31 March 2006
Pension Accounting Changes
NY Times article on proposed changes to pension accounting standards. Might be a few deals to be had, once pensions and benefits are exposed as underfunded.
30 March 2006
IPOs - Interesting Information
There is a good article that summarizes IPO strategies...check it out here. Although not for everyone, there is good money to be made. Stay tuned.
29 March 2006
AK - Next Takeover Target? Other Odds and Ends...
Can't help but notice that AK is up another 5% today...it's ripe for the taking. A quick profit can be had with them. Flat rolled prices are expected to drop going towards the summer, so get in now, or wait for the the drop from all the profit takers.
I was hoping that the Alcatel and Lucent deal might have a bigger impact on Nortel. I can't see Nortel having any more issues with its finances. Now, can we get above $4? Soon?
Vincor is steadily moving upwards...maybe Constellation will come back by the end of June for another look.
Stelco is looking to come back to the TSE at the end of the week. Not sure what the listing and when, but I will post here when it comes out.
Wendy's will be spinning off the rest of Tim Horton's by the end of the year. With a price of about $30 now, it's worth it to get some now, and hold onto it until the end of the year.
I was hoping that the Alcatel and Lucent deal might have a bigger impact on Nortel. I can't see Nortel having any more issues with its finances. Now, can we get above $4? Soon?
Vincor is steadily moving upwards...maybe Constellation will come back by the end of June for another look.
Stelco is looking to come back to the TSE at the end of the week. Not sure what the listing and when, but I will post here when it comes out.
Wendy's will be spinning off the rest of Tim Horton's by the end of the year. With a price of about $30 now, it's worth it to get some now, and hold onto it until the end of the year.
27 March 2006
Corus Steel
A few days late (from 22 Mar 06), but still relevant...
Corus's shares rose 9 1/2p to 94p yesterday. The shares have climbed more than 50 per cent this year, making it the best performer in the FTSE 100 index. Neither Corus nor Evraz have commented on the merger talks.
Also, Tim Horton's ticker and follow the stock price...THI.TO. Consider Wendy's as an investment, to capture gains on the 85% they sell by the end of the year.
Corus's shares rose 9 1/2p to 94p yesterday. The shares have climbed more than 50 per cent this year, making it the best performer in the FTSE 100 index. Neither Corus nor Evraz have commented on the merger talks.
Also, Tim Horton's ticker and follow the stock price...THI.TO. Consider Wendy's as an investment, to capture gains on the 85% they sell by the end of the year.
23 March 2006
Tim Horton's IPO - $23.16 a share
See the article with respect to the IPO for Tim Horton's...Friday trading should be interesting...anything over $50 isn't worth it.
21 March 2006
20 March 2006
Tim Horton's IPO - Coming Thursday, 23 Mar 06
Article gives more details on the Tim Horton's IPO, scheduled for Thursday, 23 Mar 06, target prices are $21-$23 per share.
NOTE: WENDY'S HAS INCREASED THE SHARE PRICE IN THE OFFERING TO $25-27 PER SHARE...IF YOU CAN GET YOUR HANDS ON SHARES, IT WILL BE WORTH IT IN THE SHORT TERM (added 21 Mar 06).
NOTE: WENDY'S HAS INCREASED THE SHARE PRICE IN THE OFFERING TO $25-27 PER SHARE...IF YOU CAN GET YOUR HANDS ON SHARES, IT WILL BE WORTH IT IN THE SHORT TERM (added 21 Mar 06).
19 March 2006
Tech Stocks
Interesting article in CNN Money on tech stocks...picking ones that will do well, besides the Google and Apple bandwagons. Don't know about drive manufacturers though, since most devices are coming with flash memory.
Here is an interesting "expose" on Google, by Phil. Lots of interesting information. There are a few posts related to Google's performance that are worth reading.
Here is an interesting "expose" on Google, by Phil. Lots of interesting information. There are a few posts related to Google's performance that are worth reading.
18 March 2006
11 March 2006
Cheap Beer
No, I am not giving away cheap beer...
With the "cheap beer" wars, with everyone jumping into the "buck a beer" foray, there will be winners and losers...Winner? Lakeport Brewing Income Fund. Results so far have been great, and details of the latest results can be seen here. Congratulations to Teresa Cascioli, and her team. Loser? Sleeman. Results so far show that it's not doing too well in the beer wars. Their strategy to compete in the "buck a beer" battle is backfiring, when they are known, and were known, as a premium branded beer. Sleeman needs to get back to the premium image it based its growth on, a few years ago.
