Westaim Still Has Value

Article Excerpt

THE WESTAIM CORP. $0.91 (Toronto symbol WED; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 94.0 million; Market cap: $85.5 million; SI Rating: Speculative) has dropped sharply in the past year, mainly due to poor clinical results for a new skin treatment developed by 74.8%-owned Nucryst Pharmaceuticals Corp. (Toronto symbol NCS). Based on current prices, this subsidiary now accounts for $0.53 of Westaim’s share price. The company’s other subsidiary, wholly owned iFire Technology Corp., is still working on its new flat-panel display technology. However, falling prices for flat-panel TV sets have hurt iFire’s ability to find a partner willing to help commercialize its technology. Westaim is debt free, and had $0.67 a share in cash at the end of 2006. It could still unlock some of its value by selling these subsidiaries or some of their patents. Westaim is a hold, but only for highly aggressive investors. investors…