C6 RED DEER ADVOCATE Thursday, Nov. 7, 2013
MARKETS COMPANIES OF LOCAL INTEREST Wednesday’s stock prices supplied by RBC Dominion Securities of Red Deer. For information call 341-8883.
Diversified and Industrials Agrium Inc. . . . . . . . . . . . 90.80 ATCO Ltd.. . . . . . . . . . . . 48.59 BCE Inc. . . . . . . . . . . . . . 45.50 BlackBerry . . . . . . . . . . . . 6.92 Bombardier . . . . . . . . . . . . 4.66 Brookfield . . . . . . . . . . . . 41.63 Cdn. National Railway . 115.94
Cdn. Pacific Railway. . . 152.53 Cdn. Utilities . . . . . . . . . . 38.04 Capital Power Corp . . . . 21.67 Cervus Equipment Corp 20.63 Dow Chemical . . . . . . . . 39.26 Enbridge Inc. . . . . . . . . . 46.56 Finning Intl. Inc. . . . . . . . 23.92 Fortis Inc. . . . . . . . . . . . . 32.34
MARKETS CLOSE TORONTO — The Toronto stock market closed slightly higher Wednesday amid positive earnings news and hopes that the European Central Bank will cut interest rates to help a weak economy recover. The S&P/TSX composite index was up 18.7 points to 13,380.41, with added strength from the mining components. The Canadian dollar was up 0.37 of a cent to 95.99 cents US amid strong housing data. Contractors took out $6.5 billion worth of building permits in September, up 1.7 per cent from August and much higher than the 0.7 per cent rise that had been expected. U.S. indexes were mainly higher as the Dow Jones industrials ran up 128.66 points to an all-time high of 15,746.88. The Nasdaq fell 7.92 points to 3,931.95 while the S&P 500 index gained 7.52 points to 1,770.49. Hopes rose Thursday that the European Central Bank would announce a rate cut to a record low of 0.25 per cent after the EU’s statistics office said that retail sales across the 17-country eurozone fell 0.6 per cent in September from the month before. Markit, the financial information company, revealed that its Eurozone composite purchasing managers’ index, a broad gauge of economic activity, faltered in October. The index slipped from a 27-month high of 52.2 in September to 51.9 points last month, although the October figure was revised up from the initial estimate of 51.5. Although it was above the 50 threshold indicating expansion, the figures suggest the European recovery lacks strength and is vulnerable to setbacks. “It’s going to be a long arduous process digging out from under sovereign debt and all the other issues they face there,” said Bob Gorman, chief portfolio strategist at TD Waterhouse. “The likelihood is they have passed the worst in Europe, not that it’s going to be easy, but that’s probably the case and I think they have to be nurturing this very carefully and the ECB moves will be part of that.” The ECB holds its regularly scheduled interest rate meeting on Thursday. On the earnings front, autoparts company Magna International’s (TSX:MG) quarterly revenue was up 13 per cent to US$8.3 billion. However, net income fell from last year, dropping to US$319 million, or $1.39 per diluted share, from $390 million a year ago amid restructuring charges. The results beat analyst expectations and its shares rose $1.21 to $90.19. “I think the real story here was the top line, the sales,” added Gorman. “You have a situation in which Magna is getting more out of each vehicle that is constructed. In contrast with many, many companies which are having a really tough time increasing the revenue number much, Magna really stands out here.” Oil and gas producer Talisman Energy Inc. (TSX:TLM) posted a quarterly US$45 million loss from operations, or four cents per share, up from a loss $36 million or four cents per share a year earlier. Its shares slipped 34 cents to C$12.48. Enbridge Inc. (TSX:ENB) says its adjusted earnings in the third quarter rose to $278 million or 34 cents a share, which was up four per cent from a year earlier but a penny short of analyst estimates. Its shares rose 76 cents to $46.56. Molson Coors Brewing’s (TSX:TPX.B) (NYSE:TAP) quarterly net income dropped to US$121.8 million on large European charges, but its profit increased 7.7 per cent to US$268.1 million, beating analyst expectations. Total sales decreased two per cent to US$1.17 billion. In New York, its shares rose 68 cents to US$54.69. Commodity prices improved and gold stocks led advancers, up about 1.27 per cent while December gold rose $9.70 to US$1,317.80 an ounce. Goldcorp (TSX:G) gained 28 cents to C$26.25. The base metals sector gained 0.9 per cent while December copper
