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April 26, 2010

TODAY'S HIGHLIGHTS

Canada/Int'l Rating Upgrades Estimates/Targets Raised Royal Bank TMX Group Consol Thompson Iron Mullen Group Yellow Pages Income Fund Incitec Pivot LM Ericsson Telephone

Estimates/Targets Lowered Sector Revisions

REITs: Positive Multifamily Call Gaining Traction; Adjusting Ratings/Targets Auto Parts: Target Prices Revised Reflecting Solid Sector Recovery; Q2/10... Entertainment: Revisiting Print Media Valuations Featured Reports Diversified Financials: Home Capital Group - IFRS: Style Versus Substance?

FINANCIALS Banks Banks Insurance Exchanges Canada Canada Canada Canada Royal Bank Sector Comment Sector Comment TMX Group Upgraded to Outperform PCL Forecasts Reduced to Reflect Better Environment... Coverage Interrupted Alpha Seeks Approval to Become an Exchange; Increasing...

ENERGY & UTILITIES Oil & Gas North American E&P Services & Equipment Canada Sector Comment Sector Comment Ensign Energy Services Oil & Gas Weekly - April 25, 2010 Oil & Gas Weekly Highlights From Investor Roadshow

MATERIALS Metals & Mining Metals & Mining Metals & Mining Fertilizers Int'l Canada Canada Int'l BHP Billiton Consol Thompson Iron Sherritt International Incitec Pivot Spot Iron Ore Pricing Boosts Earnings and NPV... Increased Earnings and Valuation Estimates on Higher... Earnings Estimates Increased on Higher Nickel and... H1/2010 (Mar) Earnings Preview

CAPITAL GOODS & SERVICES Trucks & Logistics Canada Mullen Group Increasing Target Price to $16; Revising Forecast

CONSUMER Auto Parts Sector Comment Target Prices Revised Reflecting Solid Sector...

TECH/TELECOM/MEDIA Comms Equip Entertainment Entertainment Int'l Canada LM Ericsson Telephone Yellow Pages Income Fund Sector Comment Better Margin Offset by Weaker Revenues Reassessing Print Media Valuations Revisiting Print Media Valuations

Royal Bank
(RY-TSX; RY-NYSE)
Stock Rating: Outperform Industry Rating: Market Perform

April 26, 2010 Research Comment Toronto, Ontario

John Reucassel, CFA
BMO Nesbitt Burns Inc. (416) 359-4379 John.Reucassel@bmo.com Assoc: John Fong, CFA, FSA
Price (23-Apr) Target Price
Price: High,Low,Close

Upgraded to Outperform
Event
Strong results from U.S. banks suggest that credit conditions and the business environment are improving faster than we had expected.

$61.73 $67.00

52-Week High 52-Week Low

$62.00 $40.91

Royal Bank of Canada (RY)
Earnings/Share

4.5 4.0

60 50 3.5 40 30 3.0 2.5
Volume (mln)

Impact
Positive. RY’s share price has lagged the group average in 2010 but we believe its wealth management and insurance operations, as well as domestic retail banking, should provide good earnings leverage beyond 2010. In 2010, a better environment should lower losses in U.S. retail banking. Strong trading results from the large U.S. banks could increase expectations for RY’s Q2/10 trading revenue; however, our Q2/10 trading estimate is unchanged at $1 billion.

20 200 100 0 150 100 50
RY Relative to S&P/TSX Comp

200 100 0 150 100 50

2005

2006

2007

2008

2009

Last Data Point: April 23, 2010

Forecasts
We increased our 2010E and 2011E cash EPS to $4.35 and $5.15 from $4.25 and $5.00, respectively, primarily due to lower PCL forecasts. In an accompanying sector comment, we increased our 2010 and 2011 cash earnings expectations for the Canadian bank sector.

(FY-Oct.) EPS - Cash P/E EPS - GAAP P/E

2008A $3.47

2009A $3.40

2010E $4.35 14.2x $4.24 14.6x 18.3% $2,133 $2.00 12.7% Q3 $0.95 $1.08 $1.11

2011E $5.15 12.0x $5.04 12.2x 19.3% $1,525 $2.00 12.3% Q4 $0.84 $0.85 $1.15

$3.38

$2.57

Valuation
We increased the target price to $67 from $63 reflecting a target multiple of 13x 2011E cash EPS, which is up from a previous target multiple of 12.6x.

Cash ROE 18.2% Specific Prov. ($mm)$1,430 Dividend $2.00 Tier One Capital 9.0% Quarterly EPS - Cash Q1 2008A $0.97 2009A $0.81 2010E $1.03a Dividend Book Value Shares O/S (mm) Float O/S (mm) Wkly Vol (000s) Net Debt ($mm) $2.00 $23.12 1,421.4 1,421.4 20,993 na

15.2% $2,785 $2.00 13.0% Q2 $0.72 $0.66 $1.06

Recommendation
We upgraded RY to Outperform from Market Perform. Looking past the recovery in loan losses, we believe that RY has amongst the most attractive potential earnings growth rates in the group due to large asset management and insurance operations as well as consistent results from domestic banking. Regulatory and government actions (in response to the recent crisis) should be the biggest risk to RY investors, particularly vis-à-vis wholesale banking.
Changes
Annual cash EPS 2010E $4.25 to $4.35 2011E $5.00 to $5.15 Annual EPS 2010E $4.13 to $4.24 2011E $4.89 to $5.04

Yield 3.2% Price/Book 2.7x Mkt. Cap ($mm) $87,746 Float Cap ($mm) $87,746 Wkly $ Vol (mm) $1,087.4 Next Rep. Date 28-May (E)

Notes: All values in C$; EPS are fully diluted; Cash EPS add back amortization of intangibles throughout Major Shareholders: Widely held First Call Mean Estimates: ROYAL BANK OF CANADA (C$) 2010E: $4.45; 2011E: $5.14

Quarterly EPS Q2/10E $1.04 to $1.06 Q3/10E $1.08 to $1.11 Q4/10E $1.10 to $1.15

Target $63.00 to $67.00 Rating Mkt to OP

This report was prepared by an analyst(s) employed by BMO Nesbitt Burns Inc., and who is (are) not registered as a research analyst(s) under FINRA rules. For disclosure statements, including the Analyst's Certification, please refer to pages 6 to 8.

Financials - Banks
Industry Rating: Market Perform

April 26, 2010 Research Comment Toronto, Ontario

John Reucassel, CFA
(416) 359-4379 John.Reucassel@bmo.com Assoc: John Fong, CFA, FSA

PCL Forecasts Reduced to Reflect Better Environment; Bank Sector Remains Rated Market Perform
Recently released U.S. banking results and economic data suggest that the operating environment, particularly with respect to credit, is improving faster than we expected. When the financial crisis started, we had a relatively pessimistic PCL forecast of $16 billion for 2010. Over the last year, we have been reducing this forecast and, admittedly, we have been behind the curve on this issue. We are reducing 2010E specific PCLs by 7% to $8.7 billion from $9.3 billion and reducing our 2011E specific PCL forecast by 11% to $6.0 billion (Table 1). Based on our 30-year analysis of loan losses and adjusting for the shift in loan books, $6 billion is the level of “normalized” loan losses. Table 1
Q2/10E Specific PCLs Old New % Chng 655 605 -7.6% 380 360 -5.3% 350 330 -5.7% 525 465 -11.4% 585 550 -6.0% 45 45 0.0% 2,540 2,355 -7.3% 2010E Specific PCLs Old New % Chng 2,358 2,133 -9.5% 1,414 1,344 -5.0% 1,363 1,238 -9.2% 1,846 1,716 -7.0% 2,172 2,057 -5.3% 173 173 0.0% 9,326 8,661 -7.1% 2011E Specific PCLs Old New % Chng 1,725 1,525 -11.6% 1,210 1,080 -10.7% 1,075 955 -11.2% 1,400 1,190 -15.0% 1,285 1,210 -5.8% 0.0% 80 80 -10.8% 6,775 6,040

Summary
 We have reduced our 2010E and 2011E specific PCL forecasts by 7% and 11%, respectively, reflecting improving economic data and relatively strong results from U.S. banks.  These changes translate into a 2–3% increase in our 2010E and 2011E cash EPS estimates. We also raised our target prices based on higher estimates and higher target valuations.  Concurrent with our higher estimates, we increased our rating on Royal Bank to Outperform from Market Perform in a separate research comment.  The bank sector remains rated Market Perform.

