Note that we’ve moved new CE Portfolio Aggressive Holding Magna International Inc (TSX: MG, NYSE: MGA) from the Business section to the Transports section of How They Rate.

CML Healthcare Inc, which was acquired by LifeLabs Medical Laboratory Services, has 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.

Last month we removed Tuckamore Capital Management Inc (TSX: TX, OTC: NWPIF), Lanesborough REIT (TSX: LRT-U, OTC: LRTEF) and Tree Island Steel Ltd (TSX: TSL, OTC: TWIRF) from 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 CAD36.3 million, and Imvescor Restaurant Group Inc (TSX: IRG, OTC: IRGIF), which discontinued its dividend in March 2011 and has a market capitalization of CAD90.8 million.

We’re also reviewing our coverage of Royal Host Inc (TSX: RYL, OTC: ROYHF), which hasn’t paid a dividend since December 2010 and is currently valued at just CAD20.5 million, and Data Group Inc (TSX: DGI, OTC: DGPIF), which last month suspended its dividend and now has a market cap of just CAD11.7 million.

Advice Changes

Atlantic Power Corp (TSX: ATP, NYSE: AT)–From Hold to SELL. As reported in a Nov. 11, 2013, Flash Alert, we’ve sold Atlantic Power from the Portfolio after management indicated that the current dividend rate, which is the result of substantial cut in February 2013, is now in jeopardy as the company strives to shape up its balance sheet while allocating resources toward projects to “optimize” its current assets. This is now either a long-term turnaround or a strip-it-down-and-sell-it story. But there are too many variables in play here.

Brookfield Asset Management Inc (TSX: BAM/A, NYSE: BAM)–From Hold to Buy < 40. This major infrastructure and resources investment firm boosted its quarterly dividend rate by 33 percent, as it reported solid financial results for the third quarter.

Chorus Aviation Inc (TSX: CHR/B, OTC: CRHVF)–From SELL to Hold. Chorus has prevailed in its arbitration dispute with Air Canada (TSX: AC/B, OTC: AIDIF). Third-quarter results were also solid.

Norbord Inc (TSX: NBD, OTC: NBDFF)–From Hold to Buy < 32. The company is poised to benefit from a continuing US housing recovery, the Canadian housing market has stabilized, there’s the potential for revenue growth via a turnaround in Europe, the yield is north of 7 percent, recent results have been solid and the valuation is attractive.

Rating Changes

Cathedral Energy Services Inc  (TSX: CET, OTC CETEF)–From 2 to 3. Cathedral’s payout ratio is low relative to its Energy Services peers and is likely to remain so for the next 18 to 24 months. And it has no debt maturities before Jan. 1, 2016.