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Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: Kerm Yerman who wrote (10298)	4/23/1998 11:45:00 AM
From: Kerm Yerman	Read Replies (5) \| Respond to of 15196

MARKET ACITIVITY/TRADING NOTES FOR DAY ENDING WED., APRIL 22, 1998 (3) TOP STORIES Suncor Outlines Recipe For Success The Financial Post Higher production from its oilsands plant, lower costs and a successful hedging program sheltered Suncor Energy Inc. from weak oil prices in the first quarter, a trend likely to continue for the remainder of 1998, its president said yesterday. "We expect a solid year," said Rick George, after addressing the annual meeting in Calgary. "We would love to see our sixth consecutive year of cash flow and earnings improvement. That is a tough goal, but is certainly not out of the question." First-quarter results showed a marginal deterioration relative to Suncor's industry peers, many of whom are seeing their margins evaporate because of low oil prices. Net income for the period ended March 31 was $50 million (46› a share), down from $60 million (54›) last year. Cash flow was $144 million ($1.31), down from $149 million ($1.37). Revenue was $543 million, down from $571 million. Results were weaker because of low commodity prices, warm weather and higher expenses related to growth plans, George said. But production rose to 135,000 barrels of oil equivalent a day, up from 121,000 BOE a year ago. Another offset was a hedging program for oil, with 30% of 1998 production presold at more than US$20 a barrel, US$5 above the going price. "The biggest external factor affecting our performance this year will be low oil prices," George said. "As a result, the industry in general will be under a lot of pressure to rationalize and, depending on how quickly prices recover, we could see more mergers and acquisitions in the exploration and production side." But Suncor is not in a buying mode because it believes it can create more value by executing growth plans laid out for the next four years. These include a $2.2-billion expansion of its oilsands operation near Fort McMurray, Alta., by 2002. George said second-quarter earnings should compare favorably with last year's, when the oilsands plant was shut down for part of the time for a routine turnaround. In the third and fourth quarters, Suncor should see additional production from its new Steepbank mine. From the third quarter, this is expected to increase oilsands output to 105,000 barrels a day by yearend from 92,000 b/d in the first quarter. The meeting was spiced up by a church group calling on oil companies to take more responsibility for cutting global warming. "We feel the church has a role to play to ensure all companies have a corporate, ethical responsibility in completing their work in a way that does not damage either the environment or the people that live in it," said Robert Gall, director of development of the Roman Catholic Diocese of Calgary. George said Suncor is looking for middle ground between those who discount the risk of global climate change and those who believe industrial development must be halted. Suncor Energy Slides Ahead With Oilsands Project Canadian Press Suncor Energy Inc. is bucking gloomy oil prices by moving its massive Alberta oilsands project off the drawing board and closer to construction, shareholders heard at their annual meeting Wednesday. "We are going to ride through these low periods and we are going to continue to grow," said Suncor president Rick George. Compared with the previous year, 1997 company profits were up 19 per cent, cash flow increased by 17 per cent and production hit a record high. George said the main reason for the 1997 success is that the company hedged a huge chunk of its oil production by selling 30 per cent a year in advance at the 1996 price - averaging $5 more per barrel. Suncor has applied to proceed with its $2.1-billion oilsands project, called Project Millennium, near Fort McMurray in northeastern Alberta. The 3,000-page application, outlining the construction, operation and reclamation plans for the project, was submitted to the Alberta Energy and Utilities Board and Alberta Environmental Protection. But George said job-seekers shouldn't buy their one-way fares to Fort McMurray just yet. Construction won't start until sometime next year because of the regulatory process, he said. The Millennium expansion project is expected to double Suncor's oilsands production to 210,000 barrels a day by 2002. The company recently received a $1.3-billion line of credit from the banks - most which will go toward the Millennium project, said chief financial officer Dave Byler. Although he wouldn't make any firm predictions, George said he is not expecting a quick recovery in ailing oil prices, and therefore the company will be involved in more mergers and acquisitions in exploration and production. Suncor is also pumping more money into its Ontario retailer, Sunoco. Now selling diesel, the company will open five large truck stops in southern Ontario this year, and it plans to spend $75 million on retail convenience stores at its gas stations over the next three years. "You just can't make effective returns on selling gasoline alone," said Michael O'Brien, Sunoco executive vice-president. With recent record-breaking natural gas prices, Suncor will be exploring for more natural gas in 1998. "The focus in the future is natural gas," George said, adding now that the company is firm on synthetic-oil production, it needs to balance its portfolio with more gas. Suncor will also be making more explorations in the international arena. "We always see our heartland right here in Canada," George said. "But if we are going to continue with this goal of doubling our share price every five years, we need to start stepping out in a very methodical, dedicated way." Suncor Sees "Solid""1998 Financial Showing Reuters Suncor Energy Inc. will have a tough time matching its 1997 financial results this year, but oil price hedging, lower operating costs and higher production should cushion the blow of weak crude prices, Suncor Chief Executive Rick George said on Wednesday. "You're not going to see a significant reduction in where our earnings and cash flow were last year. I'm not saying we're going to exceed it, but I don't think you're going to see a significant reduction," George told reporters after Suncor's annual meeting. "We expect a solid year." Last year, Suncor posted earnings of C$223 million or C$2.04 a share and cash flow of C$575 million or C$5.75 a share. The company earlier on Wednesday reported lower first-quarter earnings and cash flow than in the same quarter of 1997, but analysts have said the company, which operates Canada's second biggest oil sands operation, would be less pressured by weak crude prices than its Canadian integrated oil peers. Suncor's earnings for the period were C$50 million or C$0.46 a share, down 17 percent from C$60 million or C$0.54 a share in the year-ago quarter. Cash flow was C$144 million or C$1.31 a share, down 4 percent from C$149 million or C$1.37 a share in the first quarter of 1997. George said lower oil prices would probably not force Suncor to claw back its 1998 capital spending budget of C$1 billion, which is up from C$850 million last year. Several Canadian producers have cut their original 1998 budgets. "Our balance sheet is in good shape, our cash flow was only slightly down, so we're really right on track," he said. "We're going to keep these growth projects on schedule and proceed right ahead." Suncor was on track to meet or exceed its 1998 exploration, production and oil sands output goal of 135,000-140,000 barrels of oil equivalent a day, he said. In the first quarter, output averaged 135,000 barrels a day, up from 121,000 in the first quarter of 1997. For 1998, Suncor has hedged 30 percent of its crude output at about US$20 a barrel, about US$4.50 a barrel higher than the current market price, and 20 percent of its 1999 production at about the same level. Its biggest and most expensive undertaking is the C$2.2 billion "Project Millennium" expansion of its northern Alberta oil sands operation, a plan aimed at boosting synthetic oil production to 210,000 barrels a day from the current 91,000 by 2002. Suncor filed its application for the project with Alberta's Energy and Utilities Board and Environmental Protection ministry on Tuesday. George said he expected the regulatory process to take nine to 12 months. In a positive move for the expansion, IPL Energy Inc. gained regulatory approval to build its Wild Rose oil pipeline, which will move Suncor's rising oil production to markets. Oilsands Boom Causes Local Firm To Expand Edmonton Sun There's no need to