- Hot. Alcan Inc. (AL-TSE), up $3.28 or 6 per cent to $60.08 in afternoon trading.
Shares of the Canadian mining giant soared for their second-straight session Wednesday, continuing to ride Tuesday's wave started by its latest quarterly earnings statement. The aluminum producer saw fourth-quarter earnings plunge from last year's level but said that it expects global consumption to rebound in 2002, despite continuing economic uncertainty. Some analysts altered their view on the company's stock in the wake of the outlook, including Merrill Lynch, which raised its rating to "strong buy" from intermediate-term "neutral." Merril also lifted its stock-price target to $45, saying Alcan's business is set to rebound after its earnings have bottomed out. Prudential Financial upgraded Alcan to "buy" from "sell." UBS Warburg reiterated its "buy" recommendation saying it views "these as good operating results in a tough economic environment" and slots aluminum as one of its "favoured" metals. "Given Alcan's exposure to aluminum, strong balance sheet and attractive valuation, we continue to rate the shares a Buy," the UBS analyst wrote in the research note.
- Not. BCE Emergis Inc. (IFM-TSE), down $5.65 or 14 per cent to $34.55.
BCE Emergis said its crystal ball was murky and investors reacted by focussing on the sell button, unloading its shares at a fevered pitch Wednesday. The e-commerce software firm, based in Montreal, said Tuesday night that its 2002 outlook was murky because of uncertainty in the tech sector and the possible impact that may have e-commerce. The stock sat near the top of the TSE's most-active list through mid-afternoon, with more than 2.1 million shares changing hands - much higher than its average daily volume. But not everyone is outright bearish on the stock. UBS Warburg analyst Jeffery Fan maintained his "buy" rating but urged caution. "Even with strong results, we are taking a more conservative approach by lowering our estimates (mostly for second-half 2002) as we believe the transaction revenue from e-invoicing and eHealth will not likely ramp up materially until 2003." Wednesday's selloff chopped nearly $600-million off the company's market capitalization. Shares of BCE Emergis, a subsidiary of Canadian market mover BCE Inc., have fallen about 40 per cent from their 52-week high of $58.50 but remain significantly higher than their year-long low of $20.52.
- Hot. Emulex Corp. (EMLX-Nasdaq), up $4.68 (U.S.) or 12 per cent to $43.28.
The data storage and communications equipment firm saw its stock jump on a series of analyst upgrades, sparked by its latest quarterly results. The company - which posted a net loss Tuesday that beat analysts' forecasts - saw stock upgrades from high-profile brokerages JP Morgan, Salomon Smith Barney, First Albany, CE Unterberg Towbin and AG Edwards Wednesday. But while its bottom line was slightly higher than expected, it was its guidance that managed to impress investors. Emulex raised its outlook for the rest of the year, seeing market-share gains and signs of an improving economy. Shares of Costa Mesa, Calif.-based Emulex have had a rocky year, to say the least, moving within a $8.4 and $109.75 range.
More hot stocks:
- Bombardier Inc. (BBD.B-TSE)
- Ati Technologies Inc. (ATY-TSE)
- Canadian National Railway Co. (CNR-TSE)
- Siebel Systems Inc. (SEBL-Nasdaq)
- Nokia Corp. (NOK-NYSE)
More not-so-hot stocks:
- Tyco International Inc. (TYC-NYSE)
- Palm Inc. (PALM-Nasdaq)
- Bell Canada International Inc. (BI-TSE)
- Barrick Gold Inc. (ABX-TSE)
- Biovail Corp. (BVF-TSE) With reports from Reuters News Agency