Canadian stocks rated by Iain Fraser

The Coalition and Us

We did not join theU.K.; the U.S.; and Austrailia in the Liberation of Iraq. For this observer our policy was a sad day for Canada. We should stand beside and go with the U.K. and the U.S.; they are the two greatest democracies on the planet; they led the way in winning World War 2; for the first time ever they asked nothing of the enemy; for the first time ever they gave the money to Germany and Japan so they could rebuild their devastated countries. The U.S. is easily the biggest benefactor in the world to-day. This month Canada is given a second chance to join the team. We think Prime Minister Martin should and will do so.

Up 200 points!

When eight million voted in Iraq last Sunday we said the market would go up a 100 points or more the next day; well it didn't, but it has gone up more than 200 points in the week.

The New York market remains in a vigorous bull phase and the line of least resistance is up.

In Canada the hottest sector is oil and gas and our view is that the price of oil will move back into the fifties.

Petro Canada - still undervalued

Petro Canada ($64.50) remains a top pick with a #1 rating; our actual rating number is 0.99 which indicates the stock is substantially undervalued.

There are some oddities about PCA. The stock has a P/E ratio of about half that of Imperial Oil ($77.50); PCA sells at less than 5 times cash flow  and IMO sells at 10 times; PCA sells at less than net asset value and IMO at more than NAV.   Even with these low ratios in the past 5 years, PCA has easily been the better performing stock. Also, the technical ratings on Petro Canada are excellent and the technical expectation for this stock is to move up to $82-$84 in the next 12 to 15 months!

In our next issue of Fraser Quantitative Ratings we will have more on Petro Canada and Canadian oil stocks. To get a free issue of this next Report just send us an email.

Iraq Election

In our comment on Jan. 30, 2004 we said that the the outstanding success of the election in Iraq woud put the NYSE up 100 points or more; well it has , but it too a day and a half, but of course New Yorkers are a little on the slow side; except when a red light turns green!