sell Al Spracklin on the benefits of the northern Alberta oilsands boom - he's got a 120-tonne reminder sitting in the yard of his south Edmonton business. The manager of Brytex Building Systems Inc. yesterday supervised the loading of a $2.2-million, six-metre-tall, nine-by-27-metre metal electrical building on a trailer for truck transport to Suncor Energy's Steepbank Mine near Fort McMurray. "This is the electrical building for the crusher. They bring all the bitumen in from all the various pits and then it goes through a crusher to grind it up into smaller particles (to be transported to the refinery)," said Spracklin. "It's ongoing. It's the same with Syncrude. There's always something that's going on out there. We provide, typically, about 75% of the electrical houses for Syncrude." The reliability of oilsands business convinced locally owned Brytex to more than double its shop size recently to 2,340 square metres. The extension, built for nearly $1 million, allows the firm to do more specialized welding jobs in-house. "Probably about 75% is for the oilsands," he said. "The extension that we just put on here is strictly welding for the manufacture of large projects of this nature." Brytex has 65 employees now as it enters the slower part of the year, but had 85 to 90 employees at its peak last November, Spracklin said. He said Suncor's submission of its $2.2-billion Project Millenium application to the government yesterday means the work will continue to pour in. "We're already doing budgets on that. It'll provide an extreme amount of work locally for Edmonton and throughout Alberta." Pipeline Closer - Alliance Could Start Soon The Financial Post Construction of Alliance Pipelines Ltd.'s $3.7-billion project could begin sooner than expected due to the demise of the Viking Voyageur pipeline and an early end to regulatory hearings, says the company's president and CEO. Dennis Cornelson said yesterday the outlook for Alliance has improved recently and a previously announced delay of up to 12 months may not be necessary. However, he refused to be any more specific. The proposed $1.24-billion US Viking Voyageur project, owned by TransCanada PipeLines Ltd. and two U.S. partners, is not expected to proceed. It has withdrawn its opposition to Alliance from before the National Energy Board. TCPL and Nova Corp. have also backed off their objections to Alliance in a deal to gain gas producers' support for their proposed merger, speeding up the NEB hearing. The hearings, into their 64th day, are expected to end by mid-May, with evidence to be completed by next week in Calgary. Closing arguments are scheduled to begin May 11. A decision from the NEB is now expected by fall. Cornelson said Alliance is ready to go as soon as it gets approval. More than 70% of materials and construction contracts are in place, Cornelson said. Opposition to Alliance pushed back the project's startup date to the second half of 2000 from the end of 1999. Alliance's high pressure pipeline system will transport 1.3 billion cubic feet of western Canadian natural gas daily to Chicago. Gord Currie, an oil and gas analyst with Canaccord Capital Corp. said an early end to the opposition is a "good psychological thing" for Alliance. But he said doubts still remain that there is enough gas to fill the pipe when it starts up. First-Quarter Profits Fall At Mobil, Shell Associated Press Mobil Corp. and Shell Oil Co. reported a drop in their first-quarter profits Wednesday because of weak oil prices and reduced demand for natural gas due to the warm winter in North America. Mobil's earnings fell 15 per cent for the January-March period but still beat analysts' expectations. Shell's profits dropped 5.4 per cent. At Mobil, the Fairfax, Va.-based energy company earned $705 million in the quarter, down from $826 million a year earlier. Revenue fell 16 per cent to $13.63 billion. The latest results included special charges of $10 million for costs associated with the oil company's alliance with British Petroleum in Europe. First quarter 1997 results included special charges of $18 million, much of that also related to the Mobil-BP alliance. "Crude oil prices weakened considerably in this year's first quarter, averaging about $7 per barrel below the same quarter last year," said Mobil Chairman Lucio Noto. "Additionally, natural gas prices in North America were down substantially as a result of unusually warm winter weather." Noto said worldwide production was up one per cent over last year's first quarter, primarily due to higher volumes in Equatorial Guinea and the Hibernia field in Canada. Meanwhile, Shell reported it earned $489 million in the quarter, down from $517 million in the same period a year ago. Revenue tumbled 37 per cent to $4.8 billion from $7.6 billion a year ago. Shell Oil does not report earnings per share because it is a subsidiary of Royal Dutch Shell, one of the world's biggest oil companies. President Philip Carroll said the company was hurt by a 40 per cent decline in crude oil prices and a 30 per cent drop in natural gas prices. "Significantly increased production of both crude oil and natural gas was overshadowed by the steep price declines across all lines of business," Carroll said, repeating his prediction that 1998 will present a "very challenging business environment." Shell also cited higher interest costs because of increased debt associated with the acquisition of Tejas Gas Corp. Halliburton Co., Noble Drilling Post Strong profit Gains Reuters Energy services and engineering group Halliburton Co. reported a 42 percent rise in first quarter earnings on Wednesday which it said was entirely due to to its energy related businesses. Separately, Noble Drilling said its profits nearly doubled due to due to higher day rates for contract drilling. Dallas-based Halliburton's net income rose to $117.8 million or 44 cents per share from $83.0 million or 32 cents per share in the same period of 1997. Revenues rose 24 percent to $2.4 billion. Operating income at Halliburton's energy services division jumped 58 pecent to $185 million, showing no signs of any ill effect from protracted oil price weakness which has eroded the earnings of its clients in oil exploration and production. Halliburton's chairman, former U.S. Defense Secretary Dick Cheney, said in a statement that he expected the energy services business -- which generates two thirds of the company's revenues -- to make further progress during the rest of the year. The company's engineering and construction business saw a small decline in operating income to $28.8 million, but Cheney said its performance was likely to improve as the year progressed. Halliburton has previously announced plans to buy Dresser Industries for $7.7 billion, leapfrogging Schlumberger to become the world's biggest oil services group. Houston-based Noble Drilling reported a 95 percent surge in first quarter net income to $46.2 million due to higher average day rates for contract drilling. Noble Chairman James Day said he was pleased with the first-quarter results but pointed to a cloud on the horizon. "Due to the weakness in oil prices we can anticipate some decline in dayrates in certain markets, most dramatically in the Gulf of Mexico. However, our continued strategy of seeking longer term contracts mitigates, to some extent, the near volatility in the commodity markets," he said. Two oil majors, Exxon Corp. and Shell Oil, had some good news for drillers and service companies on Wednesday when they said they had no plans to follow Amoco and Unocal in cutting their capital spending on exploration and production. Meanwhile, rating agency Standard & Poor's, upgrading the debt of Diamond Offshore Drilling on Wednesday, said the contract drilling sector's financial perfromance had been extraordinarily strong and could improve further over the next one to two years. "However, Standard & Poor's also has concluded that such high level of financial performance is unsustainable over the long term," it added. Con't next page (message)

To: Kerm Yerman who wrote (10298)	4/23/1998 12:04:00 PM
From: Kerm Yerman	Read Replies (6) \| Respond to of 15196

