CANALASKA URANIUM $1.16 (Toronto symbol CVV; SI Rating: Start-up) (1-800-667-1870; www.canalaska.com; Shares outstanding: 17.2 million; Market cap: $20.0 million; No dividends paid) has completed its 1-for-10 share consolidation. That lowered its shares outstanding from 171.9 million to 17.2 million. Consolidations, or reverse stock splits, sometimes hurt investor confidence. In CanAlaska’s case, it had little effect. Its shares shot up to $1.57 on November 8, before moving down to today’s price. The price jump followed a big move upward in uranium prices. In March of this year, uranium traded as low as $40 U.S. a pound, well below its peak of $140 in 2007. Prices recently shot up to as high as $58.50....

CALIAN TECHNOLOGIES $18.40 (Toronto symbol CTY; SI Rating: Speculative) (613-599-8600; www.calian.com; Shares outstanding: 7.7 million; Market cap: $141.7 million Dividend yield: 4.8%) operates in two areas: The business and technology services division accounts for 67% of Calian’s revenue and provides engineers, health-care workers and other skilled professionals to clients on a contract basis. The systems-engineering division contributes the remaining 33% of revenue and sells hardware and software that is used for testing, operating and managing satellite and other communication systems. In the three months ended September 30, 2010, Calian’s revenue fell 2.7%, to $52.9 million from $54.4 million a year earlier. Earnings fell 6.1%, to $3.2 million, or $0.42 a share, from $3.4 million, or $0.45 a share. Calian saw less demand for contract workers; that was the main reason for the lower results. Calian’s order backlog stands at $924 million. It holds cash of $29.1 million, or $3.78 a share, and has no debt. The company raised its quarterly dividend by 10%, to $0.22 from $0.20, with the September 2010 payment. The shares now yield 4.8%....

20-20 TECHNOLOGIES INC. $3.55 (Toronto symbol TWT; SI Rating: Speculative) (514-332-4112; www.2020technologies.com; Shares outstanding: 18.9 million; Market cap: $67.1 million; No dividends paid) has scheduled a special shareholders meeting for December 21 to vote on proposals from a group of 20-20 shareholders led by U.S.-based private-equity firm Crescendo Partners. Together, these investors own 16% of 20-20’s shares. They want to replace three of 20/20’s ten directors with their nominees. 20/20 now says that its four largest shareholders, which together hold 58% of the company’s shares, will vote against Crescendo’s proposals. The board nominations will likely fail, but Crescendo has a history of helping small technology companies unlock value. It should press 20/20 to keep improving its results. That’s a positive for the company....

TOROMONT INDUSTRIES LTD. $29.84 (Toronto symbol TIH; SI Rating: Extra Risk) (416-667-5511; www.toromont.com; Shares outstanding: 76.9 million; Market cap: $2.3 billion; Dividend yield: 2.1%) plans to break itself up into two publicly traded companies: Toromont, a distributor of Caterpillar and industrial equipment; and Enerflex, a supplier of natural-gas production and processing equipment. Under the proposed breakup, Enerflex will apply for its own listing on the Toronto exchange. Existing Toromont shareholders will then exchange each of their current Toromont shares for shares in both the new Toromont and Enerflex. As well, investors will not have to pay capital-gains taxes until they sell their new shares. After the breakup, the two companies will pay dividends that combined will equal the current annual rate of $0.64 per share paid by Toromont. That gives the shares a 2.1% yield. Toromont intends to seek shareholder approval for the transaction in the spring or early summer of 2011....

BAFFINLAND IRON MINES $1.16 (Toronto symbol BIM; SI Rating: Start-up) (416-364-8820; www.baffinland.com; Shares outstanding: 343.1 million; Market cap: $398.0 million; No dividends paid) has received a friendly $1.10 a share takeover offer from Luxembourg-based Arcelor-Mittal, the world’s largest steelmaker. Baffinland recently rejected a hostile, $0.80-per-share takeover offer from Nunavut Iron Ore Acquisition. Baffinland’s board of directors has recommended that its shareholders accept the $1.10-per-share offer from ArcelorMittal. All of Baffinland’s board members and management have agreed to tender their shares to the offer. As well, Baffinland’s largest shareholder, Resource Capital Funds, has entered into an agreement to tender its 23% stake. Baffinland is now trading at $1.16, or 5.5% above ArcelorMittal’s bid. This indicates that investors expect a higher bid from ArcelorMittal or another buyer....

