SMALL CAPS: MidnightTrader Stocks To Watch For Thursday Dec 15
Midnight Trader's Small Caps To Watch column is published in Canada's Globe and Mail newspaper under the Investing section each work day.
Canadian holiday travel operator Transat AT Inc (TRZ-B.TO) may come under pressure today after saying net loss for the fourth quarter was $4.5 million or 12 cents a share, compared with a profit of $52.4 million or $1.37 in the year earlier period. On an adjusted basis, the company earned 27 cents a share, compared with $1.25 in the same quarter last year. Five analysts polled by Thomson Reuters reportedly estimated earnings of 38 cents per share. Revenue rose to $809.9 million from $778.6 million. Four analysts polled by Thomson Reuters reportedly estimated revenues of $816.50 million. Transat has an existing year low of $5.56.
Crocodile Gold Corp. (CRK.TO), which rose more than 40% on Wednesday in moving well away from a year low 31.5 cents, last night provided an update to its earlier press release in which it acknowledged the announcement by Luxor Capital Group, LP on December 13, 2011 of its intention to make an unsolicited partial bid for the common shares of Crocodile Gold. The company announced that it has formed a special committee of independent directors comprised of George Faught, Peter Tagliamonte and Bruce Humphrey to review the unsolicited partial bid by Luxor. Upon the formal bid being made, the Special Committee will consider, among other things, whether the bid is in the best interest of the Company's shareholders and whether it represents fair value for the common shares of Crocodile Gold. New York-based private equity firm Luxor on Tuesday offered to buy around 69% of Crocodile Gold at 56 cents apiece, which was 64% higher than the stock's Monday closing.
Guyana Goldfields Inc. (GUY.TO), which recent reports said was the subject of takeover interest from six other firms, closed yesterday down more than 8% and just above a near 18 month low of $6.82. Last night it announced the completion of an updated Mineral Resource Estimate for the company's wholly owned Sulphur Rose property at its Aranka group of properties in Guyana, approximately 55 kms away (by road) from the Aurora Gold project. The 2011 drilling program was concentrated on infill drilling in order to increase the confidence level of the initial ore resource identified in 2010. The reported resource contains 277,580 oz of Au in the indicated category, including 275,550 oz of Au for the open pit. A total of 289,250 oz of Au have been identified in the inferred category. A cut-off grade of 0.28 g/t Au was used for the open pit and 1.83 g/t Au was used for the underground.
Gibson Energy Inc. (GEI.TO) announced that its Board of Directors has approved a 2012 capital budget of $173 million for internal growth investments, strategic investments and for the upgrade and replacement of existing assets.
Approximately $113 million, or 65%, of the 2012 capital expenditure is directed towards growth investments. About 55% of the growth investments are earmarked for the Terminals and Pipelines segment, which includes Custom Treating and Terminals. Significant investments are also planned for both the Truck Transportation and Processing and Wellsite Fluids segments.
Commerce Resources Corp. (CCE.V), which lost nearly 5% yesterday, reported the results for an additional five drill holes completed during the summer/fall exploration program at the Ashram Rare Earth Element Deposit, at the Eldor Project in northern Quebec. Of the results, it said two holes have significantly expanded the Middle and Heavy Rare Earth Oxide zone at depth, increasing it to more than 175 metres from surface. Highlights are as follows: Drill Hole EC11-075, 104.19 metres of 12.7% MHREO at 1.54% Total Rare Earth Oxides; Drill Hole EC11-076A, 176.43 metres of 12.3% MHREO at 1.56% TREO.
Titan Logix Corp. (TLA.V), which is trading near to a year high 35 cents, announced that Les J. Evans, the company's Chief Executive Officer, will retire on December 15th, 2011. The Board of Directors announced that Greg J. McGillis will replace him as President and CEO. He will be nominated as a member of the board of directors at the company's annual meeting in January.
Hathor Exploration Limited (HAT.TO) confirmed that approximately 107,343,487 Hathor common shares have been validly tendered to Rio Tinto plc as of 5 pm Eastern Standard Time (EST) on December 12, 2011, through an indirect wholly-owned Canadian subsidiary. The tendered common shares represent 84.26% of the outstanding common shares of Hathor, other than the Hathor common shares already held by an affiliate of Rio Tinto. Rio Tinto on December 12, 2011, extended its offer to acquire all the common shares of Hathor for C$4.70 in cash per common share until 5 pm EST on December 22, 2011. Hathor also announced the changes to its Board of Directors. Jim Malone (Chairman), Ben Ainsworth and Martin Glynn have resigned from the Board. Michael Gunning and John Currie remain on the Board and are joined by the following new members from Rio Tinto: Dominique Bouchard (Chairman), Simon Wensley, Stephen Scott and Justin Quigley.
Richmont Mines Inc. (RIC.TO) announced today an updated resourcebase calculation for its Wasamac gold property. Martin Rivard, President and CEO, commented: "We are very pleased with the progress that has been made at our Wasamac project in 2011, and are particularly delighted by the 35% and 111% growth in this property's measured and indicated and inferred resource base, respectively, over last year's levels. The increase comes from our extensive 2011 exploration drilling program as well as from the addition of existing geological data in the area surrounding the Main Zone. These results strengthen our belief that Wasamac has the potential to play a pivotal role in our objective to expand the Corporation's production profile."
Whitecap Resources Inc. (WCP.TO), which was just 8 cents below 20-day SMA $8.23 at yesterday's close, announced today that it has entered into an arrangement agreement to acquire all the issued and outstanding common shares of Compass Petroleum Ltd. (CPO.V). Under the terms of the transaction, Compass shareholders will receive either 0.205 of a Whitecap common share or $1.60 in cash, subject to an aggregate cash maximum of $20 million and a maximum distribution of approximately 10.9 million Whitecap common shares. Whitecap also announced today its revised 2012 guidance that has cash flow increasing 23% to $179 million, average production increasing 20% to 11,000 boe/d, exit production increasing 21% to 12,200 boe/d and capital spending increasing 23% to $185 million from the previous guidance provided.
DDS Wireless International Inc. (DD.TO), which traded slightly below 20-day SMA $1.76 at the close of yesterday's session, announced today that its Taxi Business Unit, Digital Dispatch Systems, has accepted a significant order from Taxis G7 of Paris, France for the company's Vector 9000 mobile data terminals. The provider of application software for multiple vertical markets within the transportation industry said the order has a value of more than $1.25 million and will be delivered in several lots between December 2011 and June 2012.
ATM provider DirectCash Payments Inc. (DCI.TO), which closed yesterday's session at $19.50, today announced a cash dividend of $0.115 per share for the month of December, 2011. The company said the dividend will be paid on January 31, 2012, to shareholders of record on December 30, 2011.
Alturas Minerals Corp. (ALT.V), which has hit year low $0.095 at the close of the December 13 session, could recoup gains today after announcing encouraging assay results from the first four widely-spaced diamond drill holes completed as part of the first phase 5,000 meter drill program at its Chapi Chapi project in southeastern Peru. Miguel Cardozo, President and CEO of Alturas commented: "The significant lateral and vertical extent of the mineralization encountered to date would suggest that we are on track to defining a large, potentially economic, copper-gold mineralized system and that a second phase drilling program of 10,000 meters planned for 2012 is now fully justified."
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