MARKET ACITIVITY/TRADING NOTES FOR DAY ENDING WED., APRIL 22, 1998 (4) TOP STORIES, Con't US Economy to Receive $50 Billion Windfall If Oil Prices Stay Low "Oil Is Unbelievably Cheap:" John S. Herold Study If the price of crude oil remains at its current low levels, the US economy could benefit to the tune of $50 billion in savings on petroleum purchases, according to an analysis released today by John S. Herold, Inc. ''Given the present level of motor fuel consumption in the United States, a one cent per gallon decline in prices translates to $1.2 billion in annual cost savings,'' says Art Smith, chairman and CEO of Herold. ''Today's depressed prices for all oil products -- down about 20-cents per gallon thus far this year -- suggest that American energy consumers could save almost $190 per person on oil product purchases in 1998.'' ''Oil is unbelievably cheap,'' Smith wrote in the April issue of ''Industry Insights,'' a regular series of analyses received by Herold clients. ''We recommend that savings minded energy consumers fill up every (safe, well-ventilated) tank they have to take advantage of the situation. Without a doubt, gasoline is one of the least expensive commodities on the American family's shopping list.'' To keep energy costs in perspective, the low cost of gasoline is particularly obvious when it is compared to some other consumer items on a container for container basis using the 42-gallon oil barrel as the standard container. Some representative price comparisons include: Per Barrel Equivalent Prices;Crude oil $15.25, Gasoline $45.36, Coca Cola $78.38, Milk $126.00, Evian water $189.80, Orange juice $251.16, Budweiser beer $342.72, Jack Daniels $4,133.26, Remy Martin $7,844.51and Visine $238,133.21. (1) Oil price WTI Spot on New York Mercantile Exchange; gasoline prices from the American Automobile Association; other prices based on comparison shopping at Stamford, Connecticut supermarket. The bargain that gasoline represents is further demonstrated in Herold's study by the cost per-mile-traveled US motorists are currently paying. ''Motorists will pay about a nickel per mile for gasoline this year. That's a record low. It costs two to five times that much to finance and insure a car,'' Smith noted. ''Every U.S. family that has ever planned a cross-country driving vacation should take notice. You can travel coast to coast, excluding side trips and unexpected detours, for only $150 in gasoline costs.'' According to Herold's ''unscientific comparison pricing'' surveys since 1989, the only product that has declined as much in price as oil and gasoline is Coca Cola. The price increases include Visine (118%), orange juice (115%), Remy Martin cognac (94%), Jack Daniels (92%), Budweiser beer (53%),Milk( 26%), Evian water (20%), Gasoline (14%), Crude oil(-22%) and Coca Cola (-29%). Herold notes that the largest potential savings to U.S. oil consumers will come from gasoline ($23 billion) and diesel fuel/heating oil ($13 billion). Americans consume about 8.2 million barrels of motor fuel per day, accounting for about 44% of the total petroleum products used in this country. Prices for other products, such as diesel fuel, heating oil, kerojet, residual oil and LPG, are as much as 20% per gallon lower so far this year, which helps to account for the expected substantial savings. ''This is not a new phenomena,'' Smith points out. ''When crude oil was selling at peak prices of about $40 per barrel in 1989, Coca Cola was $110.54 per barrel. Fuel was a bargain by comparison even then.'' IN THE NEWS Suncor Energy has moved one step closer to realizing its oil sands expansion plans with the submission of its application to proceed with Project Millennium to the Alberta Energy and Utilities Board (AEUB) and Alberta Environmental Protection (AEP). The $2.2 billion expansion is designed to boost Suncor's oil sands production to 210,000 barrels per day by 2002, while bringing cash costs down to $10 to $11 per barrel. ''Expanding our oil sands business is a critical part of Suncor's growth agenda,'' says Rick George, Suncor's president and chief executive officer, who announced the regulatory filing at the company's annual meeting today. ''Filing the application to regulators is a milestone in moving Project Millennium off the drawing board and closer to the construction phase. And with the recent regulatory approval for the Wild Rose Pipeline project, we'll soon have the pipeline capacity to move our increasing volumes and to access new markets.'' The application is a 3,000-page document outlining the construction, operation and reclamation plans for Project Millennium. The project includes the expansion of Suncor's Steepbank Mine on the east side of the Athabasca River, additional mining equipment, twinning of the extraction plant and the upgrader, and expansion of the facilities that provide the operation with water, steam and electricity. Suncor will build on its 30-years of oil sands experience, while taking advantage of new technology and environmental improvements. The application also presents a comprehensive environmental impact assessment, which analyzes the project's potential impact on air and water quality, human health, the land, vegetation and wildlife. A socio-economic impact assessment and a cumulative effects assessment of all announced projects in the region are also included. The application was developed in consultation with a wide range of stakeholders and attempts to fully address all issues identified in each of these areas. A summary of the application will be posted on Suncor's website (www.suncor.com). Mike Ashar, executive vice president of Suncor Energy Inc. Oil Sands, emphasizes that the filing of the application does not mean Suncor's plans are inflexible. ''We will continue to work with community residents to ensure economic gain for the region occurs in a socially and environmentally responsible manner,'' says Ashar. ''Suncor's commitment with Project Millennium is to continuously maintain and build upon the stakeholder relationships andenvironmental improvements that were achieved as part of the Steepbank Mine and fixed plant expansion projects.'' The next step in the process is a review of the application with all stakeholders to ensure it is complete. Engineering work must be finalized before the project goes before Suncor's Board of Directors for approval. Approval from the Board and from AEP and the AEUB is required before construction, currently scheduled for April 1999, can begin. Suncor plans to commission the project between September 2001 and January 2002. TriGas Explorations (TGX/TSE) updated their 1998 Operations and the following highlights were presented. 1. Construction of a new 16 kilometre pipeline from the Company's Irricana/Lone Pine properties to the Crossfield gas plant has just been completed and is expected to start-up in April 1998. 2. TriGas successfully fraced and completed a 100% interest Basal Quartz gas well at Irricana in Q1 1998. The well is scheduled to commence production during Q2 1998. 3. A second 100% interest Basal Quartz gas well was drilled and cased to a depth of 2,050 metres at Irricana in Q1 1998. The company plans to frac and complete this well in Q2 1998. 4. TriGas (50% interest) finished drilling its first horizontal well at Lone Pine in early April 1998. The primary target is the Crossfield gas zone at a vertical depth of 2,500 metres. The horizontal leg in this well opened over 800 metres of potential Crossfield gas reservoir. The well was successfully completed and is expected to be tied-in within the next two months. 5. TriGas (50% interest) is currently drilling the first of two horizontal legs into the Crossfield gas zone in a well directly offsetting the first horizontal well at Lone Pine. 6. At Irricaiia, TriGas (50% interest) commenced drilling a horizontal well in April 1998 to evaluate a Crossfield gas prospect offsetting the two successful horizontal wells drilled at Irricaria by TriGas in mid 1997. Dalton Resources Ltd. (DAL/ASE) reported that the Strachan 3-22-38-9W5M well has reached a final total depth of 4340m in the Cambrian formation. Upon review of the open hole logs, Dalton in conjunction with its working interest partners will determine an appropriate course of action. The working interest owners have implemented tight hole status and therefore no further information concerning the well will be released to the public without prior approval from partners. As previously reported March 27, 1998 the 3-22-38-9W5M well was cased to an intermediate depth of 3,420 metres and had encountered potential hydrocarbons in various formations down to the 3400m level. Dalton is participating in the Strachan well for 15% of the well costs. INTERNATIONAL Companies CityVIew Energy updates Hippo Well #1. MMC Exploration & Production (Philippines) Pte Ltd has been advised that ARCO Philippines Inc ("ARCO"), the operator of Hippo Well No. 1 has given notification that efforts to wireline log the well to total depth have been unsuccessful. Equipment for drill-pipe conveyed logging is not available and so no further effort to log the well will be attempted. Although ARCO has been unable for mechanical reasons to carry out tests, ARCO considers the well to be encouraging. Further work on the Hippo prospect and GSEC 74 will be submitted by