CHEMTRADE LOGISTICS INCOME FUND $14.04 (Toronto symbol CHE.UN; SI Rating: Speculative) (416-496-5856; www.chemtradelogistics.com; Units outstanding: 30.7 million; Market cap: $431.0 million; Dividend yield: 8.5%) is one of North America’s largest suppliers of sulphuric acid, sulphur, liquid sulphur dioxide and sodium hydrosulphite. It also supplies sodium chlorate, phosphorous pentasulphide and zinc oxide. In addition to selling chemicals, Chemtrade processes spent acid. Chemtrade has three divisions: The Sulphur Products and Performance Chemicals division supplies about 59% of the fund’s revenue. Pulp Chemicals accounts for 10% of revenue, and the International division supplies the remaining 31%. This division removes and markets sulphur and sulphuric acid outside of North America.

Environmental market is secure

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THE BOEING CO., $63.09, New York symbol BA, fell 10% this week after an electrical fire forced one of its new 787 Dreamliner passenger jet planes to make an emergency landing. In response, the company has suspended test flights until it can determine the cause of the problem. The Federal Aviation Administration is also investigating this incident. The new plane is already over two years behind schedule due to parts shortages and structural problems where the wings connect to the plane’s body. Recent problems with the parts in the tail section have also delayed production. This latest setback prompted one customer to cancel its order for eight 787s. However, another airline decided to buy these planes....

TOROMONT INDUSTRIES, $29.06, symbol TIH on Toronto, has announced plans to break itself up into two publicly traded companies: Toromont, a distributor of Caterpillar and industrial equipment; and Enerflex, a supplier of natural gas production and processing equipment. Toromont acquired Enerflex Systems Income Fund earlier this year for $613 million. Enerflex serves oil and natural-gas producers around the world. The company leases and sells natural-gas compression and process equipment; hydrocarbon production and processing facilities; and electrical, instrumentation and control services. Its operations now include Toromont’s U.S.-based compression group, which designs, engineers, builds and installs compression systems for natural gas, fuel gas and carbon dioxide. The new Toromont will include its Caterpillar dealership, which is one of the world’s largest, covering Ontario, Manitoba, Newfoundland and Labrador, and Nunavut. As well, its operations will include Battlefield - The CAT Rental Store, an industrial rental equipment operation; and CIMCO Refrigeration, Canada’s largest supplier of industrial and recreational refrigeration equipment. (Its recreational systems are used for such things as hockey, curling and ice-skating surfaces.)...

BHP BILLITON LTD. ADRs, $92.14, New York symbol BHP, rose 10% this week after the Canadian government said it would block its hostile takeover bid for Potash Corp. of Saskatchewan (New York and Toronto symbol POT). However, under the Investment Canada Act, which governs foreign takeovers of Canadian companies, BHP now has 30 days to modify its offer so that it is a “net benefit” to Canada. BHP’s offer is worth $38.6 billion. That’s equal to 15% of its $256.4-billion market cap. The company has room to raise its bid. That’s because BHP’s shares also trade on the London Stock Exchange, and British law would require BHP to hold a special shareholders’ vote if the value of any new bid is more than 25% of BHP’s market cap. At the time of the original announcement on August 17, 2010, the bid represented 21% of BHP’s market cap. If BHP drops the takeover attempt, it could use the cash it planned to spend on Potash Corp. on share buybacks. It could also raise its $1.80 dividend, which yields 2.0%. BHP could also pay a special dividend....

WESTJET AIRLINES, $13.10, symbol WJA on Toronto, has reported higher revenue and earnings in the latest quarter. In the three months ended September 30, 2010, WestJet’s revenue rose 14%, to $684.6 million from $600.3 million a year earlier. Earnings jumped 71.8%, to $54 million from $31.4 million. Earnings per share rose 54.2%, to $0.37 from $0.24 on more shares outstanding. This was the company’s 22nd consecutive quarter of profitability. The recovering economy pushed up demand for the company’s flights; that was the main reason for the higher revenue and earnings. WestJet has a new, fuel-efficient fleet and a low cost structure. As well, it serves more cities than many of its competitors. It’s selectively adding to these destinations, and focusing on sunshine destinations where it can add to its earnings by selling customized vacation packages that include flights. These strengths put the company in a good position to continue profiting from the economic recovery....