Toronto’s main stock index opened lower on Tuesday as commodity prices
fall. Wall Street also opened lower , pressured by weaker-thanexpected
results from UBS, and as a shake-up in British banks weigh on investors
sentiment. On the macro front, the FOMC begins its two-day meeting
on interest rates. U.S. factory orders for October is expected to rise 0.8 percent,
according to a Reuters poll. European stocks fell sharply to a new onemonth
low, led by financials. Asian stocks were also down as investors
awaited policy announcements from some key central banks this week for
clues on the timing of eventual shifts in policy. Oil fell more than US$1 per barrel
towards US$77 as the dollar rose against a basket of currencies and ahead
of U.S. inventory data.
ANALYST RECOMMENDATIONS
• Encana (ECA) price target raised to $67 from $61; rating buy at Genuity
• Kinross Gold (K) price target cut to $24 from $27; rating buy at Genuity
• Nexen (NXY) price target raised to $28 from $26; rating hold at Genuity
• SFK Pulp Fund (SFK_u) rating raised to market perform from underperform;
target price raised to $0.75 from $0.65 at Raymond James
• Suncor Energy (SU) rating raised to buy from hold at Genuity
• Talisman Energy (TLM) price target raised to $23 from $22; rating buy at
Genuity
• Absolute Software Corp. (ABT). The provider of computer security solutions
on Monday posted a narrower first-quarter loss, helped by higher sales
contracts, and said the company is on track to meet its fiscal 2010 outlook.
• Enbridge Income Fund (ENF_u). The trust unit said on Tuesday it proposed
a restructuring of the fund to take effect prior to the implementation of Canada's
Specified Investment Flow-Through tax law. The proposed change
would convert the fund from a tax-advantaged income trust to a taxable Canadian
corporation as required by the law, which comes into effect on Jan. 1,
2011.
• Falcon Oil (FO). The company said on Tuesday that tests on the Foldeak-1
natural gas well in the Mako Trough in southern Hungary had been completed
and the well has been temporarily plugged and abandoned.
• FirstService Corp. (FSV). The property services company on Tuesday reported
third-quarter adjusted EPS of 60 U.S. cents, on revenue of US$451.1
million.
• IMRIS Inc. (IM). The company on Monday reported third-quarter loss of 10
cents per share, on sales of $9.9 million.
• Kinross Gold (K). The gold miner said on Monday it slipped to a loss in the
third-quarter, as higher costs associated with a mine expansion offset the positive
impact of soaring gold prices.
• Lanesborough Real Estate Investment Trust (LRT_u). The trust said on
Monday it has entered into an unconditional agreement to sell a 183-suite
apartment property in Surrey, British Columbia, known as Greenwood Gardens
for $13.8 million. The company also said the sale is expected to result in
net cash of about $2 million.
• Magna International Inc. (MGa). Opel's labour force has agreed to contribute
265 million euros in annual savings if General Motors finally sells a majority
stake in its European arm to a group led by the Canadian autoparts maker,
Magna.
• MDS Inc. (MDS). U.S. officials have asked for more information about the
planned sale of the healthcare company’s Analytical Technologies Division to
Danaher Corp, the companies said on Tuesday.
• Northgate Minerals Corp. (NGX). The company on Tuesday reported thirdquarter
adjusted EPS of 3 U.S. cents and said it sold 85,397 ounces of gold at
a realized price of US$982 per ounce and 12.8 million pounds of copper in the
quarter. The company said it is set to achieve an annual record of 365,000
ounces of gold at a net cash cost of US$493 per ounce.
• Pacific Safety Products Inc. (PSP). The protective products maker for the
defense and security market on Tuesday cut its workforce by 30 positions as
an action to address an expected decline in revenue through expense reductions.
The company said the layoffs will occur in the company's U.S. and Canadian
facilities over the next week.
• Ridley Inc. (RCL). The company on Monday reported first-quarter loss 8
U.S. cents per share.
• Ritchie Bros. Auctioneers Inc. (RBA). The company on Tuesday reported
third-quarter EPS of 12 U.S. cents on auction revenue of US$75.9 million
• Talisman Energy Inc. (TLM). The independent oil explorer said on Tuesday
its third-quarter profit plummeted 98 percent as oil and gas prices tumbled
from a year earlier.
• West Fraser Timber Co Ltd. (WFT). Charges related to a paper mill closure
increased the North America's largest softwood lumber producer’s thirdquarter
loss, but the company said on Monday there were signs demand for
construction lumber would improve.