (CUS.UN : TSX : $8.02)
Q3 in line
RBC Capital Markets maintains "outperform", 12-month target price is raised to $9.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $8.70
Duvernay Oil Corp (DDV : TSX : $33.69)
Impact of the financing and lower natural gas prices
Canaccord Adams maintains "buy", 12-month target price is cut to $50.00
Dalsa Corp. (DSA : TSX : $13.75)
To report Q3 on October 26
Blackmont Capital maintains "buy", 12-month target price is $20.70
BMO Capital Markets maintains "market perform", 12-month target price is $16.00
Ember Resources (EBR : TSX : $3.20)
Continued gas price weakness is expected through 2007
BMO Capital Markets maintains "market perform", 12-month target price is cut to $3.75
EnCana Corp. (ECA : TSX : $53.33 | NYSE : US$47.31)
To release Q3 on October 25
Scotia Capital Markets maintains "sector perform", 12-month target price is $62.00
Equinox Minerals Limited (EQN : TSX : $1.84)
Equinox finalizes Lumwana EPC and releases Ndola West drill results
Dundee Securities maintains "market outperform", 12-month target price is $2.50
Enghouse Systems (ESL : TSX : $7.85)
Lost contract with IBM Japan
GMP Securities maintains "buy", 12-month target price is cut to $10.00
Eurozinc Mining (EZM : TSX : $3.53 | AMEX : US$3.13)
Shareholders approve merger
Dundee Securities maintains "outperform", 12-month target price is "under review"
Movie Distribution Income Fund (FLM.UN : TSX : $8.20)
Potential sale of the company
BMO Capital Markets maintains "market perform", 12-month target price is raised to $9.00
Raymond James maintains "market perform", 12-month target price is raised to $10.00
TD Newcrest upgrades to "speculative buy", 12-month target price is $9.00
CGI Group (GIB.A : TSX : $7.95 | GIB : NYSE : US$7.08)
To report Q4 tomorrow
Canaccord Adams maintains "hold", 12-month target price is $8.00
Husky Energy (HSE : TSX : $70.19)
Q3 in line
BMO Capital Markets maintains "outperform", 12-month target price is cut to $78.00
Imaging Dynamics Company (IDL : TSX : $2.67)
F06 guidance lowered
BMO Capital Markets downgrades to "market perform", 12-month target price is cut to $4.50
Canaccord Adams maintains "hold", 12-month target price is cut to $2.50
LionOre Mining International (LIM : TSX : $8.98)
Nickel production at three (of four) operations expected to increase
Desjardins Securities upgrades to "buy", 12-month target price is raised to $10.75
Linamar Corp. (LNR : TSX : $13.08)
Caterpillar indicates Class 8 truck production to fall 40% in 2007
BMO Capital Markets maintains "market perform", 12-month target price is cut to $14.00
Loblaw Companies (L : TSX : $45.46)
Learning From Tesco in its battle with Wal-Mart in the UK.
CIBC World Markets maintains "sector underperform", 12-month target price is $46.00
Methanex Corp. (MX : TSX : $24.44 | MEOH : NASDAQ : US$21.67)
Tax backdating gsses Methanex's bargaining position
CIBC World Markets maintains "sector perform", 12-month target price is cut to US$24.00
Raymond James maintains "underperform", 6-12 month target price is US$17.00
Scotia Capital Markets maintains "sector underperform", 12-month target price is $22.00
Inco Ltd. (N : TSX : $85.87 | NYSE : US$76.11)
Best Quarter Reported Ever
Blackmont Capital maintains "tender", 12-month target price is US$77.00
BMO Capital Markets maintains "market perform", 12-month target price is not given
Novelis (NVL : TSX : $28.24 | NYSE : US$25.06)
Q2 earnings released
BMO Capital Markets maintains "underperform", 12-month target price is US$17.00
Desjardins Securities maintains "hold", Target price is US$25.50
Scotia Capital Markets maintains "sector underperform", 12-month target price is $25.00
Nexen (NXY : TSX : $62.80 | NYSE : US$55.74)
To release third quarter results October 25
Scotia Capital Markets maintains "sector outperform", 12-month target price is $87.50
Potash Corp. of Saskatchewan (POT : TSX : $128.99 | NYSE : US$114.41)
Rising corn and wheat prices
BMO Capital Markets maintains "outperform", 12-month target price is raised to US$135.00
Paramount Resources (POU : TSX : $27.40)
Agreed to farm in about one million acres of undeveloped land in Mackenzie Delta
Canaccord Adams maintains "buy", 12-month target price is $35.00
Rio Narcea Gold Mines (RNG : TSX : $3.00)
Downgrade due to price appreciation
BMO Capital Markets downgrades to "market perform", 12-month target price is raised to $3.50
Russel Metals (RUS : TSX : $28.10)
Increasing inventory at the steel distributor level
TD Newcrest downgrades to "hold", 12-month target price is $29.00
Rockyview Energy (RVE : TSX : $3.69)
Continued gas price weakness is expected through 2007
BMO Capital Markets maintains "market perform", 12-month target price is cut to $5.00
Silver Eagle Mines (SEG : TSX : $1.05)
Best results to date
Blackmont Capital maintains "buy", 12-month target price is $2.20
Storm Exploration Inc. (SEO : TSX : $6.70)
Continued gas price weakness is expected through 2007
BMO Capital Markets maintains "outperform", 12-month target price is raised to $8.25
Stratos Global (SGB : TSX : $3.60)
Q3 results show signs of improvement
TD Newcrest maintains "strong buy", 12-month target price is $8.00
Sun Life Financial Inc. (SLF : TSX : $44.75 | NYSE : US$39.67)
Q3 Preview
TD Newcrest maintains "hold", 12-month target price is $48.00
SNC-Lavalin Group (SNC : TSX : $28.50)
407 International reported lower than expected Q3
BMO Capital Markets maintains "market perform", 12-month target price is $31.50
TransAlta Corp. (TA : TSX : $23.94 | TAC : NYSE : US$21.19)
Anomalous Marketing Margins
BMO Capital Markets Maintains "underperform", 12-month target price is $22.25
Canaccord Capital maintains "buy", 12-month target price is $32.00
CIBC World Markets maintains "sector perform", 12-month target price is reduced to $26.00
Desjardins Securities maintains "hold", 12-month target price is $25.00
Dundee Securities maintains "outperform", 12-month target price is $28.00
RBC Capital Markets maintains "sector underperformer", 12-month target price is $24.00
TD Newcrest maintains "reduce", 12-month target price is $22.00
Tim Hortons (THI : TSX : $31.07 | NYSE : US$27.54)
Reports earnings on Thursday
Blackmont Capital maintains "buy", 12-month target price is $38.00
Scotia Capital Markets maintains "sector outperform", 12-month target price is $36.00
TransForce Income Fund (TIF.UN : TSX : $17.09)
Special distribution from sale of Hazardous
BMO Capital Markets maintains "outperform", 12-month target price is $18.50
Talisman Energy (TLM : TSX : $19.07)
Two new discovery
Haywood Securities maintains "sector outperform", 12-month target price is $23.00
Yellow Pages Income Fund (YLO.UN : TSX : $14.54)
Threat to yellow pages is small
Dundee Securities maintains "outperform", 12-month target price is $18.50
