Updating Novelis Inc., Petro-Canada, and Pengrowth Energy Trust

Article Excerpt

NOVELIS INC. $34 (Toronto symbol NVL; Conservative Growth Portfolio, Manufacturing & Industry sector; SI Rating: Average) is making progress phasing out price caps, which prevent it from passing along rising aluminum costs to its customers. But this will take several more years. The company feels it will be unable to pass along $230 million to $255 million in extra costs in 2007, and a total of $380 million to $430 million after 2007 (all amounts except share price in U.S. dollars). Novelis lost $1.38 a share (total $102 million) in the third quarter of 2006. Novelis has fixed its accounting errors, and the stock has moved up lately. It’s also doing a good job paying down debt. Novelis is a buy. PETRO-CANADA $43 (Toronto symbol PCA; Conservative Growth Portfolio, Resources sector; SI Rating: Average) owns 29.9% of the Buzzard offshore oil field in the North Sea. Buzzard recently began production, and should reach full commercial production sometime in 2007. Offshore operations cost more to operate…

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