RY CM BMO BNS TD NA Total

These new estimates indicate that PCLs relative to loans and BAs should be 0.68% in 2010 and 0.45% in 2011. It appears that specific PCLs peaked at $9.1 billion in 2009 or 0.73% of loans and BAs. Particularly noteworthy in this past credit cycle has been the strong performance from business lending, which appears to have peaked at 0.87% in 2009, well below previous peaks (Chart 1 below).

This report was prepared by an analyst(s) employed by BMO Nesbitt Burns Inc., and who is (are) not registered as a research analyst(s) under FINRA rules. For disclosure statements, including the Analyst's Certification, please refer to pages 6 to 7.

Financials - Insurance
Industry Rating: Outperform

April 23, 2010 Research Comment Toronto, Ontario

Paul Campbell
(416) 359-5424 Paul.Campbell@bmo.com

Coverage Interrupted
Coverage of the following insurance stocks has been briefly interrupted as we transfer coverage of the Insurance sector from John Reucassel to Tom MacKinnon. These stocks are temporarily not rated until coverage is resumed shortly.

Financials – Insurance Company Great-West LifeCo Industrial Alliance Intact Financial Manulife Financial Sun Life Financial

Ticker GWO-TSX IAG-TSX IFC-TSX MFC-TSX SLF-TSX

Previous Rating Outperform Outperform Outperform Outperform Market Perform

New Rating Not Rated Not Rated Not Rated Not Rated Not Rated

This report was prepared by an analyst(s) employed by BMO Nesbitt Burns Inc., and who is (are) not registered as a research analyst(s) under FINRA rules. For disclosure statements, including the Analyst's Certification, please refer to pages 2 to 9.

TMX Group
(X-TSX)
Stock Rating: Market Perform Industry Rating: Market Perform

April 26, 2010 Research Comment Toronto, Ontario

John Reucassel, CFA
BMO Nesbitt Burns Inc. (416) 359-4379 John.Reucassel@bmo.com Assoc: Natalie Medak
Price (23-Apr) Target Price
Price: High,Low,Close

Alpha Seeks Approval to Become an Exchange; Increasing Q1/10E EPS Estimate
Event
Late last week, Alpha announced its intention to seek regulatory approval to become a stock exchange, broadening its potential product offering to include listings as well as facilitate trading and market data. The TMX is expected to report Q1/10 results on Wednesday, April 28.

$29.40 $35.00 

52-Week High 52-Week Low

$38.38 $27.79

TMX Group Inc. (X)
Earnings/Share

60 50 40 30 20 10 20 10
Volume (mln)

3.0 2.5 2.0 1.5 1.0 20 10 0

Impact
Greater competition from Alpha is negative. However, stronger-than-expected trading during the quarter is positive for our Q1/10 earnings estimates.

0 150 100 50
X Relative to S&P/TSX Comp

150 100 50

2005

2006

2007

2008

2009

Forecasts
We increased our Q1/10E GAAP to $0.67 from $0.61. We increased our 2010E and 2011E GAAP EPS to $2.67 and $3.02, respectively. Our 2010E and 2011E cash EPS are $2.90 and $3.40, respectively.
(FY-Dec.) EPS P/E 2008A $2.45

Last Data Point: April 23, 2010

2009A $2.45

2010E $2.67 11.0x

2011E $3.02 9.7x

Valuation
Our target price of $35.00 is unchanged, reflecting 13.1x 2010E GAAP EPS and 12.1x 2010E cash EPS.

Rev. ($mm) $533 Ttl Vol - Equities (bn) 153 Ttl Vol - Derivatives (mm)38 Cash EPS $2.91 Quarterly EPS 2008A 2009A 2010E Dividend Book Value Shares O/S (mm) Float O/S (mm) Wkly Vol (000s) Net Debt ($mm) Q1 $0.49 $0.58 $0.67 $1.52 $10.37 74.3 74.3 1,785 $237.9

$537 165 34 $2.73 Q2 $0.65 $0.63 $0.65

$580 146 38 $2.90 Q3 $0.66 $0.56 $0.66

$590 139 41 $3.40 Q4 $0.65 $0.68 $0.68 5.2% 2.8x $2,185 $2,185 $56.7 28-Apr (E)

Recommendation
We continue to believe that the company has good long-term growth opportunities in clearing, financial and commodity derivatives. However, the launch of these new products is taking longer than expected. Alpha’s recent announcement to seek approval to become a stock exchange is likely to heighten concerns about long-term earnings power at the TMX. The TMX’s valuation remains well below global peers who face no less competition and the dividend appears safe. Accordingly, TMX remains Market Perform rated. BMO Nesbitt Burns Inc. is a shareholder of Alpha ATS Inc. and limited partner of Alpha Trading Systems Limited Partnership.
Changes
Annual EPS 2010E $2.60 to $2.67 2011E $2.95 to $3.02

Yield Price/Book Mkt. Cap ($mm) Float Cap ($mm) Wkly $ Vol (mm) Next Rep. Date

Notes: All values in C$; IPO@$9 11/02; *Net cash avail. for dist. to shareholders Major Shareholders: Widely held First Call Mean Estimates: Not Available

Quarterly EPS Q1/10E $0.61 to $0.67

This report was prepared by an analyst(s) employed by BMO Nesbitt Burns Inc., and who is (are) not registered as a research analyst(s) under FINRA rules. For disclosure statements, including the Analyst's Certification, please refer to pages 7 to 10.

Energy - Oil & Gas
Oil & Gas Weekly
The S&P/TSX Energy Index was up 2.3% reflecting gains across all of the major energy indices this week. Specifically, the S&P/TSX Producer and Integrated indices led the way with gains of 2.9% and 2.6%, respectively. The broader S&P TSX and S&P 500 were also stronger finishing up 1.4% and 2.1%, respectively.
Table 1: Energy Index Performance
Index Levels S&P 500 S&P Oil Composite Index S&P E&P Index S&P Oil Refiners Index OSX Oil Services Index S&P/TSX Comp S&P/TSX Comp Energy Index S&P/TSX Integrated Index S&P/TSX Oil & Gas E&P Index S&P/TSX Oil & Gas Services Index
Source: BMO Capital Markets, Bloomberg

April 25, 2010 Research Comment

BMO Capital Markets Energy Team

Summary
 Natural gas prices closed above the US$4/Mcf level this week largely on a smaller than expected build in inventories. Although this week’s injection was below expectations, support for natural gas stemming from the week’s inventory report may be premature and short lived given the injection was well above last year’s build of 42 Bcf and the five-year average injection of 33 Bcf for this time of year. We believe this week’s report is further evidence of an expected rapid rebuilding of inventories on strong production and weak demand. Given the current pace of injections and already high storage levels at the start of the injection season, we believe that natural gas prices could come under significant downward pressure through the second quarter. As such, we continue to favour companies leveraged to crude oil over natural gas.  We are maintaining our Outperform rating for the U.S. Oilfield Services, Market Perform rating for the Integrated Oils, Oil & Gas Producers and Canadian Oilfield Services, and Underperform rating for the Independent Refiners. Our buy recommendations include Bankers, Baytex, Canadian Natural, Crescent Point, Crew, Halliburton, Hess, National Oilwell Varco, Noble, Occidental, PetroBakken, Schlumberger, Suncor and Talisman.