Toronto, Canada. October 24, 2006. Tiomin Resources Inc. ("Tiomin" orthe "Company") (TSX: TIO) reports today on the development progress ofthe Kwale titanium mineral sands project in Kenya. The Company willhost a conference call on Wednesday, October 25th, at 8:45 a.m. E.T. Tiomin is working closely with the Government of Kenya ("GoK") at alllevels to ensure that the project continues to advance with the highestinternational standards of environmental and cultural protection whileproviding the local communities with substantial economic and socialbenefits. Mine Site Activity Under the terms of the Fiscal Agreement between Tiomin and the GoK, theGoK is committed to giving Tiomin and its contractors full accessimmediately to the entire Kwale mining property by relocating 378farmers whose properties are affected. As of today, 213 farmers, representing 56%, have signed compensationagreements and a further 158 farmers, or 42%, have indicated that theyintend to sign. The farmers are compensated by a generous ResettlementAction Plan ("RAP") whose compensation rates were negotiated by theGoK, the farmers and Tiomin and fully comply with World Bank guidelinesand the Equator Principles. The GoK is currently in discussions with seven farmers, who controleight plots, that have not signed the compensation agreement. Two ofthe eight plots impact the initial construction plans. As a result ofthis process, earthworks that were initially scheduled to start inNovember will be postponed until December. Tiomin is currently onschedule but requires the GoK to give the Company unrestricted accessto the entire site by early December to avoid costly delays that impactthe viability of the project. In the event of significant delays orcost increases caused by the lack of access from the GoK, Tiomin willevaluate its options, which include delaying or terminating theproject. Elsewhere, Tiomin is actively clearing plots that have beenratified by the Kenyan authorities in readiness for infrastructure andcivil works. Resettlement Program Tiomin continues to cooperate with the GoK in advancing the preparationof the host resettlement site for the families affected by thedevelopment of the Kwale project. The land survey of the site is 70%complete with a total of 568 five and a half acre plots so fardemarcated. Tiomin has awarded the infrastructure contract for the relocation site,valued at US$450,000, to local contractors for the construction of twoschools, eight churches, two mosques, a health centre, dispensary, andsocial hall, along with a 5 km pipeline for community water supply. The entire resettlement process, including completion of the hostresettlement site, is expected to be completed in March 2007. Mine Site Access Road The Company is currently awaiting a decision by the Kenya Road Board togive the GoK the right to acquire road access to a 2.8 km section ofthe main access route to the mine site. The environmental impactassessment ("EIA") for the entire route was recently approved by theNational Environment Management Authority ("NEMA"). An alternativeroute, also approved by NEMA, is available if access is delayed for thepreferred route. Clearing and building of the access road to the minesite is scheduled for the end of November. A temporary alternativeroute is available for initial construction purposes. Ausenco EPCM Contract & Long Lead Items Ausenco International Pty Ltd of Australia ("Ausenco") is on schedulewith the detailed design and engineering for the project and expects tomobilize its project construction team by the end of November. Ausencois a very experienced and successful project development company andTiomin is comfortable with Ausenco's progress. After a cost evaluation exercise which is expected to save nearly US$2million, Tiomin has eliminated the construction of a camp from itsbudget and opted to use existing accommodation close to the projectsite for the Ausenco team. Orders for long lead items such as the bucket wheel excavator (BWE),and generators and heavy fuel oil engines for the power station arescheduled for November and December. The contract with Alstom SA, aSouth African-based company, for the construction of the power stationis being finalized. Tenders for the BWE are to be received by earlyNovember. Port Facilities The construction contract for Tiomin's shipping terminal at the port ofMombasa was awarded to LAMCO, a leading Nairobi-based civil engineeringconstruction company. Construction of the port facility is projected totake 90 weeks and will cost nearly US$15 million. The contractor hasstarted the surveying of the site and is preparing for construction. Water Supply As previously reported, the construction of the Koromojo dam spillwaywas completed in September. The principal water supply required for theoperation will be sourced from a second dam located near the processplants, referred to as the Mukurumudzi. The Company is currentlyfinalizing the EIA report for the proposed dam. In addition, theCompany has been given authorization from the Water ResourcesManagement Authority to pump up to 12,000 cubic meters per day from theMsambweni aquifer. To date, Tiomin has already completed two boreholesinto the aquifer. The desalination plant has been discarded as apotential raw water source for the project. It is expected that theoptimized bulk water supply plan could potentially save up to US$3million in capital costs and also result on operating benefits. Certain of Tiomin's activities, including awarding of certain contractsand the arrangements for road access and water supply, are subject tothe approval of the lenders for the senior debt facility for theproject. New Appointments Tiomin Kenya has appointed Mr. Peter Ndaa as Finance Manager (effectiveSeptember) and Mr. Nick Lionnet as Senior Project Engineer (effectiveNovember). During the construction period, Mr. Les Cunningham will bethe Commercial Manager for the project. Capital expenditures for the Kwale project are estimated at US$178million, including working capital and contingencies. To date,approximately US$39.5 million has been committed and US$3.5 million hasbeen spent. Construction is expected to be completed by mid-2008, afterwhich production would commence at an initial annualized rate of330,000 tonnes of ilmenite, 75,000 tonnes of rutile and 40,000 tonnesof zircon. Tiomin has successfully negotiated sales agreements withmajor titanium and zircon consumers on three continents for the entireprojected production of Kwale. At current prices for these products,Kwale is expected to generate approximately US$70 million in annualsales for the first five years of production. Conference Call Tiomin senior management will host a conference call on Wednesday,October 25th, at 8:45 AM E.T. to discuss the development progress atits Kwale project. Please dial 416-695-6130 or 1-888-789-0089 to accessthis call. For those unable to participate in the conference call at the scheduledtime, a replay of the conference call will be available beginning onOctober 25 8:45 AM E.T. until Wednesday, November 8th at 11:59 PM E.T.The replay access number is 416-695-5275 or 1-888-509-0081 Passcode634197 followed by the number sign. 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. =======================================================================Copyright (c) 2006 TIOMIN RESOURCES INC. (TIO) All rights reserved. For more information visit our website at http://www.tiomin.com/ orsend mailto:news@tiomin.com
Just a grey out.
