Pengrowth adds capital

PENGROWTH ENERGY TRUST $10.26 (Toronto symbol PGF.UN; Units outstanding: 289.0 million; Market cap: $3.0 billion; SI Rating: Average) has sold 28.8 million trust units to the public for $10.40 each.

The sale generated roughly $285 million. Pengrowth will put this toward its $1.4-billion long-term debt, which… Read More

The Successful Investor Hotline – Friday, October 23, 2009

POTASH CORP. OF SASKATCHEWAN, $105.95, Toronto symbol POT, rose 3% this week on speculation that Australia-based BHP Billiton plc (New York symbol BHP) may try to buy the company. BHP is the world’s largest mining company, and a recommendation of our Wall Street Stock Forecaster… Read More


PENGROWTH ENERGY TRUST $11 (Toronto symbol PGF.UN; Aggressive Growth Portfolio, Resources sector; Units outstanding: 258.4 million; Market cap: $2.8 billion; Price-to-sales ratio: 1.2; SI Rating: Average) produces oil and natural gas, mainly from properties in western Canada. Natural gas accounts for 60% of its production;… Read More

These four have long-term appeal

These four resource stocks are more risky than, say, Imperial Oil or EnCana. Still, we feel that their large reserves and low-cost operations put them in a good position to take advantage of rising demand for commodities as the global economy recovers. However, only three… Read More

Win with the Chinese spending spree on commodity investments

China Investment Corp. (CIC) has caught a lot of investors’ attention recently with a string of big purchases of commodity investments in the resource sector. CIC is the Chinese government’s “sovereign wealth fund.”

Sovereign wealth funds have been around since the 1950s. They are state-owned… Read More

The Successful Investor Hotline – Friday, October 2, 2009

PENGROWTH ENERGY TRUST, $10.28, Toronto symbol PGF.UN, fell 7% on Friday after it cut its monthly distribution by 30%, to $0.07 a unit from $0.10. The new annual rate of $0.84 yields 8.2%.

Pengrowth wants to conserve cash to pay down its $1.4-billion long-term debt, which… Read More

Two oil and gas trusts with steady yields

ENERPLUS RESOURCES FUND $24.50 (Toronto symbol ERF.UN; Units outstanding: 166.0 million; Market cap: $4.1 billion; SI Rating: Extra Risk) is one of North America’s largest oil and gas trusts. Its production is 60% of natural gas and 40% oil.

Enerplus continues to build a well-diversified portfolio… Read More

The Successful Investor Hotline – Friday, September 25, 2009

CGI GROUP INC., $12.78, Toronto symbol GIB.A, rose roughly 10% this week in response to computer-maker Dell Inc.’s (Nasdaq symbol DELL) friendly takeover of Perot Systems Corp. (New York symbol PER).

Like Perot, CGI sells information-technology and business-process services to a wide range of clients.

Dell… Read More

The Successful Investor Hotline – Friday, August 28, 2009

CANADIAN IMPERIAL BANK OF COMMERCE, $64.11, Toronto symbol CM, set aside roughly $3 billion in August 2005 to settle a class-action lawsuit related to its involvement with failed energy company Enron Corp. In its 2008 fourth quarter, which ended October 31, 2008, the bank recorded… Read More