Model manager GEARS looks for accelerating Canadian companies that trade on U.S. exchanges to add to their Bluenose model. They find positions by analyzing financial statements and look for recent improvements in growth. The top holding in the model is EnCana Corp (NYSE: ECA). ECA specializes in the exploration and development of clean, unconventional natural gas. In 2009 the company’s sales fell to $11.1 billion, down $19 billion from 2008’s $30.1 billion in sales. The company’s total liabilities fell from $29.6 billion in 2008 to $18 billion in 2009. Their second quarter 2010 financial results showed $1.5 billion in sales, compared to $2.4 billion in the same quarter of 2009. However, their six-month results looked a little more hopeful, with $5 billion in sales for the first six months of 2010 versus $6.1 billion for the first six months of 2009.
The next holding in the model is Ivanhoe Mines Ltd (NYSE: IVN), a company that grew from $3.1 million in sales in 2008 to $36 million in 2009. During the second quarter of 2010, the company had $17.7 million in sales, a large increase from the $10.7 million of the same quarter during 2009. Their six month results, at $31.6 million in June 2010, were double 2009’s $14.2 million. The company’s total liabilities rose from $518 million in 2008 to $1.1 billion in 2009, but quarter two 2010 saw them reducing that number to $893 million.
The last large holding in the Bluenose model that we are going to look at is Agrium Inc (NYSE: AGU). AGU creates and sells agriculture products and chemicals. The company’s sales dropped from $10.3 billion in 2008 to $9.1 billion in 2009, but their total liabilities fell too—from $6.7 billion in 2008 to $5.5 billion in 2009. Their 2010 quarter two financial report shows liabilities falling even more, to $5.1 billion. They also had the second highest quarterly results in their history, with $4.3 million in net sales, versus $4.1 million in the same quarter of 2009.
