Favourite stocks perform well with near double digit gain by mid-year

The five favourite Bizworld stocks from January had an average gain of just over nine per cent by the end of June. Leading the six-month gain was Atlantic Gold, operator of a new gold mine in Nova Scotia. At $1.77 a share the stock was up 27.3 per cent.

The company produced 18,000 ounces of gold in the first full month of operation and is on track to produce another 70,000 ounces by year end at the low cost of $750 an ounce Canadian.

The company had an eight-year mine plan averaging 90,000 ounces annually but recently decided to ramp up production to 171,000 ounces a year by 2019, peaking at 254,000 in 2023.

That cuts mine life unless new resources are found and developed.

The Bank of Montreal was second best performer at 10.7 per cent to $103.50. BMO just keeps churning out profits with a Midwest U.S. division boosting the bottom line.

All the Canadian bank stocks seem to be confusing the analysts.

Superior Plus Corp stock gained 9.9 per cent to $12.59 on the strength of solid revenue growth from the specialty chemicals unit and the propane distribution division.

The announced acquisition of NGL Partners propane distribution network in the U.S. sets up the company for a good year. Acquired for $1.17 billion Canadian, the network expands business by 316,000 customers across 22 states in the northeast, southwest and midwest. Superior expects $26 million Canadian every year in cost savings until 2020 from the takeover — equal to 18 cents a share per year.

Pembina Pipeline, up 7.4 per cent to $46.22, has yet to show much benefit from acquisition of Veresen Inc. Immediate cash will flow from Veresen’s interest in the Alliance Pipeline to the U.S. with future profits deriving from a northeastern B. C. natural gas plant, a West Coast propane exporting plant, and, if approved, a liquid natural gas processing and export project in Oregon.

The only stock losing from the favourite five was Newfoundland- based Fortis, dropping nine per cent in value to $42.12. The utility, along with other interest-sensitive utilities, suffered from worries about higher future interest rates.

The stock is no bargain at this price, but rate base growth should keep the price steady, especially from new projects. Plans include $14.5 billion in new ventures during the next five years, adding to the existing $15 billion rate base with guaranteed returns.

Given the average 3.7 per cent dividend yield on these five stocks the year could be rewarding as long as no unexpected events trump gains.

agb $1.39 1.77 27.33 bmo 93.49 103.50 10.7 ppl 43.01 46.22 7.46 spb 11.45 12.59 9.95 fts 46.34 42.12 (9.01) 46.43 = 9.28

Ron Walter can be reached at ronjoy@ sasktel.net