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

Moose Jaw Express.com - - News -

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

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