We were shooting tequlia.
One of the Mexicans took a nose dive to the cement floor. He is OK has a bump on his forehead.
Now it is "cougar" hunting season.
Ya. Finished yesterday. Had a big party. Don't ask what happened there 'cause I don't remember.
NTRI
The Top Ten in the U.S.
Jack Gage with Kurt Badenhausen and Maya Roney, 10.30.06
Our list of the 200 Best Small U.S. Companies (the Top 10 are shown here) ferrets out the most robust, fundamentally disciplined public outfits with sales between $5 million and $750 million. To qualify, a company must have a share price above $5 as of Sept. 29, as well as a respectable return on equity and 12-month and 5-year growth figures for sales and net profits. These winners have come through a tough year, contending with suddenly high energy costs and a string, only recently broken, of 17 interest rate hikes by the U.S. Fed. Not surprisingly, most of these scrappy players carry low debt burdens. Twenty-one companies grew too large for our list this year and roughly 30% of last year's members were not invited back, typically because of declining earnings in recent quarters.
NutriSystem
How does losing 20 pounds in 12 weeks sound? That's what customers reported on average last year, at least according to the company. (The recidivism rate is a well-kept secret.) Chief Executive Michael Hagan wasn't so popular when he took over in 2002 and shuttered the company's franchised weight-loss centers. But the radical slimdown has boosted company sales and profits. Investors got on board and, under Hagan, the stock has jumped nearly a hundredfold. NutriSystem (nasdaq: NTRI - news - people ) sells any way it can, taking orders online, by phone or via cable channels like QVC. While overweight women--two-thirds of NutriSystem's customers--are still the big draw, Hagan is trying to pull in hard-to-reach male dieters by featuring retired nfl star Dan Marino in its ads and commercials and by emphasizing that weight loss leads to a better sex life.
Hansen Natural (nasdaq: HANS - news - people )
What started as the Fresh Juice Co. in the 1930s has burst into energy drinks, vitamin water and powdered juice--a splashy player in an $18.7 billion industry with double-digit annual growth. So sweet is the "alternative beverage" category that Coca-Cola (nyse: KO - news - people ) and PepsiCo (nyse: PEP - news - people ) are stocking grocery shelves with their own versions. Outsourcing manufacturing and distribution keeps Hansen lean and lithe in a quirky business. It has increased marketing outlays 55% this year to get its brand out there at extreme sporting events and via in-store promotions. A looming challenge: a new energy drink called Cocaine, from Redux Beverages, a caffeine-laced concoction claiming to be 350% more powerful than Red Bull.
OptionsXpress (nasdaq: OXPS - news - people )
OptionsXpress Holdings lets you trade stock and index options, as well as the normal run of stocks, bonds and funds. Its chief, David Kalt, picked a wide-open landscape: While an estimated one in five U.S. households will have an online brokerage account in 2008, only 9% of the accounts will be set up to offer options trading. Clients like the simple fees (example: $1.50 per options contract, with a $15 minimum); fast feedback that highlights when an order can be executed on a different exchange at a better price; and StrategyScan, which gives investors three different ways to invest in a company (futures contract, short position, equity purchase), clearly outlining potential gains and losses.
PetMed Express (nasdaq: PETS - news - people )
Medicating man's best friend is a great business. It is estimated that $1 of every $4 spent on pets in the U.S. goes toward drugs or some sort of health supplies--an $8.7 billion industry servicing 160 million cats and dogs. Order prescription or over-the-counter meds for your pet and they're shipped from the company's 50,000-square-foot warehouse in Pompano Beach, Florida, usually within 24 hours. Licensed to sell prescriptions in 50 states, the company claims to be the largest pet pharmacy in America and boasts that it will meet or beat any competitor's best price.
Mannatech (nasdaq: MTEX - news - people )
Coppell, Texas is known for its tornadoes and for this multilevel marketing outfit, which converts customers of its nutritional supplements into salespeople who, in turn, push products on friends and neighbors. Last count: 526,000 "independent associates and members" in the U.S., Canada, the U.K., Australia, New Zealand, South Korea, Japan and Taiwan, who work mostly part time on commission. Mannatech churns out pills to boost metabolism, as well as protein shake mixes and skin care creams. It claims to have 20 patents worldwide.
Travelzoo (nasdaq: TZOO - news - people )
Founder Ralph Bartel follows his own heartbeat, expanding his travel-search site to the U.K. and Europe, and linking overseas customers and booking agents when others said, "Don't." Even with the midsummer terrorism scare the site registered 3 million page views in August. Another crazy idea: turning a competitor into a customer. Nearly 15% of Travelzoo's revenue comes from its closest rival, Expedia.com, which buys space on the site to advertise its own travel packages. Bartel is a solid believer and owns 60% of Travelzoo, even after selling 3 million shares so far this year.
Citi Trends
This old retailer was founded in 1946, selling mainly women's hosiery. But six years ago Chief Executive R. Edward Anderson decided to pump some life into the stores by focusing on urban apparel (fashion lines include FUBU, Rocawear, Sean John and Phat Farm) and home decor, sold at a discount to mostly African-Americans, who now make up 70% of its customers. Citi Trends is on a tear: In August, when gasoline prices were still high, same-store sales jumped 14%. Keep an eye on sell orders: Hampshire Equity Partners, which reported indirect ownership of 6.5 million shares (47% of Citi Trends) on Mar. 31, might be looking to cash out.
J2 Global
For most of its 11 years this Los Angeles company has offered a handful of communications services--voice-mail networks and Web-based conference calls, as well as e-mails, document transmission and faxes-- all from a single phone line. Customers of J2 Global Communications include individuals, small and midsize companies and governments in 28 countries.
