EYE ON THE MARKETS / Part 2
Canadian Dividends and Earnings
Canadian dividends
Corporate dividends declared Thursday (quarterly unless otherwise indicated):
Canadian Resources Income Trust: Common, $0.0345. Payable Dec. 15.
Record Nov. 30.
Canadian Resources Income Trust II: Common, $0.0310. Payable Dec. 15.
Record Nov. 30.
Laurentian Bank of Canada: Pref., Series 7, $0.4844. Payable Dec. 15.
Record Dec. 10.
Laurentian Bank of Canada: Pref., Series 8, $0.4844. Payable Dec. 15.
Record Dec. 10.
United Corporations Ltd.: 1st and 2nd Pref., $0.38. Payable Feb. 15.
Record Feb 1.
United Corporations Ltd.: Common, $0.20. Payable Feb. 15.
Record Feb 1.
Canadian Earnings
Allenix Biopharmaceuticals Inc.: Year ended Aug. 31, 1998, net income (loss) -$21,764,000, -$1.21 a share; 1997, net income (loss) -$15,953,000, -$1.11 a share. Revenue: 1998, $29,900,000; 1997, $17,500,000.
AirBoss of America Corp.: Three months ended Sept. 30, 1998, net income $1,001,000, $0.06 a share; 1997, net income $968,000, $0.058 a share. Revenue: 1998, $19,766,000; 1997, $14,604,000.
Baytex Energy Ltd.: Three months ended Sept. 30, 1998, net income $571,000, $0.02 a share; 1997, net income $1,380,000, $0.04 a share. Revenue: 1998, $25,486,000; 1997, $28,970,000.
Canadian Natural Resources Ltd.: Three months ended Sept. 30, 1998, net income $20,891,000, $0.21 a share; 1997, net income $25,786,000, $0.26 a share. Revenue: 1998, $223,832,000; 1997, $222,397,000.
CanWest Global Communications Corp.: Year ended Aug. 31, 1998, net income $200,100,000, $1.34 a share; 1997, net income $141,900,000, $0.96 a share. Revenue: 1998, $871,400,000; 1997, $835,100,000.
Centrefund Realty Corp.: Three months ended Sept. 30, 1998, net income $5,101,000, $0.12 a share; 1997, net income $2,549,000, $0.12 a share. Revenue: 1998, $26,948,000; 1997, $18,317,000.
Clearnet Communications Inc.: Three months ended Sept. 30, 1998, net income (loss) -$138,060,000, -$2.55 a share; 1997, net income (loss) -$22,628,000, -$1.53 a share. Revenue: 1998, $59,414,000; 1997, $22,628,000.
EdperBranscan Corporation: three months ended Sept. 30, 1998, net income $50,000,000, $0.22 a share; 1997, net income $80,000,000, $0.40 a share. Revenue: 1998, $1,536,000,000; 1997, $1,417,000,000.
Exall Resources Ltd.: Three months ended Sept. 30, 1998, net income $801,031, $0.28 a share; 1997, net income (loss) -$148,552, -$0.005 a share. Revenue: 1998, $7,630,117; 1997, no comparative figure provided.
FT Capital Ltd.: Three months ended Sept. 30, 1998, net income (loss) -$14,920,000, -$1.54 a share; 1997, net income (loss) -$3,721,000, -$0.44 a share. Revenue: 1998, $6,954,000; 1997, $2,830,000.
Grand Toys International Inc.: Three months ended Sept. 30, 1998, net income US$426,502, $0.27 a share; 1997, net income $772,710, $0.49 a share. Revenue: 1998, US$2,743,029; 1997, $4,295,000.
Maple Leaf Foods Inc.: Three months ended Sept. 30, 1998, net income $7,133,000, $0.08 a share; 1997, net income $16,598,000, $0.18 a share. Revenue: 1998, $838,485,000; 1997, $962,284,000.
Nelvana Ltd.: Three months ended Sept. 30, 1998, net income $2,363,000, $0.33 a share; 1997, net income $565,000, $0.10 a share. Revenue: 1998, $19,654,000; 1997, $16,060,000.
Northgate Exploration Ltd.: Three months ended Sept. 30, 1998, net income $809,000, $0.03 a share; 1997, net income $102,000, $0.003 a share. Revenue: 1998, $1,695,000; 1997, $361,000.
