dividends paid
BREAKWATER RESOURCES $0.39 (Toronto symbol BWR; SI Rating: Speculative) (416-363-4798; www.breakwater.ca; Shares outstanding: 700.8 million; Market cap: $273.3 million; No dividends paid) is a Canadian-based mining company that mainly produces zinc. Breakwater has mines in Canada, Chile and Honduras. The company earned $0.01 a share in the three months ended December 31, 2009. A year earlier, it lost $0.12 a share. Breakwater’s cash flow was $0.016 a share in the latest quarter. Early last year, Breakwater raised $23 million in a share issue. That let the company pay off $16 million of debt that was due immediately. It now holds cash of $41.8 million, and has $8 million of long-term debt....
STORNOWAY DIAMOND CORP. $0.66 (Toronto symbol SWY; SI Rating: Start-up) (888-338-2200; www.stornowaydiamonds.com; Shares outstanding: 288.4 million; Market cap: $189.4 million; No dividends paid) has revealed an updated preliminary economic assessment of its 50%-owned Renard diamond project in Quebec. This new study predicts Renard could be nearly twice as profitable as expected. Stornoway now envisions a bigger mine at the site. This mine would produce almost 30 million carats of diamonds over its 25-year life. At today’s prices, these diamonds would be worth a total of about $4 billion. There is also potential to further expand the mine’s reserves through exploration. The company aims to complete a full feasibility study and make a production decision by the end of 2011. If it goes ahead, Renard could be Quebec’s first diamond mine....
BIRCHCLIFF ENERGY $9.00 (Toronto symbol BIR; SI Rating: Speculative) (403-261-6401; www.birchcliffenergy.com; Units outstanding: 124.1 million; Market cap: $1.1 billion: No dividends paid) trades at a high multiple to cash flow because investors expect its production to rise as much as 40% over the next year or so. That would substantially boost cash flow. Birchcliff develops, produces and explores for oil and natural gas in Alberta’s Peace River Arch area. In the three months ended December 31, 2009, the company’s cash flow per share was $0.17. That’s down 22.7% from $0.22 a year earlier. That’s because lower gas prices offset higher oil prices in the quarter. Lower gas prices also prompted the company to cut back on drilling. That lowered production by 8.8%, to 10,515 barrels per day from 11,524 barrels....
AMAZON.COM $146.43 (Nasdaq symbol AMZN; SI Rating: Extra Risk) (206-266-1000; www.amazon.com; Shares outstanding: 445.5 million; Market cap: $65.2 billion; No dividends paid) has received approval from the federal government to open a $20-million distribution centre in Canada. In 2002, the government let Amazon open a Canadian web site, www.amazon.ca, but would not let the company build a warehouse because of concerns about foreign ownership of Canadian cultural industries. Right now, Canadian orders are handled in the United States, and shipped into the country through a subsidiary of Canada Post. The new warehouse should help Amazon cut its costs. That should let it gain market share in Canada by lowering the prices of its books and merchandise....
COMPUTER MODELLING GROUP $18.77 (Toronto symbol CMG; SI Rating: Speculative) (403-531-1300; www.cmgroup.com; Shares outstanding: 17.7 million; Market cap: $332.2 million; Dividend yield: 3.8%) sells software to clients in the oil and gas industry. It also provides consulting services. Computer Modelling’s software helps companies use advanced oil-and-gas recovery techniques to raise output from their existing wells. It has over 360 customers in 50 countries. In the three months ended December 31, 2009, Computer Modelling’s revenue rose slightly, to $11.69 million from $11.66 million a year earlier. Earnings fell 18.4%, to $4 million, or $0.23 a share. A year earlier, it earned $4.9 million, or $0.28 a share. The rising Canadian dollar resulted in foreign-currency losses of $240,817 in the latest quarter. That hurt Computer Modelling’s earnings and cash flow. A year earlier, the company reported gains of $872,156....
WESTJET AIRLINES $13.49 (Toronto symbol WJA; SI Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares outstanding: 138.8 million; Market cap: $1.9 billion; No dividends paid) fell 3% on news that Sean Durfy will resign as the company’s chief executive officer. His replacement is Gregg Saretsky, WestJet’s executive vice-president of operations. Sudden resignations like this always add to a stock’s uncertainty. However, the new CEO has 25 years of experience in the Canadian airline industry. As well, the change will have little impact on WestJet’s low air fares and strong focus on customer service. These benefits continue to help it lure customers away from Air Canada, its chief rival. In 2009, WestJet’s share of Canada’s air-travel market rose to 38% from 36% in 2008....
EUROPEAN GOLDFIELDS $6.55 (Toronto symbol EGU; SI Rating: Speculative) (44 (20) 7408 9534; www.egoldfields.com; Shares outstanding: 181.8 million; Market cap: $1.2 billion; No dividends paid) holds a 95% interest in Hellas Gold. Hellas owns three gold and base-metal deposits in northern Greece: the Stratoni zinc/lead/silver property, the Olympias gold/zinc/lead/silver project and the Skouries copper/gold property. European Goldfields also owns 80% of the Certej gold/silver project in Romania. The company has completed a positive feasibility study on Certej, and applied for environmental approval and a mining permit....
INTERNATIONAL ROAD DYNAMICS $0.92 (Toronto symbol IRD; SI Rating: Speculative) (306-653-6600; www.ird.ca; Shares outstanding: 14 million; Market cap: $12.9 million; No dividends paid) jumped more than 50% in mid-March after it reported quarterly results that were higher than a year ago. In the three months ended November 30, 2009, International Road’s revenue rose 3.9%, to $12.8 million from $12.3 million a year earlier. The company has customers all over the world; it reported higher sales in all regions, and across most of its product lines. International Road earned $0.03 a share, up from nil a year ago. International Road makes products and systems that manage highway traffic, as well as weigh-station technology for trucks....
LEON’S FURNITURE LTD. $12.20 (Toronto symbol LNF; SI Rating: Average) (416-243-7880; www.leons.ca; Shares outstanding: 70.8 million; Market cap: $863.8 million; Dividend yield: 2.3%) has built its chain of over 66 furniture stores on its four main strengths: a huge selection of furniture, appliances and electronics; a lowest-price guarantee; strong after-sales service; and aggressive TV, radio and print advertising. In the three months ended December 31, 2009, Leon’s revenue fell 3.9%, to $198 million from $206.1 million a year earlier. But despite the decline, earnings per share rose 3%, to $0.34 from $0.33. The weak economy prompted many consumers to put off buying new furniture. That’s why Leon’s revenue fell during the latest quarter. However, the company’s earnings rose because it was able to cut its costs....
DELPHI ENERGY $3.18 (Toronto symbol DEE; SI Rating: Speculative) (403-265-6171; www.delphienergy.ca; Shares outstanding: 101.2 million; Market cap: $321.8 million; No dividends paid) explores for oil and gas in Alberta and B.C. Natural gas makes up 83% of its daily output. In the three months ended September 30, 2009, Delphi’s average daily output rose 5.6%, to 6,773 barrels of oil equivalent (this measurement includes natural gas) from 6,409 barrels. Despite the higher production, Delphi’s cash flow per share fell 33.3%, to $0.16 from $0.24 a year earlier. That’s because of lower oil and natural-gas prices. Delphi now holds 172,209 acres of undeveloped land. That’s up 37.3% from 125,359 acres in 2008. That gives it lots of drilling targets to increase output....