Middleby
A member of our 200 Best list since 2004, this maker of commercial kitchen equipment is a geezer in historical terms, having produced its first baking oven in 1888. Lately it has a respectable share of an estimated $20 billion food service equipment market, 13% of which goes toward food-warming equipment like ovens. But Middleby's stock has lagged. Investors might be growing a tad impatient, particularly in light of $32.4 million in unexercised stock options held by Middleby Chief Executive Selim Bassoul.
Ceradyne (nasdaq: CRDN - news - people )
Another record year for military spending, another year of record profits for this maker of ceramic body armor. Still, Ceradyne is trying to move away from the Pentagon by bulking up its dentistry supplies business. One way: a partnership with 3M (nyse: MMM - news - people ) Unitek to develop what it calls "the next generation of translucent ceramic orthodontic brackets." The company now derives 20% of its sales from nondefense products, including jet engine igniters, obscure parts that go inside diesel engines and fuel pumps--and even ball bearings.
NutriSystem, Inc. Reports Results for Third Quarter 2006
NutriSystem, Inc. (NASDAQ:NTRI), a leading provider of weight management and fitness products and services, today announced results for the third quarter ended September 30, 2006, including:
-- An increase of 141% in revenue to $155,258,000 in the third quarter 2006 compared to $64,518,000 in revenue in the third quarter of 2005;
-- Revenue in the first nine months of 2006 increased 204% to $434,640,000 compared to $142,889,000 in the first nine months of 2005;
-- Growth in operating income to $36,678,000 (23.6% of revenues) in the third quarter of 2006 compared to operating income of $11,115,000 (17.2% of revenues) in the third quarter of 2005. Results in the third quarter 2006 reflect $677,000 of share-based expense which was not included in expense prior to 2006;
-- Operating income in the first nine months of 2006 grew 335% to $102,887,000 compared to $23,635,000 in the same period in 2005; and
-- An increase of 225% in net income to $23,398,000 or $0.63 per diluted share in the third quarter 2006 compared to net income of $7,195,000 or $0.19 per diluted share in the third quarter of 2005.
"The third quarter results are a testament to the strength of the business and business model," said Michael J. Hagan, Chairman, President and Chief Executive Officer. "NutriSystem delivered the best financial results of the year and we're pleased with every important financial and operating metric in the business."
"In addition, the women's market segment continues to deliver impressive numbers, and the men's segment for the third quarter was almost 30% of total new customers acquired. The momentum we've already built in the men's market is a clear signal to us that it will be a large business for us in the years to come," continued Mr. Hagan.
Direct channel revenue reached $143,547,000 in the third quarter of 2006, a 149% increase over the same period in 2005. The Company added approximately 235,000 Direct channel new customers, a 104% increase from approximately 115,000 new customers in the third quarter 2005.
"In the third quarter, we advertised aggressively to increase our brand awareness and acceptance amongst men. As such, customer acquisition cost for the quarter was $145, which was in line with our expectations," said James D. Brown, Executive Vice President and Chief Financial Officer. "We increased our overall marketing spend by $19,175,000 compared to third quarter last year while at the same time we maintained very attractive customer acquisition costs for both our men's and women's market segments."
"Profitability continues to strengthen. Year over year, third quarter gross margin increased by 3.2% percentage points and operating margin jumped by 6.4% percentage points," continued Mr. Brown. "The operating leverage is particularly impressive in light of the level of media spending and high new customer growth."
"The business generated substantial operating cash flow as well. We repurchased 896,700 shares of common stock in the quarter for an aggregate purchase price of $45 million (average share price of $50.59), and we were still able to end the quarter with $5 million more than we started," concluded Mr. Brown.
Fourth Quarter and Full Year 2006 Outlook
For the fourth quarter of 2006, the Company estimates that revenue will be between $123 and $128 million, an increase of at least 77% year over year. Diluted earnings per share are expected to be between $0.45 and $0.48, including an estimated $0.01 of share-based expense. Furthermore, the Company expects to add at least 155,000 new Direct channel customers in the fourth quarter of 2006.
For the full year 2006, the Company estimates that revenue will be between $558 and $563 million, an increase of at least 163% from 2005. Diluted earnings per share are expected to be between $2.21 and $2.24 including an estimated $0.09 of share-based expense.
"Our plans for 2007 include the introduction of a variety of new foods, a soon-to-be launched seniors marketing campaign and incessant focus on growing our women's and men's business. NutriSystem continues to be in high-growth mode and now with our proven ability to identify and penetrate new market segments, we're excited about our prospects for 2007," Mr. Hagan concluded.
Conference Call and Webcast
Management will host a conference call and simultaneous webcast to discuss third quarter 2006 financial results today at 5:00 PM Eastern time. The conference call will include remarks about the quarter and the Company's outlook from members of the NutriSystem senior management team including Chairman, President and Chief Executive Officer Michael Hagan, Executive Vice President and Chief Marketing Officer Tom Connerty, and Executive Vice President and Chief Financial Officer James D. Brown. Interested parties may participate in the conference call by dialing 866-314 9013 (international: 617-213 8053) and entering access code 89906501, 5-10 minutes prior to the initiation of the call. A replay of the conference call will be available through November 24, 2006, by dialing 888-286-8010 (international: 617-801-6888) and entering access code 14535937. A webcast of the conference call will also be available for one year under the investor information section of NutriSystem's website, www.nutrisystem.com.
About NutriSystem, Inc.
Founded in 1972, NutriSystem (NASDAQ:NTRI) is a leading provider of weight management and fitness products and services. The Company offers a weight loss program based on portion-controlled, lower Glycemic Index prepared meals. The program has no membership fees and provides free online and telephone counseling.