Wk/Wk Y/Y Chg YTD Chg 23/04/2010 16/04/2010 Chg (%) (%) (%) 1,217.3 1,192.1 2.1% 43% 9% 485.0 469.9 3.2% 30% 7% 431.0 420.8 2.4% 19% 5% 359.8 343.0 4.9% 2% 15% 228.2 211.6 7.8% 56% 17% 12,239.6 12,070.7 1.4% 30% 4% 2,870.9 2,806.2 2.3% 25% 1% 3,269.5 3,188.0 2.6% 14% (1%) 3,241.0 3,149.9 2.9% 31% 3% 1,238.6 1,215.7 1.9% 32% (1%)

After trading in negative territory for most of the week, West Texas Intermediate (WTI) crude prices rebounded on Friday to finish the week up 2.3% at US$85.12/bbl largely reflecting optimism on new home sales data in the U.S. NYMEX natural gas prices were also stronger closing at US$4.26/Mcf (up 5.4%).
Table 2: Benchmark Energy Prices
Energy Prices WTI (US$/Bbl) 1 Brent (US$/bbl) Ed Light (C$/Bbl) 2 Bow River Heavy (C$/Bbl) 2 AECO (C$/GJ) Nymex Gas (US$/MMbtu) 1 UK NBP Gas (US$/MMbtu) Henry Hub (US$/MMBtu) Wk/Wk Y/Y Chg YTD Chg 23/04/2010 16/04/2010 Chg (%) (%) (%) $85.12 $83.24 2.3% 72% 7% $87.21 $85.99 1.4% 74% 12% $81.30 $82.22 (1.1%) 47% (1%) $72.41 $72.73 (0.4%) 46% 0% $3.57 $3.46 3.2% 10% (35%) $4.26 $4.04 5.4% 25% (24%) $4.67 $4.74 (1.4%) 11% (14%) $4.06 $3.97 2.3% 17% (30%)

Source: BMO Capital Markets, Bloomberg, Imperial Oil; (1) NYMEX near month contract; (2) Imperial Oil posted prices

Please see pages 3-7 and 10-13 for analyst coverage.
Randy Ollenberger
BMO Nesbitt Burns Inc. (Canada)

(403) 515-1502 (403) 515-1557 (403) 515-1508

Alan Laws, CFA
BMO Capital Markets Corp. (U.S.)

(303) 436-1125 (403) 515-1538 (403) 515-1574

Gordon Tait, CFA
BMO Nesbitt Burns Inc. (Canada)

(403) 515-1501 (303) 436-1117

Jim Byrne, P.Eng., CFA
BMO Nesbitt Burns Inc. (Canada)

Mike Mazar, CFA
BMO Nesbitt Burns Inc. (Canada)

Dan McSpirit
BMO Capital Markets Corp. (U.S.)

Mark Leggett, CFA
BMO Nesbitt Burns Inc. (Canada)

Christopher Brown, P.Eng.
BMO Nesbitt Burns Inc. (Canada)

This report was prepared in part by an analyst(s) employed by a Canadian affiliate, BMO Nesbitt Burns Inc., and who is (are) not registered as a research analyst(s) under FINRA rules. For disclosure statements, including the Analyst's Certification, please refer to pages 14 to 15.

Energy - Oil & Gas
Oil & Gas Weekly
The S&P/TSX Energy Index was up 2.3% reflecting gains across all of the major energy indices this week. Specifically, the S&P/TSX Producer and Integrated indices led the way with gains of 2.9% and 2.6%, respectively. The broader S&P TSX and S&P 500 were also stronger finishing up 1.4% and 2.1%, respectively.
Table 1: Energy Index Performance
Index Levels S&P 500 S&P Oil Composite Index S&P E&P Index S&P Oil Refiners Index OSX Oil Services Index S&P/TSX Comp S&P/TSX Comp Energy Index S&P/TSX Integrated Index S&P/TSX Oil & Gas E&P Index S&P/TSX Oil & Gas Services Index
Source: BMO Capital Markets, Bloomberg

April 25, 2010 Research Comment

BMO Capital Markets Energy Team

Summary
 Natural gas prices closed above the US$4/Mcf level this week largely on a smaller than expected build in inventories. Although this week’s injection was below expectations, support for natural gas stemming from the week’s inventory report may be premature and short lived given the injection was well above last year’s build of 42 Bcf and the five-year average injection of 33 Bcf for this time of year. We believe this week’s report is further evidence of an expected rapid rebuilding of inventories on strong production and weak demand. Given the current pace of injections and already high storage levels at the start of the injection season, we believe that natural gas prices could come under significant downward pressure through the second quarter. As such, we continue to favour companies leveraged to crude oil over natural gas.  We are maintaining our Outperform rating for the U.S. Oilfield Services, Market Perform rating for the Integrated Oils, Oil & Gas Producers and Canadian Oilfield Services, and Underperform rating for the Independent Refiners. Our buy recommendations include Bankers, Baytex, Canadian Natural, Crescent Point, Crew, Halliburton, Hess, National Oilwell Varco, Noble, Occidental, PetroBakken, Schlumberger, Suncor and Talisman.

Wk/Wk Y/Y Chg YTD Chg 23/04/2010 16/04/2010 Chg (%) (%) (%) 1,217.3 1,192.1 2.1% 43% 9% 485.0 469.9 3.2% 30% 7% 431.0 420.8 2.4% 19% 5% 359.8 343.0 4.9% 2% 15% 228.2 211.6 7.8% 56% 17% 12,239.6 12,070.7 1.4% 30% 4% 2,870.9 2,806.2 2.3% 25% 1% 3,269.5 3,188.0 2.6% 14% (1%) 3,241.0 3,149.9 2.9% 31% 3% 1,238.6 1,215.7 1.9% 32% (1%)

After trading in negative territory for most of the week, West Texas Intermediate (WTI) crude prices rebounded on Friday to finish the week up 2.3% at US$85.12/bbl largely reflecting optimism on new home sales data in the U.S. NYMEX natural gas prices were also stronger closing at US$4.26/Mcf (up 5.4%).
Table 2: Benchmark Energy Prices
Energy Prices WTI (US$/Bbl) 1 Brent (US$/bbl) Ed Light (C$/Bbl) 2 Bow River Heavy (C$/Bbl) 2 AECO (C$/GJ) Nymex Gas (US$/MMbtu) 1 UK NBP Gas (US$/MMbtu) Henry Hub (US$/MMBtu) Wk/Wk Y/Y Chg YTD Chg 23/04/2010 16/04/2010 Chg (%) (%) (%) $85.12 $83.24 2.3% 72% 7% $87.21 $85.99 1.4% 74% 12% $81.30 $82.22 (1.1%) 47% (1%) $72.41 $72.73 (0.4%) 46% 0% $3.57 $3.46 3.2% 10% (35%) $4.26 $4.04 5.4% 25% (24%) $4.67 $4.74 (1.4%) 11% (14%) $4.06 $3.97 2.3% 17% (30%)

Source: BMO Capital Markets, Bloomberg, Imperial Oil; (1) NYMEX near month contract; (2) Imperial Oil posted prices

Please see pages 3-7 and 10-13 for analyst coverage.
Randy Ollenberger
BMO Nesbitt Burns Inc. (Canada)

(403) 515-1502 (403) 515-1557 (403) 515-1508

Alan Laws, CFA
BMO Capital Markets Corp. (U.S.)