slipped two cents to US$3.25. Teck Resources (TSX:TCK.B) was ahead 26 cents to C$28.97. The energy sector was off 0.47 per cent while December crude on the New York Mercantile Exchange gained $1.43 to US$94.80 after data showed inventories grew less than expected last week, rising by 1.6 million barrels, against the 2.5 million that had been expected. Penn West Petroleum Ltd. (TSX:PWT) shares plunged $1.89, or 16.25 per cent, in heavy trading of 6.2 million shares after the Albertafocused oil producer signalled it’s preparing for another transitional year as it pares down its portfolio. Penn West also issued a flurry of announcements earlier, including a third-quarter financial report that mostly met or beat analyst estimates and a plan to sell $1.5 billion to $2 billion of assets before the end of 2014. Traders also looked ahead to other key U.S. economic data coming out this week, including third-quarter economic growth figures Thursday and the U.S. government’s October employment report on Friday. The data from both reports will help the Federal Reserve decide if the economy is strong enough to allow the central bank to start tapering its monthly US$85 billion of bond purchases. Market highlights TORONTO — Highlights at the close of Wednesday at world financial market trading. Stocks: S&P/TSX Composite Index — 13,380.41 up 18.70 points TSX Venture Exchange — 941.23 down 4.38 points TSX 60 — 769.81 up 1.16 points Dow — 15,746.88 up 128.66 points, record high S&P 500 — 1,770.49 up 7.52 points Nasdaq — 3,931.95 down 7.92 points Currencies at close: Cdn — 95.99 cents US, up 0.37 of a cent Pound — C$1.6752, down 0.27 of a cent Euro — C$1.4084, down 0.06 of a cent Euro — US$1.3519, up 0.46 of a cent Oil futures: US$94.80 per barrel, up $1.43 (December contract) Gold futures: US$1,317.80 per oz., up $9.70 (December contract) Canadian Fine Silver Handy and Harman: $23.701 per oz., up 17.3 cents $761.99 per kg., up $5.56 TSX VENTURE EXCHANGE TORONTO — The TSX Venture Exchange closed on Wednesday at 941.23, down 4.38 points. The volume at 4:20 p.m. ET was 133.14 million shares. ICE FUTURES CANADA WINNIPEG — Closing prices: Canola: Nov. ’13 $3.00 lower $482.20; Jan. ’14 $3.80 lower $490.70; March ’14 $3.80 lower $499.00; May ’14 $3.50 lower $505.20; July ’14 $3.40 lower $511.10; Nov. ’14 $3.60 lower $516.90; Jan ’15 $3.60 lower $519.80; March ’15 $3.60 lower $520.20; May ’15 $3.60 lower $514.70; July ’15 $3.60 lower $511.90; Nov ’15 $3.60 lower $508.10. Barley (Western): Dec ’13 unchanged $152.00; March ’14 unchanged $154.00; May ’14 unchanged $155.00; July ’14 unchanged $155.00; Oct. ’14 unchanged $155.00; Dec. ’14 unchanged $155.00; March ’15 unchanged $155.00; May ’15 unchanged $155.00; July ’15 unchanged $155.00. Wednesday’s estimated volume of trade: 440,100 tonnes of canola; 0 tonnes of barley (Western Barley) Total: 440,100.
General Motors Co. . . . . 36.59 Parkland Fuel Corp. . . . . 18.52 Sirius XM . . . . . . . . . . . . . 8.70 SNC Lavalin Group. . . . . 46.90 Stantec Inc. . . . . . . . . . . 64.75 Telus Corp. . . . . . . . . . . . 36.15 Transalta Corp.. . . . . . . . 14.33 Transcanada. . . . . . . . . . 48.16 Consumer Canadian Tire . . . . . . . . . 96.95 Gamehost . . . . . . . . . . . . 14.30 Leon’s Furniture . . . . . . . 13.15 Loblaw Ltd. . . . . . . . . . . . 47.50 Maple Leaf Foods. . . . . . 15.50 Rona Inc. . . . . . . . . . . . . 12.22 Shoppers . . . . . . . . . . . . 61.03 Tim Hortons . . . . . . . . . . 62.60 Wal-Mart . . . . . . . . . . . . . 78.16
DETROIT — Volvo has realized that safe is better than sexy. After several years adrift, as it changed owners and flirted with sexier ads, the Swedish automaker is in the midst of an $11 billion turnaround plan that it hopes will nearly double worldwide sales to 800,000 by 2020. It is building new plants in Sweden and China, introducing new vehicles and developing its own infotainment system that it says will be less distracting. The company is also hiring a new ad agency and working on a bolder message emphasizing Volvo’s reputation for safety. One idea that could make it into the company’s ads: Volvo’s internal goal of having no deaths or serious injuries in