Forward-Looking Statement Disclaimer
This press release may contain forward-looking statements that are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements regarding NutriSystem's outlook and guidance for the fourth quarter of 2006 and the full year 2006, its expectations regarding its ability to continue its growth while maintaining costs, statements about momentum in its business and other statements that are not statements of historical fact constitute forward-looking statements. These forward-looking statements involve a number of risks and uncertainties, which are described in NutriSystem, Inc.'s Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission. The actual results may differ materially from any forward-looking statements due to such risks and uncertainties. NutriSystem, Inc. undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
--------------------------------------------------------------------------------
NUTRISYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2006 2005 2006 2005
--------- --------- --------- ---------
REVENUE $155,258 $ 64,518 $434,640 $142,889
--------- --------- --------- ---------
COSTS AND EXPENSES:
Cost of revenue 73,697 32,697 210,876 74,021
Marketing 34,143 14,968 87,829 31,870
General and administrative 10,025 5,506 31,215 12,784
Depreciation and
amortization 715 232 1,833 579
--------- --------- --------- ---------
Total costs and expenses 118,580 53,403 331,753 119,254
--------- --------- --------- ---------
Operating income 36,678 11,115 102,887 23,635
INTEREST INCOME, net 1,061 330 2,529 390
--------- --------- --------- ---------
Income before income
taxes 37,739 11,445 105,416 24,025
INCOME TAXES 14,341 4,250 39,893 9,282
--------- --------- --------- ---------
Net income $ 23,398 $ 7,195 $ 65,523 $ 14,743
========= ========= ========= =========
BASIC INCOME PER SHARE $ 0.65 $ 0.21 $ 1.83 $ 0.46
========= ========= ========= =========
DILUTED INCOME PER SHARE $ 0.63 $ 0.19 $ 1.76 $ 0.42
========= ========= ========= =========
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic 35,833 34,309 35,855 32,196
Diluted 37,117 36,957 37,239 35,045
--------------------------------------------------------------------------------
NUTRISYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands except share and per share amounts)
September 30, December 31,
2006 2005
------------- -------------
ASSETS
-------
CURRENT ASSETS:
Cash and cash equivalents $ 5,637 $ 3,902
Marketable securities 96,080 42,066
Trade receivables 11,314 7,517
Inventories 26,691 34,153
Deferred income taxes 2,786 1,577
Other current assets 3,157 4,281
------------- -------------
Total current assets 145,665 93,496
FIXED ASSETS, net 8,670 6,002
IDENTIFIABLE INTANGIBLE ASSETS, net 1,215 1,351
GOODWILL 465 465
DEFERRED INCOME TAXES 1,017 5,787
OTHER ASSETS 326 145
------------- -------------
$ 157,358 $ 107,246
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
-------------------------------------
CURRENT LIABILITIES:
Current portion of note payable and
capital lease obligation $ 178 $ 171
Accounts payable 30,068 25,886
Accrued payroll and related benefits 4,743 963
Accrued income taxes 6,246 ---
Other current liabilities 980 1,006
------------- -------------
Total current liabilities 42,215 28,026
NON-CURRENT LIABILITIES 425 254
------------- -------------
Total liabilities 42,640 28,280
------------- -------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, $.001 par value
(5,000,000 shares authorized, no
shares issued and outstanding) -- --
Common stock, $.001 par value
(100,000,000 shares authorized;
shares issued and outstanding-
35,446,228 at September 30, 2006 and
35,432,055 at December 31, 2005) 35 35
Additional paid-in capital 49,378 79,149
Retained earnings (accumulated
deficit) 65,305 (218)
------------- -------------
Total stockholders' equity 114,718 78,966
------------- -------------
$ 157,358 $ 107,246
============= =============
--------------------------------------------------------------------------------
NUTRISYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
Nine Months Ended
September 30,
2006 2005
------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 65,523 $ 14,743
Adjustments to reconcile net income to
net cash provided by operating
activities-
Depreciation and amortization 1,833 579
Accrued interest income (614) (296)
Imputed interest expense 11 15
Loss on disposal of fixed assets 4 8
Share-based expense 4,625 109
Deferred tax expense 3,561 2,652
Tax benefit from stock option
exercises -- 3,518
Changes in operating assets and
liabilities-
Trade receivables (3,797) (5,297)
Inventories 7,462 (7,962)
Other assets 943 (197)
Accounts payable 4,182 12,317
Accrued payroll and related
benefits 3,780 2,496
Accrued income taxes 6,246 2,747
Other liabilities (327) (170)
------------- -------------
Net cash provided by operating
activities 93,432 25,262
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities (102,000) (45,150)
Sales of marketable securities 48,600 ---
Capital additions (4,396) (2,251)
------------- -------------
Net cash used in investing
activities (57,796) (47,401)
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common shares --- 25,399
Purchase of common shares (45,368) ---
Tax benefit from stock option
exercises 8,756 ---
Exercise of stock options 2,711 1,762
------------- -------------
Net cash (used in) provided by
financing activities (33,901) 27,161
------------- -------------
NET CHANGE IN CASH AND CASH EQUIVALENTS 1,735 5,022
CASH AND CASH EQUIVALENTS, beginning of
period 3,902 4,201
------------- -------------
CASH AND CASH EQUIVALENTS, end of period $ 5,637 $ 9,223
============= =============
NutriSystem, Inc.
James D. Brown, 215-706-5302
Email: jbrown@nutrisystem.com
or
Investor Relations:
The Piacente Group, Inc.
Brandi Piacente, 212-481-2050
Email: brandi@thepiacentegroup.com
Source: Business Wire (October 24, 2006 - 3:03 PM EST)
News by QuoteMedia
www.quotemedia.com
2nd UPDATE: Microsoft Offers Vista Upgrade For PC Buyers
17:42 EDT Tuesday, October 24, 2006
(Updated with additional information in the third and fifth paragraphs.)
By Carmen Fleetwood and Donna Fuscaldo
Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Holiday shoppers won't miss out on the newest version of Microsoft Corp.'s (MSFT) Windows operating system, Vista, or Office if they buy a personal computer since the software maker is offering a new program that will give buyers either a free or discounted version of the products.
The amount of the Express Upgrade offer will depend on each individual PC maker, according to a company press release. Microsoft said a number of computer manufacturers worldwide have confirmed plans to participate in the Express Upgrade.
Lisa Emard, a spokeswoman at Gateway Inc. (GTW), said starting this Thursday all Gateway and eMachines computers sold direct will be eligible for a free upgrade to Vista when it becomes available.
According to the spokeswoman, some customers that buy PCs at retail locations or internationally could be charged a shipping and handling fee or duplication fee.
Meanwhile, Hewlett-Packard Co. (HPQ) spokeswoman Ann Finnie said the company will also offer free upgrades starting Thursday. She said customers in the U.S. won't have to pay a shipping and handling fee.
Dell spokesman Bob Kaufman said Dell will charge customers a $45 fee to upgrade to Vista Home from Windows XP Home edition when it comes out. The spokesman said customers will only have to pay shipping and handling if they are upgrading from Windows XP Pro or Windows XP Media Center to Vista Premium.
