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No buy or sell recommendation is made in any security mentioned here.

Sceptre Investment Counsel - dividend reduced to .20 from .26
On March 21^st while releasing first quarter results, Sceptre reduced its quarterly dividend. "The Company has reviewed its dividend policy and has concluded the Company's cash resources, weighed against expected cash requirements, permit it to pay a dividend in excess of earnings. This policy will be review on a regular basis but barring an unforeseen event the Company anticipates the new dividend level will be maintained for the foreseeable future. The Board of Directors, having considered these factors, has declared a quarterly dividend of 20 cents per share..." First quarter earning were $2,122,000, or 16 cents per share compared to 27 cents a share for the same period last year.
Sceptre Investment Counsel (from Dec 2000 Connolly Report p.471) www.sceptre.ca
Sceptre released its results for fiscal year 2000 on December 20. Revenue was down from some $56 million in 1999 to $49 million plus in 2000. Earnings per share for the year decreased to .91 from $1.11 a year earlier. SZ.A's dividend is $1.04. Sceptre has again declared the same .26 dividend payable on January 15, 2001. However, Sceptre's statement said, "In the first quarter, the Company will consider its financial resources, market conditions and future strategic opportunities but at this point a dividend reduction seems likely." SZ.A's price held up remarkably well in trading following the announcement.

DOFASCO ( from December 2000 Connolly Report p.471)
Dofasco's web site has lots of useful information for investors. Included is this December 18 announcement - I love the way these things are worded - "despite a continuing strong performance, street expectations of the Company's fourth quarter results do not fully reflect the impact of the current market situation, and exceed the range of results that should be expected." DFS' price dropped significantly in the days following the announcement of the earnings shortfall. These things take a good while to work through. Even though DFS is near the top of my list, I am not considering the re-purchase of the cyclical stock yet. Last time we bought in at $18 and $18.85 in March 1999. It looks like we might get that price again.
Value Line's November 3^rd Edition 9 report said, "This stock is likely to be a poor performer in the year ahead, but offers above-average 3 to 5 year price appreciation potential." Value Line projects a low price of $40 for Dofasco out to 2003-2005 and expects 4.5 % dividend growth over that period: up to $1.20 a share with earnings at $4.25.

Pacific Northern Gas - July 20, 2000 - dividend not to be paid in 3^rd quarter
As part of plans to manage the impact of the shutdown of the Methanex plant in Kitimat, Pacific Northern Gas announced July 20^th, among other measures, that "PNG will not declare the regular quarterly dividend on its class A and class B shares in the third quarter of 2000".

Nova Scotia Power Holdings now calls itself Emera
http://www.emera.com

TransCanada Pipelines - rating outlook revised to negative - June 1, 2000
Canadian Bond Rating Service has confirmed all the credit ratings of TransCanada Pipelines, for instance its debentures and term notes are rated A, but has lowered the rating outlook to negative from stable. The CBRS press release dated June 1, 2000 discusses the variety of reasons for this change in about two pages. In summary, it boils down to: "the increasing risk associated with the core regulated transmission business and the uncertain outcome of the Company's efforts to secure a more appropriate regulatory structure."
http://www.cbrs.com/news

Pacific Northern Gas - May 27, 2000 - ratings under review
DBRS has placed the ratings of Pacific Northern Gas Ltd's secured debentures (BBB) and preferred shares (Pfd-3) under review with negative implications. The "stable" review rating is also under review. Why? Methanex has decided to close its Kitimat plant for one year and the Kitimat plant accounts for some 60% of PNG's total gas deliveries.
http://www.dbrs.com

EdperBrascan - early May 2000 - name changed to Brascan - ticker symbol now BNN
To learn more go to www.brascancorp.com.

Irrational Exuberance - a first-rate book by Robert J. Shiller (Princeton) about$45 Cdn.
"...the present stock market displays the classic features of a speculative bubble: a situation in which temporarily high prices are sustained largely by investor enthusiasm rather than by consistent estimation of real value. Under these conditions, even though the market could possibly maintain or even substantially increase its price level, the outlook for the stock market into the next ten or twenty years is likely to be rather poor-and perhaps even dangerous."p.xiii
Long-term investors would be well advised, individually, to stay mostly out of the market when it is high, as it is today, and get into the market when it is low." p.12
'...when one is not getting much in dividends relative to the price one pays for stocks it is not a good time to buy stocks." p.14 Link to more detail on Irrational Exuberance.

The Chairman's 1999 Letter to Shareholders has been posted. Not as good this year but page one is worth glancing at.
http://www.berkshirehathaway.com/letters/1999.html

On December 31, 1999 Canadian Bond Rating Service reaffirmed all of TransCanada Pipelines Ltd's credit ratings and maintained its stable outlook.

TransAlta - December 17 - DBRS will not change rating
Dominion Bond Rating Service says that despite the recent adverse regulatory decision regarding TransAlta's rate of return, it will not change the ratings on TransAlta Utilities corp's securities.

TransCanada Pipelines - Dec 10 - For a few comments about TRP's dividend reduction and a few lines about TransAlta's promise to maintain their dividend click

BUBBLES - Barron's column by Bob Hoye
The June 28, 1999 issue of Barron's contains a fascinating and sobering three page article about bubbles over the centuries in relation to the current internet bubble. It is written by Bob Hoye of Institutional Advisors, Vancouver. http://www.institutionaladvisors.com/ click Special Reports

http://globeinvestor.com
The Globe and Mail's web site is worth a look.

"Preferred Securities" - March 23, 1998
It's all in the name. The latest vehicle conjured up to generate fees for investment dealers has been labeled "preferred securities". The former East Germany called itself the German Democratic Republic: they weren't democratic. Are these new hybrids preferred? I don't think so...the yield is too high...some are in the junk bond category. Remember, the high yield will disappear if the income stops. Read the prospectus and check the rating on this paper before making a commitment.

No recommendation is made in any security mentioned here.

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