Cinram International Income Fund (TSX: none, OTC: none) is being dropped from coverage. The stock was delisted from the Toronto Stock Exchange after selling all its assets.

ShawCor Ltd (TSX: SCL/A, OTC: SAWLF) is being added to coverage under Business Trusts. Poseidon Concepts Corp (TSX: PSN, OTC: POOSF) is now tracked under Energy Services. Tim Hortons Inc (TSX: THI, NYSE: THI) is now covered under Food and Hospitality.

Advice Changes

Talisman Energy Inc (TSX: TLM, NYSE: TLM)–To Hold from Buy @ 15. The stock has surged since cutting its dividend in half.

Zargon Oil & Gas Ltd (TSX: ZAR, OTC: ZARFF)–To Hold from SELL. The stock has fallen to reflect dividend cut risk and insiders have been buying.

Ratings Changes

Cameco Corp (TSX: CCP, NYSE: CCJ)–To 3 from 4. The second-quarter payout ratio ballooned out to 11 percent on lower prices and higher production costs.

Talisman Energy Inc (TSX: TLM, NYSE: TLM)–To 3 from 4. The gas-weighted producer no longer meets the criteria for no dividend cuts the past five years.

Safety Ratings

The core of my selection process is the six-point CE Safety Rating System, which awards one point for each of the following. A rating of “6” is the safest:

• Payout Ratio–A ratio below our proprietary industry baseline.
• Earnings Visibility–Earnings are predictable enough to forecast a payout ratio below our proprietary industry baseline.
• Debt-to-Assets Ratio–A ratio below our proprietary industry baseline.
• Short-Term Debt Ratio–Debt due in next two years is less than 10 percent of market capitalization.
• Business Stability–Companies that can sustain revenues during recessions are favored over more cyclical ones.
• Dividend History–No dividend cuts over the preceding five years.

Here’s an in-depth explanation of the proprietary CE Safety Ratings System.