Updates on Algonquin Power Income Fund, Newmont Mining and Bank of Nova Scotia

Article Excerpt

ALGONQUIN POWER INCOME FUND $2.88 (Toronto symbol APF.UN; Shares outstanding: 77.4 million; Market cap: $222.8 million; SI Rating: Extra Risk) dropped sharply in price recently after the fund cut its monthly distribution by 73.9%, to $0.02 from $0.0766. The units now yield 8.3%. Prior to the cut, the fund paid out around 100% of its cash flow in distributions. That payout ratio now drops to an estimated 30% for 2009. We advised against buying Algonquin last month on the possibility of a distribution cut. But while the fund’s expansion into alternative fuels such as landfill gas and wind power continues to add risk, it now looks more attractive. Algonquin Power is once again a buy. NEWMONT MINING $27.81 (New York symbol NEM; Shares outstanding: 441.5 million; Market cap: $12.3 billion; SI Rating: Average) has moved down in the past few weeks along with gold prices. Gold rose to over $1,011 U.S. an ounce in March, 2008, but now trades at $742. In the three months…

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