ARCO within the next 60 days. INTERNATIONAL Countries Venezuela Becomes First Exporter Of Crude For Brazil Venezuela surpassed Argentina to become the first exporter of crude oil for Brazil, said the Brazilian PetroleumCompany (Petrobas) Wednesday. In the first quarter of this year, Venezuela exported to Brazil 140,000 barrels per day as against 107,000 barrels exported by Argentina, it said. Brazil produces about 900,000 bpd, but its domestic consumption is up to 1.8 million barrels daily. Russia Jan-Feb Crude Exports Rise On Year to Year Basis Interfax gave the following data for Russian energy exports, as provided by the committees: Russian Jan-Feb 1998 Non-cis Energy Exports Versus Jan-Feb 1997 (million tonnes) Crude oil 18.14 from 16.95, Oil products 6.44 8.22, Natural gas (bcm) 21.80 23.05 and Coal 2.45 2.58 Ecuador's Petroleum Production Falls Short of Target QUITO (April 22) XINHUA - Ecuador's petroleum production fell short of the government target in the first quarter of the year due to a financial crisis in the state company, Petroecuador. Production stood at 34.5 million barrels of crude oil, behind the goal of 37.9 million, said to Luis Roman Lazo, president of the board of directors of Petroecuador. He said fewer drilling derricks were contracted during the period while a tight budget made it difficult to provide adequate maintenance to the existing facilities. SERVICE SECTOR NQL Drilling Tools Inc. (NQL/TSE) announceD that a lawsuit has been filed in the Federal Court of Canada against NQL and its subsidiaries Black Max Downhole Tool Ltd. and Canadian Downhole Drill Systems Inc. for patent infringement. The lawsuit seeks damages in the sum of $25 million and an injunction restraining NQL from any future infringement. Management has reviewed the claims and is confident that the claims are without merit. Legal counsel has been retained and a defence will be filed within the time provided for in the Rules ofCourt. PIPELINES TransCanada PipeLines Limited and Nicor, two partners in the proposed Viking Voyageur natural gas pipeline, today confirmed their commitment to serve markets in the U.S. upper midwest and stated they are pursuing options to provide gas transportation to the region. ''The partnership is evaluating options surrounding the Voyageur concept of bringing natural gas to markets in Wisconsin and northern Illinois, as well as other parts of the midwest,'' said Wayne Lunt, president of TransCanada's North American Pipeline Investments. Ed Werneke, vice president of Nicor, said the partnership would be meeting with key stakeholders over the next several weeks to explore these options. ''Voyageur is proceeding well in the regulatory process and has gained wide support in the marketplace,'' he said. ''The partners are committed to pursuing options that will meet the growing needs of the midwest market as we enter the next century.'' Wisconsin energy companies, such as Madison Gas & Electric, Wisconsin Fuel & Light, Wisconsin Gas, Wisconsin Electric, Wisconsin Power & Light, and Wisconsin Public Service Corporation, have been supportive of the Voyageur project. ''We have received tremendous support from energy companies in Wisconsin, in particular, as well as from regulators and regional and local business leaders,'' said Mr. Werneke. ''We do not want to let them down.'' Nicor is a holding company based in Naperville, Illinois. Its principal businesses include Nicor Gas, one of the nation's largest gas distribution companies, and Tropical Shipping, a containerized shipping business that operates between Florida and the Caribbean. Nicor also owns several energy related subsidiaries. MISC. NEWS FOR KERM'S LISTED COMPANIES Pan East Petroleum Corp. announced that its board of directors has implemented a shareholder rights protection plan (the "Plan"). The Plan is effective immediately and will be submitted for shareholders' approval and ratification at the special and annual meeting of shareholders of the Corporation scheduled for June 5, 1998. The Plan has been adopted in order to provide Pan East's board of directors and shareholders with sufficient time to assess and evaluate any take over bid and, in the event a bid is made, to provide the board of directors with an appropriate period of time to explore and develop alternatives which maximize shareholder value. The Plan is also intended to ensure that all of Pan East's shareholders are treated equally if a takeover bid is made. The Plan is not intended to deter take over bids and Pan East is not aware of any pending or threatened take-over bid. Carmanah Resources Ltd. (CKM/TSE) announced that the final prospectus for its previously announced issue of 3,333,334 common shares from treasury at a price of $7.50 per share was filed with regulatory authorities on April 20th, 1998. Simultaneously Carmanah announces it received notice from the underwriters of their intention to exercise an Over-Allotment Option to acquire a further 666,666 additional shares, also at a price of $7.50 per share, pursuant to the terms of The Underwriting Agreement. Accordingly, Carmanah will issue a total of 4,000,000 common shares from treasury at closing, scheduled for April 30th, 1998. Gross proceeds will total $30 million, and after deducting commissions payable and the costs of the issue, net proceeds will be used to repay indebtedness and for working capital to fund accelerated and expanded development programs at Camar and Langsa in Indonesia. At closing Carmanah will have 40.5 million common shares outstanding. EARNINGS Suncor Energy / Watchlist Message 4170241 Westminster Resources Ltd. / Watchlist Message 4171703 Compton Petroleum Corporation / Spec 20 Listed Message 4170678 OTATCO Inc. Message 4170618 Con't next page - delayed

To: Kerm Yerman who wrote (10298)	4/23/1998 11:15:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / NRI On-Line Inc. Signs Contract for On-Line Seismic Data Management NRI ON-LINE INC. ASE SYMBOL: NDA NDA.WT APRIL 23, 1998 NRI Signs Contract for On-Line Seismic Data Management CALGARY, ALBERTA--NRI On-Line Inc. ("NRI") is proud to announce it has been awarded a three year contract to electronically manage a two terabyte multiple access block of 2D marine data. Brett Kondruk, Executive VP & General Manager reported, "With over five major oil & gas companies accessing this block of marine seismic (stored at NRI), our COIN solution should save them over $1 million in copying costs alone. It's an enormous benefit to them. Combined with the recent verification of our ORI software, our vision of an integrated storage solution with immediate desktop access is now a reality." This PAREX data is currently managed by Sigma Explorations (1978) Ltd. who grant the entitlements for access to this on-line data. This data set is the East Coast marine survey commonly known as the PAREX data, and is operated by Talisman Energy Inc. on behalf of itself and the other co-owners. Under the terms of the contract, NRI will store and provide on-line access and distribution of this data through its virtual data warehouse. The benefits to NRI from this new contract are also substantial. According to Mr. Kondruk "By using our solution, complete with electronic entitlements access and on-line retrieval , the majors are seeing the benefits of archiving data at NRI. We are confident that this project will open the door to future business with them, as this is the first 'wave' of cost savings for our oil & gas clients." A key factor in this selection process was the ability to support multiple entitlements, i.e. facilitate confidential access from a single data set to all licensees of the data. NRI's COIN solution was specifically designed for this purpose. Once sharing agreements have been established, NRI's proprietary software provides highly secure access for each owner. This data can then be delivered to their geophysicists or seismic processors via existing network connections or physically via tape copy. This solution pioneered by NRI is a vast improvement over traditional tape storage in warehouses. Prior to NRI's solution, multiple copies of the same data were maintained for each partner to ensure confidential access, resulting in increased storage costs. For instance, a 2 terabyte seismic data block shared by 4 partners translated into a total volume of 8 terabytes of data being stored. A terabyte is equivalent to approximately 1,000,000 floppy disks. NRI is a high volume virtual data storage and management company. Through its open system solution, the Company archives, manages and delivers integrated data on-line over wide area communications networks. NRI's shares and warrants are traded on the Alberta Stock Exchange under the symbols NDA and NDA.WT respectively.