D I L B E R T
Mining Barrick Gold . . . . . . . . . . 19.13 Cameco Corp. . . . . . . . . 19.86 First Quantum Minerals . 20.03 Goldcorp Inc. . . . . . . . . . 26.25 Hudbay Minerals. . . . . . . . 8.87 Kinross Gold Corp. . . . . . . 5.28 Potash Corp.. . . . . . . . . . 33.61 Sherritt Intl. . . . . . . . . . . . . 3.50 Teck Resources . . . . . . . 28.97 Energy Arc Energy . . . . . . . . . . . 28.73 Badger Daylighting Ltd. . 72.25 Baker Hughes. . . . . . . . . 57.96 Bonavista . . . . . . . . . . . . 11.58 Bonterra Energy . . . . . . . 57.74
Cdn. Nat. Res. . . . . . . . . 32.49 Cdn. Oil Sands Ltd. . . . . 20.36 Canyon Services Group. 11.33 Cenovous Energy Inc. . . 30.52 CWC Well Services . . . . 0.790 Encana Corp. . . . . . . . . . 19.44 Essential Energy. . . . . . . . 2.99 Exxon Mobil . . . . . . . . . . 93.22 Halliburton Co. . . . . . . . . 54.40 High Arctic . . . . . . . . . . . . 2.90 Husky Energy . . . . . . . . . 29.76 Imperial Oil . . . . . . . . . . . 45.44 Pengrowth Energy . . . . . . 6.66 Penn West Energy . . . . . . 9.74 Pinecrest Energy Inc. . . . 0.550 Precision Drilling Corp . . 10.84 Suncor Energy . . . . . . . . 36.69 Talisman Energy . . . . . . . 12.48 Trican Ltd.. . . . . . . . . . . . 14.16
Trinidad Energy . . . . . . . . 9.75 Vermilion Energy . . . . . . 57.68 Financials Bank of Montreal . . . . . . 73.16 Bank of N.S. . . . . . . . . . . 63.95 CIBC . . . . . . . . . . . . . . . . 88.96 Cdn. Western . . . . . . . . . 33.00 Carfinco . . . . . . . . . . . . . 11.34 Great West Life. . . . . . . . 32.37 IGM Financial . . . . . . . . . 50.15 Intact Financial Corp. . . . 66.95 Manulife Corp. . . . . . . . . 18.71 National Bank . . . . . . . . . 91.38 Rifco Inc.. . . . . . . . . . . . . . 6.31 Royal Bank . . . . . . . . . . . 70.18 Sun Life Fin. Inc.. . . . . . . 35.43 TD Bank . . . . . . . . . . . . . 95.96
Twitter hires Barclays to supervise IPO trading BY THE ASSOCIATED PRESS NEW YORK — When Twitter goes public on the floor of the New York Stock Exchange, it will trade under the supervision of Barclays Capital. Barclays Capital said Wednesday the social media company has hired the bank to be its “designated market maker,” a critical role when a stock first starts trading on the NYSE. Twitter’s stock is expected to debut on Thursday. A DMM supervises the trading of a company’s stock. He or she is an experienced trader in charge of ensuring that buying and selling go smoothly. If trading becomes volatile, the DMM can step in and buy shares using his or her firm’s own money. DMMs are especially important the day a company goes public, because the DMM co-ordinates between Twitter, the company’s investment banks and NYSE’s floor traders to get a stock trading. Every NYSE-listed has a DMM. DMMs, previously known as specialists, are unique to the NYSE. If technical problems arise, the NYSE uses DMMs to bypass electronic trading systems, allowing humans to trade a company’s stock. That is not possible on all-electronic stock exchanges such as the Nasdaq.
File photo by THE ASSOCIATED PRESS
Chief Executive Officer at Twitter, Dick Costolo gives a speech at the Cannes Lions 2012, International Advertising Festival in Cannes, southern France. When Costolo took charge in 2010, Twitter’s revenue was $28 million. This year, it’s on track to be more than $600 million. The Nasdaq’s trading system had technical problems during Facebook’s IPO last year, which led to trading delays and problems with orders. Barclays’ role as Twitter’s DMM does not mean it is in charge of the entire IPO process. That role falls to Twitter’s investment banks: Goldman Sachs, Morgan Stanley and JPMorgan Chase.
Barclays is the NYSE’s second-biggest market-making firm, representing more than 700 companies on the floor of the exchange. The British company acquired the business when it bought parts of Lehman Brothers after that firm’s bankruptcy in Sept. 2008. Barclays has since added other firms to its DMM business.
