Thursday, April 30, 2009

Roger Biduk, Bay Street Starting to Show Cracks

Roger Biduk

Stock markets surrendered big gains and put in a weak close Thursday after U.S. President Barack Obama confirmed that Chrysler LLC is going into Chapter 11 bankruptcy protection.
While the move wasn't a surprise, it did undermine optimism that the recession is nearing a bottom.
By the way, if any of you think this recession is at the bottom like many rah-rah analysts on television on CNBC, I think you and your portfolios are in for a big surprise (refer to my email I sent in the wee hours on Apr. 27).

The S&P/TSX Capped Financial Index fell 0.51%.
Algonquin Power Income Fund (APF.UN) +7.69% to $3.08. Melcor Developments Ltd. (MRD) +7.95% to $5.70.
Jovian Cap Corp (JOV) -13.33% to $6.50. Canadian Oil Sands Trust (COS.UN -6.31% to $24.64. RioCan Real Estate Investment (REI.UN) -5.26% to $$13.68.

Markets had been trying to factor in the likelihood of a Chrysler insolvency but "once investors become face-to-face with that reality, they have a different reaction," commented Jack Ablin, chief investment officer at Harris Private Bank in New York.
Just wait till GM goes belly-up next month!

Roger Biduk
S&P/TSX Capped Diversified Metals & Mining Index rose 1.98% as aluminum rose 1.52%, copper was 2.12% higher at $2.05 and silver dropped 3.52% to $12.33.
Thompson Creek Metals Company (TCM.WT) +8.26% to $2.49. First Quantum Minerals Ltd. (FM) +6.68% to $46.15. Gerdau AmeriSteel Corporation (GNA) +6.26% to $6.28. Capstone Mining Corp. (CS) +5.82% to $2.00.
Uranium One Inc. (UUU) -7.04% to $3.30. Silvercorp Metals Inc.(SVM) -6.10% to $2.77. Red Back Mining Inc.(RBI) -5.28% to $8.26.

Toronto's S&P/TSX composite index came down from a 152-point surge and ended the day with a loss of 91.48 points at 9,324.83.
The TSX Venture Exchange was down 4.99 points to 1,008.98.

The April crude contract on the New York Mercantile Exchange rose 0.30% to $50.96 and natural gas fell 0.88% to $3.38 as the S&P/TSX Energy Index fell 1.59%.
Orleans Energy Ltd. (OEX) +13.83% to $2.14.
Calfrac Well Services Ltd. (CFW) -5.14% to $9.60. Peyto Energy Trust (PEY.UN) -5.23% to $9.06.

The Canadian dollar moved up 0.69 cent to 83.82 cents US after Statistics Canada said the economy shrank 0.1 per cent in February - much less painful than the 0.7 per cent slide in January and better than the 0.2 per cent contraction economists were projecting.

Roger Biduk
The S&P/TSX Capped Telecom Services Index was 1.23% lower and the S&P/TSX Capped Information Technology Index rose 0.56%.
Torstar Corporation (TS.B) -5.46% to $5.02.
SXC Health Solutions Corp. (SXC) +9.31% to $23.72. 5N Plus Inc. (VNP) +8.69% to $6.38. DragonWave Inc. (DWI) +5.65% to $2.62.

Stats Canada also noted that economic activity has declined 2.4 per cent since October,
Following an incredibly intense three-month plunge in Canadian output from November to January, the mild February decline seems like a relief, a version of “been down so long, it feels like up” to the economy.

In the Service sector:
Clarke Inc. (CKI) +13.27% 2.39. Resolve Business Outsourcing I (RBO.UN) +10.64% to $2.60. Cossette Inc. (KOS) +10.45% to $3.17.
Data Group Income Fund (The) (DGI.UN) -10.22% to $3.60. TMX Group Inc. (X) -5.87% to $32.09.

The Chrysler developments - including major planned production suspensions - hit already knocked-down auto parts makers.
Magna International (TSX:MG.A) fell 3.2 per cent, Linamar (TSX:LNR) dropped 4.2 per cent and Wescast Industries (TSX:WCS) plunged 19 per cent, losing 21 cents to 90 cents.

Roger Biduk
The S&P/TSX Capped Utilities Index rose 0.29%.
EPCOR Power L.P. (EP.UN) -5.18% to $11.89.

Canadian Oil Sands Trust (TSX:COS.UN) units were down $1.66 at $24.64 after its quarterly earnings came in at $43 million, down from $298 million a year ago.

The S&P/TSX Capped Industrials Index was down 1.59%.
Strongco Income Fund (SQP.UN) +51.52% to $2.50. Ballard Power Systems Inc. (BLD) +7.46% to $2.45. Bombardier Inc. (BBD.B) +7.39% to $3.78.
JDS Uniphase Canada Ltd. (JDU) -14.70% to $5.63. GLV Inc. (GLV.A) -6.74% to $5.81.

ExxonMobil Corp.'s first-quarter profit fell 58 per cent from a year ago to US$4.6 billion as the world's biggest publicly traded oil company, like the rest of the industry, saw crude and gas prices fall precipitously. Its shares were down $1.77 to US$66.67.

The S&P/TSX Capped Health Care Index was higher by 0.6883%.
Noveko International Inc. (EKO) +5.38% to $2.74.

Exxon’s Canadian subsidiary, Imperial Oil Ltd. (TSX:IMO), reported its profit plunged to $289 million from $681 million, and its shares moved 35 cents lower to $42.65 in Toronto.

Roger Biduk
The S&P/TSX Global Gold Index fell 4.06% as the April bullion contract in New York sank $9.30 to US$891.20 an ounce.
First Quantum Minerals Ltd. (FM) +6.68% to $46.15.
Laramide Resources Ltd. (LAM) -10.83% to $2.14. Centerra Gold Inc. (CG) -8.53% to $6.65. Greystar Resources Ltd. (GSL) -6.18% to $4.10. Allied Nevada Gold Corp. (ANV) -5.73% to $6.42. Premier Gold Mines Limited (PG) -5.46% to $2.25.

Teck Resources Ltd. (TSX:TCK.B) gained 52 cents to $12.53 after finalizing a deal to sell its 40 per cent stake in Alaska's Pogo gold property for US$245 million.
Denison Mines Corp. (TSX:DML) rose 23 cents or 11.5 per cent to $2.24 after CEO Peter Farmer predicted the uranium price will heat back up to US$60 or $70 a pound over the next year on increasing demand and dwindling supply.

The S&P/TSX Consumer Discretionary Index was 0.92% lower and the S&P/TSX Consumer Staples Index fell 0.78%.
Domtar Corporation (UFS) +16.85% to $2.15. Domtar (Canada) Paper Inc. (UFX) +13.66% to $2.08.
CCL Industries Inc. (CCL.B) -5.15% to $23.01.

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