Given that some of Dell's peers have opted not to charge for the upgrade, Kaufman said, "As with many things we do, Dell will evaluate the marketplace and competition on behalf of customers to make appropriate moves if and when its necessary."
Microsoft is holding a press conference at 5:30 p.m. EDT to discuss the program.
Microsoft is planning to issue its business version of Vista to business customers in November and to consumers in January, missing the critical holiday purchasing season. The discount program begins Thursday and runs through mid- March.
It has been long anticipated that Microsoft would offer some type of discount program since the delay in the release date for Vista was announced this spring. Earlier this fall, a company official confirmed during an event that Microsoft was speaking with computer makers about a possible program.
Roger Kay, founder of Endpoint Technologies, said Microsoft's move to offer vouchers could mitigate some delays in purchases by consumers this holiday season. Still, he said it doesn't solve the main problem, which is that consumers who buy a computer this holiday season will have to face an upgrade when Vista comes out in January.
"It's better than if they had done nothing," said Kay. "It's not as good as if they had hit the schedule." Kay added that most industry watchers had anticipated some form of a voucher.
-By Carmen Fleetwood, Dow Jones Newswires; 201-938-5216
(END) Dow Jones Newswires
10-24-06 1741ET
Copyright (c) 2006 Dow Jones & Company, Inc.
Uranium stocks surge
Tuesday, October 24, 2006
TORONTO — Uranium mining stocks were among the most heavily traded on the Toronto markets Tuesday, with Australian-based Paladin Resources Ltd. leading the way and shares of Canadian giant Cameco Corp. down again.
Paladin stock hit an all-time high of $5.18 in intraday trading, eclipsing the previous high of $4.99 set Monday, with more than 25 million shares exchanged by midday Tuesday — making it the highest-volume issue on the Toronto Stock Exchange.
Trading in Paladin began to soar Monday afternoon after Saskatoon-based Cameco disclosed that flooding at its Cigar Lake project was worse than expected.
Cameco's stock fell 9.3 per cent on Monday and on Tuesday its shares continued to fall, losing 81 cents to $38.14 by mid-afternoon, amid concerns that the world-largest uranium producer would have difficulties meeting its supply commitments.
Meanwhile, trading was also heavy in a number of smaller mining companies that have a focus on uranium or significant uranium activities.
SXR Uranium One Inc. was up more than 12 per cent to $11.40, a gain of $1.25, with more than 6.1 million shares traded.
Gains were also recorded by Ur-Energy Inc., up 10 cents to $3.43 with over four million shares traded, Forsys Metals Corp., up 12 cents to $2.27 on over 1.1 million shares and TSX Venture Exchange-listed UrAsia Energy Ltd., up 10 cents to $3.02 with nearly 7.7 million shares traded.
Trading was less active in Denison Mines Ltd., up 52 cents to $19.27 with over 760,000 shares traded and International Uranium Corp., up six cents to $6.74 on trading of one million shares.
Hey Good mornin' Larry!
Would like to shoot the bull, But I'm off to work.
Hasbro 3Q EPS 58 Cents Vs 47 Cents
07:13 EDT Monday, October 23, 2006
DOW JONES NEWSWIRES
Hasbro Inc., (HAS) the Pawtucket, R.I., toymaker, reported third-quarter net income rose 8.2% on a 5% gain in revenue.
The company cited strength in brands including Littlest Pet Shop, Playskool, Nerf, Play-Doh, Monopoly, Transformers and Clue, and it said the growth came despite a $58 million, or 46%, decline in Star Wars revenue.
Net income rose to $99.6 million, or 58 cents a share, from $92.1 million, or 47 cents, in the year-earlier period.
Revenue improved to $1.04 billion from $988.1 million.
A survey of analysts by Thomson First Call produced a consensus estimate of 50 cents of profit on $963 million of revenue.
Revenue excluding Star Wars rose 13% in the quarter, Hasbro said.
-Robert Daniel; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
10-23-06 0712ET
Copyright (c) 2006 Dow Jones & Company, Inc.
Baby Bear goes downstairs and sits in her little chair at the table. She looks into her little bowl. It is empty. "Who's been eating my porridge?!!" she squeaks.
Daddy Bear arrives at the table and sits in his big chair. He looks into his big bowl and it is also empty.
"Who's been eating MY porridge?!!" he roars.
Mummy Bear puts her head through the serving hatch from the kitchen and yells...
"For Christ's sake, how many times do we have to go through this with you idiots? It was Mummy Bear who got up first, it was Mummy Bear who woke everyone in the house, it was Mummy Bear who made the coffee, it was Mummy Bear who unloaded the dishwasher from last night, and put everything away,it was Mummy Bear who went out in the cold early morning air to fetch the newspaper, it was Mummy Bear who set the damn table, it was Mummy Bear who put the friggin' cat out, cleaned the litter box and filled the cat's water and food dish, and now that you've decided to drag your sorry bear-asses downstairs and grace Mummy Bear's kitchen with your grumpy presence, listen good, cause I'm only gonna say this one more time..........
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.
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.......I HAVEN'T MADE THE F#%*ING PORRIDGE YET!!!!"
TransAlta Q3 profit falls
Friday, October 20, 2006
CALGARY — Power producer TransAlta Corp. said its third-quarter profit fell to $35.3-million from a year-earlier $51.2-million, and also announced Friday it has suspended a discount on its reinvestment plan.
Calgary-based TransAlta said its earnings amounted to 18 cents per diluted share compared to 26 cents per share in the same period a year before.
Revenues for the three months ended Sept. 30 were $684-million, down from $722.9-million in the comparable period of 2005.
Production during the quarter was 12,420 gigawatt hours, compared with 13,172 gigawatt hours.
TransAlta also said it has changed its dividend reinvestment and share purchase plan to end a five per cent discount on the price of shares purchased through the DRASP and issued from treasury as of Jan. 1, 2007.
After Dec. 31, all shares purchased under the DRASP will be acquired in the open market at full value of the average purchase price of common shares acquired on the Toronto Stock Exchange on the investment dates.
TransAlta runs power plants in Canada, the United States, Mexico and Australia.
DALLAS - A building boom that would add scores of new coal-fired power plants to the nation's power grid is creating a new dilemma for politicians, environmentalists and utility companies across the United States.