With the "cheap beer" wars, with everyone jumping into the "buck a beer" foray, there will be winners and losers...Winner? Lakeport Brewing Income Fund. Results so far have been great, and details of the latest results can be seen here. Congratulations to Teresa Cascioli, and her team. Loser? Sleeman. Results so far show that it's not doing too well in the beer wars. Their strategy to compete in the "buck a beer" battle is backfiring, when they are known, and were known, as a premium branded beer. Sleeman needs to get back to the premium image it based its growth on, a few years ago.
A Little on the Steel Situation
As steel producers jockey for position, here are a few notes I made early last week on a few that I am watching;
AK Steel - While in the middle of a labour dispute, key market for AK is automotive. If TK doesn't get Dofasco, I think AK/TK would be able to form a synergistic entity to hold its own against Mittal's ISG group (it's US interests). I believe that AK is the current NA frontrunner for a takeover. AK could strengthen TK's stainless portfolio, and give TK a larger presence in NA for automotive, which it was looking for with Dofasco.
Algoma Steel - With the recent announcement of the $200 million special dividend, this is enough of a "fix" to get Paulsen off Turcotte's back for a bit. Problem is, a drop in steel prices of about 10%, will spell trouble for Algoma. It needs the cash in the bank to weather the next turndown. Turndown won't be that bad, but, shareholders will be knocking at the door for returns.
Stelco - This is a tough one -- New equity holders have done the right thing to split up the business into 9 units. The jewel of Stelco is Lake Erie works. Look for someone to show interest and offer something for Lake Erie works to speculate on the increased need for flat rolled to supply Toyota and Honda. Who will be the suitor? My guess is Nucor may be looking around, or even TK.
AK Steel - While in the middle of a labour dispute, key market for AK is automotive. If TK doesn't get Dofasco, I think AK/TK would be able to form a synergistic entity to hold its own against Mittal's ISG group (it's US interests). I believe that AK is the current NA frontrunner for a takeover. AK could strengthen TK's stainless portfolio, and give TK a larger presence in NA for automotive, which it was looking for with Dofasco.
Algoma Steel - With the recent announcement of the $200 million special dividend, this is enough of a "fix" to get Paulsen off Turcotte's back for a bit. Problem is, a drop in steel prices of about 10%, will spell trouble for Algoma. It needs the cash in the bank to weather the next turndown. Turndown won't be that bad, but, shareholders will be knocking at the door for returns.
Stelco - This is a tough one -- New equity holders have done the right thing to split up the business into 9 units. The jewel of Stelco is Lake Erie works. Look for someone to show interest and offer something for Lake Erie works to speculate on the increased need for flat rolled to supply Toyota and Honda. Who will be the suitor? My guess is Nucor may be looking around, or even TK.
Vincor - Trundling Along
Vincor is continuing on it's course to show that is a player in the NA market, and some restructuring at head office, to make more of a presence on the world stage -- look for this year's results to be impressive, and I am sure that Constellation will continue to look from the sidelines, until it is ready to pounce. I still maintain that there will be a 20% premium to be had on the stock in a takeover situation.
Laurentian Bank
I still like Laurentian Bank -- according to banking insiders, the Canada Bank Act is due for a revision, and banks will be pushing for the opportunity to provide insurance through their branches.
On a personal note, I deal with RBC Insurance, and they offered the best auto rates, and house insurance. What better business synergy can you get? Banks increasing your service charges, but decreasing your premiums, because the bank network model works well for insurance sales.
On a personal note, I deal with RBC Insurance, and they offered the best auto rates, and house insurance. What better business synergy can you get? Banks increasing your service charges, but decreasing your premiums, because the bank network model works well for insurance sales.
RIM - Problems Finally Solved
Since the settlement of RIM patent issues with NTP, the stock price has shot up 20-25%. I had mentioned in a previous post that investors should target RIM at $72 - this was while they were in litigation. If you did, you would have seen a return of about 40% in 3 months over the last 12 weeks. I think there are some out there that might have aggressive expectations from RIM, but with the lull in the patent infringement case, I think this gave an opportunity for other to start getting into the text messaging market. I don't think there are many more gains from RIM in the next 2 years.
THI - Tim Horton's IPO
With the announcment of the latest developments in the Tim Horton's IPO, looks like 18% of the company will be offered at a price of $21-23 per share. As per my previous post in December, any price less than $50 is expected to be a deal for investors, for the short term. All accounts say that there will be a lack of growth within Canada the next few years, and Horton's will need additional menu items to entice consumers to maintain previous years' growth.
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