oil and gas
TRANSCANADA CORP., $45.59, Toronto symbol TRP, has completed the purchase of a solar power facility in Brockville, Ontario, from Canadian Solar (Nasdaq symbol CSIQ). This is the first part of TransCanada’s agreement to buy nine Ontario solar power stations from Canadian Solar. The company expects to take possession of the remaining eight facilities by the end of 2014. In all, TransCanada will pay $470 million. That’s equal to 1.3 times the $370 million, or $0.52 a share, that the company earned in the three months ended March 31, 2013....
Emerging markets continue to have sound longterm outlooks. A good way to profit from their growth with less risk is through low-fee exchange traded funds (ETFs). Here are two we see as buys.
ISHARES S&P INDIA NIFTY 50 INDEX FUND $21.98 (Nasdaq symbol INDY; buy or sell through brokers; us.ishares.com) is an ETF that aims to track the S&P CNX Nifty Index, which represents the 50 largest, most liquid Indian securities.
The fund’s top holdings are ITC Ltd....
ISHARES S&P INDIA NIFTY 50 INDEX FUND $21.98 (Nasdaq symbol INDY; buy or sell through brokers; us.ishares.com) is an ETF that aims to track the S&P CNX Nifty Index, which represents the 50 largest, most liquid Indian securities.
The fund’s top holdings are ITC Ltd....
ISHARES FTSE/XINHUA CHINA 25 INDEX FUND $31.73 (New York symbol FXI; buy or sell through brokers) is an ETF that aims to track the FTSE/Xinhua China 25 Index, which is made up of the 25 largest and most liquid Chinese stocks. All of the stocks in the index trade on the Hong Kong exchange....
RUSSEL METALS $26.27 (Toronto symbol RUS; TSINetwork Rating: Speculative) (905-819-7777; www.russelmetals.com; Shares outstanding: 60.9 million; Market cap: $1.6 billion; Dividend yield: 5.3%) is one of North America’s largest metal distributors. It serves 39,000 clients at 54 locations in Canada and 12 in the U.S.
In the quarter ended March 31, 2013, revenue rose 2.4%, to $821.8 million from $802.9 million a year earlier. The steel-distribution division’s revenue fell 26%, and the metal-services business saw a 10% decline. The slower economy cut steel demand.
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In the quarter ended March 31, 2013, revenue rose 2.4%, to $821.8 million from $802.9 million a year earlier. The steel-distribution division’s revenue fell 26%, and the metal-services business saw a 10% decline. The slower economy cut steel demand.
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PASON SYSTEMS $18.98 (Toronto symbol PSI; TSINetwork Rating: Speculative) (403-301-3400; www.pason.com; Shares outstanding: 82.1 million; Market cap: $1.6 billion; Dividend yield: 2.7%) has lost a patent dispute with its main competitor involving its AutoDriller product, which runs drilling operations more accurately and efficiently. The judgment awards the competitor $52.9 million of damages.
Pason rents equipment for monitoring and managing land-based oil rigs. It also provides communication systems that companies use to remotely collect data from their drilling operations. Pason serves oil and gas firms and drilling contractors in Canada, the U.S., Mexico and Argentina.
In the quarter ended March 31, 2013, revenue fell 5.1%, to $109.3 million from $115.1 million a year earlier. Strong international sales were offset by slower activity in the U.S. and Canada. Cash flow per share fell 7.9%, to $0.58 from $0.63. Pason holds cash of $168.9 million, or $2.06 a share, and has no debt.
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Pason rents equipment for monitoring and managing land-based oil rigs. It also provides communication systems that companies use to remotely collect data from their drilling operations. Pason serves oil and gas firms and drilling contractors in Canada, the U.S., Mexico and Argentina.
In the quarter ended March 31, 2013, revenue fell 5.1%, to $109.3 million from $115.1 million a year earlier. Strong international sales were offset by slower activity in the U.S. and Canada. Cash flow per share fell 7.9%, to $0.58 from $0.63. Pason holds cash of $168.9 million, or $2.06 a share, and has no debt.
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TRILOGY ENERGY CORP. $29.90 (Toronto symbol TET; TSINetwork Rating: Speculative) (403-290- 2900; www.trilogy.com; Shares outstanding: 91.7 million; Market cap: $3.5 billion; Dividend yield: 1.4%) owns oil and gas properties in the Kaybob and Grande Prairie areas of central Alberta. About 54% of Trilogy’s production is natural gas. The remaining 46% is oil.
