Updating our Conservative Stocks Novelis Inc., Aliant Inc. and Fortis Inc.

Article Excerpt

NOVELIS INC. $23 had to restate some of its previously reported earnings due to accounting errors. After a review, it now earned $0.14 a share in the three months ended September 30, 2005, down 70.2% from $0.47 a year earlier, due to higher interest costs and foreign exchange losses (all amounts except share price in U.S. dollars). Revenue crept up to $2.05 billion from $2.0 billion. The company is also aggressively paying down debt, and aims to phase out the remaining aluminum price caps on its supply contracts by the end of 2006. Buy. ALIANT INC. $36 will convert its common shares into units of the new Bell Aliant Regional Communications Income Fund, probably in the third quarter of 2006, after 99% of its shareholders voted for the plan. The new trust’s annual distribution rate of $2.74 implies a yield of 7.4%. Buy. FORTIS INC. $23 owns 68.5% of Belize Electricity Limited, which plans to raise cash for new power projects and…

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