Updating Petro-Canada, Transcontinental Inc., Royal Bank of Canada and TransCanada Corp,

Article Excerpt

PETRO-CANADA $48 (Toronto symbol PCA; Conservative Growth Portfolio, Resources sector; SI Rating: Average) is having trouble nailing down overseas gas supplies for its proposed liquefied natural gas (LNG) terminal in Quebec. That’s what probably prompted the company to offer $113 million U.S. for publicly traded junior oil producer Canada Southern Petroleum Ltd. The price is equal to just 25% of Petro-Canada’s first quarter profits before unusual items. Canada Southern’s undeveloped gas reserves in the Canadian Arctic could help make the LNG plant more economically feasible. Canada Southern has rejected the bid, but Petro-Canada can easily afford to improve on its offer. Petro-Canada is a buy. TRANSCONTINENTAL INC. $19 (Toronto symbol TCL.A (old symbol TCL.SV.A); Aggressive Growth Portfolio, Consumer sector; SI Rating: Average) has spent heavily in the past few years to upgrade its commercial printing facilities and equipment. These investments should help Transcontinental win new customers, particularly since the company can now handle multiple formats, such as catalogs and flyers. The upgrades also make it easier…

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