This publication is a general market commentary and does not constitute a research report. Any reference to a research reportor a recommendation is not intended to represent the whole report and is not itself a research report or recommendation. Thiscommentary is for informational purposes only and does not contain investment advice. This publication may be wholly orpartially based on industry rumour, gossip and innuendo and as such is not to be relied upon as investment advice.
Monday June 7, 2010
S&P/TSX Composite -242.26 11569.61Dow Jones -323.31 9931.97S&P 500 -37.95 1064.88NASDAQ -83.86 2219.17S&P/TSX Venture -18.25 1464.92Philadelphia SOX -15.97 348.48Crude Oil (US$/brrl) +1.75 74.61Gas (US$/mmbtu) +0.27 4.69Copper (US$/lb) -0.14 2.80Gold (US$/oz) -12.60 1210.00Nickel (US$/lb) -0.44 8.44Palladium (US$/oz) -24.75 426.25Platinum (US$/oz) -31.50 1512.50Silver (US$/oz) -0.56 17.42Uranium (US$/lb) +0.00 40.75Canadian Dollar -0.0195 0.941830 Year Canada -0.07 3.71130 Year U.S. -0.14 4.131Volatility Index (VIX) 6.02 35.48
Call Me, Call Me Any, Anytime
Keep your multi-billion stimuluspackage, President Obama.Forget your temporary job-creation programs, MayorBloomberg. Stuff your small-business loan initiative, Goldman Sachs. Riga,Latvia, this weekend tried to stimulate theeconomy by hosting a parade of blondes.Reuters reports an army of blonde womeninvaded Latvia’s capital Friday for the EasternEuropean city’s annual Go Blonde festival.Nearly 1,000 blondes participated in theparade on Saturday to show that they really dohave more fun. They hope the event will bringpositive energy to Latvia, which is forecast tosee its economy contract by 3.5% in 2010,following an 18.0% contraction in 2009.According to Marika Gederte, President of theLatvian Association of Blondes, “We have tocheer people up. We know there is aneconomic crisis, but small things like a blondeparade can cheer up all the residents of Riga.Why not?”
CANADA
The S&P/TSX Composite erased its weekly gain on Friday, after the U.S.reported fewer new jobs than most economists forecast.
Bank of NovaScotia (BNS)
paced a declined in financials amid renewed concern oversovereign debt in Europe.Gold futures retreated for a third day as the U.S. dollar gained against 14 of 16 other major currencies.
Gammon Gold (GAM)
, a producer withoperations in Mexico, said striking miners are blocking contract workersand union members from entering its El Cubo mine. Gammon Gold saidthe labour disruption is illegal and the company is “reviewing all means of potential legal recourse.”
Western Coal (WTN)
, a coal producer with mines in Canada and the U.S.,said it will reopen its Willow Creek mine two months ahead of schedule.The company also announced an 88% increase in the mine’s coal reserve.
Galleon Energy (GO)
, an oil and gas producer with operations in westernCanada, said it has agreed to sell its Puskwa properties for about $135million in cash.
Air Canada (AC.B)
edged lower even after it said its system trafficincreased 9.7% to 4.2 billion revenue passenger miles in May from a year-ago period. Capacity increased 6.4% to 5.2 billion available seat milessystem wide.
UNITED STATES
Stocks sank late Friday, sending the Dow below 10,000, as slower-than-estimated jobs growth spurred concern the economic recovery may not beas robust as forecast.
General Electric (GE)
and
American Express (AXP)
led the declinesand
Monster Worldwide (MWW)
was also down sharply in the wake of the disappointing jobs report.
Exxon Mobil (XOM)
and
Freeport-McMoRan (FCX)
led commoditiesproducers lower as oil fell to near $71 a barrel and metals prices plunged.
Wal-Mart Stores (WMT)
weighed on retailers after saying gasolineprices and unemployment hurt traffic at U.S. stores.
Jacobs Engineering Group (JEC)
fell after the second-largest publiclytraded U.S. engineering company agreed to buy TechTeam GovernmentSolutions for $59 million.
Krispy Kreme Doughnuts (KKD)
climbed after it reported earnings morethan doubled in its first quarter.
Martek Biosciences (MATK)
also rallied after the seller of infant formulaand dietary supplements reported results that beat analysts’ expectations.
