commodity
SHERRITT INTERNATIONAL $0.79 (Toronto symbol S; TSINetwork Rating: Speculative) (1-800-704- 6698; www.sherritt.com; Shares outstanding: 293.9 million; Market cap: $226.3 million; No dividends paid) is now focused on nickel production, with operations in Cuba and Canada. As well, it has a 40% interest in the Ambatovy nickel mine on the island nation of Madagascar, off Africa’s east coast. Sherritt also produces oil and gas in Cuba, Spain and Pakistan and manages 506 megawatts of power generation capacity in Cuba. In the three months ended September 30, 2015, the company’s revenue fell 25.3%, to $76.9 million from $102.9 million a year earlier, mostly due to lower oil and gas prices. Cash flow per share fell sharply, to $0.05 from $0.16....
WAJAX CORP. $16.96 (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (905-212-3300; www.wajax.ca; Shares outstanding:20.0 million; Market cap: $349.7 million; Dividend yield: 5.9%) sells and services cranes, forklifts and other heavy equipment. It also provides related parts (such as bearings, motors, hoses and fittings) and power systems (including diesel engines and transmissions). The company’s customers are in the natural resource, construction, manufacturing and transportation industries. In the three months ended September 30, 2015, Wajax’s revenue fell 19.1%, to $290.9 million from $359.5 million a year earlier, as mining, oil and gas and oil sands firms made fewer purchases. Earnings declined 32.0%, to $7.5 million, or $0.38 a share, from $11.1 million, or $0.66....
MOLSON COORS CANADA INC., Toronto symbols TPX.A $118.50 and TPX.B $124.50, has agreed to buy the 58% of the MillerCoors joint venture it doesn’t own.
MillerCoors was formed in 2008, when Molson Coors and SABMiller merged their U.S. brewing operations. Each company has a 50% voting interest in MillerCoors, but SABMiller gets 58% of the profits, while Molson Coors gets 42%.
This week, SABMiller agreed to merge with rival Anheuser-Busch InBev to form the world’s largest brewer. Competition regulators will likely require the new firm to sell certain operations, including its MillerCoors stake.
Molson Coors will pay $12 billion for SABMiller’s interest (all amounts except share price in U.S. dollars). The deal also includes Miller’s brands outside the U.S.
This a big purchase for Molson Coors, which has a $17.0-billion market cap (or the value of all outstanding shares).
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MillerCoors was formed in 2008, when Molson Coors and SABMiller merged their U.S. brewing operations. Each company has a 50% voting interest in MillerCoors, but SABMiller gets 58% of the profits, while Molson Coors gets 42%.
This week, SABMiller agreed to merge with rival Anheuser-Busch InBev to form the world’s largest brewer. Competition regulators will likely require the new firm to sell certain operations, including its MillerCoors stake.
Molson Coors will pay $12 billion for SABMiller’s interest (all amounts except share price in U.S. dollars). The deal also includes Miller’s brands outside the U.S.
This a big purchase for Molson Coors, which has a $17.0-billion market cap (or the value of all outstanding shares).
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The old Thomson Corp. wisely got out of the newspaper business in the early 2000s to focus on its faster-growing information-services operation. In 2008, it added more highquality financial data when it acquired the 160-year-old Reuters news agency for $17 billion U.S. in cash and shares. This deal also cut Thomson’s high reliance on North America. The company’s timing was bad, however, as the 2008/09 financial crisis forced many of its banking and brokerage clients to spend much less on information products. That delayed the gains Thomson expected from the Reuters deal. However, the company is now benefiting from this acquisition, as well as a long-range restructuring plan. That’s pushing up its earnings and freeing up cash for share buybacks and dividends....
At a time of lower commodity prices, the mining stocks with the greatest speculative appeal are those with new projects that enhance their value even before prices rebound. Today we look at Hecla Mining and Amerigo Resources, two mining firms that are moving ahead with large developments. In both cases these projects promise to expand production considerably. Hecla is beginning production at a Mexican silver mine that last operated a decade ago, and has also purchased one of North America’s largest undeveloped silver deposits. Amerigo has launched a new copper tailings project in Chile that could double its production by next year.
HECLA MINING COMPANY (New York symbol HL; www.hecla-mining.com) explores for, mines and processes silver and gold in the U.S. and Mexico. Most of the company’s silver output comes from its Greens Creek mine in Alaska and its Lucky Friday project in Idaho. Hecla’s Casa Berardi mine in Quebec supplies the majority of its gold production.
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HECLA MINING COMPANY (New York symbol HL; www.hecla-mining.com) explores for, mines and processes silver and gold in the U.S. and Mexico. Most of the company’s silver output comes from its Greens Creek mine in Alaska and its Lucky Friday project in Idaho. Hecla’s Casa Berardi mine in Quebec supplies the majority of its gold production.
SHERRITT INTERNATIONAL $0.79 (Toronto symbol S; TSINetwork Rating: Speculative) (1-800-704- 6698; www.sherritt.com; Shares outstanding: 293.9 million; Market cap: $226.3 million; No dividends paid) is now focused on nickel production, with operations in Cuba and Canada.
As well, it has a 40% interest in the Ambatovy nickel mine on the island nation of Madagascar, off Africa’s east coast. Sherritt also produces oil and gas in Cuba, Spain and Pakistan and manages 506 megawatts of power generation capacity in Cuba.
In the three months ended September 30, 2015, the company’s revenue fell 25.3%, to $76.9 million from $102.9 million a year earlier, mostly due to lower oil and gas prices. Cash flow per share fell sharply, to $0.05 from $0.16.
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As well, it has a 40% interest in the Ambatovy nickel mine on the island nation of Madagascar, off Africa’s east coast. Sherritt also produces oil and gas in Cuba, Spain and Pakistan and manages 506 megawatts of power generation capacity in Cuba.
In the three months ended September 30, 2015, the company’s revenue fell 25.3%, to $76.9 million from $102.9 million a year earlier, mostly due to lower oil and gas prices. Cash flow per share fell sharply, to $0.05 from $0.16.
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Ten ways to find gems among the rocks when investing in Canadian penny mining stocks
CANADIAN PACIFIC RAILWAY LTD., $202.17, Toronto symbol CP, reported lower freight volumes in the latest quarter, mainly due to falling prices for oil and other commodities, but the railway still reported better-than-expected results. In the three months ended September 30, 2015, CP earned $427 million, up 6.8% from $400 million a year earlier. Per-share profits jumped 16.5%, to $2.69 from $2.31, on fewer shares outstanding. These results exclude unusual items, such as gains on asset sales. On that basis, the latest earnings beat the consensus estimate of $2.67. Revenue gained 2.3%, to $1.71 billion from $1.67 billion, also beating the consensus forecast of $1.69 billion....
Exchange traded receipts are a novel way for investors to invest in gold bullion
Natural gas stock prices move up and down with a wide range of factors.
The price of natural gas, like the price of oil, is highly volatile—and influenced both up and down by a wide range of factors. So it’s a bad idea to base investment decisions on predictions of future natural gas prices, and their effects on natural gas stock prices, because these predictions are simply not reliable.
However, you can profit nicely over long periods by investing in well-established or well-managed companies that are active in businesses that involve highly volatile commodities like oil and gas. You profit all the more if you buy these companies when they are cheap in relation to earnings and assets.
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