To: Kerm Yerman who wrote (10298)	4/23/1998 11:33:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR - EARNINGS / CE Franklin First Quarter Report CE FRANKLIN LTD. TSE SYMBOL: CFT AMEX SYMBOL: CFK APRIL 23, 1998 CE Franklin Ltd. First Quarter Sales Increase 25.9 Percent Net Income Increase 22.7 Percent (Results are in Canadian Dollars) CALGARY, ALBERTA--CE FRANKLIN LTD. (TSE.CFT, AMEX.CFK) today reported results for the first quarter ended March 31, 1998. Sales for the first quarter were $115.3 million, an increase of $23.7 million or 25.9 percent from March 31, 1997. The increase is due mainly to an increase in market penetration and the 1997 acquisitions of Domino Machine Company Ltd., Hoyle Ennotek Ltd., Brittania Compressor Sales Ltd. and BWM Supply and Services Ltd. Net income increased by $0.6 million or 22.7 percent from the first quarter of 1997 and earnings per share were $0.18 an increase of $0.03 from the first quarter of 1997. "We are encouraged by our first quarter results considering the recent market conditions in Canada," commented Chairman and Chief Executive Officer, John Gilbank. "In a quarter where the number of wells drilled was down 6 percent, we have been able to increase our sales over 25 percent. Also, we have successfully integrated our acquisitions from last year and they are all contributing to the bottom line. As for the second quarter, we expect the normal seasonal dip in drilling activity to take place while our relative strength in the industry continues to grow." Other activities in the quarter include the combining the former operations of Domino Machine and Brittania Compressors into a subsidiary of CE Franklin called CEF Technologies, the opening of a new service center location in Sarnia, Ontario and the launching of a major project improvement initiative. CE Franklin is Canada's largest distributor of supplies to the oil and gas drilling and production industry. Through its 45 locations across Canada, the Company sells pipe, valves, pumps, fittings, and maintenance supplies and provides complete customer inventory procurement and management services. The Company also manufactures and packages specialized products for the energy industry. For more information visit our Web Site at cefranklin.com. Shareholders are invited to attend CE Franklin Ltd.'s Annual General and Special Meeting on Thursday, April 30, 1998 at 3:00 pm (Calgary time) in the Viking Room of the Calgary Petroleum Club. CE Franklin's common stock trades on The Toronto Stock Exchange under the symbol CFT and on the American Stock Exchange under the symbol CFK. CE Franklin Ltd. Summary of Financial Data (Canadian Dollars) Quarter Ended March 31, ------------------------ 1998 1997 ---- ---- Statement of Income Data: Sales $115,258,967 $91,528,564 Operating Income 6,694,970 5,051,002 Net Income 3,060,480 2,493,779 Net Income Per Share - Basic 0.19 0.16 - Fully Diluted 0.18 0.15 Weighted Average Number of Shares Outstanding 16,424,363 15,898,728 Selected Balance Sheet Data: Working Capital 72,899,828 44,586,957 Total Assets 160,595,051 113,140,339 Long Term Debt 46,438,064 17,681,946 Total Liabilities 108,787,321 74,891,861 Shareholders' Equity 51,807,730 38,248,478

To: Kerm Yerman who wrote (10298)	4/23/1998 11:49:00 PM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Humboldt Capital Corporation Reports 1997 Financial Results HUMBOLDT CAPITAL CORPORATION VSE SYMBOL: HMB.A HMB.B APRIL 23, 1998 Humboldt Capital Corporation Reports Excellent 1997 Financial Results CALGARY, ALBERTA--Humboldt Capital Corporation is pleased to report that earnings for the year ended December 31, 1997 increased to $1.8 million or $0.13 per share from $803,000 or $0.06 per share reported for 1996. The Company's net asset value per share increased to $1.67 per share from $1.40 per share at December 31, 1996. Immediately following the Company's year end, Humboldt sold its position in Orbit Oil & Gas Ltd., realizing $10.1 million. The Company presently has cash and current assets of $9 million and is actively pursuing additional long term investments in the energy business. FINANCIAL SUMMARY FOR THE YEAR ENDING DECEMBER 31, 1997 ($000 except per share information) 1997 1996 -------- -------- Revenue $ 1,925 $ 862 Earnings $ 1,842 $ 803 Earnings per Share (1) $ 0.13 $ 0.06 Shareholders Equity $ 22,199 $ 18,589 Net Asset Value $ 1.67 $ 1.40 Shares Outstanding (1) 12,687 12,781 (1) Share information restated to account for the share reorganization completed July 17, 1997.

To: Kerm Yerman who wrote (10298)	4/24/1998 12:06:00 AM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Renco Resources Drilling Update RENCO RESOURCES INC. CANADIAN DEALING NETWORK SYMBOL: RNRS APRIL 23, 1998 Renco Resources Announces Drilling Update CALGARY, ALBERTA--Further to the Company's news release of December 14, 1997, the Company is pleased to announce successful completion of the first well drilled on the Renco 2 property in Oklahoma. The well was drilled and completed to the Wayside Formation to a depth of 560 feet, and is currently producing approximately 25 barrels of oil per day. The second well on the property, also drilled to the Wayside Formation, is undergoing completion and expected to be in production shortly. These wells are the first of a 12-well development program expected to be completed by July, 1998, and are the first new wells drilled and completed by the Company. The Company currently has approximately 21,636,876 shares outstanding.

