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Why 2011 may be Ivanhoe Energy's breakout year

Ivanhoe Energy Inc.'s relatively immature portfolio of assets provides investors with exposure to significant upside potential, TD Newcrest analyst Jeff Meunier said. "With the level of activity and prospect evaluation currently being executed, 2011 could be a breakout year for the company," he wrote in a report.

The company is currently advancing exploration and development opportunities across all of its properties in Ecuador, China, Canada and Mongolia. Mr. Meunier expects "meaningful results" from China and Ecuador within the next three months.

"Although we see great potential across the company's exploration opportunities globally (three continents, bitumen to natural gas ), the majority of the value in our NAV estimate currently rests with Ivanhoe's oil sands development opportunity at Tamarack in Canada," he wrote.

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Upside: Mr. Meunier rates Ivanhoe "speculative buy," with a target price of $4.00 and an implied return of 39 per cent.

Baffinland Iron Mines Corp. shareholders should await a higher offer in the bidding war between ArcelorMittal and Nunavut Iron Ore Acquisition Inc., said Jennings Research analyst Peter Campbell.

Upside: "We believe the ArcelorMittal offer to be superior but we also see no need to rush to tender for we also believe that one or both offers will be extended," Mr. Campbell wrote. He raised Baffinland's target price to $1.25 from 90 cents. ArcelorMittal has bid $1.25 a share and Nunavut Iron Ore $1.35.

Investors should buy DALSA Corp. shares on any pullback, now that its board has approved its $341-million purchase by Teledyne, CIBC World Markets analyst Todd Coupland said.

Upside: Valuation of the takeover appears to be in line with peers on price-to-equity, price-to-sales, enterprise value-to-sales and other ratios, Mr. Coupland wrote in a report. He raised his price target from $10.00 to $18.25, which is Teledyne's offer price.

Wi-LAN Inc. is likely to receive at least $400-million (U.S.) from patent litigation cases after settling its wireless suit against LG, said Canaccord Genuity analyst Eyal Ofir. "We view the LG settlement as a testament to the strength of Wi-LAN's patents," Mr. Ofir wrote.

Upside: Mr. Ofir raised his target price to $6.30 (Canadian) from $6.00 and rates the stock "speculative buy." "With LG joining the likes of RIM and UTStarcom on the list of companies that have chosen to settle, we believe there is now added pressure on others involved, including Intel, HP, and Apple, to follow suit," he said.

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Nordion Inc. plans to complete testing over the next few weeks of molybdenum-99 isotopes supplied by its Russian partner, Rosatom.

Upside: "We are encouraged that Rosatom's Mo-99 production efforts appear to be proceeding well, given this arrangement will provide a certain degree of much-needed diversification to Nordion's source of Mo-99 supply," wrote Desjardins Securities analyst Pooya Hemami. Nordion has a $9 target price and is rated "above average risk."

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About the Author
Deputy head of Audience

Sonali Verma is deputy head of audience at the Globe and Mail. She is a business journalist with more than 20 years of experience, mainly in digital media.She was previously the Globe and Mail’s senior editor in charge of audience engagement, overseeing its homepages as well as social media operations. More

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