on Wellington West''s picksWellington West's 2007 Summer Picks Incl 4 TSX-Listed Cos.
1:21pm ET (Dow Jones Newswires)
TORONTO (Dow Jones)--Wellington West Capital Markets Inc. has chosen four Toronto Stock Exchange-listed stocks that it believes have the potential for price outperformance over the next three to six months: Breaker Energy Ltd. (WAV.A.T), Western Goldfields Inc. (WGI.T), Discovery Air Inc. (DA.A.T) and Hemisphere GPS Inc. (HEM.T).
In a research report published Thursday, analyst Kim Page Page said Breaker, a Calgary-based junior exploration and development company, has increased production per share every quarter since inception through acquisitions and drilling additions. Breaker is rated strong buy with a C$10.50 target price. It's trading up 2.3% at C$6.30 Thursday.
Western Goldfields, which is trading up 2.9% at C$2.89, has begun pre-stripping waste overburden and the construction of a heap-leaching pad at the Mesquite gold mine in California. This should ready the operation for planned annual output of 165,000 ounces of gold starting in early 2008, analyst Catherine Gignac said in a report. Wellington West rates the Toronto gold company at buy with a C$4.50 target price.
Calling Discovery Air "likely the only Canadian public vehicle for niche air service companies," analyst Greg Colman said "opportunities are knocking" and he expects continued expansion for the London, Ont. company. Discovery Air is focused on northern Canada, where it provides logistic support to the mining and energy industries, as well as servicing provincial fire suppression departments and limited-access communications. Discovery Air is rated at strong buy with a C$2.50 target price. It's trading at C$1.77, down 1.7%.
Hemisphere GPS, which designs, develops and makes precision GPS devices for commercial and industrial applications, is a mid-market leader on the way to record sales in the upcoming second quarter, analyst Robert Winslow said in his report. He noted that 30-year lows in grain inventory will support robust grain prices that buoy farm incomes, stimulating farmer demand for GPS technology.
With only 20-25% of farmers believed to be using GPS to improve yields/lower imput costs, Winslow sees at least three to five years of solid market growth for the company.
Hemisphere GPS, based in Calgary, is rated strong buy with a C$4 target price. It's trading up 4.7% at C$3.35.
In the past 12 months, Wellington West has provided investment-banking services to Breaker Energy and Western Goldfields. The analysts mentioned in the reports don't hold shares in the companies they cover.
Company Web Sites: https://www.breakerenergy.com,, https://www.westerngoldfields.com,, https://www.discoveryair.com and https://www.hemispheregps.com
-Wendy Tsau; 416-306-2100; AskNewswires@dowjones.com
(END) Dow Jones Newswires
07-12-07 1320ET
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