The Best Two Ways to Play Canada’s Economy, Currency And Natural Resources

Tony Daltorio, Investment U Research

A vast amount of natural resources. A love of hockey. A penchant for bacon. And liberal use of the word “eh.”

All are associated with Canada, of course. But America’s neighbor to the north boasts another fine trait: an efficiently run economy.

You see, although Canada borders the United States, it takes a completely different approach towards economic policy.

That showed strongly just recently when America stoked protectionist fears by slapping stiff duties on tire imports from China. Yet days later, Canada unveiled plans for a significant move in the opposite direction. Canada aims to abolish all remaining tariffs on imported machinery and equipment used by domestic manufacturers, saving Canadian manufacturers C$250-300 million a year.

And while the United States dithers over

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Dow Chemical Co. (DOW) completed the sale of its Netherlands-based crude oil refinery to Paris-based Total SA (TOT), one of the six major global oil companies, for about $800 million. The refinery is a key supplier of refined products, including diesel, to the European market. The move is in line with Dow’s strategy of divesting non-core assets. The deal received regulatory approval last month.

The Midlands, Michigan-based chemical company stated that the divestiture will increase its financial flexibility, improve cash flow and will help pay down debt. The company plans to use the proceeds from the deal to pay down debt, which was raised for the Rohm and Haas acquisition.

The Rohm and Haas acquisition increased Dow’s net debt from $8 billion to $22 billion in the first half of 2009. This resulted in a significant net cash deficit of $19 billion during the period. However, Dow Chemical has become

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For Immediate Release

Chicago, IL – August 28, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: General Electric (GE), JPMorgan Chase & Co. (JPM), United Technologies Corp. (UTX), Tyco International (TYC) and Precision Castparts Corp. (PCP).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Thursday’s Analyst Blog:

GE to Sell Security Business

General Electric (GE) is arranging to sell its security business, which makes alarms, surveillance systems and other safety products, and hopes to attract bids in the range of $2 billion for the unit. This move represents GE’s strategy

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Yesterday, Precision Castparts Corp. (PCP) announced its decision to acquire Carlton Forge Works and related entities for $850 million. Carlton, with one facility in Paramount, CA, is a leading manufacturer of seamless rolled rings for critical aerospace applications. Carlton is a key supplier for Boeing 787 and Airbus XWB. Precision Castparts will also acquire Arcturus Manufacturing Corporation, a hammer forging operation, as a part of this transaction.  The acquisition, which is expected to be completed in the third quarter of fiscal 2010, will further strengthen PCP’s forging capabilities. The transaction is expected to be immediately accretive to the company’s earnings. Precision Castparts derived 43.6% of its fiscal 2009 revenue from the Forged Products segment. The company is one of the leading manufacturers of forged components for the aerospace and power generation markets. The company has been expanding its Forged Products business through regular acquisitions. The previous ...

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Commodities prices are …

“First Ounce Bounce” Set to Pay 1,100% Government filing NI 43-101 is mandatory in Canada. It shows the proven reserves of any company intending to mine gold. The latest filing from a small renegade company we’ve just uncovered lists their reserves at an astounding 10.1 million ounces. It’s the biggest gold strike in Canadian history – and one of the biggest in the world. Yet few investors have seen or heard of NI 43-101 yet. Getting in before the “first ounce bounce” – when the first ounce comes out of the ground – is likely to yield an initial return of 1,100%. Go here for the full report.

Brazilians used to joke that their country was the country of the future – and always would be because a new crisis seemed to crop up every time the economy came close to fulfilling its potential.

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VSAT, ViaSat Inc.

KEME, KEMET Corp, KEME.OB

PennyOmega.com Watch List!

PennyOmega.com Watch List ! for Thursday August 6, 2009

Our Picks at PennyOmega.com for Thursday August 6, 2009 are:

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VSAT, ViaSat Inc.

VSAT produces innovative satellite and other digital communication products that enable fast, secure and efficient communications to any location.

VSAT provides networking products and managed network services for enterprise IP applications; is a key supplier of network-centric military communications and encryption technologies and products to the U.S. government; and is the primary technology partner for gateway and customer-premises equipment for consumer and mobile satellite broadband services.

VSAT also offers design capabilities and a number of complementary products including monolithic microwave integrated circuits and modules,

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Lufkin Industries, Inc. announced this morning that it has completed the acquisition of Rotating Machinery Technology, Inc. (RMT). RMT is recognized as a leader in the turbo-machinery industry, specializing in the analysis, design and manufacture of precision, custom-engineered tilting-pad bearings and related components for high-speed turbo equipment. Additionally, the company services, repairs and upgrades turbo-expander process units for air and gas separation.

“We believe the acquisition of RMT will be a strong strategic fit with our Power Transmission division, and we look forward to working with their highly respected and experienced management team. We are pleased that Dr. John Nicholas, RMT founder and CEO, and a leading authority in the fields of bearing design and Rotor Dynamics Analysis, will continue in a leadership role in the company as the General Manager of RMT,” stated John F. Glick, president and chief executive officer of Lufkin.

“This acquisition is consistent with our long-term growth

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In normal recessions, commodities prices fall - and stay down for the count - as mines, farms and oil wells continue to expand production, even as demand is flattened by the economic malaise. Well, not this time around. And that figures to make commodities a profitable defensive investment. Indeed, we’ve uncovered four of the very best ways to profit from this trend. Let me explain. The Journal of Commerce commodities price index leaped 9.5% in May, the largest one-month gain since the index was first compiled back in 1985. Oil prices, which bottomed in the $30-a-barrel range, are pushing once again towards $70 a barrel - not the all-time record of $147 touched last year, but still very high on a historical basis. And gold is trading at roughly $980, close to its all-time peak and extremely high by historical standards. So what’s going ...

Highlights include Microsemi Corp. (MSCC), The Boeing Co. (BA), Raytheon Co. (RTN), Rockwell Automation (ROK), Lockheed Martin Corp. (LMT), Northrop Grumman Corp. (NOC), L-3 Communications Holdings, Inc. (LLL)and Boston Scientific Corp. (BSX).Microsemi Segments Have Limited ExposureMicrosemi Corp. (MSCC) is well positioned in strong growth markets. Its High Reliability products for the defense, aerospace, commercial air and medical markets are extremely well positioned. Since these products have limited exposure to the uncertain conditions in the market, growth is expected to continue.High-reliability products have higher ASPs and higher margins. Management's current R&D effort is focused on this area, since it is expected that a higher percentage of sales from this line would improve the profitability of the company. This would, in turn, enable it to generate the targeted model of 50-55% gross margin and 30% operating margin....