Updating Petro-Canada, Alcan Inc., Novelis Inc. and IGM Financial

Article Excerpt

PETRO-CANADA $45 (Toronto symbol PCA; Conservative Growth Portfolio, Resources sector; SI Rating: Average) has delayed a final decision on its proposed 55%-owned Fort Hills oil sands project until mid-2008. The company now feels it will cost $2.0 billion to convert its refinery in Edmonton to handle the tar-like output, up 25% from a earlier estimate of $1.6 billion. To put that in context, the company earned $526 million or $1.02 a share from continuing operations in the first half of 2006. We feel this is a prudent move, since it will give Petro-Canada a better idea of the final cost. Lower oil prices could also slow down other oil sands developments, and cut the cost of steel and labour. Petro-Canada is a buy. ALCAN INC. $45 (Toronto symbol AL; Conservative Growth Portfolio, Resources sector; SI Rating: Average) aims to buy back 5% of its stock. At current prices, that would cost the company $845 million U.S., which is roughly 2% more than it earned…

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