MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING THURSDAY, JANUARY 22, 1998 (4)
BUY / HOLD/ SELL - ANALYST COMMENTS - RESEARCH
Maison Placements' Buy & Sell
Opportunities Emerge In The Resource Sectors
Sonita Horvitch - Financial Post
Rolie Bradley, institutional salesman at Toronto-based Maison Placements Canada Inc., is finding buying opportunities in three beaten down resource sectors - oil and gas, base metals and gold.
The energy sector is down about 30% from its high in October 1997, base metals have lost about 41% since March 1997 and the gold sector is down 55% since February 1996.
"These sectors contain some good stocks which are cheap and should be able to produce a good performance in what is otherwise a negative market," he said. Bradley is avoiding the paper and forest products sector because of its exposure to Asia.
The North American equity market has been volatile since the October peak, said Bradley, "as investors try to assess the impact of events in Asia on North American corporate earnings." Since then, the Canadian market has underperformed its U.S. counterpart because of the Toronto Stock Exchange's high resource component.
The weakness in the C$, because of uncertainty as to the government's approach to deficit reduction and the rising current account deficit, is a two edged sword, he said. It does not bode well for interest sensitive stocks but it is beneficial to companies whose products or businesses are priced in US$s.
Bradley's energy resource stock picks incleded;
Talisman Energy Inc. (TLM/TSE) $39.30 ($55.25-$35). The Calgary-based company is engaged in oil and gas development in Canada and abroad. "It has a significant exposure to North Sea oil, which is a positive." His cash flow per share estimates are $7.87 for 1998 and $9.46 for 1999. The stock "is cheap for a quality senior producer."
Petro-Canada (PCA/TSE) $25.40 ($29.85-$18.90). Bradley favors the Calgary-based integrated oil and gas company particularly for its interests in the Hibernia project, offshore Newfoundland. Maison's cash flow per share estimate is $4.69 for 1998 and $4.99 for 1999.
Deustche Morgan Grenfell
Analyst Michael Young has reduced his 1998 earnings forecasts for all U.S. oil majors except for Mobil Corp [NYSE:MOB] after the bank reduced its 1998 West Texas Intermediate crude price forecast to $18.00 from $19.00. Young said in a research report that his estimates remain significantly below consensus, ''which suggests more pain to come for oil shares''. for his latest estimates, go to; techstocks.com
MOST ACTIVES
Rigel Energy, Rio Alto Exploration, Petro-Canada, Renaissance Energy, Northrock Resources and Suncor Energy were among the top 50 most active traded issues on the TSE.
Denbury Resources gained $0.50 to $26.50
Percentage gainers included Renata Resources 5.9% to $1.25 and Westfort Energy 5.0% to $1.05.
On the downside, Shell Canada A fell $1.55 to $22.25, Canadian Natural Resources $1.40 to $26.90, Imperial Oil $1.25 to $83.95, Talisman Energy $1.05 to $38.25, Pacalta Resources $1.00 to $11.50 and Chieftain International $0.95 to $26.95.
Percentage losers included Southward Energy 20.0% to $1.00, Thunder Energy 10.6% to $1.95, Benson Petroleum 10.0% to $1.35, Gulf Canada Resources 10.0% to $7.65, Gentry Resources 9.8% to $1.10, International Rochester Energy 9.2% to $1.68, BiTech Petroleum 8.8% to $3.10, Pacalta Resources 8.0% to $11.50, TransGlobe Energy 7.9% to $1.75, Newquest Energy 7.3% to $5.10 and Genesis Exploration 7.3% to $5.75.
No new 52-week highs.
International Rochester Energy, Magin Energy, Mercantile International Petroleum, Orion Energy, Rider Resources,Southward Energy and Startech Energy reached new 52-week lows.
Precision Drilling was the only service company, as well as companies with close ties to the industry, that made the top 50 most active traded issues on the TSE.
Veritas DGC gained $7.45 to $47.45.
Percentage gainers included Veritas DGC 18.6% to $47.45, Alpine Oil 8.7% to $1.25 and Inter-Tech Drilling 5.3% to $1.00.
On the downside, Dreco Energy Services fell $3.55 to $38.00, Mullen Transportation $2.50 to $19.50, Precision Drilling $2.50 to $25.20, Ensign Resource Services $2.05 to $26.75 and Enertec Resource Services $1.00 to $10.00.
Percentage losers included Mullen Transportation 11.4% to $19.50, Enertec Resource Services 9.1% to $10.00, Precision Drilling 9.0% to $25.20, Dreco Energy Services 8.5% to $38.00, Artisan Corp. 8.3% to $9.40 and Ensign Resource Services 7.1% to $26.75.
Pason Systems reached a neew 52-week high and Tetonka Drilling reached a new 52-week low.
Over on the Alberta Stock Exchange, Colt Energy, Jerez Energy, Red Sea Oil, Storm Energy, Detech, Bearcat Explorations, Oilexco, Scarlet Exploration, Oxbow Exploration, Para-Tech Energy, Calahoo Petroleum, Trego Energy, Ramarro Resources, HEGCO Canada, Tessex Energy and Gopher Oil & Gas were among the top 30 most active traded issues.
Capco Resources gained $0.80 to $4.00, Jerez Energy $0.17 to $0.62, Braegan Energy $0.15 to $0.60, Red Sea Oil $0.12 to $3.40, Scarlet Exploration $0.12 to $1.20, Hawk Oil $0.10 to $1.15, Telford Resources $0.10 to $1.05, Gold Star Energy $0.09 to $0.50, ICE Drilling $0.09 to $0.89, Gopher Oil & Gas $0.08 to $0.78 and Lodestar Energy $0.07 to $1.12.
Percentage gainers included Jerez Energy 37.8% to $0.62, Braegan Energy 33.3% to $0.60, Capco Resources 25.0% to $4.00, Gold Star Energy 22.0% to $0.50, Quest Energy 16.7% to $0.35, Tribute Resources 14.3% to $0.40, Belair Energy 13.3% to $0.34, Gopher Oil & Gas 11.4% to $0.78, ICE Drilling 11.3% to $0.89, Scarlet Exploration 11.1% to $1.20 and Telford Energy 10.5% to $1.05.
On the downside, Stellarton Energy fell $0.45 to $4.50, Palmetto Resources $0.20 to $1.10, Danoil Energy $0.14 to $1.50, Doreal Energy $0.13 to $1.22, Sator Capital $0.11 to $0.60, AltaQuest Energy $0.10 to $2.35, Canadian Crude Separators $0.10 to $4.40, Endeavor Resources $0.10 to $0.21 and Jett Investment $0.10 to $0.90.
Percentage losers included Endeavor Resources 32.3% to $0.21, Trego International 20.0% to $0.20, Sator Capital 15.5% to $0.60, Palmetto Resources 15.4% to $1.10 and OTATCO 13.3% to $0.26.
Lodestar Energy reached a new 52-week high.
Cherryhill Resources, Fosters Resources, NTI Resources, Sator Capital, Tribute Resources and Zoren Exploration reached new 52-week lows.
An excellent summary of most actives covering all four of the Canadian Stock Exchanges can be found at quote.yahoo.com
|
