Wellington West Announces 2008 Top Picks

January 9, 2008 1:35pm ET

TORONTO (Dow Jones)--Wellington West Capital Markets Inc. announced its top picks for 2008, highlighting nine stocks from five segments of the Wellington West coverage universe that have "potential to outperform their benchmark indices and peers over the year." In a research report Monday, several Wellington West analysts discussed stocks from the energy, mining, technology, agriculture, and "special situations" segments. Energy Analyst Malcolm Shaw cited Calgary oil and gas company Antrim Energy Inc. (AEN.T) as a top pick, saying he believes Antrim is on-track for production of about 30,000 barrels of oil a day by the fourth quarter of 2009. He maintained the stock at strong buy with a C$9.50 target price, but noted that the company's potential 2009 cash flow could drive its share price up to C$16. Shaw also recommended Sterling Resources Ltd. (SLG.V), which trades on the TSX Venture Exchange, at speculative buy with a C$4.50 target. Analyst Kim Page recommended Calgary oil and gas producer Breaker Energy Ltd. (WAV.A.T) at strong buy with a C$8.50 target, noting that drilling at the company's Irricana project is driving "extraordinary" light oil volume gains. The company's light oil mix is increasing, Page said, adding that its oil/gas ratio should be 50% or more oil by the middle of 2008. Mining Leonie Soltay recommended Toronto resource sector royalty and investment company Franco-Nevada Corp. (FNV.T), rating it at buy with a C$20 target. Soltay's 2008 royalty revenue estimates are supported by strong 2008 commodity outlook, and the company's diversified royalty portfolio and limited costs support a 2008 cash-flow estimate of 98 U.S. cents a share, the analyst said. Analysts Catherine Gignac and Robertson Velez recommended Inter-Citic Minerals Inc. (ICI.T), citing drilling results from the company's Dachang project in China, which continues to return consistent grades and widths. They rate the Toronto mining company's stock a buy with a C$3.25 target. "Special Situations" Analyst Greg Colman recommended Arctic Glacier Income Fund (AG.UN.T), a Winnipeg-based distributor of packaged ice products, at strong buy with a C$15.50 target. He said the company should start to realize synergies in mid-2008 from acquisitions completed in 2007, noting that Arctic Glacier's steady growth story offers "attractive free cash flow generation stemming from seven years of successful industry consolidation." Analyst Robert Winslow recommended COM DEV International Ltd. (CDV.T) at strong buy with a C$6 target, citing "healthy" macro tailwinds such as the ongoing satellite replacement and HDTV rollout. He added that high U.S. space defense spending is also a positive for COM DEV product demand. COM DEV, Cambridge, Ont., makes space hardware components and subsystems. Agriculture and Technology Winslow also recommended agriculture company Cervus LP (CVL.UN.V), which trades on the TSX Venture Exchange, at strong buy with a C$24 target. Greg Reid recommended technology company IPICO Inc. (RFD.V), which also trades on the TSX Venture Exchange, at strong buy with a C$2.50 target. Wellington West has investment-banking relationships with all the companies recommended save for Cervus L.P. None of the analysts own shares in the companies they covered. Company Web sites: http://www.antrimenergy.com, http://www.sterling-resources.co.uk, http://www.breakerenergy.com, http://www.franco-nevada.com, http://www.inter-citic.com, http://www.arcticglacierinc.com, http://www.comdev.ca, http://www.cervuslp.com, http://www.ipico.com -Tara Zachariah, Dow Jones NewsWires; 416-306-2100 (END) Dow Jones Newswires 01-09-08 1334ET Copyright (c) 2008 Dow Jones & Company, Inc.