(303) 436-1125 (403) 515-1538 (403) 515-1574

Gordon Tait, CFA
BMO Nesbitt Burns Inc. (Canada)

(403) 515-1501 (303) 436-1117

Jim Byrne, P.Eng., CFA
BMO Nesbitt Burns Inc. (Canada)

Mike Mazar, CFA
BMO Nesbitt Burns Inc. (Canada)

Dan McSpirit
BMO Capital Markets Corp. (U.S.)

Mark Leggett, CFA
BMO Nesbitt Burns Inc. (Canada)

Christopher Brown, P.Eng.
BMO Nesbitt Burns Inc. (Canada)

This report was prepared in part by an analyst(s) employed by a Canadian affiliate, BMO Nesbitt Burns Inc., and who is (are) not registered as a research analyst(s) under FINRA rules. For disclosure statements, including the Analyst's Certification, please refer to pages 14 to 15.

Ensign Energy Services
(ESI-TSX)
Stock Rating: Outperform Industry Rating: Market Perform

April 25, 2010 Research Comment Calgary, Alberta

Michael Mazar, CFA
BMO Nesbitt Burns Inc. (403) 515-1538 Michael.Mazar@bmo.com Assoc: Jason A. Zhang
Price (23-Apr) Target Price
Price: High,Low,Close

Highlights From Investor Roadshow
Event
BMO Capital Markets hosted a series of investor meetings with Ensign management on April 20 and 22 in Toronto and Montreal. Key take-aways were management caution regarding the outlook for Canadian drilling activity post spring break-up; continued expansion of U.S. footprint out of the company’s traditional core U.S. Rockies market; evolution of the bifurcation in the North American land rig market between deep, high spec equipment and shallow, low-spec rigs; and the improved outlook for the international market, particularly South America in light of improved crude prices.

$14.57 $18.00 

52-Week High 52-Week Low

$18.29 $13.00

Ensign Energy Services (ESI) 30 25 20 15 10 5 40 20 0 200
ESI Relative to S&P/TSX Comp Volume (mln)

30 25 20 15 10 5 40 20 0 200 100 0

Impact
Slightly Positive.

100 0

2005

2006

2007

2008

2009

Last Data Point: April 22, 2010

Forecasts
There are no changes to our 2010 and 2011 financial estimates. We expect Ensign to generate EPS of $1.05 in 2010, growing in $1.68 in 2011 as North American rig counts stabilize at a higher average level and the international operation continues to improve. Free cash flow (operating cash flow after capex and the dividend) is expected to reach roughly $102 million in 2010 and $220 million in 2011.

(FY-Dec.) EPS P/E CFPS P/CFPS Total Debt ($mm) ROCE (%) LT Liab. (%) EV/EBITDA Quarterly EPS 2008A 2009A 2010E Dividend Book Value Shares O/S (mm) Float O/S (mm) Wkly Vol (000s) Net Debt ($mm)

2008A $1.72

2009A $0.86

2010E $1.05 13.8x $2.16 6.8x $66.7 10% -4% 5.9x Q3 $0.39 $0.11 $0.25

2011E $1.68 8.7x $2.94 4.9x -$156.1 16% -19% 4.2x Q4 $0.49 $0.14 $0.33 2.4% 1.5x $2,234 $1,861 $31.1 May (E)

$2.63

$1.68

$0.0 18% 6% 3.4x Q1 $0.60 $0.46 $0.36 $0.35 $9.99 153.3 127.7 1,980 $33.9

$169.0 8% 2% 7.5x Q2 $0.25 $0.15 $0.10

Valuation
We continue to believe that Ensign’s shares offer compelling value at 5.9x 2010E EBITDA and 4.2x 2011E. We expect the valuation discount to its peers to narrow as the company’s strong balance sheet, attractive global footprint and high level of commodity diversification become more valuable in an uncertain North American natural gas market.

Yield Price/Book Mkt. Cap ($mm) Float Cap ($mm) Wkly $ Vol (mm) Next Rep. Date

Recommendation
We are maintaining our Outperform rating and $18 target price.

Notes: All values in C$ Major Shareholders: N. Murray Edwards (Director) (16.7%) First Call Mean Estimates: ENSIGN ENERGY SERVICES INC (C$) 2010E: $0.97; 2011E: $1.29

This report was prepared by an analyst(s) employed by BMO Nesbitt Burns Inc., and who is (are) not registered as a research analyst(s) under FINRA rules. For disclosure statements, including the Analyst's Certification, please refer to pages 7 to 9.

BHP Billiton
(BLT-LSE; BHP-NYSE)
Stock Rating: Outperform Industry Rating: Market Perform

April 25, 2010 Research Comment Toronto, Ontario

Tony Robson
BMO Nesbitt Burns Inc. (416) 359-4034 Tony.Robson@bmo.com Assoc: Matthew Griffiths
Price (22-Apr) Target Price
Price: High,Low,Close

Spot Iron Ore Pricing Boosts Earnings and NPV; Quarterly Commodity Price Revision
Event
BMO Research has updated its commodity price forecast and included Q1/10 actual average commodity prices. For BHP, this resulted in a 43% increase to 10/11E earning and a 26% increase in valuation. BHP’s push to move to spot pricing on iron ore along with met coal has resulted in higher forecast earnings and valuation. In addition to iron ore, changes to BMO Research’s long-term metallurgical coal forecast price from US$135/t to US$152/t and long-term thermal coal from US$75/t to US$85/t have also resulted in a higher estimated valuation for BHP.

₤20.98 ₤26.00 
Billiton Plc(BLT)

52-Week High 52-Week Low

₤23.46 ₤12.75

25 20 15 10 5 200 100 0 2 1 0
Volume (mln)

25 20 15 10 5 200 100 0 2 1 0

2005

2006

2007

2008

2009

Impact
Positive. BHP Billiton remains a key preferred portfolio investment.
(FY-Jun.) EPS P/E CFPS P/CFPS EV/EBITDA WTI Oil (US$/bbl) China Iron CIF A$/US$ Quarterly EPS 2009A 2010E 2011E Dividend Book Value Shares O/S (mm) Float O/S (mm) Wkly Vol (000s) Net Debt ($mm) $0.84 $7.27 5,600.0 5,600.0 54,032 $5,586 2009A $1.92 $2.82 8.3x $69.32 95.9 0.75

Last Data Point: April 16, 2010

2010E $2.72 11.9x $3.47 9.3x 7.0x $75.72 123.2 0.89 H1 $1.10 $1.02a $2.21

2011E $4.46 7.2x $5.13 6.3x 4.1x $82.80 148.8 0.95

2012E $4.47 7.2x $5.29 6.1x 3.7x $85.00 132.5 0.93 H2 $0.82 $1.70 $2.26 2.6% 4.4x ₤117,488 ₤117,488 ₤910.3 Aug (E)

Forecasts
BMO Research earnings forecast for fiscal year ended June 2010E is US$2.72/share (+16%) and for fiscal year ended June 2011E is US$4.46/share (+43%).

Valuation
BMO Research estimates BHP Billiton’s valuation at US$222B or £25.83/share (+26%), using a 10% nominal discount rate and BMO Research’s updated commodity price forecast.

Recommendation
BHP is rated Outperform with a £26.00 price target, representing 1.0x estimated NPV. The target price is derived from a weighted blend of NPV and EBITDA multiples, mine life and growth factors.

Yield Price/Book Mkt. Cap (mm) Float Cap (mm) Wkly ₤ Vol (mm) Next Rep. Date

Notes: Share price, target, market capitalization & weekly volume in £, all other values in US$; Fines on JFY basis Major Shareholders: Widely held First Call Mean Estimates: Not Available

This report was prepared by an analyst(s) employed by BMO Nesbitt Burns Inc., and who is (are) not registered as a research analyst(s) under FINRA rules. For disclosure statements, including the Analyst's Certification, please refer to pages 4 to 6.