In the three months ended March 31, 2013, Trilogy produced 36,119 barrels of oil equivalent per day (including gas), up 3.2% from 35,014 barrels a year earlier. Cash flow per share was unchanged at $0.67.
Trilogy pays out just 15% of its cash flow as dividends. That gives it a low 1.4% yield, but it’s also letting the company maintain an active drilling program. In the first quarter of 2013, Trilogy spent $169 million on exploration and development, down 6.3% from $180.4 million a year earlier. The company drilled 35 wells, up from 31.
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In the three months ended March 31, 2013, Trilogy produced 36,119 barrels of oil equivalent per day (including gas), up 3.2% from 35,014 barrels a year earlier. Cash flow per share was unchanged at $0.67.
Trilogy pays out just 15% of its cash flow as dividends. That gives it a low 1.4% yield, but it’s also letting the company maintain an active drilling program. In the first quarter of 2013, Trilogy spent $169 million on exploration and development, down 6.3% from $180.4 million a year earlier. The company drilled 35 wells, up from 31.
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STANTEC INC. $46.56 (Toronto symbol STN; TSINetwork Rating: Extra Risk) (780-917-7288; www.stantec.com; Shares outstanding: 46.2 million; Market cap: $2.1 billion; Dividend yield: 1.4%) sells a range of consulting, project delivery, design and technology services. Its clients operate in a variety of industries, including transportation, construction and oil and gas.
In the three months ended March 31, 2013, Stantec’s revenue rose 17.7%, to $513.2 million from $436.2 million a year earlier. Acquisitions were one reason for the increase. Stantec is also working on several new projects. Earnings gained 13.7%, to $28.4 million, or $0.62 a share, from $25.0 million, or $0.55 a share.
The company continues to grow by acquisition, with seven purchases in 2012. Its most recent addition was Roth Hill, a 30-person firm that designs systems for collecting and treating water and wastewater. Stantec sees major growth potential in the water industry.
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In the three months ended March 31, 2013, Stantec’s revenue rose 17.7%, to $513.2 million from $436.2 million a year earlier. Acquisitions were one reason for the increase. Stantec is also working on several new projects. Earnings gained 13.7%, to $28.4 million, or $0.62 a share, from $25.0 million, or $0.55 a share.
The company continues to grow by acquisition, with seven purchases in 2012. Its most recent addition was Roth Hill, a 30-person firm that designs systems for collecting and treating water and wastewater. Stantec sees major growth potential in the water industry.
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Scorpio Mining, $0.33, symbol SPM on Toronto (Shares outstanding: 198.6 million; Market cap: $65.5 million; www.scorpiomining.com), operates the Nuestra Senora silver/copper/zinc mine in Mexico, which the company expects to produce over 3 million ounces of silver this year. In addition, Scorpio holds a number of nearby exploration properties, as well as the El Cajón and San Rafael projects, both of which are in advanced stages of development. In the latest quarter, Scorpio reported cash flow of $0.02 a share, down from $0.03 a year earlier, mostly due to lower silver and by-product metal prices. The company plans to use its cash flow to keep exploring and developing its properties and to increase Nuestra Senora’s production....
U.S. oil production is up 40% since 2008. That’s largely because of new technologies like hydraulic fracturing, or fracking. This involves injecting water, sand and chemicals to break up shale and other tight rock formations and allow access to the oil and gas. The best way to profit from this volatile industry is through companies with high-quality reserves and diverse operations. Here is one of the diversified U.S. energy stocks we cover regularly....
ISHARES MSCI BRAZIL INDEX FUND $50.15 (New York Exchange symbol EWZ; buy or sell through brokers) is an exchange traded fund that is designed to track the Brazilian stock market. The fund’s top holdings are Petrobras (oil and gas), 12.7%; Vale do Rio Doce (mining), 8.4%; Cia Itau Unibanco Holding (banking), 7.4%; Banco Brandesco (banking) preferred, 6.5%; Cia de Bebidas das Americas (beer and beverages), 5.5%; and BRF SA (food), 3.6%.
The ETF was launched on July 10, 2000. It has an expense ratio of 0.60%.
The fund’s focus on the resource sector and its concentration in certain stocks, such as Petrobras and Vale do Rio Doce, add risk. However, both are high-quality stocks.
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The ETF was launched on July 10, 2000. It has an expense ratio of 0.60%.
The fund’s focus on the resource sector and its concentration in certain stocks, such as Petrobras and Vale do Rio Doce, add risk. However, both are high-quality stocks.
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