To: Kerm Yerman who wrote (10298)	4/24/1998 9:48:00 AM
From: Kerm Yerman	Read Replies (2) \| Respond to of 15196

MARKET ACITIVITY/TRADING NOTES FOR DAY ENDING THURSDAY APRIL 23, 1998 (1) WELCOME Good morning and welcome to Kerm's Korner - the free location on the internet Subject 10229 devoted to the Canadian Oil & Gas Industry. What one will find here is an extensive and comprehensive collection of information and data regarding current events and happenings in the Oil Patch. We begin with an overview of stock markets in Canada with a little U.S. information thrown in to clearly establish the moods of investment in North America. We then jump into the world futures arena with the most concentrated information regarding crude oil and natural gas pricing. Following you will find the most recent articles written about the industry which are assembled from numerous sources across Canada. We will then bring you up to date with the latest announcements and reports released by companies in the industry. You will also find commentary and research notes on the industry in general, as well as individual companies. Of course, if you're a regular viewer/visitor - you are already privy to this information. If you are an investor in oil and gas, this is a can't miss source for your review each and every day. It's that time again when we ask all to comment on the service provided here. We need to get an idea if we're appreciated. Please go here and let us know you visit us by making a comment or two. Subject 16123 If you are not a member of Silicon Investor and therefore can't comment, send me an e-mail message with comments. yerman19@borg.com MARKET WATCH Bay Street slipped as banks fell on fears that mergers may not be a sure thing. Wall Street lost ground after Microsoft warned that its sales would remain unchanged for the next six months. Canadian stocks were mixed as BCE Inc. rose after it released stronger than expected earnings. The Toronto Stock Exchange 300 composite index fell 5.85 points to 7816.4. The index has gained 16.7% this year and touched a record 7837.7 earlier in the session. About 120.9 million shares changed hands on the TSE, down from 128.7 million shares traded on Wednesday. BCE (bce/tse) rose $1.25 to a record $63.75 after the company said its first quarter earnings rose 43% to 48› a share, beating analysts' estimates. Telus Corp. (t/tse) fell $1.30 to $38 amid concerns that the Stentor alliance of provincial phone companies could fall apart. Canadian Pacific Ltd. rose for the second day after it said first-quarter profit climbed 2.3% to 48› a share. CP (cp/tse) advanced $1.30 to $44.15. MacMillan Bloedel Inc. (mb/tse) rose 25› to $21.50 after it posted an unexpected first quarter profit. MacBlo also said it had agreed to sell its paper business to a group of investors for $850 million. Gold stocks rose as the price of bullion climbed US90› to US$314.50 an ounce on the Comex division of the New York Mercantile Exchange, its highest since Oct. 28. Franco-Nevada Mining Corp. (fn/tse) gained 95› to $38.20, Barrick Gold Corp. (abx/tse) rose 35› to $34 and Echo Bay Mines Ltd. (eco/tse) climbed 54› to $5.45. Bank shares extended their losses on fears the federal government may not approve proposed super mergers. Bank of Montreal (bmo/tse) lost 75› to $80.50, Canadian Imperial Bank of Commerce (cm/tse) fell 25› to $50.55 and Toronto Dominion Bank (td/tse) fell 60› to $65.60. Royal Bank of Canada (ry/tse) slid 65› to $87.10. Other Canadian markets were mixed. The Montreal Exchange portfolio lost 0.71 of a point to 3915.44. The Vancouver Stock Exchange rose 0.48 of a point to 636.14. The Alberta Stock Exchange Combined Value Index closed up 4.09 to 2,279.93. U.S. stocks fell as a warning of stagnant revenue from Microsoft Corp. signalled that the computer industry may face tough times ahead. The Dow Jones industrial average fell 33.39 points, or 0.4%, to 9143.33. The Standard & Poor's 500 index declined for the first time in a week, falling 10.42 points, or 1%, to 1119.58. About 658.7 million shares changed hands on the Big Board, down from 701.6 million shares traded on Wednesday. The tech-heavy Nasdaq composite index lost 36.22 points, or 1.9%, to 1881.39, led by Microsoft (msft/nasdaq), which fell US$4 3/8 to US$94 1/2. After the market closed Wednesday, Microsoft said that its sales will be unchanged for at least six months until revenue from Windows '98 kicks in. Computer-related shares slumped on the news. Intel Corp. (intc/nasdaq) dropped 13/16 to US$83 1/4, PeopleSoft Inc. (psft/nasdaq) lost US$4 11/16 to US$47 3/8, Yahoo Inc. (yhoo/nasdaq) slipped US$6 3/16 to US$112 3/16, Ascend Communications Inc. (asnd/nasdaq) fell US$1 15/16 to US$41 3/4, Lucent Technologies Inc. (lu/nyse) tumbled US$2 3/4 to US$73 3/4 and Intuit Inc. (intu/nasdaq) lost US$2 15/16 to US$48. Despite the continuation of merger mania, financial shares lost ground. Bank of New York Co. (bk/nyse) fell US$1 1/2 to US$60 9/16 a day after announcing a US$22.9-billion unsolicited takeover bid for Mellon Bank Corp. Mellon (mel/nyse) fell US$1 15/16 to US$75 5/8, Citicorp (cci/nyse) slid US$3 11/16 to US$156 1/4, Chase Manhattan Corp. (cmb/nyse) lost US$3 7/8 to US$136 1/2, J.P. Morgan & Co. (jpm/nyse) tumbled US$5 1/4 to US$137 3/8 and Bankers Trust New York Corp. (bt/nyse) slumped US$4 1/2 to US$131 13/16. Major overseas markets ended mixed. London: British shares were dragged down by a rout in index futures. The FT-SE 100 index lost 33 points, or 0.6%, to 5898.1. Frankfurt: German shares retreated as bank issues lost ground after riding high on merger speculation. The Dax index dropped 109.19 points, or 2%, to 5251.46. Tokyo: In Japan, Tokyo stocks closed marginally higher in lackluster trading, the day before the government planned to release details of its latest attempt to revive Japan's faltering economy. The benchmark Nikkei Stock Average of 225 selected issues gained 0.15 points, closing at 15,761.69. "It's hard to take active positions now, as the direction of the market is unclear," said Futoshi Yoshimura, joint head of dealing at Schroders Japan's equity trading department. Seoul; Seoul's benchmark index fell 3.5 percent, closing at 416.54. Han Suk-chul, a senior analyst at KFB Securities Co., said local investors sold massive amounts of shares, while foreigners continued to stay on the sidelines. Labor unrest could further hurt the country's battered economy by delaying restructuring at local companies, which is necessary to draw back foreign investment, he said. Another blow to the market came from a report released by the Korea Development Institute. The state-owned think tank said Wednesday that a delay in restructuring could increase bad loans owed by financial institutions. This would lead many South Korean companies to collapse and the country into another foreign exchange crisis, it said. Hong Kong: In Hong Kong, share prices closed lower in quiet trading, dragged down by bearish sentiment in the futures market and an absence of positive local news. The blue-chip Hang Seng Index closed down 0.5 percent at 10,918.94. Analysts said the domestic economy's weakness, as evidenced by the high jobless rate reported Tuesday, has caused local investors to put less in the stock market. Kuala Lumpur: In Malaysia, share prices rose on relief that a major bank acquisition deal had gone through. The benchmark Kuala Lumpur Stock Exchange Composite Index finished 1.4 percent higher at 628.24. In a news conference Thursday, Rashid Hussain Bhd. announced financing details of its purchase of troubled Sime Bank Bhd. The financial group said it will merge Sime Bank with its own commercial banking unit, RHB Bank Bhd, to create Malaysia's second-largest bank. But dealers noted remaining concerns in the market about the depth and length of Malaysia's economic downturn. A number of economists now expect the country will fall into outright recession. Jakarta: In Indonesia, Jakarta share prices closed lower, driven by a fall in telecommunication shares as the bearish trend continued despite Indonesia's apparent commitment to economic reforms. The JSX composite index closed down 1.8 percent at 491.856 points. Dealers said foreigners saw the reforms announced Wednesday as irrelevant, and felt Indonesia's greater needs were bank restructuring, a functional bankruptcy law and debt restructuring. Bangkok: In Thailand, stock prices closed lower on first-quarter losses reported by financial institutions. The Stock Exchange of Thailand index lost 2.1 percent, closing at 427.41. Although prospects for