– Canadian and U.S. Comments for Monday June 7, 2010 2
This publication is a general market commentary and does not constitute a research report. Any reference to a research reportor a recommendation is not intended to represent the whole report and is not itself a research report or recommendation. Thiscommentary is for informational purposes only and does not contain investment advice. This publication may be wholly orpartially based on industry rumour, gossip and innuendo and as such is not to be relied upon as investment advice.
ECON 101
CANADIAN Data Today:
No scheduled releases.
U.S. Data Today:
This morning,
Consumer Credit
(Apr) is expected to come in flat, compared to $2.0 billion the previousmonth.
ECON 201
Following large gains in April,
Canada’s Employment
rose by 25,000 in May, the fifth-consecutive monthly increase. Theunemployment rate was unchanged at 8.1%. Since the start of the upward trend in July 2009, employment has risen by 1.8% or310,000.The value of
Canadian Building Permits
rose 5.4% to $6.7 billion in April, following a 12.3% advance in March. Comparedwith April 2009, the value of building permits has increased by 48.2%. The gain in April was due to the non-residential sector,which more than offset the decline in the residential sector.The
Ivey PMI for Canada
advanced to 62.7 in May, indicating that purchases were higher than in the previous month.
U.S. Payrolls
rose by 431,000 last month, including a 411,000 jump in government hiring of temporary workers for the 2010census. Economists projected a 536,000 gain. Private payrolls rose a less-than-forecast 41,000. The jobless rate fell to 9.7%.The
ECRI U.S. Future Inflation
gauge fell in May to 98.9, from 101.8 in April; April was revised upward to a small gain. Thesmoothed annualized growth rate slowed to 12.5% from 23.4%, indicating declining inflationary pressure on the U.S. economy.
Eurozone Final GDP
showed a 0.2% sequential growth in Q1, which is less than the U.S. economy’s 0.8% growth rate, andJapan’s 1.2% economic growth rate.
U.K. Housing Prices
(Halifax) declined for the second-straight month in May, falling 0.4% from April, after a 0.1% fall inApril. House prices are 6.9% higher than a year ago.
MARKET MOVERS
Technical Indicators:
TSX TSX-V NYSE NASDAQ AMEXAdvancers 509 374 292 280 120Decliners 989 397 2806 2355 349Net -480 -23 -2514 -2075 -229
Notable 52-Week Highs:
Celtic Exploration CLT $ 11.85Dundee DC.PR.A $ 24.68Diamond Fields International DFI $ 0.30Enghouse Systems ESL $ 9.49Front Street Strategic Yield FSS.A $ 9.83Distinction Group GD $ 2.60HBP Nymex Long NGas/Short Oil HNO $ 13.90Loblaw Companies L $ 39.54Otelco OTT.UN $ 17.68Peyto Energy Trust PEY.UN $ 15.11QLT QLT $ 6.70Income STREAMS III STQ $ 22.00
Notable 52-Week Lows:
Amorfix Life Sciences AMF $ 0.25Apollo Gold APG $ 0.28Cdn Energy Convertible Deb Fd CFE.UN $ 8.80CryptoLogic Limited CRY $ 2.72Noveko International EKO $ 0.59Forsys Metals FSY $ 2.79HBP Nymex Long Oil/Short NGas HON $ 6.86ISE ISE $ 2.52Lithium Americas LAC $ 1.40O'Leary BrIC-Plus Income & Gr OBF.UN $ 10.00Powertech Uranium PWE $ 0.18Reko International Group REK $ 0.66Stonegate Agricom ST $ 0.61BMO Eq Wt US Banks Hedged CAD ZUB $ 14.33
– Canadian and U.S. Comments for Monday June 7, 2010 3
This publication is a general market commentary and does not constitute a research report. Any reference to a research reportor a recommendation is not intended to represent the whole report and is not itself a research report or recommendation. Thiscommentary is for informational purposes only and does not contain investment advice. This publication may be wholly orpartially based on industry rumour, gossip and innuendo and as such is not to be relied upon as investment advice.
CANADIAN EQUITIES OF INTEREST
Listed Alphabetically by Symbol
Oil Services
Like to have your feet on solid ground?
