Eye on Equities-G&M
Eye on Equities-G&M
EYE ON EQUITIES / STOCKS THAT SHOULD BE ON YOUR RADAR SCREEN
Wednesday, June 27, 2012
Precision Drilling (PD-TSX)
Close: $6.01, down 26¢
Precision Drilling Corp. is trading at less than half its 52-week high, with the downward slide accelerating recently in response to the decline in energy prices. The drop has attracted the attention of Desjardins Capital analyst Jamie Murray, who thinks the "selloff is overdone The shares are "very cheap on a relative and absolute basis."
Upside: Desjardins has a price target of $11.50.
Ithaca Energy (IAE-TSX)
Close: $1.52, down 4¢
Ithaca Energy Inc. has confirmed production problems at its Athena field in the North Sea. It's the second blow to Ithaca following the recent end of takeover discussions. RBC Dominion Securities says the well problem is temporary and continues to give the company an "outperform" rating, although it's chopping its target price.
Downside: RBC cut its target to $3.15 from $3.70.
Close: $26.64, down $1.22
Falling oil prices and the slowing global economy are hitting hard at Methanex Corp., the world's largest producer of methanol. Analyst Steve Hansen at Raymond James is telling investors to steer clear. "We recommend that investors remain on the sidelines until greater macro visibility emerges."
Downside: The brokerage lowered its price target to $35 (U.S.) from $42.
Poseidon Concepts (PSN-TSX)
Close: $12, down 43¢
CIBC World Markets is initiating coverage on Poseidon Concepts Corp., which pays a juicy $1.08 a share dividend annually at current rates. CIBC sees rivals trying to win market share, and says the response by the maker of storage tanks for oil and gas exploration to new competitors "will be a key to sustainability over the medium term and support share price appreciation in the near term."
Upside: CIBC set a $17.50 target and a "market perform" rating.
Premier Gold Mines (PG-TSX)
Close: $4.23, down 7¢
Premier Gold Mines Ltd. continues to lay the groundwork for the spinout of subsidiary Premier Royalty, according to Stonecap Securities. Its most recent deal was for a royalty interest on Lake Shore Gold's Timmins Mine. The acquisition leads to a modest increase in Stonecap's estimate of Premier Gold's net asset value.
Upside: The brokerage rates the company as "outperform" and has an $8.75 target.