Should power companies be permitted to build new plants that pollute more but are reliable and less expensive? Or should regulators push utilities toward cleaner burning coal plants, even if it means they will cost more and are based on newer, yet still unproven, technology?
How those questions are answered will have huge implications over the next few decades. It could determine how Americans light, heat and cool their homes and business, the rate of return on utility investments and the potential environmental impact of the new plants.
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Nowhere do these competing interests play out with such force as in Texas, where 16 new coal-fired plants are proposed — 11 of them by Dallas-based TXU Corp., the state's biggest power company.
The scope of TXU's 5-year, $10 billion plan is considered bellwether and being closely watched by industry analysts, lawmakers, competitors and environmentalists across the U.S.
“TXU put its stake in the ground and said it will (build the plants) faster and cheaper than anyone else,” said Daniele M. Seitz, analyst with investment firm Dahlman Rose. “So they have something to prove.”
The company is hardly alone, however.
Some 154 new coal-fired plants are on the drawing board in 42 states. Texas and Illinois are the only states where 10 or more plants are planned, according to the National Energy Technology Laboratory.
Energy analysts say factors driving coal's resurgence are soaring power demands, volatile natural gas prices and a favorable investment market.
Coal now accounts for about 50 percent of the power generated in the U.S. By the year 2030, that share will increase to 57 percent, according to Energy Department forecasts.
The world's largest coal reserves
The U.S. has the world's largest coal reserves, enough to last for the next 200 to 250 years, analysts believe.
Larry Makovich, managing director for consulting group Cambridge Energy Research Associates, said the urgency to bring more power-generating plants online cannot be understated.
“A fundamental reality of the power business is there is no single fuel of choice, so if you are going to survive in the long run, you need to have a good mix of fuels and technologies,” he said. “If we are going to keep supply and demand in balance, you're looking at a five-year lead time, so you have to get started building these plants now.”
The argument over how TXU should build power-generating plants plays out almost daily with critics and proponents weighing in on the potential merits and drawbacks of the company's plans.
TXU says the proposed plants will meet the state's growing demand for power, give a sorely needed economic boost to nearby small towns and will reduce toxic emissions by replacing older, less efficient plants.
“The coal plant of today is so much cleaner; it makes so much less emissions than what most Americans and Texans can conjure,” said Mike McCall, chief executive of TXU's wholesale division. “It can be a good viable resource without really harming the environment.”
Critics, however, counter the company is driven by profits and is rushing to beat more stringent federal restrictions on carbon dioxide emissions in an era of escalating concerns over global warming. Texas already produces more carbon dioxide than any other state, a fact that worries big city mayors downwind of the proposed plants.
Debate may land in federal court
The debate soon could end up in federal court. Dallas attorney Rick Addison recently announced plans to sue TXU, alleging potential violations of the federal Clean Air Act.
“It's remarkable and unnecessary the amount of pollutants they are going to put in the air,” said Addison, a member of the Houston-based Locke Liddell and Sapp law firm. “The only way to get these issues resolved is at the highest level and reviewed under the appropriate law.”
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The battle lines were drawn April 20, when TXU Chief Executive John Wilder announced the company's plans shortly after much of Texas underwent a rolling power blackout. Since then, each side has assembled a team of backers comprised of affected residents, lawmakers, and lawyers.
In Colorado City, Texas, a town of 4,100 about 10 miles from where TXU wants to place one of the plants, civic leaders and lawmakers support the venture. They believe it will be an economic boon to the sleepy West Texas town, said Mayor Jim Baum.
But Dallas Mayor Laura Miller and Houston Mayor Bill White recently formed a coalition of 17 mayors opposing the TXU's 11 proposed plants and five others being considered by other Texas companies. The group has lined up law firms statewide bracing for a courtroom battle.
Miller recently spent a week visiting existing TXU plants, as well as a coal gasification plant in Tampa, Fla., that turns coal into gas and removes the pollutants before the fuel is burned.
Coal gasification plants can cost up to 20 percent more to build than a conventional plant. But they also can be more efficient to operate and save utilities the hassle and expense of adding pollution-control devices.
Already, American Electric Power, of Columbus, Ohio, Minneapolis-based Xcel Energy Inc. and Charlotte-based Duke Energy Corp, are reviewing plans to implement this technology.
Mike Morris, chairman for American Electric Power, said the pressures on power companies to burn fuel in the cleanest way possible will only gain momentum in coming years.
‘Technology for clean coal is there’
“From our vantage point we think the technology for clean coal is there,” he said. “It can be done, but there is a challenge.”
For it's part, TXU says turning the coal into synthetic gas remains an unproven technology and not as reliable as burning pulverized coal — the process the company's new plants would be designed to use.
Several analysts agree.
“For purposes of generating electricity, a pulverized system is well-proven,” said John Mead, who heads the Southern Illinois University Coal Research Center in Carbondale, Ill.
“Gasification has much more limited commercial experience,” Mead said. “There are still some unknowns as to just what the operating costs would be and how reliable would such a system be.”
Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Peru Miners Expected To Post With Solid Q3 Earnings
4:07pm ET (Dow Jones Newswires)
By Rebecca Howard
Of DOW JONES NEWSWIRES
LIMA (Dow Jones)--Strong metals prices will have boosted third-quarter earnings at Peru's largest mining companies, local brokerages said.
"Prices for the main metals, both base and precious, registered strong increases in the third quarter of this year," Banco de Credito, Peru's largest bank, said in a report.
Among Peru's many miners, the biggest ones, such as Southern Copper Corp (PCU), Compania de Minas Buenaventura SAA (BVN), Sociedad Minera Cerro Verde SA (CVERDEC1.VL) and Volcan Compania Minera SAA (VOLB.VL) are set to report quarterly earnings.
Banco de Credito forecasts that Southern Copper Corp. will post a third-quarter net income of $535 million, primarily due to rising copper prices.
In the third quarter last year, the company, with mining operations in both Peru and Mexico, posted net earnings of $366.8 million or $2.49 per share.
For its part, brokerage Centura SAB sees Southern's third-quarter net income at $554 million.
Buenaventura Seen Strong
Banco de Credito also forecasts that Compania de Minas Buenaventura SAA will post third-quarter net income of $103.5 million. That compares to a net income of $40.7 million or $0.32 per share in the same period a year ago.
Centura sees Buenaventura's net income in the third-quarter at $136.5 million.
