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Bellatrix light-oil venture with South Korean partner called off

Inside the Market's roundup of some of the Canadian small caps making news and on the move today

GuestLogix Inc. reported third-quarter breakeven earnings per share, in line with consensus, while revenue of $9.4-million came in below consensus of $9.692-million.

Laurentian Bank upgraded GuestLogix to "buy" from "hold" this morning with a price target of $1.30 (Canadian).


Ritchie Bros. Auctioneers Inc. announced several changes to its reporting structure and senior management team. "Having completed an extensive review of company operations and historical performance, Ravi Saligram, CEO, is now in the process of developing a strategic roadmap for the Company, which will be disclosed on January 12, 2015, at an Investor and Analyst Day in New York," the company said in a statement.

Ritchie Bros. also announced its third-quarter earnings, with adjusted EPS coming in at 13 cents, down from 15 cents a year ago, and revenues sliding 3 per cent from a year earlier.


Wajax Corp. reported third-quarter results, with revenues of $359.5-million up from $338.5-million a year earlier and in line with the Street consensus. Adjusted earnings per share rose to 79 cents - beating the consensus expectation of 70 cents - from 69 cents a year ago.

Looking forward, management is turning more cautious for the rest of 2014, given recent and continuing weakness in commodity markets and mixed market demand in Canada. In particular, Wajax expects the equipment segment and power systems to be adversely impacted by constraints in capital goods purchases and certain areas of maintenance spending by mining and oil sands customers. However, the company remains positive on the outlook for industrial components as it continues to build its backlog in a number of market sectors, coupled with the lower cost base.

"In terms of trading, we would expect a mixed reaction to the results, given the stronger-than-expected results and management's decision to maintain the dividend. However, given the more conservative outlook for 2014, the 3Q EPS beat implies weaker than previously expected 4Q results," commented Desjardins analyst Benoit Poirier in a research note. He reiterated a "hold" rating and $37 (Canadian) price target.


CT Real Estate Investment Trust reported third-quarter results that were on par with Street forecasts. It also announced a 2 per cent bump in its distribution to unitholders.

Desjardins Securities analyst Michael Markidis said the takeaway from the results is "slightly positive" and he reiterated a "hold" rating and $12 (Canadian) price target. He said the hike in its distribution is "consistent with our expectations and should allow CT REIT to strike a balance between a distribution increase and a reduction in the payout ratio."


COM DEV International Ltd.  announced that it has been awarded a fully-funded contract valued at approximately $7.5-million to deliver passive microwave Ku-band equipment, including multiplexers, to be used on a high throughput communications satellite. The satellite is intended to provide broadcast and telecom services throughout Eastern Europe and Asia.

Work on the contract will be carried out at the Company's facility in Cambridge, Ontario with completion expected by May 2015.


Bellatrix Exploration Ltd. reported that its third-quarter revenues, before royalties and risk management, rose to $137.4-million from $68.3-million a year earlier. EPS per diluted share slid 2 cents to 23 cents. Its board approved an initial $450-million capital budget for 2015.

Cash flow per share of 32 cents came in slightly below Street expectations of 35 cents, due primarily to lowered realized pricing. It reaffirmed its full-year guidance.


Savanna Energy Services Corp. reported EPS from continuing operations of 10 cents, matching consensus expectations. Revenue of $200-million was just above the consensus of $198.7-million.

Savanna has not received any client indications regarding a slowdown in activity for the next six months (however beyond this, uncertainty remains). In North America, the company believes that winter drilling activity should be on track with last year, noted AltaCorp Capital Research analyst Dana Benner.


WesternZagros Resources Ltd. has been informed by its co-venturer and operator, Talisman, that the Kurdistan Regional Government has requested changes to the Kurdamir Development Plan that was submitted at the end of August. WesternZagros and Talisman plan additional consultation with the Ministry of Natural Resources of the KRG to refine the development plan. During this review period, operations on the Kurdamir Block and the drilling of the Kurdamir-4 well will be deferred.


Enerdynamic Hybrid Technologies Corp. (formerly MCM Capital One Inc.) has entered into an agreement with Reliant First Nation Limited Partnership to acquire up to 46 megawatts of solar energy power generation contracts from Reliant. The projects consist of 176 solar energy systems to be installed on various school rooftops in Ontario, is expected to produce more than 58 million hours of electricity per year.


Banro Corp. announced the signing of a definitive agreement with Gold Holding Ltd. for a $41-million (U.S.) gold sale transaction relating to the Twangiza mine.


Mawson West Ltd. announced an operations, exploration and corporate update, including production results from the company's Dikulushi mine and a progress report on commissioning of the Kapulo mine, both located in the Democratic Republic of Congo.

Mawson West Chief Executive Bruce McFadzean said: "Dikulushi has commenced delivering ore tonnes from the caving mining method introduced in July 2014, although results were below expectation primarily as a result of dilution issues from the open pit interface."

"At Kapulo, our on-site team has worked vigorously to advance construction and we have commenced commissioning the plant. The powerhouse, transformers and MCC's are now energized and motors and pumps are being turned," he said.


CCL Industries Inc. announced it has acquired Label Connections Ltd., a private UK company based in St. Neots, near Cambridge that designs, manufactures and markets under the PCL brand, a range of pre-die cut pressure sensitive labels in sheet form for use on professional digital printers. 2014 Label Connections' sales are estimated to be approximately $4-million with an adjusted EBITDA of $0.6-million. The transaction purchase price totals approximately $2.4 million in assumed debt and cash.


Blackhawk Resource Corp. said the TSX Venture Exchange suspended trading in its securities as a result of a Cease Trade Order issued by the Alberta Securities Commission.

This suspension of trading by the TSXV is a direct result of the corporation's delayed filing of its year end 2014 financial information due to finalization of audit matters.

"The corporation anticipates that reinstatement will occur once the Corporation has filed its 2014 financial information, which are anticipated to be completed shortly, but in any event, by mid-November 2014," a statement from Blackhawk said.


TVA Group Inc. recorded a net loss of $35.7-million, or $1.50 per share, in the third quarter of 2014, compared with net income attributable to shareholders of $6.3-million, or 27 cents per share, in the same quarter of 2013.

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