May 15, 1997



Bonus Resource Services Corp. (BOU on TSE,VSE) Calgary,AB Tel: (403) 263-6777. Price May 14/97 $5.00 52 week price range $5.25-0.40. First mentioned at $0.76 on May 15/96. Bonus announced an agreement has been signed to acquire all of the outstanding shares of Beta Well Service Inc. for $5 cash/sh or in exchange for 1.163 Bonus shares for each Beta share. After completion of the oil service rig fleet, Bonus will grow from a current level of 78 to 131 based on the addition of 53 rigs from Beta. This will result in Bonus being the largest service rig operator in Canada. Along with the acquisition comes CORE Fabrication Inc, which supplies custom designed and manufactured equipment for the Canadian and international oilfield services industry. This now expands Bonus significantly. Although early in the game, it appears that this major acquisition paves the way to combined earnings of 50 cents/sh and if so a stock price of $8-10 over the next 12 months appears to be good aim.



C M Oliver Inc. (OLV on TSE) Vancouver BC Tel (604) 685-6288. Price: May 14/97:$1.47 52 week range:$2.40-1.05. Mentioned first at $1.07 on Jan 15/96 under its previous name, Planvest Capital Corp, appears undervalued and may be suffering somewhat from the correction taking place in the junior mine market, particularily as to how it relates to financing. Nevertheless, C M Oliver is expanding on a broad base offering a full range of investment services, and the stock shold resume its performance over the longer term.



Coleraine Inc. (CRI on ME), Rouyn-Noranda, QC. Tel:(819) 797-1400 Price May 14/97: $0.41 52 week range: $0.75-0.13. First mentioned on Feb 14/97 when at 41 cents, CRI has a lively gold bet on the Perron property, optioned from Falconbridge. Early indications are that there could be 3 parallel gold zones. The company has been operating with 2 diamond-drill machines, currently down because of the Spring break-up. Drilling should resume in early June and Summer 1997 should prove to be a busy season for exploration.



Hannaford Bros., Co. (HRD on NYSE), Scarborough, ME. Tel: (207) 883-2911. Price: $34.50, 52 week range:$36-29.60. This is our first mention of the company. Retail food sales are made through the company's 139 supermarkets operating under the names of Shop'n Save, Hannaford and Wilson's. Over the last 8 years Hannaford has expanded from its traditional geographic area of Maine & New Hampshire into Vermont & New York, then into the Boston area and finally into the Southeast markets of Virginia, North and South Carolinas. In the long run the $400 million invested over this period of time will continue to provide steady returns. Revenues for 1997 should top $3.2 billion and net earnings $85 million, or $2/sh on 42.3 million shs out. A price target of $40, or 20 times earnings, over the next 12 months appears to be achievable.



NQL Drilling Tools Inc.(NQL.A on TSE) Nisku, AB Tel:(403) 955-8828. Price May 14/97:$5.80 52 week range:$6.95-2.75. Mentioned at $3.20 on May 15/96.

Results for the 6 mos. ended Feb 28/97 came in at revenues of $20.2 million vs $13.3 and net income of $2.6 million vs $1.8, or 24 cents/sh vs 16 cents/sh, based on 10.9 million shs out. Company seems headed for a year of 50 cents/sh in earnings and if so a stock price target of $8 over the next 12 months appears a likely target.



Newcourt Credit Group Inc (NCT on TSE, NYSE) Toronto ON Tel:(416) 981-9500. Price May 14/97:$29. 52 week price range: $30.50-14.75. Mentioned first at $9.62 on Nov 17/95, adjusted for a 2 for 1 stock split. Leveraged growth in asset financing. Stock has exceeded all near term targets, but can be continued to be held as a long term growth situation based on an increasing asset base build up and favorable interest rate spreads. Recent

contract with Dell computer leasing opens up additional growth. There is talk of a deal with a major aerospace company set for June. Near term share price target for this institutional investor favorite appears to be $35.



Pantorama Industries Inc. (PTA on ME & TSE) Pointe Claire,QC tel:(514) 421-1850. Price May 14/97:$1.05, 52 week range:$1.35-0.85. This is our first mention of the company. Pantorama markets a full range of casual clothing for men and women, at medium prices, through 229 company-operated retail stores, most of which are in Quebec and Ontario. Stores are grouped under the names of Pantorama, D'Gala, 1850, Levi's, Roberto, Le Tram, Vintage Blue, Guess, Chaussurama, Directions and UR2B. Company carries a broad selection of merchandise with a certain emphasis on jeans. Annual sales are in the area of $150 million and profits $1.6 million, or 10 cents/sh on 16 million shs.out. Company is fine tuning its marketing outlets, with more openings than closings and indications thus far are that margins are improving. Inventory turnover appears to be about five times and balance sheet looks OK. Stock at these levels seems undervalued in relation to book value of $2.44/sh.



Royal Group Technologies Ltd. (RYG on TSE, ME & NYSE)Woodbridge, ON Tel (905)264-0701. Price May 14/97: $32.45 52 week range:$34-19. First mentioned on Oct 15/95 when at $18. RYG announced March 31 2Q earnings of 20 cents/sh vs 15 cents. Sales revenues for the 6 months at $350 million were ahead by 33%. Royal Group's core business is manufacturing building products made from PVC. One research analyst expects revenues will exceed $1 billion in fiscal 1998 and reach $1.5 billion in fiscal 2000. RYG shares currently trade at 30 times earnings, but nevertheless appear to be headed higher based on continued long term growth.



Spectrum Signal Processing Inc. (SSY on TSE,SSPIF on NASDAQ) Burnaby, BC, tel: (604) 421-5422. Price May 14/97:$7.50, 52 week range:$16.50-6.40. This is our first mention of the company. Company provides digital signal processing hardware and software solutions to developers and OEMs for computer telephony, military/aerospace and commercial applications. Sales for 1997 should come in at about $40 million and earnings per share of 30 cents indicate a share price target of $9 over the next 12 months is realistic.



Sulliden Exploration Inc. ( SUE on ME), Montreal, QC, tel (514) 861-1953. Price May 14/97: $3.25, 52 week range:$4.00-0.55. This is our first mention of the company. Sulliden has made what appears to be an inportant copper-gold discovery in Peru. More results will be forthcoming over the next few weeks. The discovery is already attracting the attention of major producers. There are 10.3 million shs outstanding.



Tusk Energy Inc. (TKE on Alberta SE) Calgary, AB Tel: (403) 264-8875. Price May 14/97 :$1.30 52 week range: $1.60- 0.90. First mentioned on Feb 14/97 at $1.42. The company's major asset is its interest in the Meekwap area of Alberta which produces light oil and natural gas. Revenues for 1996 were 78% higher at $4.1 million and cash flow 84% higher at $2.2 million, or $0.44/sh based on 7.8 million fully diluted shs. Exit rate at year end was 750 boepd compared with average for the year of 546. Cash flow during 4Q was at an annualised rate of $3.6 million or 46 cents per fully diluted sh. Over the next year cfs of 60 cents indicates a share price target of $3, or 5 times cfs, quite attainable.