Canaccord Genuity Oil & Gas Analyst John Tasdemir points out that onshore servicestocks have been outperforming and appear poised to continue to move higher in the near term. As of Thursday’s close, the OilService Index (OSX) has had a 27% correction since this year's high, set on April 23. The broad offshore bucket of stocks thatCanaccord Genuity tracks is down 30% since its high, while the onshore bucket is down 15%. Tasdemir thinks growth inonshore drilling in U.S. and Canada focused on horizontal completions in oil and liquid-rich natural gas plays and dry gas shalewill remain intact. Therefore, he believes that, unlike past corrections, manyonshore focused stocks have been oversold and"thrown out with the bathwater," even with the relative outperformance vs. the offshore group. He also highlights that withoutquestion, E&P costs in the Gulf of Mexico (GoM) are going up. Just how much costs are going up will take longer to answer.Insurance, regulation, equipment redundancies, etc., will all be part of the economic equation. He thinks many GoM producersare not only revaluating spending plans for the next six months due to the deep water moratorium, but are also consideringlonger-term plans. Looking at the offshore producers and considering their other resource opportunities, Tasdemir expects moredollars will be focused onshore. Not only that, the oil spill news flow and timeline for GoM recovery creates near-termoverhang. He thinks news flow from the GoM will continue to paint a negative light on the sector at least until the oil spill isstopped, which could take until August. Continuing to linger, however, will be environmental and removal impacts. Finally, henotes that he thinks the cumulative market value for offshore-related stocks is approximately $80 billion ($221 billion includingdiversifieds), which compares to the onshore group at about $32 billion. He believes small capital moves away from theoffshore into the onshore stocks are a major needle mover for the purer-play onshore group. Tasdemir’s favourite onshorestocks are the ones that are driven primarily by the horizontal trend. This includes:
Trican (TCW)
,
Calfrac (CFW)
,
PhoenixTechnology Income Fund (PHX.UN)
,
RPC (RES)
,
Superior Well Services (SWSI)
,
Complete Product Services (CPX)
,and
Key Energy Services (KEG)
. We also like select land drillers including
Helmerich & Payne (HP)
,
Nabors Industries(NBR)
and
Transdigm Group (TDG)
. He is also warming up to
Precision Drilling (PD)
, as its trust conversion has takenplace.
Lithium
2012 = Critical Mass in Canada.
Automakers said Friday that fully-electric vehicles should be widely available to Canadianconsumers within two years, with offerings in the pipeline from Nissan,
Ford Motor (F)
,
Toyota (TM)
, Mitsubishi and others.Speaking at a conference on green vehicle technology in Toronto, Toyota Canada's managing director, Stephen Beatty stated, "Ithink what you're hearing across the board is that 2012 is the time when you're going to have critical mass and a huge number of (electric) products coming forward from every manufacturer." The Canadian Press reported that Nissan is poised to be the firstmajor carmaker to introduce a purely electric consumer vehicle into the Canadian market, with its Leaf set to be in showroomsby late 2011 (the Leaf is already on sale in the U.S.). Additionally, Ford said it plans to launch its Transit Connect battery-electric van and an electric version of the Focus sedan by late 2011. Rounding out the late 2011 launches, Mitsubishi said ithopes to begin selling its zero-emission iMiev in Canada by late 2011. Toyota intends to launch an all-electric commuter car by2012. Toyota's Beatty predicts that there will be 8-12 fully-electric vehicles on the market in Canada by 2012.
Alamos Gold (AGI : TSX : $14.94), Net Change: -0.02, % Change: -0.13%, Volume: 334,259
Remember the...
Alamos Gold eked out a gain on a drilling update from its Mexican and Turkish projects. At San Carlos on its100%-owned Mulatos project in Mexico, the company completed 9,920 m of drilling in 48 holes. The San Carlos area is locatedat the north-east end of the Mulatos trend and about 2.5 km from the Estrella open pit where current mining is proceeding.Notable results: 9.90 m grading 14.71 g/t, 21.34 m grading 1.27 g/t Au, 16.75 m grading 6.41 g/t Au. Drilling continues to focuson a high grade structurally and stratabound controlled zone of mineralization identified over a 270 m strike length. At Puertodel Aire extension, also in Mexico, 10,425 m in 32 holes have been completed. Drilling is focused on expanding the mineralizedzone to the northeast and infilling the high-grade zone. Notable new assays include: 13.3 m grading 4.08 g/t Au and 10.7 mgrading at 4.69 g/t Au. This suggests the existence of possible lateral and southern extensions to the high-grade zone. In Turkey,at its Agi Dagi Au asset purchased in January 2010 from
Fronteer Gold (FRG)
and
Teck Resources (TCK.B)
,4,500 m in 27drill holes have been completed. The company indicated that most holes are confirming grade expectations and are providing
Search History:
Result 00 of 00
00 results for result for
p.
More From This User
Notes
Load more
