CML Healthcare Inc (TSX: CLC, OTC: CMHIF) shareholders approved the CAD10.75 per share buyout of the company by LifeLabs Ontario, and the Ontario Superior Court of Justice has issued a final order approving the plan of arrangement.

Will all necessary approvals in, the transaction has closed. Shareholders should by now have received CAD10.75 per share in cash. CML has de-listed from the Toronto Stock Exchange.

CML has now been removed from How They Rate.

We’re in the process of evaluating members of the coverage universe based on a combination of low market capitalization, low daily trading volume on the Toronto Stock Exchange and in the US and, most importantly, for those that aren’t paying a dividend at present, whether there’s a reasonable likelihood of ever doing so in the near future.

This is part of an effort to streamline our focus on companies with a realistic opportunity to build wealth for investors for the long term, keeping in mind too that part of the rationale for building a coverage universe is to provide context and comparison.

With all this in mind, barring any objections from readers, which you can express via our “Stock Talk” feature at www.CanadianEdge.com, we will begin paring the ranks next month.

We are discontinuing coverage of Tuckamore Capital Management Inc (TSX: TX, OTC: NWPIF), which hasn’t paid a dividend in more than five years, has a market cap of CAD21.5 million and trades on very light volume on the Toronto Stock Exchange (TSX) and only sporadically on the US over-the-counter (OTC) market.

We’re also removing Lanesborough REIT (TSX: LRT-U, OTC: LRTEF), which hasn’t paid a dividend since March 2009 and is valued at just CAD13.9 million, from How They Rate coverage. An average of just more than 5,000 shares a day has traded on the TSX over the past 15 days.

Tree Island Steel Ltd (TSX: TSL, OTC: TWIRF), which pays no dividend and has a market cap of CAD14.6 million, is also no long part of the coverage universe.

We’re still considering our coverage of Armtec Infrastructure Inc (TSX: ARF, OTC: AIIFF), which pays no dividend and has a market capitalization of CAD49.6 million, and Imvescor Restaurant Group Inc (TSX: IRG, OTC: IRGIF), which discontinued its dividend in March 2011 and has a market capitalization of CAD85.6 million.

Advice Changes

Bank of Montreal (TSX: BMO, NYSE: BMO)–From Hold to Buy < 66. BMO is enjoying the benefits of its recent US expansion, in terms of earnings as well as in the form of renewed respect from investors. Solid capital management sets it up to reward shareholders for the long term with share buybacks and dividend growth.

National Bank of Canada (TSX: NA, OTC: NTIOF)–From Hold to Buy < 85. The smallest of the Big Six has consistently outperformed its peers on a total return basis over the past decade, and its expanding Canadian footprint presents opportunity for solid growth. Management has been aggressive about raising the dividend in the aftermath of the Great Financial Crisis.

Cathedral Energy Services Ltd (TSX: CET, OTC: CETEF)–From Hold to Buy < 6. Cathedral raised its dividend by 10 percent, as management reported another strong quarter of results and provided solid commentary on order activity for its directional drilling and production testing services.

First Quantum Minerals Ltd (TSX: FM, OTC: FQVLF)–From Hold to Buy < 20. Strong third-quarter earnings…

Yellow Media Ltd (TSX: Y, OTC: YLWDF)–From SELL to Hold. The company reported a decline in overall revenue, but digital revenue for the third quarter grew by 10.5 percent to CAD101.6 million from CAD92 million a year ago, due to the execution of a new sales strategy, continued migration of print revenue towards digital products and services and the launch of new mobile and premium digital products in 2012.

Digital revenue represented approximately 42.8 percent of total revenue during the third quarter, up from 34.3 percent a year ago. Long-awaited progress in its transition from print seems to be arriving.

Rating Changes

Encana Corp (TSX: ECA, NYSE: ECA)–From 3 to 2. As part of a significant strategic shift management announced on Nov. 4 a 65 percent reduction in the quarterly dividend rate to CAD0.07 from CAD0.20 per share effective with the fourth-quarter payment due Dec. 31, 2013, to shareholders of record as of Dec. 13.

That’s enough to lose a point on the Safety Rating System criterion of “no dividend cuts over the past five years.”