Pan Atlas Energy Inc.: Nine months ended Sept. 30, 1998, net income (loss) -$801,000, -$0.02 a share; 1997, net income $1,276,000, $0.04 a share. Revenue: 1998, $9,337,000; 1997, $6,750,000.
River Gold Mines Ltd.: Three months ended Sept. 30, 1998, net income $1,989,629, $0.06 a share; 1997, net income $1,320,827, $0.05 a share. Revenue: 1998, $9,939,905; 1997, $8,883,920.
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U.S. Markets
moneycentral.msn.com
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Yesterday's Midday Musings: There's Gold in That Thar Oil
the Street.com
Come 'n listen to my story 'bout a man named Hussein
Gave the UN inspectors a hard time, Clinton started to complain.
Bill decided to send more ships to the Gulf
Most stocks were pretty lackluster, but big oil went up.
Exxon (XON:NYSE) that is! Chevron (CHV:NYSE)! Royal Dutch
(RD:NYSE ADR)!
Indeed, on the strength of Chevron, up 2 7/8 to 82 3/4, and Exxon, up 2 3/8 to 72 5/8, the Dow Jones Industrial Average was painting a rosier picture of the market than broader market measures suggest. The Dow was lately up 32 to 8856. In contrast, the S&P 500 was up a mere fraction to 1121 and the Nasdaq Composite Index was down 6 to 1856. The small-cap Russell 2000 was down 1 1/2 to 392.
A 10-cent earnings shortfall has prompted a selloff in oil service company Key Energy Group (KEG:NYSE) even as the rest of the sector rallies on the possibility of imminent military action in Iraq.
Key's reported fiscal first quarter net income of $1.8 million, or 10 cents a share, on revenues of $115.6 million. Analysts expected Key to earn 20 cents, according to First Call. In the year-ago period, Key earned $4.9 million, or 26 cents, on revenues of $75.3 million. This quarter's figures included partial results from the recently acquired operations of Dawson Production and several additional acquisitions.
Key lately was down 1 5/16, or 13%, to 8 13/16. Key's oil service rivals rallied this morning as the U.S. moved battleships to the Persian Gulf in a showdown with Saddam Hussein. The Philadelphia Stock Exchange Oil Service Index was up 1.1%.
Key's debt levels also contributed to investors' concern. In conjunction with its acquisition of Dawson, completed in September, Key assumed about $150 million in debt, including $140 million of 9 3/8 senior notes. Key was required to purchase the notes in a cash tender offer. Including its existing debt, its debt totals about $830 million.
The way its existing debt it set up is not a problem, says Roger Read, who follows Key at Simmons in Houston. But the concern stems from the new debt it has taken on through its acquisitions. Read says Key will likely be able to refinance the current bridge loan it has taken on to finance that debt. "The question is, what interest rate would they get it at?" he said.
The good news coming from the conference call was the cost savings Key will be able to effect through its acquisition. The original estimate was $10 million, but that estimate was upped to $12 million, and the company has targeted another $10 million in savings by the end of its fiscal year. That translates to about 70 cents in earnings, Read said. Simmons does not rate stocks; it has performed underwriting for Key.
Closing Review
The oil and gold stocks rose in response to the growing tension in the Gulf between the U.S. and Iraq. The Philadelphia Stock Exchange Gold & Silver Index surged 6.4%, while the American Stock Exchange Oil & Gas Index gained 2.7%.
Morning Update
Tokyo Leads Asian Advance
Threat of military action in Iraq fails to halt rise of region's major markets
LONDON - Tokyo, Hong Kong and Singapore stocks all closed higher Friday, but second-tier Asian markets were mixed as worsening tensions in the Gulf worried investors.
The threat of military action cut buying enthusiasm worldwide Thursday with Europe closing mixed and Wall Street rising only slightly.
Neither Hong Kong nor Singapore could match Tokyo's 1.37 percent gain. Taiwan closed about 3 percent up, Malaysia climbed almost 1 percent while Korea and Thailand finished negligibly higher.
But Australia, Indonesia and the Philippines all eased about 1 percent by their closes.
Japan's benchmark Nikkei 225 stock average closed up 193.15 points or 1.37 percent at 14,268.21. Nikkei December futures were 200 points higher at 14,320.
The government is set to meet Monday to finalize a financial stabilization package worth about 18 trillion yen ($146 billion), and analysts are divided on whether the government will temporarily suspend sales tax.
