Six stocks to watch this week

We’re certainly seeing confidence rush back into the market, now with Alberta oil sands company UTS’ investors snubbing Total’s latest bid for UTS ($829.8-million or $1.75 a share up from an opening bid of $1.30 or $616-million in January). UTS is now trading at $1.83, up from approximately $1.70 late last week.

The second headline is a should be a soothing signal to investors still dallying, unsure whether the time has come to reinvest. CIBC’s new chief economist at CIBC World Markets Avery Shenfeld is taking a more conservative line in his predictions than his predecessor, but still sees a coming decline in the TSX indexes in the direction of 7,000 prior to a recovery to 10,500 by 2011. That’ll give you plenty of time to formulate an investing strategy or just wrench your fists with uncertainty prior to jumping back in.

“Those still on the sidelines needn’t fear that they missed their opportunity to jump on board,” Shenfeld wrote. “Markets appear to be in growing danger of running ahead of their fundamentals…Even if the TSX avoids a retest of March’s low – as seems increasingly likely – a slower climb back would limit the rewards from rushing back heavily into stocks immediately, as opposed to waiting for at least some evidence that the worst is over for earnings and that macro stabilization efforts are starting to work.”

Shenfeld’s predecessor Jeff Rubin stepped down in March, reportedly to promote his new book, Why Your World Is About to Get a Whole Lot Smaller. The book, to be officially released in May by Random House Canada, is in line with Mr. Rubin’s bullish outlook for oil. In it, Rubin explains how oil scarcity will inevitably lead to the end of globalization.

Shenfeld’s outlook for oil is decidedly less rosey that Rubin’s, though still positive news for investors, with a prediction of $70/barrel by 2010, in contrast with Rubin’s $100/barrel forecast.

Report on Business on Sunday sounded an fog horn that may turn out to be a major turning point in the economy as company’s this week announce first quarter earnings (Six Stocks to Watch this Week). The companiesROB’s Madlen Read will be watching are Alcoa, Citigroup, Intel, CSX Group, General Electric and Sherwin-Williams Co. Read makes the astute observation that the four week rally that began on March 10 and drove the TSX up 25 percent will now be tested in earnest. The results of these bellweather companies “will determine whether the surge was the beginning of a bull market, or just a blip.”

Sherwin-Williams Co.

Alcoa

Citigroup

Intel

CSX Corp.

General Electric

Sherwin-Williams Co.

Florida to get first solar-powered city

Whenever a project of this magnitude is table and makes it to fruition, I see it as a positive sign for the economy.

The author writes: “FPL Group Inc’s utility Florida Power & Light is working with the realty group Kitson & Partners to construct what the utility says will be the world’s largest photovoltaic solar plant in a planned, environmentally friendly city near Fort Myers in southwestern Florida.”

The city, to be called Babcock Ranch, will have 19,500 houses and some 6 million square feet of retail, light industrial, and office space when complete, the developers said.

What is so important about this — at least in terms of investor optimism — is that although the project is expected to cost $2 billion, it will be built without any government stimulation funds. Add to that the fact that Florida has been one of the hardest hit states with high mortgage foreclosure rates, dropping home prices and slowing population growth.

The development is slated to begin production in 2010, and will be a net exporter of power (it will consume less power than it generates).