The Successful Investor Hotline – Friday, May 1, 2009

Article Excerpt

GENNUM CORP., $5.43, Toronto symbol GND, has dropped its friendly takeover bid for rival chipmaker Tundra Semiconductor Corp. (Toronto symbol TUN) after Tundra accepted a higher offer from U.S.-based Integrated Device Technology Inc. Gennum will now receive a $5-million (Canadian) break-up fee from Tundra. To put this figure in context, Gennum lost $800,000 U.S., or $0.02 U.S. a share, in its first fiscal quarter, which ended February 28, 2009. Gennum is still a buy for long-term gains. PRECISION DRILLING TRUST, $5.55, Toronto symbol PD.UN, continues to raise cash in order to strengthen its balance sheet and pay down debt related to last December’s $2-billion purchase of U.S-based contract driller Grey Wolf Inc. This week, Precision unveiled the details of its upcoming rights offering. This is in addition to last week’s sale of $280 million worth of new units and notes to the Alberta Investment Management Corporation (AIMCo). AIMCo is a crown corporation that manages Alberta’s public-sector pension plans and other special…