* Act I: Up From Down Under The Player: Ivernia Inc.
(TSX:IVW) Recent Price: $1.73 Action: An 82-per-cent or $0.78 gain since its low in September 52-week high: $2.46 (May 9, 2006) 52-week low: $0.95 (Sept. 15, 2006) In the fall of 2006, Ivernia's stock wasn't looking so good. In mid August, the base-metal, exploration, development and operating company announced a second-quarter net loss of US$3.8 million, sending the stock on its way to under a buck.
Revenue was down, lead prices were down, and shipped volumes were down. Even the rains were coming down, which affected the drying and shipping processes for the company's operations in Western Australia.
But things are looking up for the owner and operator of the Magellan lead mine Down Under.
The fourth quarter's revenue of US$32.8 million and net income of $5.8 million were "record performance" and "best-ever financial results," says Alan De'ath, Ivernia's president and CEO.
If these numbers are indicative of things to come, there will be many g'days in this company's future.
* Act II: Impaired Vision The Player: Extreme CCTV Inc. (TSX:EXC) Recent Price: $2.97 Action: A 15-per-cent or $0.52 drop since the January high 52-week high: $3.49 (Jan. 22, 2007) 52-week low: $2.26 (June 15, 2006) Shareholders weren't feeling the love on Valentine's Day when Vancouver-based Extreme CCTV released its first-quarter reports.
The night-vision surveillance equipment company reported a 67 per cent year-over-year growth in revenue (to $10.1 million for the three months ended Dec. 31, 2006 from $6 million a year ago), but a 37.5-per-cent decrease in net income for the same period comparison (to $351,000 this quarter from $562,000 a year ago).
The company says revenue jumped partly due to the company's acquisition of Forward Vision midway through 2006.
But offsetting those sales were lower margins and higher than expected production costs as the company upgrades systems and otherwise handles the operational integration.
It's just too bad that with all that fancy surveillance equipment, the company couldn't have seen this one coming.
* Act III: A Concrete Offer The Player: St. Lawrence Cement Group (TSX:ST.A) Recent Price: $40.20 Action: Up 23 per cent, or $7.61, from $32.59 on Feb. 23 on takeover news 52-week high: $40.90 (Feb. 27, 2007) 52-week low: $27.60 (Oct. 4, 2006) In February, St. Lawrence (SLC), a Quebec producer and supplier of products and services for the construction industry, announced its most profitable year ever, with sales of $1.4 billion and net income of $83 million. But maybe those results were too good.
Its Swiss parent, The Holcim Group, which holds majority and minority interests in more than 70 countries, informed SLC that it was making an offer of $36.50 for all Class A shares it didn't already own. (Holcim currently owns around 63 per cent of SLC.)
Shareholders pushed the stock up to $40.90, indicating they want to wait for a better offer.
Now those are some good cement shoes to be in.
* Act IV: A Packing Punch The Player: Polyair Interpack Inc. (TSX:PPK) Recent Price: $2.65 Action: Down 25 per cent, or $0.90 from Feb. 14 close of $3.55 52-week high: $4.25 (March 6, 2006) 52-week low: $1.50 (Nov. 21, 2006) It has been a tough year for Toronto's Polyair, which manufactures and distributes protective packaging products in North America.
For the three months ended Oct. 31, 2006, Polyair reported a $6.9-million loss related to discontinued operations and a $1.5-million loss from continuing operations. For the 12 months ended at the same time, reports show a $23.5-million loss.
And to kick off 2007, the company voluntarily delisted from AMEX.
But there is some good news.
Thanks to lower production costs and higher sales volumes, the company's core business line is becoming more profitable - so don't pack it in just yet.
(The above is not intended as investment advice to buy or sell any mentioned securities. Investors should do due diligence before investing. Quotes are based on results through March 1, 2007.)
(Nicole Strandlund can be reached at nicole@businessedge.ca)
