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GLV Inc. posts another disappointing quarter

It was another set of disappointing quarterly results at GLV Inc. as additional problems surfaced at the company's water-treatment group, Ovivo. While GLV's pulp and paper group delivered stellar results, Ovivo posted an EBITDA loss of $2-million, well off Raymond James's forecast of a $6-million gain.

Downside: Frederic Bastien of Raymond Jamescut his target price to $3.50 a share from $6.

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Quarterly results at North American Energy Partners Inc., a major supplier of earth-moving and construction services, exceeded forecasts but profitability was impaired and margins were weaker than expected. Ben Cherniavsky at Raymond James remains concerned about risks to the company's near-term results, as well as the firm's leveraged balance sheet and history of disappointments.

Upside: Mr. Cherniavsky maintains his target of $3.50 a share.

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Strong quarterly results at Com Dev International Ltd. buttress the view that the company is turning its financial performance around, says Robert Young of Canaccord Genuity. The developer and manufacturer of satellite hardware reported strong orders and revenue in line with expectations, while earnings per share (excluding a one-time sale) fell a penny shy of Canaccord's 5 cents-a-share estimate.

Upside: Mr. Young increased his price target to $3 a share.

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Transcontinental Inc. has positioned itself well to preserve its printing revenue and reduce costs, says Aravinda Galappatthige at Canaccord Genuity. While the latest quarterly results were a little lower than expectations in terms of EBITDA, much of it was attributed to foreign exchange effects and a $2-million charge in the media segment.

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Downside: Mr. Galappatthige maintains his "buy" rating but is decreasing his target to $15.20 a share.

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Stable earnings from fully contracted natural gas-fired power plants offer a reason for investors to look at Northland Power Inc., as does the company's 6 per cent dividend yield. However, Jeremy Rosenfield of Desjardins Capital Markets sees limited dividend growth until 2014, because the dividend payout is larger than the company's current free cash flow available for distribution.

Downside: Mr. Rosenfield is initiating coverage with a "hold" rating and an $18-a-share target.

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About the Author

Ian McGugan is a reporter with The Globe and Mail's Report on Business and has been writing about investing, economics and business for more than 20 years. He joined the Globe and Mail in 2010. He has been executive editor of Canadian Business magazine and founding editor of MoneySense magazine. More

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