Coverage Changes

We have no additions to or subtractions from the How They Rate coverage universe this month.

Our evaluation of the coverage universe is 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

Argent Energy Trust (TSX: AET-U, OTC: ANGYF)–From Hold to SELL. Management announced a 77.1 percent distribution cut, reduced its 2014 CAPEX budget to USD55 million from USD77 million and lowered its production guidance to 6,000 barrels of oil equivalent per day (boe/d).

The CEO announced his resignation, as the board of directors seeks to carve out a new strategic direction. The company will also cut costs and sell assets to reduce debt.

IBI Group Inc (TSX: IBG, OTC: IBIBF)–From SELL to Hold. Adjusted EBITDA margin was just 3.5 percent for the fourth quarter of 2013, though there was sequential improvement. And free cash flow was positive. Management has guided to modest revenue improvement in 2014.

Key catalysts will be successful implementation of a recapitalization plan, which in addition to continued operational improvements and a focus on increasing cash flow addresses the divestiture of non-strategic assets the refinancing of CAD46 million of 7 percent subordinated notes maturing December 2014.

Methanex Corp (TSX: MX, NSDQ: MEOH)–From Hold to Buy < 65. A selloff since a March 6, 2014, all-time high on the Toronto Stock Exchange and the Nasdaq has brought the share price back into value range.

Dividend growth has been solid (management announced a 25 percent increase in the quarterly rate along with first-quarter earnings), the payout ratio is low, and the company occupies a dominant position in a vital industry.

Rating Changes

There are no Safety Rating changes this month.