Consolidated Thompson Iron Mines
(CLM-TSX)
Stock Rating: Outperform(S) Industry Rating: Market Perform

April 23, 2010 Research Comment Toronto, Ontario

Tony Robson
BMO Nesbitt Burns Inc. (416) 359-4034 Tony.Robson@bmo.com Assoc: Jessica Fung
Price (22-Apr) Target Price
Price: High,Low,Close

Increased Earnings and Valuation Estimates on Higher Iron Ore Price Forecasts
Event
BMO Research’s quarterly revision of commodity price forecasts has resulted in increased earnings and valuation estimates for CLM (see “Metals & Mining – Forecast Update: Non-Precious Metals Miners”). Iron ore forecasts by BMO are now on a quarterly basis, derived from spot iron ore fines delivered to China.

$9.58 $11.50 

52-Week High 52-Week Low

$10.32 $2.31

Consolidated Thompson Iron Mines Ltd. (CLM)
Earnings/Share
-0.05 -0.10 -0.15 -0.20 -0.25 -0.30 -0.35

10 8 6 4 2 0 50
Volume (mln)

50

0

0
CLM Relative to S&P/TSX Comp

Impact
Positive. Iron ore price forecasts have increased significantly, although the new figures are not comparable with previous forecasts, as previous forecasts were on a Japanese fiscal year fob basis.

4000 2000 0

4000 2000 0

2005

2006

2007

2008

2009

Last Data Point: April 22, 2010

Forecasts
CLM’s EPS estimates have increased to C$1.04 from C$0.37 for 2010E and to C$1.71 from C$0.84 for 2011E. BMO Research continues to estimate first shipment of iron ore concentrate from the Bloom Lake project in early June. Like all iron ore producers adjusting to the new pricing regime, there is a great deal of uncertainty around CLM’s earnings forecasts. BMO Research continues to assume CLM’s realized prices would be based on Vale’s SSF prices.

(FY-Dec.) EPS P/E CFPS P/CFPS EV/EBITDA Iron Ore Fines Real'd Price (C$/t) C$/US$ Quarterly EPS 2008A 2009A 2010E Dividend Book Value Shares O/S (mm) Float O/S (mm) Wkly Vol (000s) Net Debt ($mm)

2008A $0.00

2009A -$0.29

2010E $1.04 9.2x $1.13 8.5x 4.5x 142% $132 0.99 Q3 $0.01 -$0.12 $0.37

2011E $1.71 5.6x $1.90 5.0x 1.9x -6% $126 0.99 Q4 $0.01 -$0.06 $0.43 0.0% 2.5x $2,067 $1,435 $37.3 Mar (E)

-$1.35

-$0.27

na 65% $0 0.94 Q1 -$0.04 -$0.01 -$0.05 $0.00 $3.76 215.8 149.7 6,484 -$325.0

na -28% $0 0.88 Q2 -$0.11 -$0.10 $0.29

Valuation
BMO Research has significantly increased CLM’s NPV to C$15.54/share, up 34% from previous estimates of C$11.65/share.

Recommendation
CLM is rated Outperform (Speculative). C$11.50 and represents 0.7x NPV. The target price is unchanged at

Yield Price/Book Mkt. Cap ($mm) Float Cap ($mm) Wkly $ Vol (mm) Next Rep. Date

Notes: All values in C$; (S) in rating denotes Speculative Major Shareholders: WISCO (19.6%), Acuity Investments (6.6%), I.G. Investment (6.5%) First Call Mean Estimates: CONSOLIDATED THOMPSON IRON MINES (C$) 2010E: $0.47; 2011E: $1.28

This report was prepared by an analyst(s) employed by BMO Nesbitt Burns Inc., and who is (are) not registered as a research analyst(s) under FINRA rules. For disclosure statements, including the Analyst's Certification, please refer to pages 5 to 8.

Sherritt International
(S-TSX)
Stock Rating: Market Perform Industry Rating: Market Perform

April 25, 2010 Research Comment Toronto, Ontario

Tony Robson
BMO Nesbitt Burns Inc. (416) 359-4034 Tony.Robson@bmo.com Assoc: Jessica Fung
Price (22-Apr) Target Price
Price: High,Low,Close

Earnings Estimates Increased on Higher Nickel and Thermal Price Forecasts
Event
BMO Research has published revised commodity forecasts (see “Metals & Mining – Forecast Updated: Non-Precious Metals Miners”), increasing Sherritt’s earnings and valuation estimates slightly. Nickel forecasts increased to US$9.78/lb from US$8.50/lb in 2010E and to US$9.00/lb from US$8.00/lb in 2011E. The thermal coal price increased to US$98/t from US$92/t for JFY 2010E, and the long-term price increased to US$85/t from US$75/t.

$8.13 $9.00 

52-Week High 52-Week Low

$9.05 $4.46

Sherritt Intl Corp. (S)
Earnings/Share

2.5 2.0 1.5

15 10

1.0 5 0 100 50 0 200 100 0
S Relative to S&P/TSX Comp Volume (mln)

0.5 0.0 100 50 0 200 100 0

Impact
Slightly Positive. Sherritt’s earnings and valuation estimates increased somewhat on higher commodity price forecasts though the impact was subdued relative to its nickel sector peers that are less diversified and therefore more leveraged to the nickel price.

2005

2006

2007

2008

2009

Last Data Point: April 22, 2010

(FY-Dec.) EPS P/E CFPS P/CFPS

2008A $0.97

2009A $0.48

2010E $0.91 8.9x $1.81 4.5x $9.78 $21.94 $98 7.8x Q3 $0.48 $0.19 $0.22

2011E $0.90 9.1x $1.91 4.3x $9.00 $18.00 $100 7.6x Q4 -$0.15 $0.14 $0.20 1.7% 0.7x $2,402 $2,369 $50.1 Jul (E)

$1.79

$1.35

Forecasts
Sherritt’s estimated EPS increased to C$0.91 from C$0.85 for 2010E and to C$0.90 from C$0.86 in 2011E.

Nickel (US$/lb) $9.60 Cobalt (US$/lb) $38.77 Therm. Coal (US$/t) $125 EV/EBITDA 8.1x Quarterly EPS 2008A 2009A 2010E Q1 $0.38 $0.05 $0.24

$6.65 $17.35 $72 7.2x Q2 $0.28 $0.09 $0.27

Valuation
BMO Research estimates Sherritt’s NPV at C$10.09/share, up 7% from previous estimates of C$9.41. The C$9.00 target price represents 0.9x NPV, derived from a weighted blend of NPV and EBITDA multiples, mine life and growth factors relative to peers.

Dividend $0.14 Book Value $11.66 Shares O/S (mm) 295.5 Float O/S (mm) 291.3 Wkly Vol (000s) 7,852 Net Debt ($mm) $1,585.0

Yield Price/Book Mkt. Cap ($mm) Float Cap ($mm) Wkly $ Vol (mm) Next Rep. Date

Recommendation
Sherritt remains rated Market Perform. BMO Research assumes the Ambatovy nickel project ramps up in H2/11 and reaches commercial production in 2012.

Notes: All values in C$ Major Shareholders: M&G Investment (16.4%) First Call Mean Estimates: SHERRITT INTERNATIONAL CORP (C$) 2010E: $0.75; 2011E: $0.90

This report was prepared by an analyst(s) employed by BMO Nesbitt Burns Inc., and who is (are) not registered as a research analyst(s) under FINRA rules. For disclosure statements, including the Analyst's Certification, please refer to pages 4 to 6.

