Coverage Changes

As we detail in this month’s In Focus feature, we’re adding Methanex Corp (TSX: MX, NSDQ: MEOH) to the How They Rate coverage universe within the Natural Resources group.

Please note that we have dropped Royal Host Inc (TSX: RYL, OTC: None) from How They Rate.

After this issue we will discontinue coverage of Armtec Infrastructure Inc (TSX: ARF, OTC: AIIFF), and Imvescor Restaurant Group Inc (TSX: IRG, OTC: IRGIF).

Our evaluation of the coverage universe will be ongoing, as we streamline our focus to companies with realistic opportunities 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.

Advice Changes

Bonavista Energy Corp (TSX: BNP, OTC: BNPUF)–From Hold to Buy < 16. The gas-focused energy producer posted solid growth in funds from operations and production as well as much-improved development costs.

Enbridge Inc (TSX: ENB, NYSE: ENB)–From Hold to Buy < 44. Management reported another solid set of operating and financial numbers for the fourth quarter and for 2013. The company continues to invest heavily in North American energy infrastructure, which will support continued dividend growth. Bay Street is bullish, with 15 “buy” recommendations versus two “hold” and two “sell” ratings and an average 12-month target price of USD48.12.

Superior Plus Corp (TSX: SPB, OTC: SUUIF)–From Hold to Buy < 12. The diversified company with propane distribution, chemicals and construction interests posted decent 2013 revenue growth, and management issued positive guidance for 2014. The share price has also come down from recent highs.

BlackBerry (TSX: BB, NSDQ: BBRY)–From SELL to Hold. The introduction of new mobile devices and the potential of its QNX operating system have revived hopes for a long-term turnaround, as new CEO John Chen continues to make a significant impact.

Rating Changes

TransAlta Corp (TSX: TA, NYSE: TAC)–From 3 to 2. The struggling merchant power producer cut its quarterly dividend rate by 37.9 percent to CAD0.18 per share, costing it a point otherwise due for companies with no dividend cuts over the trailing five years.