merger
Fission Uranium, $0.66, symbol FCU on Toronto (Shares outstanding: 483.9 million; Market cap: $338.8 million; www.fissionuranium.net), is focused on its Patterson Lake South uranium discovery just south of Saskatchewan’s Athabasca basin.
Fission aims to build a profitable mine on the property, which it believes holds one of the world’s largest uranium deposits. It is now investing $7 million in a winter drilling program at Patterson to prepare a prefeasibility study on the economics of building the mine.
Last year, Fission rejected a $483-million merger with Denison Mines, symbol DML on Toronto. However, in December 2015, China’s state-owned CGN Mining bought 97 million Fission shares at $0.85 per share, giving it a 19.99% stake. CGN and Fission also plan to finalize an agreement for CGN Mining to buy all uranium production from Patterson if a mine is built.
The arrangement stays within Canadian foreign investment restrictions on strategic resources; Foreign companies are only barred from owning more than a 49% share in any producing uranium mine.
Anti-nuclear sentiment remains high following the March 2011 earthquake and tsunami that released radiation at the nuclear plant in Fukushima, Japan. This sentiment has curtailed plans for some new nuclear plants, especially in the U.S. However, regulators in that country are moving toward loosening regulations on nuclear plants. That could eventually revive nuclear plant construction in the U.S.—and uranium demand. But this nuclear revival, if it comes at all, will be a slow process.
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Fission aims to build a profitable mine on the property, which it believes holds one of the world’s largest uranium deposits. It is now investing $7 million in a winter drilling program at Patterson to prepare a prefeasibility study on the economics of building the mine.
Last year, Fission rejected a $483-million merger with Denison Mines, symbol DML on Toronto. However, in December 2015, China’s state-owned CGN Mining bought 97 million Fission shares at $0.85 per share, giving it a 19.99% stake. CGN and Fission also plan to finalize an agreement for CGN Mining to buy all uranium production from Patterson if a mine is built.
The arrangement stays within Canadian foreign investment restrictions on strategic resources; Foreign companies are only barred from owning more than a 49% share in any producing uranium mine.
Anti-nuclear sentiment remains high following the March 2011 earthquake and tsunami that released radiation at the nuclear plant in Fukushima, Japan. This sentiment has curtailed plans for some new nuclear plants, especially in the U.S. However, regulators in that country are moving toward loosening regulations on nuclear plants. That could eventually revive nuclear plant construction in the U.S.—and uranium demand. But this nuclear revival, if it comes at all, will be a slow process.
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ALPHABET INC., Nasdaq symbols GOOG (class C non-voting), $683.57, and GOOGL (class A voting), $703.76, is the new holding company for Google’s Internet search business and its smaller, riskier operations. These smaller businesses, which the company calls “Other Bets,” sell home thermostats and high-speed Internet and digital TV services. In the three months ended December 31, 2015, Alphabet’s revenue rose 17.8%, to $21.3 billion from $18.1 billion a year earlier, beating the consensus forecast of $20.8 billion. The main search engine business accounted for 99% of the total. That division’s revenue gained 17.7%. The number of paid clicks on advertisers’ ads jumped 31%, helping offset a 13% drop in the average amount advertisers paid per click. More people are using mobile devices to access the Internet, but advertisers pay lower rates for mobile ads because they’re harder to see on smaller screens. Revenue from Other Bets (1% of revenue) jumped 42.5%....
Today, Pat McKeough revealed his 3 Best U.S. Stocks of the Year in the latest issue of Wall Street Stock Forecaster. You can be among the first to see these picks and act on his recommendations. And you can save on a full year of Pat’s top U.S. stock recommendations in Wall Street Stock Forecaster…starting with a 30-day free trial. Choose your best price now....
PLEASE NOTE: One week from today, on January 22, 2016, shortly after the stock market closes at 4:00 p.m. Toronto time, we will reveal our top Aggressive Stocks for 2016 to subscribers of Stock Pickers Digest. You can be among the first to hear about our top picks for 2016. Because you’re a loyal subscriber, we are happy to offer you a low-priced, no-risk introduction to Stock Pickers Digest. It gives you the first month—and the 2016 Stocks of the Year—FREE. But you must act now. Click here. BAXALTA INC., $40.26, New York symbol BXLT, makes vaccines and drugs in three main areas: hematology (blood diseases), immunology (immune system) and oncology (cancer)....