Incitec Pivot
(IPL-ASX)
Stock Rating: Market Perform Industry Rating: Outperform

April 25, 2010 Research Comment Toronto, Ontario

Joel Jackson, P.Eng.
BMO Nesbitt Burns Inc. (416) 359-4250 Joel.Jackson@bmo.com

H1/2010 (Mar) Earnings Preview
Event
We are revising estimates downward in advance of IPL’s H1/10 (Mar) earnings release on May 9 after taking into account a stronger Aussie dollar than expected, and lower-than-forecast ammonium nitrate and nitrogen fertilizer prices, offset by improved phosphate pricing expectations.

Price (23-Apr) Target Price
Price: High,Low,Close

A$3.23 A$3.50 
Incitec Pivot Ltd.(IPL)

52-Week High 52-Week Low

A$3.83 A$2.03

8 6 4 2 0 400
Volume (mln)

8 6 4 2 0 400 200 0
IPL Relative to Australia All Ordinaries Index

Impact
Mixed.

200 0
1000 500

1000 500 0

Forecasts
0

Our F2010E (Sep) and F2011E EPS estimates fall to A$0.22 and A$0.25 from A$0.23 and A$0.30. Our FH1/10 (Mar) EPS estimate remains A$0.08.

2005

2006

2007

2008

2009

Last Data Point: April 16, 2010

Valuation
Our A$3.50 target is 8.4x F2011E (Sep) EV/EBITDA and 14.0x F2011E P/E.

(FY-Sep.) EPS P/E CFPS P/CFPS

2008A A$0.59

2009A A$0.29

2010E A$0.22 14.7x A$0.29 11.1x A$2,955 A$6,484 A$717 9.0x

2011E A$0.25 12.9x A$0.38 8.5x A$3,314 A$6,498 A$827 7.9x H2 A$0.42 A$0.21 A$0.14 1.2% 1.5x A$5,248 A$5,236 211.4 May (E)

A$0.77

A$0.22

Recommendation
We maintain our Market Perform rating and A$3.50 target price. Fertilizer fundamentals have improved, but Explosives remains a late 2010/early 2011 story, in our view, with continued U.S. construction softness, the belief U.S. coal may have reached an inflection point, and promising signs from Chinese and global iron ore demand. We estimate IPL’s share price already reflects much of the upside to phosphate and nitrogen pricing. Fertilizer pricing has cooled from recent peaks, and is challenged by moderated crop prices, offset by reduced phosphate producer inventories. We believe investors should wait for clearer indications of U.S. economic recovery, and robust southern hemisphere fertilizer demand ahead of fall planting potentially boosting fertilizer prices above current projections.

Rev. (A$mm) A$2,918 EV (A$mm) A$10,490 EBITDA (A$mm) A$1,014 EV/EBITDA 10.3x Half-Yearly EPS 2008A 2009A 2010E Dividend Book Value Shares O/S (mm) Float O/S (mm) Wkly Vol (000s) Net Debt (A$mm) A$0.04 A$2.19 1,624.9 1,620.9 72,844 A$1,463

A$3,419 A$6,027 A$556 10.8x H1 A$0.19 A$0.09 A$0.08

Yield Price/Book Mkt. Cap (mm) Float Cap (mm) Wkly A$ Vol (mm) Next Rep. Date

Notes: All values in A$ Major Shareholders: Widely held First Call Mean Estimates: INCITEC PIVOT LIMITED (A$) 2010E: $0.25; 2011E: $0.28

Changes

Annual EPS 2010E $0.23 to $0.22 2011E $0.30 to $0.25

Annual CFPS 2010E $0.24 to $0.29 2011E $0.33 to $0.38

Half Yearly EPS H2/10E $0.15 to $0.14

This report was prepared by an analyst(s) employed by BMO Nesbitt Burns Inc., and who is (are) not registered as a research analyst(s) under FINRA rules. For disclosure statements, including the Analyst's Certification, please refer to pages 10 to 12.

Mullen Group
(MTL-TSX)
Stock Rating: Market Perform Industry Rating: Market Perform

April 25, 2010 Research Comment Toronto, Ontario

Jason Granger, CA, CFA
BMO Nesbitt Burns Inc. (416) 359-4293 Jason.Granger@bmo.com Assoc: Devin Dodge
Price (23-Apr) Target Price
Price: High,Low,Close

Increasing Target Price to $16; Revising Forecast
Event
In light of y/y improvements in drilling activity thus far in 2010 and industry reports suggesting more signs of stability in industry conditions, we are increasing our 2010 and 2011 earnings forecasts for Mullen Group.

$16.62 $16.00

52-Week High 52-Week Low

$17.09 $10.35

Mullen Group Ltd. (MTL)
Earnings/Share

40 30 20

2.5

2.0

1.5 10

Impact
Positive.

0 10 5
Volume (mln)

1.0 10 5 0
MTL Relative to S&P/TSX Comp

Forecasts
We are raising our 2010 EPS forecast to $0.97 from $0.89. Our 2011 EPS estimate is increased to $1.26 from $1.17.

0 200 100 0

200 100 0

2005

2006

2007

2008

2009

Valuation
To reflect increases to our earnings estimates, we are raising our target price to $16 from $15. Our target is based on 6.8x our 2011 EV/EBITDA forecast.
(FY-Dec.) EPS P/E CFPS P/CFPS Rev. ($mm) EBITDA Margin EBITDA ($mm) EV/EBITDA Quarterly EPS 2008A 2009A 2010E Dividend Book Value Shares O/S (mm) Float O/S (mm) Wkly Vol (000s) Net Debt ($mm) 2008A $1.40

Last Data Point: April 23, 2010

2009A $1.10

2010E $0.97 17.1x $1.71 9.7x $1,106 20% $219 8.1x Q3 $0.45 $0.36 $0.23

2011E $1.26 13.2x $2.00 8.3x $1,257 20% $251 6.9x Q4 $0.09 $0.14 $0.28 3.0% 1.1x $1,029 $916 $11.2 May (E)

$3.06

$1.37

Recommendation
We believe freight movements have been stabilizing for Mullen’s trucking and logistics segment and we expect capital investment in the oil sands to improve in 2010. We are also modeling for some improvement in drilling activity; however, we remain concerned that pricing will be slow to improve with the significant level of excess capacity. We expect 2010 to be challenging but better than 2009. Mullen Group should be well positioned when there is a meaningful improvement in the environment. However, the timing and pace of such a turnaround remain unclear. The company has scheduled its Q1/10 release for April 29 before the market opens and will hold a conference call at 11:00AM ET the same day. We rate Mullen Group Market Perform.

$1,314 21% $273 6.8x Q1 $0.62 $0.38 $0.38 $0.50 $14.48 61.9 55.1 761 $323.9

$978 20% $192 8.1x Q2 $0.25 $0.22 $0.08

Yield Price/Book Mkt. Cap ($mm) Float Cap ($mm) Wkly $ Vol (mm) Next Rep. Date

Notes: All values in C$; EPS are GAAP (for 2009, co. taxed as I.T. up to 5/1 & as corp. after; incl. unrealized FX gains/losses) Major Shareholders: Insiders own approximately 25% of trust units and B units First Call Mean Estimates: MULLEN GROUP LTD (C$) 2010E: $1.01; 2011E: $1.24

Changes

Annual EPS 2010E $0.89 to $0.97 2011E $1.17 to $1.26

Annual CFPS 2010E $1.63 to $1.71 2011E $1.91 to $2.00

Quarterly EPS Q1/10E $0.30 to $0.38 Q2/10E $0.06 to $0.08

Target $15.00 to $16.00

This report was prepared by an analyst(s) employed by BMO Nesbitt Burns Inc., and who is (are) not registered as a research analyst(s) under FINRA rules. For disclosure statements, including the Analyst's Certification, please refer to pages 2 to 4.