Popular Heady Topper beer closes Vt. retail site after neighbours’ complaints BY THE ASSOCIATED PRESS WATERBURY, Vt. — A Vermont microbrewery that makes one of the world’s best beers plans to close down its retail operation to head off the trouble that’s brewing with its neighbours. Customers lined up at The Alchemist brewery on Tuesday to buy cases of Heady Topper, the double IPA that Beer Advocate magazine recently ranked No. 1 out of the top 250 beers in the world. The hoppy concoction is so popular — sales have grown from 30 barrels a week to 180 a week in the two years since the brewery opened on the outskirts of Waterbury — that owners Jen and John Kimmich plan to shutter their retail operation on November 15 to avoid a neighbourhood dispute. “We’ve had complaints from neighbours,” Jen Kimmich said. “We would have had to fight to keep on going ... We decided to close down before it turns into a large legal battle.” The couple plan to re-open the retail outlet as soon as possible and is actively looking for other locations in Waterbury, Kimmich said. While the retail end of the business is closing for now, the brewery will continue operating and will keep its staff of 25, she said.
Volvo plots return to the U.S. market next year BY THE ASSOCIATED PRESS
WestJet Airlines . . . . . . . 27.56
new Volvo cars by 2020. Volvo doesn’t currently know how many people die each year in its cars, since most countries don’t keep that data. But it says independent studies in Sweden have shown that Volvo passengers are several more times likely to escape injury after a crash. During a recent U.S. trip to visit its dealers here, Volvo’s top executives said the brand’s ads have strayed from Volvo’s traditional strengths and emphasized different things depending on where they ran. In 2010, for example, Volvo ran North American ads positioning the S60 sedan as “naughty” to attract young buyers, but it just confused people who knew the brand for its innovative safety features. “Our strength is what we have built over decades,” marketing chief Alain Visser said.
The Alchemist has become a jewel in the frothy crown of Vermont microbreweries that had spawned a new sort of beer tourism, in which connoisseurs from around the world would come to sample prizewinning brews of Lawson’s Finest Liquids in Waitsfield, the Shed in Stowe, Hill Farmstead in Greensboro and others. Even a temporary closure was a disappointment to fans stopping by the shop Tuesday. “It’s a sad situation, it really is,” said Andy McLenithan of Manchester in southern Vermont, who with his co-worker Scott Senecal had driven an hour out of their way on the trip home from building a baseball diamond in St. Johnsbury to stop at the Waterbury brewery. Andy Ferko of nearby Bolton said he had known the Kimmichs since he used to stop by at the Alchemist, the restaurant they owned on Waterbury’s Main Street until it was closed two years ago by flooding from Tropical Storm Irene. “I come to Waterbury to go to the hardware store, the grocery store,” Ferko said. Visiting with the Kimmichs as he stocked up on Heady Topper was “kind of a little social visit, too.” Ferko said his wife, Mags Bonham, was losing an outlet for her artwork, including earrings in the shape of hops kept in a display case next to the main beer counter.
STORIES FROM PAGE C5
AGRI-TRADE: Tech pavilion good idea Ag product manager for Intelligent Agricultural Solutions of Fargo, N.D., Volesky described how his company has developed an acoustics-based monitor that uses sound rather than optical or infrared sensors to detect blockages in seed manifolds. If one occurs, the seeder’s operator receives a visual and audible warning via WiFi, on an iPad. Volesky thinks Agri-Trade’s Technology Pavilion is a good idea. “A lot of other shows do that too. It’s a way to get people who are interested in this kind of stuff in the same area.” Keller agreed. “If someone is coming in looking at some new technology, they come here and they can find it all, instead of trying to find it scattered throughout the show.” Younger producers tend to drive the adoption of innovative technology, noted Carpenter. “They’re not as scared of the new technology as a lot of the older generations, because they grew up using it.” And they often convince their parents to change, added Culp. “A lot of the older farmers still like the old ways, but their sons and daughters are starting to look into robotics and go the high-tech route.” Volesky pointed out that many of those veteran farmers still have considerable sway when it comes to adopt-
ing new advances. “It’s still the older guys who are writing the cheques a lot of the time, so they have to buy into it as well.” Volesky added that it’s important suppliers show that there is value in their new products. “You can’t just have something that looks cool; you have to be able to place a dollar value on it and it be something that makes their life easier.” Agri-Trade started on Wednesday and continues through to Saturday at Westerner Park. Show hours are 9 a.m. to 5 p.m. today and Friday, and 9 a.m. to 3 p.m. on Saturday. hrichards@reddeeradvocate.com
TRADE: Benefits down the road RBC economist Laura Cooper says it is difficult to verify the claims, given the lack of details in what has been announced. She concludes, in a five-page analysis issued to clients on Wednesday, that while there are potential benefits for the economy down the road, “there will be little noticeable economic impact for Canada over the short-term.” A big reason for tempering expectations, say the reports, is that current trade volumes between Canada and the EU are modest. In 2012, Canadian exports totalled about $463 billion, but only $41 billion went to the EU, so even a 20 per cent boost to the volume will be a modest increase in the overall economies of both.