Traders said the market would be disappointed if the government fails to come up with any new measures beyond the tax cuts announced Thursday.
But they reacted positively to suggestions by the Economic Planning Agency that the total package was not finalized. Those hints fueled rumors that the total could rise to 22 trillion yen.
Traders were left scratching their heads to explain the gains in the absence of hard news. "We suspect there might have been some public fund buying," said HSBC Securities economist Peter Morgan.
"There was no news to excite people. It all happened in the afternoon," he said.
Real estate stocks were strongest though many banks and some of the country's giant exporters fared well.
Sumitomo Bank rose 1.34 percent to 1,287 yen and Sanwa Bank leaped 3.24 percent to 1,020 yen.
Honda Motor climbed 2.73 percent to 4,140 and Mazda Motor rose 1.69 percent to 480.
Hong Kong closed at 9,997.99, rising 49.81 points or 0.5 percent. Trading was thin ahead of next week's U.S. Federal reserve meeting and rising tensions in the Gulf, traders said.
Among blue chips, heavyweight HSBC Holdings eased HK$1 to HK$178 but property counters were strong. Sun Hung Kai rose HK$1.75 to HK$52.00.
China-related stocks were also lower as investors appeared to be cashing in recent sharp gains. Red chips lost 0.85 percent to 1,046.48 and H shares lost 1.09 percent to 470.50.
After the market closed the Hong Kong Association of Banks said it would cut interest rates next week if the U.S. Federal Reserve does so first at its meeting next week.
Singapore ended 0.81 percent higher at 1,206.91.
Korea closed 0.19 percent higher while Taiwan closed up 2.63 percent. Late Thursday, the Taiwanese finance ministry unveiled new measures to restore market confidence, including the formation of an emergency stabilization fund of up to T$200 billion ($6 billion). The fund immediately began buying stock.
Australia dipped 1 percent, dragged down by disappointing profit figures from index heavyweight News Corp. (NWS). Its stock dived 4.9 percent to A$10.70.
The Indonesian rupiah fell through 8,000 against the dollar on fears of more clashes in Jakarta and a statement from the armed forces chief telling businesses to close. Jakarta stocks were down 0.68 percent.
The Philippines eased 1.28 percent. In Malaysia, stocks closed 0.94 percent lower. Thai stocks finished up 0.16 percent
11/13 05:18 Bourses becalmed
European markets await news of expected U.S. military strike in the Gulf
LONDON - European bourses were on hold early Friday, becalmed by the prospect of U.S. military strikes against Iraq.
In London the FTSE 100 eased 3 points to 5,446.3 in early trade.
Frankfurt's Xetra DAX moved up 1 percent to 4,697.08.
Zurich's SMI was 2 points higher at 6,755.5, while in Paris the CAC 40 slipped 4 points to 3,556.03.
In London the early gainers included oil stocks BP and Shell, both about 1.5 percent higher on expectations that oil prices will open higher.
Retailer Marks & Spencer continued its recent wobbles, dropping a rapid 3 percent. Leisure giant Ladbroke jumped about 3 percent following bullish comments from the company.
Chemicals group ICI said it might be interested in the specialty chemicals unit that drug group Zeneca is selling, although some analysts questioned whether ICI could afford the business. Zeneca was spun off from ICI in 1993.
In Frankfurt some bargain hunters returned to the chemicals sector despite a spate of unimpressive earnings reports this week. Shares in major producers BASF, Bayer and Hoechst were all up around 2 percent.
Most attention was on retailer Metro, however. Late Thursday the group announced a radical restructuring. In Friday trading the shares jumped 5 marks to 114.5 marks.
Oil stocks moved ahead in Paris, too. Elf Aquitaine and Total both moved up more than 1 percent.
Elf released third-quarter sales figures that were down 16 percent. A near one-third slide in the price of crude was the culprit.
The rest of the Paris market moved in a very tight band, with little impetus to move it one way or the other.
Norway's Fokus Bank was in demand once more. The shares jumped 3.5 crowns to 76 after the group's board said it would recommend the 80 crown-per-share takeover offer from Denmark's Den Danske. Rival bidder Handelsbanken has offered the same amount.
Muted action in Switzerland was concentrated on the banks, with both CS Group and UBS rising more than 1 percent.
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