…but Westaim is still a hold

Article Excerpt

THE WESTAIM CORP. $0.55 (Toronto symbol WED, Aggressive Growth Portfolio, Finance sector; Shares outstanding: 580.6 million; Market cap: $319.3 million; Price-to-sales ratio: 1.8; No dividends paid; TSINetwork Rating: Speculative; www.westaim.com) owns Jevco Insurance Co., which sells insurance to high-risk drivers, as well as owners of motorcycles, snowmobiles and recreational vehicles. Jevco operates in Quebec and Ontario. The company bought Jevco for $264.2 million in March 2010. That’s why Westaim earned $5.9 million, or $0.01 a share, in the three months ended September 30, 2010. A year earlier, it lost $524,000, or $0.01 a share. However, Jevco faces strong competition from larger insurers. As well, its focus on high-risk drivers adds risk. Westaim is a hold, but only for highly aggressive investors. investors…