improvement in the economy are bright with the government and central bank planning long-term bond issues to boost liquidity, investors still questioned which companies will survive the recession, dealers said. Sydney: The key Australian stock index finished higher on the back of higher gold and mining share prices. The index gained 21.0 points to 2,877.8. Wellington: The key New Zealand stock index finished at its lows, with brokers saying the market lacked direction. The index ended down 5.51 points at 2,314.45. Manila: Philippine shares ended higher as investors picked up blue chip issues at bargain levels, traders said. The key index closed up 0.5 percent at 2,164.33. Taipei: Taiwan shares ended lower as investors headed back for the sidelines to wait for first-quarter earnings reports due later this month, traders said. The key index closed down 0.26 percent at 8,613.96. TODAY'S EXPECTATIONS " Canadian dollar - Weaker, 1.4340 - 1.4390 " Canadian money market - Slightly weaker, no curve bias " Canadian bond market - Slightly weaker, flattening bias " US bond market - Slightly weaker " Canada - US spreads - Canada underperforms "Bond Market: The US Treasury market is likely to retain its cautious sentiment today. While we remain unconvinced that the most recent Japanese stimulus package will be sufficient to jump start the economy, most observers appear pleasantly surprised. However, the market should see some support as mark et participants begin to find value around the 6 percent level for the US long bond. With the weaker trend in the Canadian dollar, the Canadian bond market is likely to lag the US today. "Money Market: The Canadian money mark et is expected to hold a slightly weak er bias in quiet trading today. An uneventful overnight session has again left the market with little momentum at the North American open. Market participants are awaiting a backup in rates before significant buying interest can appear. Of course, if the currency continues to trend weaker, we may just get the backup over the next few sessions. "Foreign Exchange: The Canadian dollar is expected to retain its negative momentum today. The US dollar is softening vs. the other major currencies, and following BoC Governor Thiessen's testimony yesterday, there is little expectation of a near term rate hike in Canada. The next technical target of significance is at the 1.4440 level, but we are unlik ely to see this level today. Bulls Cast A Wary Eye On Friday's Outlook MSNBC Those tremors you're feeling from Wall Street are real. Stocks have repeatedly climbed to heretofore-unforeseen heights and now appear ready to descend to some degree. There may be some buying in anticipation of Monday mergers, but other than that, there seems to be little impetus for stocks to move higher Friday. A wild card for the activity is the market's reaction to the expected fiscal stimulus package announcement from the Japanese government. The big concern is whether this latest package from Prime Minister Ryutaro Hashimoto's government will include some permanent tax cuts. Fear of such cuts, and a coming rebound in Japan's moribund economy, is one reason for the dollar's recent slide versus the yen. That trend has the long bond creeping back toward 6%, a potentially negative development for the stock market. Additionally, the earnings locomotive slows heading into the weekend, while a light week of economic data concludes with no major reports. That will leave traders with plenty of time to think about the fact that first quarter earnings thus far, though ahead of official projections, haven't exactly been gangbusters compared with year-ago results -- or even the expectations of just a few months ago. So was Thursday's performance in the Internet sector a harbinger of things to come for broader markets? Is the sky falling? There's been of a lot of Chicken Littles talking in the press lately, pecking about while major indices continued to set new highs. So we decided that Thursday's reversal was a perfect time to speak with one of Wall Street's unabashed bulls, Joseph Battipaglia, chief investment strategist at Gruntal & Co. Battipaglia remains "very much" the bull. "The economy is showing greater strength than anticipated, corporate profits aren't as bad as people thought, interest rates are tame, and confidence is strong, meaning there will be a flow of funds into equities," he said. "Put it all together and you get a rising market." However, even Gruntal's super-bull believes "the complexion of the market will change." Instead of the Dow and S&P 500 stocks in favor, there will be a "broadening out" of the leadership to include companies with market capitalization from under $3 billion to $100 million, Battipaglia said. Noting that both the Dow and S&P 500 are up more than 15.6% for the year to date, the strategist said the upward bent of those indices is "probably finished, by and large, for the moment." However, the Nasdaq and Russell 2000 "could well do another 15% to 20%," he said. When asked why now is the time for the small caps when others have been predicting their rise since (seemingly) time immemorial, Battipaglia noted that they did lead the market in 1997 from April until September. "Then October came and people turned skeptical on the market," he recalls. "The first phase after October is, 'Let's got back into the big names.' Now everyone is looking for value, and they're not going to find it in the same [blue-chip] names. So they'll start to look elsewhere." WORLD MARKETS FRIDAY Asia Mixed, London Down At Noon Asian stock markets ended the week mixed Friday, with share prices rising in Tokyo but falling in Hong Kong. Japanese shares were boosted by Finance Minister Hikaru Matsunaga's comment earlier Friday that the government's latest economic package would include a pledge to look at making expected one-time tax breaks permanent. The benchmark Nikkei Stock Average of 225 selected issues rose 249.55 points, or 1.58 percent, closing the week at 16,011.24 points. On Thursday, the average rose 0.15 points, negligible in percentage terms. Buying by public funds pushed the Nikkei by more than 400 points early in the afternoon, but some selling of blue chip stocks trimmed some of its early gains toward the closing bell, traders said. Meanwhile, the U.S. dollar was quoted at 129.78 yen, down 0.76 yen from late Thursday in Tokyo and also below its late New York rate of 130.18 yen overnight. Share prices in Hong Kong closed generally lower for the second straight day in thin trading. The Hang Seng Index, the Hong Kong market's key indicator of blue chips, fell 39.01 points, or 0.3 percent, closing at 10,879.93. On Thursday, the index had lost 58.53 points. Brokers said share prices opened lower in reaction to an overnight slump on Wall Street, but that futures related buying in the afternoon erased some of the earlier losses. They said trading remained light as many investors continued to stay on the sidelines because of the uncertain economic outlook for the region. Kuala Lumpur: Malaysian shares closed mostly higher as market sentiment remained upbeat following the well received merger details between RHB Bank Bhd. and Sime Bank Bhd. The key Composite Index, which track 100 bluechip stocks, closed at 635.11 points, up 6.87 points or 1.09 percent. Taipei: Share prices closed slightly higher as most investors continued to stay on the sidelines ahead of the release of first quarter earnings at the end of the month. The market's key Weighted Price Index rose 22.15 points, or 0.2 percent, to 8,636.11. Wellington: New Zealand share prices closed higher. The NZSE-40 Capital Index rose 8.38 points, or 0.3 percent, to 2,322.83. Manila: Philippine shares closed lower lower Friday, buffeted by political uncertainties ahead of next month's general election and a weak local currency. Te Philippine Stock Exchange Index of 30 selected issues fell 10.42 points or 0.5 percent, to 2,153.91. Sydney: Australian share prices closed lower after a spate of sell orders in the finance and media sectors, dealers said. The All Ordinaries Index fell 22.9 points, or 0.7 percent, to 2,854.9. Seoul: Share prices closed lower on profit-taking. The Korea Composite Stock Index fell 1.98 points, or 0.4 percent, to 414.56. Singapore: Share prices closed mixed in cautious trading. The Straits Times Industrials Index slipped 4.58 points, or 0.3 percent, to 1,491.28. Jakarta: Share prices closed lower, driven by the fall of some blue chip stocks following poor results from several major listed companies. The Composite Index fell 1.375 points, or 0.3 percent, to 490.481. Bangkok: Thai shares close lower. The Stock Exchange of Thailand index fell 2.62 points, or 0.6 percent, to 424.79. (ks) London: Share prices on the London Stock Exchange were lower at midday Friday. At noon, the Financial Times Stock Exchange 100-share index was down 87.7 points at 5,810.4. Con't next page (message)