Consumer - Auto Parts
Industry Rating: Outperform

April 25, 2010 Research Comment Toronto, Ontario

Peter Sklar, CA
(416) 359-5188 Peter.Sklar@bmo.com Assoc: Andrew McKendry, CA, CFA

Target Prices Revised Reflecting Solid Sector Recovery; Q2/10 Estimates Fine-Tuned
We have revised our target prices for the Canadian auto parts stocks as the North American auto parts sector recovery continues to take hold. In particular, we note that U.S. light vehicle sales appear to have stabilized. Q1/10 U.S. auto sales represented a seasonally adjusted annualized rate (SAAR) of about 11 million units and Wards Automotive is forecasting an April SAAR of 10.9 million units. In addition, U.S. light vehicle inventories (on a selling-day basis) have returned to normal levels, ranging from 50–70 days since December 2009. Stable sales and normalized inventories have stimulated production, and we have noted that the Q2/10 production schedules have been moving up. In addition to these sector fundamentals, certain recent events may have a positive impact on investor sentiment and sector valuation. Among these events, GM announced that, on April 20, it had repaid its loans to the U.S. and Canadian governments totaling US$4.7 billion and C$1.1 billion, respectively. On April 21, Chrysler Group published its financial results, capturing the period from June 10, 2009 to March 31, 2010. Notably, Chrysler reported a Q1/10 operating profit of $143 million, substantially better than the company’s Q4/09 operating loss of $267 million. The auto parts sector recovery continues, investor sentiment is firming, and we have adjusted our target prices accordingly. We value the Canadian auto parts stocks based on a multiple of projected enterprise value to 2011E EBITDA. On this basis, we have revised our target prices (target multiples in brackets) as follows: Linamar to $25.00 (4.9x) from $21.00 (4.2x), Magna to US$80.00 (4.5x) from US$70.00 (3.8x), Martinrea to $12.00 (4.6x) from $11.00 (4.2x), and Wescast to $9.00 (3.5x) from $6.00 (2.5x). Our target price and multiple for Exco of $3.50 (5.4x) are unchanged. We summarize our target price revisions in a table on page 2. In the following chart, we show the history of Magna’s trailing enterprise value to EBITDA (EV/EBITDA) multiple since 1993. Over the last ten years, the company has been valued at 4–6x EBITDA, after excluding the outliers associated with the 2008/2009 downturn. Our revised valuation for Magna is at about the mid-point of this range.

Summary
 The North American auto parts sector recovery continues to take hold. U.S. light vehicle sales have stablized at an annual SAAR of 11 million units, and inventories are in a normal 50–70 day range.  We value the Canadian auto parts stocks based on a multiple of projected enterprise value to 2011E EBITDA. On this basis, we have revised our target prices (target multiples in brackets) as follows: Linamar to $25.00 (4.9x) from $21.00 (4.2x), Magna to US$80.00 (4.5x) from US$70.00 (3.8x), Martinrea to $12.00 (4.6x) from $11.00 (4.2x), and Wescast to $9.00 (3.5x) from $6.00 (2.5x). Our target price and multiple for Exco of $3.50 (5.4x) are unchanged.  Over the last ten years, Magna has been valued at 4–6x EBITDA. We would argue that Magna, as well as, Linamar and Martinrea could be attributed a premium multiple relative to the last ten years as a result of the secular consolidation of the North American auto parts supply base.  We have revised our forecast of Q2/10 North American industry light vehicle production to 3.00 from 2.60 million units, and our forecast of Q2/10 Detroit Three light vehicle production to 1.68 from 1.47 million units. Accordingly, we have made upward revisions to our Q2/10 earnings estimates.

This report was prepared by an analyst(s) employed by BMO Nesbitt Burns Inc., and who is (are) not registered as a research analyst(s) under FINRA rules. For disclosure statements, including the Analyst's Certification, please refer to pages 4 to 5.

April 23, 2010

LM Ericsson Telephone
(ERIC-NASDAQ)
Stock Rating: Market Perform Industry Rating: Market Perform

Communications Equipment
Tim Long
BMO Capital Markets Corp. 212-885-4101 tim.long@bmo.com

Kevin Manning
212-885-4102
kevin.manning@bmo.com

Ari Klein
212-885-4103
ari.klein@bmo.com

Securities Info

Better Margin Offset by Weaker Revenues
Event
Ericsson reported another confusing quarter, missing consensus EPS and revenues. Gross margins were 38.5%, well above consensus of 35.5%, and seemed to garner the most investor attention. Revenue of SEK 45.1B was far below consensus estimates of SEK 48B due to weakness in 2G and emerging markets. Revenues and margins were helped by the first full quarter of results from the Nortel CDMA acquisition. Gross margins were better due to strong North America/CDMA sales, weaker emerging markets, and weak network rollout revenues. North America was 21% of revenue for the quarter, and prior to the Nortel acquisition NA had never been above 11% of revenues. JV results were better than expectations with better Sony Ericsson results partially offset by worse ST Ericsson results.

Price (22-Apr) $11.26 52-Wk High/Low $11/$8 Mkt Cap (mm) $36,145 Shs O/S (mm, BASIC) 3,210 Options O/S (mm) na Selected Bond Iss LMETEL 5.1% '12 LMETEL 5.0% '13
Bond data from Bloomberg.

Target Price Dividend Yield Float O/S (mm) ADVol (30-day, 000s)

$9 --3,012 6,233 Spread 97bp 128bp

Ind Prc Rat’g Mdys/S&P YTW 105 Baa1 / BBB+ 2.47% 107 Baa1 / BBB+ 2.53%

Price Performance
ERICSSON L M TEL CO (ERIC)
P ric e: High, Low,Close(US$) Relati v to S &P 500 e

1 20 1 10

20 1 00 90 80 10 70 60 5 30 0 20 0 10 0
Volum e (mln)

15

50 3 00 2 00 1 00 20 05 20 06 20 07 20 08 200 9
Las t Dat a P oint: A pril 22, 2010

Impact
Neutral. We believe some of the gross margin improvements are sustainable, but think any upside will be tempered by lower revenues from emerging markets and 2G. ERIC has been restructuring for three years, and supposedly it comes to an end in 2H10, which could improve investor confidence in the numbers.

0

0

Valuation/Financial Data
(FY-Dec.) EPS GAAP P/E First Call Cons. FCF P/FCF EBITDA ($mm) EV/EBITDA Rev. ($mm) EV/Rev Quarterly EPS 2009A 2010E 2008A $0.91 2009A $0.57 2010E $0.56 20.1x $0.72 $0.41 27.5x $2,333 12.7x $25,595 1.2x 3Q $0.12 $0.11 2011E $0.62 18.2x $0.84 na na na na na na 4Q $0.22 $0.20

$0.94 $3,102 $31,505 1Q $0.10 $0.12A

$0.86 $2,899 $27,910 2Q $0.13 $0.13

Forecasts
Our 2010 EPS estimate moves from SEK 4.81/$0.67 to SEK 4.10/$0.56.

Valuation
Our US$9 price target assumes the stock trades at 14x our 2011 EPS estimate.

Recommendation
We rate ERIC shares MARKET PERFORM
Changes
Annual EPS 2010E $0.67 to $0.56 2011E $0.71 to $0.62 Annual FCF 2010E $0.33 to $0.41

Balance Sheet Data (09/30/09) Net Debt ($mm) -$6,414 TotalDebt/EBITDA 1.7x Total Debt ($mm) $4,029 EBITDA/IntExp na Net Debt/Cap. nm Price/Book 1.8x Notes: All values in US$. Source: BMO Capital Markets estimates, Bloomberg, FactSet, Global Insight, Reuters, and Thomson Financial.

Quarterly EPS Q2/10E $0.17 to $0.13 Q3/10E $0.15 to $0.11 Q4/10E $0.22 to $0.20

Please refer to pages 7 to 9 for Important Disclosures, including the Analyst's Certification.