Loblaw has set itself up for years of growth with its acquisition of Shoppers Drug Mart, a new inventory system, and a share buyback plan.
This will be our last Inner Circle Q&A for 2015. Our next issue will go out on Tuesday, January 5, 2016.
Now is a good time for me to say “Thanks!” to all our Inner Circle members. It’s a pleasure to read and answer your questions. I take great pleasure and pride from the many compliments and expressions of gratitude you send every week.
That’s especially true when I hear from a member who I recognize from decades ago—from the early days after the 1994 launch of The Successful Investor, or from the two prior decades that I spent at The Investment Reporter and MPL Communications.
It’s also great to see that our Successful Investor philosophy and practice have begun attracting more and more younger investors.
I wish you all a great year-end holiday and a healthy, happy and prosperous New Year!
...
Now is a good time for me to say “Thanks!” to all our Inner Circle members. It’s a pleasure to read and answer your questions. I take great pleasure and pride from the many compliments and expressions of gratitude you send every week.
That’s especially true when I hear from a member who I recognize from decades ago—from the early days after the 1994 launch of The Successful Investor, or from the two prior decades that I spent at The Investment Reporter and MPL Communications.
It’s also great to see that our Successful Investor philosophy and practice have begun attracting more and more younger investors.
I wish you all a great year-end holiday and a healthy, happy and prosperous New Year!
...
A: NorthWest HealthCare Properties REIT, $8.10, symbol NWH.UN on Toronto (Units outstanding: 52.5 million; Market cap: $420.2 million; www.nwhp.ca), owns 123 properties, with a focus on medical office buildings and clinics (70% of its portfolio) and hospitals (30%). The real estate investment trust is Canada’s largest non-government owner and operator of medical office buildings.
In all, NorthWest’s properties contain 8.0 million square feet of leasable area. Its Canadian holdings are concentrated in Calgary, Edmonton, Toronto, Montreal, Quebec City and Halifax. It also owns buildings in Brazil, Germany, Australia and New Zealand. NorthWest has a 95.8% occupancy rate.
The REIT first sold units to the public for $10 each and began trading on Toronto on March 25, 2010.
In the three months ended September 30, 2015, NorthWest’s revenue jumped to $63.3 million from $11.8 million a year earlier. That’s because it recently merged with its international affiliate in an all-stock transaction.
Cash flow jumped 67.4%, to $14.4 million from $8.6 million. However, cash flow per unit fell 20.0%, to $0.20 from $0.25, on more units outstanding after the merger.
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In all, NorthWest’s properties contain 8.0 million square feet of leasable area. Its Canadian holdings are concentrated in Calgary, Edmonton, Toronto, Montreal, Quebec City and Halifax. It also owns buildings in Brazil, Germany, Australia and New Zealand. NorthWest has a 95.8% occupancy rate.
The REIT first sold units to the public for $10 each and began trading on Toronto on March 25, 2010.
In the three months ended September 30, 2015, NorthWest’s revenue jumped to $63.3 million from $11.8 million a year earlier. That’s because it recently merged with its international affiliate in an all-stock transaction.
Cash flow jumped 67.4%, to $14.4 million from $8.6 million. However, cash flow per unit fell 20.0%, to $0.20 from $0.25, on more units outstanding after the merger.
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NEWELL RUBBERMAID INC., $45.28, New York symbol NWL, is reportedly negotiating a merger with Jarden Corp. (New York symbol JAH). Jarden makes consumer products, including Sunbeam kitchen appliances, Mr. Coffee coffee makers, Ball jars, Crock-Pot cookers and Rawlings baseball mitts. It would cost around $11.8 billion to buy Jarden, which is almost equal to Newell’s $12.7-billion market cap (the value of all outstanding shares). The combined firm would have $14 billion of annual sales....
CANADIAN PACIFIC RAILWAY LTD., $169.77, Toronto symbol CP, has revised its takeover offer for U.S.-based railway Norfolk Southern Corp. (New York symbol NSC). The combined firm would be North America’s largest railway, with more than 56,000 kilometres of track. Buying Norfolk would also give CP greater access to ports on the U.S. Gulf Coast and Atlantic Ocean. Under the new deal, Norfolk shareholders would receive more stock and less cash: $32.86 U.S. a share in cash plus 0.451 of a CP share for each Norfolk share held. That would give them 47% of the combined company, compared to 41% under the original offer....