To: Kerm Yerman who wrote (10298)	4/24/1998 9:57:00 AM
From: Kerm Yerman	Read Replies (3) \| Respond to of 15196

MARKET ACITIVITY/TRADING NOTES FOR DAY ENDING THURSDAY APRIL 23, 1998 (2) MARKET WATCH, Con't Slower Growth - Conference Board Sees 2.9% GDP Expansion This Year The Financial Post The Conference Board of Canada cut its 1998 growth forecast for the economy yesterday and warned that bloated business inventories point to risks of a larger slowdown. Gross domestic product will expand 2.9% this year, the board predicted in its spring Canadian Outlook report - that's down from its call for a 3.2% expansion, made just last month. Jim Frank, the board's chief economist, downplayed any impact from the Asian crisis, arguing that low interest rates and a strong U.S. economy ensure the expansion in Canada will remain "robust." Low interest rates and "solid income gains" from strong jobs growth are expected to keep the cycle intact in 1999, with another year of 2.9% growth. Last month, the board was calling for 2.8% growth in 1999. However, a sharp buildup in manufacturing inventories will be a drag on growth this year and could signal more trouble ahead, Frank said. "Historically, a large-scale inventory buildup generally triggers a serious slowdown or recession as inventory levels are corrected." The economy will add 338,000 jobs this year, even with the anticipated slowdown in employment growth while the excess inventory is absorbed. GDP growth of 2.9% would be a large drop from last year's 3.8%, but still well above the 2.2% the economy averaged between 1986 and 1995. The economy grew 1.2% in 1996. At least for now, the board said, the inventory buildup is best treated as "a minor problem" because surveys show manufacturers are not concerned about it. Randall Powley, senior economist at Scotia Capital Markets, is also unconcerned about the buildup and, in a recent report, said the trade balance may benefit. Although $20 billion was added to business inventories in the second half of 1997, "this only becomes a problem if demand starts to tail off in a significant way and there's no sign of that at the present." The overhang should restrain import growth, which would have the positive effect of bolstering Canada's shrinking trade surplus, Powley says. In addition, the Conference Board identified an unexpected rise in interest rates as a second risk to its outlook. Higher rates in the U.S. could force Canada to follow suit. Or Canada may have to raise rates independently, "either because of a currency collapse under the weight of a poor trade balance or because of a sharper reaction to the coming Quebec election." The C$ continued to flounder below the US70› level yesterday, losing US0.18› to close at US69.63›. It hit a record low of US68.10› in January, prompting the Bank of Canada's most recent rise in the benchmark overnight lending rate, to 5% from 4.5%. The Conference Board forecasts the C$ will rise slowly, reaching US72.30› by late 1999. Canadians Buy Foreign Stock In February Canadian Press Canadians bought a significant $1.3 billion of foreign stock in February, Statistics Canada said Thursday. It was the fourth straight month of major stock purchases and brought total investment over the period to $4.2 billion. Foreign investors, on the other hand, sold off Canadian debt instruments and bought $800 million worth of Canadian stocks. "Foreigners sold $1.6 billion of mostly Canadian federal treasury bills in February, after purchasing a similar amount of mainly corporate paper in January," the agency said. The new investment by foreigners in Canadian stocks "coincided with the 5.9 per cent rise in Canadian stock prices as measured by the TSE 300 index." But foreign investment in Canadian bonds was flat, the agency said. "New Canadian bond issues of $5.1 billion were more than offset by retirements ($3.0 billion) and foreign selling in the secondary market ($2.5 billion). Delays In Reporting Insider Trading Are Not Tolerable The Financial Post A recent call from an outraged reader and investor led me to research an issue that should be made a priority by securities regulators. The Ontario Securities Bulletin publishes insider trading reports. And yet every issue includes one example after another of late insider filings. The law states insiders must disclose to the public their purchases and sales 10 days after the end of month in which the trades were made. Such disclosure is a cornerstone of securities markets and yet the regulator's own Bulletin reveals some people appear to be flouting its rules. I interviewed three apparent late filers, or their spokespersons. Two were late but the third was simply making a correction to a proper filing the year before and yet the securities publication failed to point this out. The first example involves the Jan. 30, 1998, issue of the Bulletin when Thomson Corp.'s Patrick Phillips announced 11 trades in early 1997. The last two were in December and those trades complied with the rules. But the others ranged from Jan. 2, 1997, to Sept. 25, 1997, and were late. Phillips is a talented and personable chap who is vice-president of Woodbridge Co., the holding company of Thomson. His filings showed he sold 57,500 Thomson shares with a ballpark value of $1.9 million. When called, he was quite forthcoming. "You're absolutely right and I was late, but I consider the filings a housekeeping issue," he said. "They are also a hassle because you have to prepare documents and file with each of the 10 provincial securities commissions." He has a valid point. Why should insiders have to file with every province? But he agreed he should have filed on time. By the way, I happen to regard such tardiness as a minor offence, not an egregious mistake. We're not talking about insider trading violations but simply late-filing administrative violations. Even so, it's embarrassing that the public watchdog actually does nothing about the dozens of late filers that are published in each edition of its Bulletin. At the least, reprimands are in order. And if that occurred, the tardiness that appears to be constant in Canada among public company insiders would end pretty quickly. Another example I was told about involves Lorne Braithwaite, chief executive of Cambridge Shopping Centres Ltd. In an OSC Bulletin dated Feb. 28, 1997, he disclosed a dozen transactions during 1996 involving the gradual sale of all his $3.45-million worth of debentures issued by Cambridge. "We monitor the trading of our insiders and stock option exercises," said a Cambridge spokesman over the phone. Braithwaite was abroad on business and not available for comment. "We know right away about options trading but when it comes to executives who are in the market [i.e., trading in the company's stock or debentures] we rely on them to tell us and then we do the paperwork and file with the proper authorities," the spokesman added. "This is the only one that has ever been late and he's usually good about these things but I don't know what happened." Lastly, I was told about the "late" filings of Steven Hudson with Newcourt Credit Group Inc. The Feb. 14, 1997 Bulletin states he sold 117,530 common shares for $20.50, 13 months earlier, on Jan. 1, 1996. "This was a restated filing because we filed the year before on Jan. 14, 1996, right after the trade but I made a mistake and juxtaposed the figure to 171,530. So we had to refile," explained Newcourt's spokesman. So Newcourt's Hudson is not guilty of late filing, but you wouldn't know it by reading the Bulletin. There is no footnote explaining this is simply a correction. The point of all this is the securities regulators should insure their rules are followed to the letter and should also disclose the full information about corrections and so on in their Bulletin. Full and timely disclosure is fundamental to the proper functioning of the stock market and helps "outsiders" make better business decisions. So a review of all this is in order. I think the regulations should require "real time" or immediate disclosure on the day the trades are made by insiders. There is no reason for delayed filing, inadequate explanations of filings or for the excessive paperwork that currently exists.