TORONTO (Dow Jones)--Mosaic Group Inc.'s (T.MGX) shares are down Wednesday,
likely because of a new report from Griffiths McBurney and Partners that gives the stock a
"neutral" rating.
Sheila Broughton, an analyst at Pacific Internatianal Securities, said she knows of no
other news, aside from the Griffith's report, that would be responsible for the dip in share
price.
Broughton said Mosaic's explanation for Wednesday's drop was twofold, one being the
Griffith's report, which the company told Broughton used conservative estimates that are
"the lowest on the Street."
The other possible reason the company identified for the drop in share price is a recent
report by HSBC Securities Canada Inc. that lowered 2000 earnings per share estimates
by 1 Canadian cent to account for the slumping Euro.
Analyst Broughton said Mosaic's "organic growth rate deserves a higher multiple" than it's
getting from Griffiths. Consequently, Broughton has a 12-month share price target of
C$22, compared to Griffiths' C$17.25 target.
Neither officials from Mosaic, nor the analyst from Griffiths, could immediately be reached
for comment.
In Toronto trading Wednesday, Mosaic is down 1.90, or 12%, to 13.40 on about 229,000
shares.
Company Web Site: mosaicgroupinc.com
-Paul Haavardsrud, Dow Jones Newswires; 416-306-2032 |
