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Essay by 24 • December 27, 2010 • 589 Words (3 Pages) • 1,094 Views
Anticipated Rising Stock
In a period where the prices of shares are generally decreasing on the Toronto Stock Exchange, it is expected that the market value of Inco Ltd. will dramatically rise. This Canadian Toronto-based mining and metals company is currently the second largest producer of nickel, also producing copper, cobalt and precious metals and specialty nickel products. The values of its shares are on the rise because of its current high marketability for prospective stockholders. Inco's strong current financial performance is a result of its upcoming cost-saving methods due to the highly anticipated acquisition of one of Canada's leading producer of copper and nickel, Falconbridge Ltd.
Inco Ltd. will buy Falconbridge Ltd. in a $10.2 billion deal (US) that is still to be approved by Falconbridge shareholders. The result of the merger will mean a great cutback in costs because of the sharing of expenses as well as the ease of access to nickel and copper reserves. These overwhelming savings are expected to amount to $350 million (US) which will aid the company in its expansion. Along with its strong financial performance, with profits growing 19.15% over the last three years, the merger will only generate a higher level of profitability and growth potential. The merger of these two biggest corporations will make Inco the largest nickel producer globally, translating into a dominant influence over the mining industry.
Since the marketability of the anticipated merger of Inco is extremely high, shareholders will become extremely interested. Over the year, the market price of its shares has been on a gradual increase. With the prospects of this merger, shareholders will definitely begin investing in this "new Inco" which will ultimately increase the price of its shares.
Anticipated Falling Stock
In a period where the cost of manufacturing and producing is on a never ending rise, several companies who rely on input prices are being critically affected. One of which is Zenon Environmental Inc., a manufacturer and marketer of advanced membrane technologies and services for water filtration systems. It is expected that the price of shares of Zenon
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