Mosaid, Red Back, Sears Canada, Oilexco: Canadian Stock Preview

The following companies may have unusual price changes in Canadian trading today. Stock symbols are in parentheses, and share prices are from yesterday’s close in Toronto.

The Standard & Poor’s/TSX Composite Index fell 9 percent to 7,724.76. The main Canadian stock index has fallen 15 percent in four days and is poised for its worst weekly drop since Oct. 10.

Mosaid Technologies Inc. (MSD CN): The semiconductor designer reported an unexpected loss and said profit this quarter will be 41 cents a share at most, or at least 21 percent less than the average analyst estimate in a Bloomberg survey. The shares fell 2.1 percent to C$6.95.

Oilexco Inc. (OIL CN): The oil and gas producer that may be sold or merged after it was unable to access short-term credit or sell debt and stock was cut to “sector underperform” from “sector perform” by CIBC World Markets analyst Robert Pare. The shares dropped 42 percent to C$1.45 and have lost 89 percent of their value this year.

Pizza Pizza Royalty Income Fund (PZA-U CN): The pizza chain said that its units are undervalued due to market volatility and looming changes in the taxation of income trusts. The fund will buy back as much as 10 percent of its outstanding units to boost their price, Toronto-based Pizza Pizza said in a statement on Canada NewsWire. Pizza Pizza’s units fell 9 percent to C$6.25.

Red Back Mining Inc. (RBI CN): The gold mining company said that underwriters have agreed to buy 11.4 million shares for about C$40 million ($31.3 million) to sell to the public. The offering, lead by Scotia Capital Inc. and BMO Capital Markets, is expected to close on Dec. 11, Vancouver-based Red Back said. The shares added 0.8 percent to C$4.

Sears Canada Inc. (SCC CN): The country’s second-biggest department-store chain said third-quarter profit fell 34 percent to C$68.9 million ($54 million), or 64 cents a share, from C$104 million a year earlier, when the company profited from the sale of its Toronto headquarters. Revenue rose 5.5 percent to C$1.44 billion. The shares dropped 1.3 percent to C$16.54.


Source: bloomberg.com