Yellow Pages Income Fund
(YLO.UN-TSX)
Stock Rating: Market Perform Industry Rating: Market Perform

April 25, 2010 Research Comment Toronto, Ontario

Tim Casey, CFA
BMO Nesbitt Burns Inc. (416) 359-4860 Tim.Casey@bmo.com Assoc: David Fidler
Price (23-Apr) Target Price $6.89 $6.50 52-Week High 52-Week Low $6.82 $4.78

Reassessing Print Media Valuations
Event
Target price increase.
15

Yellow Pages Income Fund (YLO.UN)
Price: High,Low,Close Earnings/Share

1.0 0.9 0.8

10

0.7 0.6 0.5

5

Impact
0

0.4
Volume (mln)

Neutral.

100 50

100 50 0

Forecasts
Unchanged.

0 200 100
YLO.UN Relative to S&P/TSX Comp

200 100 0

Valuation
We are increasing our one-year target price from $5.75 to $6.50 to reflect the strong rally in print media stocks.

0

2005

2006

2007

2008

2009

Last Data Point: April 22, 2010

(FY-Dec.) EPU P/E FCFPU P/FCFPU CFPU Rev. ($mm) EBITDA ($mm) EV/EBITDA Quarterly EPU 2008A 2009A 2010E Dividend Book Value Units O/S (mm) Float O/S (mm) Wkly Vol (000s) Net Debt ($mm)

2008A $0.89

2009A $0.36

2010E $1.04 6.6x $1.21 5.7x $1.31 $1,660 $910 7.2x Q3 $0.25 -$0.33 $0.26

2011E $0.86 8.0x $1.19 5.8x $1.29 $1,700 $930 6.7x Q4 $0.17 $0.25 $0.26

Recommendation
Print media stocks have rallied sharply this year as investors concluded the sector was priced as if it was going out of business, and then reconsidered this notion on the back of an economic recovery. Yellow Pages has emerged from this period with a stable balance sheet and provided clarity on a path to conversion. We remain Market Perform rated based on growth profile relative to valuation metrics and debt leverage.

$1.24

$1.38

$1.32 $1,697 $931 7.2x Q1 $0.21 $0.26 $0.25 $0.80 $10.18 513.0 513.0 11,227 $2,276.0

$1.47 $1,651 $898 6.2x Q2 $0.24 $0.19 $0.27

Yield 11.6% Price/Book 0.7x Mkt. Cap ($mm) $3,535 Float Cap ($mm) $3,535 Wkly $ Vol (mm) $62.2 Next Rep. Date 06-May (E)

Notes: All values in C$; Voting Major Unitholders: Widely held First Call Mean Estimates: YELLOW PAGES INCOME FUND (C$) 2010E: $1.03; 2011E: $0.84

Changes

Target $5.75 to $6.50

This report was prepared by an analyst(s) employed by BMO Nesbitt Burns Inc., and who is (are) not registered as a research analyst(s) under FINRA rules. For disclosure statements, including the Analyst's Certification, please refer to pages 7 to 9.

Consumer - Media & Entertainment
Industry Rating: Market Perform

April 26, 2010 Research Comment Toronto, Ontario

Tim Casey, CFA
(416) 359-4860 Tim.Casey@bmo.com Assoc: David Fidler

Revisiting Print Media Valuations
Print media stocks have rallied sharply this year as investors concluded the sector was priced as if it was going out of business, and then reconsidered this notion on the back of an economic recovery. The businesses faces long-term challenges, but the advertising recovery confirms that cyclical pressures will ease in the near term. The remaining business will survive this cycle intact – although not without a significant culling of publicly traded entities – and as such, we are re-assessing our target prices accordingly. Our ratings for Torstar Corporation, Glacier Media and Yellow Pages Group remain Market Perform.

Summary
 We have increased our target prices on print media names under coverage to reflect the revaluation of the businesses.  The stocks were priced for potential liquidity events given several business failures during the most recent recession.  We remain cautious on the outlook given ongoing secular challenges.

This report was prepared by an analyst(s) employed by BMO Nesbitt Burns Inc., and who is (are) not registered as a research analyst(s) under FINRA rules. For disclosure statements, including the Analyst's Certification, please refer to pages 19 to 20.

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Analyst's Certification As to each company covered in this report, the analyst hereby certifies that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients. Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Ltd. are not registered as research analysts with FINRA. These analysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the NASD Rule 2711 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account. Company Specific Disclosure For Important Disclosures on the stocks discussed in this report, please go http://researchglobal.bmocapitalmarkets.com/Company_Disclosure_ Public.asp. Distribution of Ratings (Mar. 31, 2010) Rating BMOCM US BMOCM US BMOCM US BMOCM BMOCM Starmine Category BMO Rating Universe* IB Clients** IB Clients*** Universe**** IB Clients***** Universe Buy Outperform 32.9% 13.1% 36.4% 39.4% 47.9% 53% Hold Market Perform 63.2% 11.9% 63.6% 55.3% 48.5% 41% Sell Underperform 3.9% 0% 0% 5.2% 3.6% 6% * Reflects rating distribution of all companies covered by BMO Capital Markets Corp. equity research analysts. ** Reflects rating distribution of all companies from which BMO Capital Markets Corp. has received compensation for Investment Banking services as percentage within ratings category. *** Reflects rating distribution of all companies from which BMO Capital Markets Corp. has received compensation for Investment Banking services as percentage of Investment Banking clients. **** Reflects rating distribution of all companies covered by BMO Capital Markets equity research analysts. ***** Reflects rating distribution of all companies from which BMO Capital Markets has received compensation for Investment Banking services as percentage of Investment Banking clients. Ratings and Sector Key We use the following ratings system definitions: OP = Outperform - Forecast to outperform the market; Mkt = Market Perform - Forecast to perform roughly in line with the market; Und = Underperform - Forecast to underperform the market; (S) = speculative investment; NR = No rating at this time; R = Restricted – Dissemination of research is currently restricted. Market performance is measured by a benchmark index such as the S&P/TSX Composite Index, S&P 500, Nasdaq Composite, as appropriate for each company. BMO Capital Markets eight Top 15 lists guide investors to our best ideas according to different objectives (Canadian large, small, growth, value, income, quantitative; and US large, US small) have replaced the Top Pick rating. Other Important Disclosures For Other Important Disclosures on the stocks discussed in this report, please go to http://researchglobal.bmocapitalmarkets.com/Company_Disclosure_ Public.asp or write to Editorial Department, BMO Capital Markets, 3 Times Square, New York, NY 10036 or Editorial Department, BMO Capital Markets, 1 First Canadian Place, Toronto, Ontario, M5X 1H3. Prior BMO Capital Markets Ratings Systems http://researchglobal.bmocapitalmarkets.com/documents/2009/prior_rating_systems.pdf Dissemination of Research Our research publications are available via our web site http://bmocapitalmarkets.com/research/. Institutional clients may also receive our research via FIRST CALL, FIRST CALL Research Direct, Reuters, Bloomberg, FactSet, Capital IQ, and TheMarkets.com. All of our research is made widely available at the same time to all BMO Capital Markets client groups entitled to our research. Additional dissemination may occur via email or regular mail. Please contact your investment advisor or institutional salesperson for more information.

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GAMELOFT (GLFT-PA)
Stock Rtg: Outperform Sector Rtg: Outperform Price: €3.87 Target: €5.00 Mkt Cap (mm): €336 2009E EPS: €0.08 2010E EPS: €0.14 2011E EPS: €0.27
FY ends Dec

EDWARD S. WILLIAMS 212-885-4054
Title: Event: Impact: Forecasts: Valuation: Recommendation:

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