Buenaventura has a 43.65% stake in Minera Yanacocha, one of the largest gold mines in the world. However, analysts say that Buenaventura will also benefit from its 18% stake copper miner Sociedad Minera Cerro Verde SA.
The brokerages noted that the company will benefit from stronger gold and copper prices at the Yanacocha mine and at Cerro Verde, although that will be offset to some extent by lower production and higher costs at Yanacocha.
Cerro Verde Earnings To Rise
According to Banco de Credito, Cerro Verde's earnings will reach $130.7 million in the third quarter. Centura forecasts Cerro Verde's third-quarter results will reach $149.5 million, boosted by strong prices for the red metal.
In 2005, Cerro Verde reported a third-quarter net income of $49.1 million.
"Cerro Verde will post a strong increase in profits in the third quarter, explained mainly by improved prices for copper in international markets," Banco de Credito said, adding that its expansion project will have a favorable impact starting in the fourth quarter.
Meanwhile, zinc-lead miner Volcan Compania Minera SAA is also expected to fare extremely well in the third-quarter.
Banco de Credito said its earnings would jump sharply to $62.7 million thanks to lower financial expenses and higher zinc prices.
Centura sees Volcan's third-quarter net income at $52 million.
In the third quarter last year the company reported a third-quarter net income of $1.2 million.
"We expect that Volcan's results will continue to be limited by weaker production of zinc, however, an increase in base metals prices will lift financial results," Centura said.
"Moreover, the company will post lower financial costs due to reduced debt," it added.
Different companies have begun reporting their third quarter net incomes to Peruvian securities regulator Conasev and will continue to do so until the end of the month.
-By Rebecca Howard, Dow Jones Newswires; 511-221-7050; peru@dowjones.com
(END) Dow Jones Newswires
10-19-06 1531ET
Copyright (c) 2006 Dow Jones & Company, Inc.
Weatherford Reports Third Quarter Results of $0.66 Per Diluted Share
25 Percent Increase Over Prior Quarter
HOUSTON, Oct. 22 /PRNewswire-FirstCall/ -- Weatherford International Ltd. (NYSE: WFT) today reported record third quarter 2006 net income of $234.2 million from continuing operations, or $0.66 per diluted share. Third quarter diluted earnings per share reflected an improvement of 25 percent from the second quarter and 78 percent over the third quarter of 2005 diluted earnings per share of $0.37, before charges.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990308/WEATHERFORDLOGO )
Revenues for the third quarter were $1.7 billion, the highest level recorded in company history. Third quarter revenues improved 58 percent over the same period last year. Sequentially, revenues rose 10 percent, led by the continued Eastern Hemisphere growth and the seasonal recovery in Canada.
In the first nine months of 2006, revenues were $4.8 billion and income from continuing operations was $626.2 million, before the second quarter non- recurring charge, or $1.75 per diluted share. In 2005, the company reported revenues for the first nine months of $2.9 billion, and income from continuing operations before charges of $298.8 million, or $0.98 per diluted share.
Evaluation, Drilling & Intervention Services
The division's revenues for the quarter were $1,100.1 million, a 75 percent increase above the same quarter in the prior year and a 14 percent increase from the prior quarter. Geographically, Canada had the highest sequential growth at 50 percent, driven by the seasonal recovery. The Eastern Hemisphere registered a sequential 13 percent improvement, essentially driven by the Middle East region. The United States revenues rose 10 percent sequentially, bolstered by strong activity levels. On a product line basis, wireline and re-entry led the growth.
Operating income of $293.0 million was more than two times the same quarter in the prior year and 22 percent higher than the preceding quarter. Operating income margins, excluding research and development, were 26.6 percent, 380 basis points higher than the third quarter of 2005 and 160 basis points above the prior quarter.
Completion & Production Systems
The division's third quarter revenues of $596.7 million were led by a strong performance in Asia and the seasonal recovery in Canada. This division's performance reflected improvements in its engineered chemicals and progressing cavity pump product lines.
The current quarter's operating income of $131.1 million is nearly double the same quarter in the prior year and 13 percent higher as compared to the second quarter of 2006. Operating income margins improved 690 basis points since the prior year's third quarter and 180 basis points sequentially.
Share Repurchase Program
During the third quarter the company repurchased 6.3 million shares for $269.0 million as part of the current $1.0 billion Share Repurchase Program. The company has repurchased 12.1 million shares year-to-date for an aggregate price of $531.5 million.
Non-GAAP
Non-GAAP performance measures and corresponding reconciliations to GAAP financial measures have been provided for meaningful comparisons between current results and results in prior operating periods.
Conference Call
The company will host a conference call with financial analysts to discuss the 2006 third quarter results on October 23, 2006 at 7:00 a.m. (CDT). The company invites investors to listen to the conference call at the company's website, http://www.weatherford.com under the 'investor relations' section or by dialing (800) 237-9752 or (617) 847-8706 for international calls, passcode 'Weatherford'. A replay will be available until 5:00 PM (CDT) on October 31, 2006. The number for the replay is (888) 286-8010, or (617) 801-6888, passcode 74499000.
Weatherford is one of the largest global providers of innovative mechanical solutions, technology and services for the drilling and production sectors of the oil and gas industry. Weatherford operates in over 100 countries and employs approximately 32,000 people worldwide.
Contact: Lisa W. Rodriguez (713) 693-4746
Chief Financial Officer
Andrew P. Becnel (713) 693-4136
Vice President - Finance
Teck Cominco Ltd. (TCK.B : TSX : $80.20 | TCK : NYSE : US$70.99)
Initiated coverage
Canaccord Capital initiates coverage with a "buy", 12-month target price is $90.00
Desjardins Securities maintains "top pick", 12-month target price is $95.50
Undervalued Stock #1 ========== --------------- Mattel, Inc. (NYSE: MAT) --------------- Insider Name: Eugene P. BeardInsider Position: DirectorInsider Action: 5,000 shrs on 10/17/2006 to 10/19/2006Insider Total Holding: 61,000 shrs -------------------------------------------------------Undervaluation Merits... P/E Ratio = 14.4 (Industry Average 19.0)P/CF Ratio = 13.70 (Industry Average 14.50) Industry: Toys & Games -------------------------------------------------------Other Merits... Dividend Yield = 2.30%Exceeded Analysts' Earnings Estimates for the Past 2 QuartersAnalysts' Earnings Estimates on a Rising Trend --------------- Mattel, Inc. (NYSE: MAT
Why would she do such a thing?????????