Last updated: June 29, 2009

Shaw Communications Inc. (SJR.B)	Target: $21.00
Recommendation: Sector Perform	Risk: Medium
We have transferred coverage of Shaw Communications (Shaw) with a 2-Sector Perform rating (unchanged). We believe cable companies are well positioned against their telco competitors and we believe Shaw is a strong operator and will ride through the TELUS IPTV and broadband threat. However, we believe Shaw's premium valuation multiple will limit the upside for the share price in light of slowing growth, increasing competitive landscape, and declining FCF in F2010, which keeps dividend growth modest and limits share repurchases. Q3/F09 snapshot: Shaw reported better-than-expected subscriber metrics and financials were essentially in line with expectations. Shaw also reiterated F2009 guidance of $500M. We rate Shaw 2-Sector Perform with a one-year target price of $21. We believe current shareholders will have to remain patient and wait for the financials to catch up to the multiple. For others, we recommend staying on the sidelines for a better entry price.
Potash Corporation of Saskatchewan, Inc. (POT)	Target: $165.00
Recommendation: Sector Outperform	Risk: High
POT cut its Q2/09 EPS guidance from $1.10-$1.50 to $0.70. This was not unexpected as we were at $0.60/share vs. Bloomberg consensus overnight at $0.84/share. We expect the Street will cut Q2/09 EPS down to POT's guidance and we expect the Street will likely cut Q3/09 as well. We have left our Q2, Q3 and 2009 EPS estimates unchanged. We are at $1.28 for Q3/09 (Street at $2.11). We have left our 2010/2011 EPS estimates unchanged as well as our POT stock valuation. There is some downward bias on 2010 EPS on poor global 2009 GDP conditions. Short-term headwinds: lower grain futures pricing, China finishing corn/soybean stockpiling and exporting urea/DAP, lower GDP growth outlook, swine flu. Potential positives: late U.S. corn planting risks, India settling potash price before China, U.S. Climate Change bill. We remain at Market Weight for fertilizers, preferring potash over both phosphate and nitrogen stocks now as the greatest 2010 snap back in fertilizer demand should be for potash. Longer term value investors should now consider overweighting but short term headwinds remain.
Teck Resources Limited * (TCK.B)	Target: $23.75
Recommendation: Sector Perform	Risk: High
Teck announced that production at Highland Valley Copper (HVC) will be reduced in 2009 and 2010 due to recently identified geotechnical issues. Teck expects that copper production from Highland Valley will be reduced by approximately 35 million pounds in 2H/09 and by 115 million pounds in 2010. We have decreased our estimates to reflect the company's new guidance. The lower expected production at Highland Valley will reduce Teck's NAV to C$19.75 per share from C$20.21. Based on a preliminary assessment, management does not believe production will be affected beyond 2010. HVC is an important operation for TEK representing approximately 40% of its copper production and 25% of its NAV. We are reducing our target to C$23.75 per share from $24.25 and are maintaining our 2-Sector Perform rating. * Please note, Teck Resources Limited comments were written on June 26, 2009.

Ratings are: 1-Sector Outperform, 2-Sector Perform, 3-Sector Underperform

1-Sector Outperform: The stock is expected to outperform the average total return of the analyst's coverage universe over the next 12 months. 2-Sector Perform: The stock is expected to perform approximately in line with the average total return of the analyst's coverage universe over the next 12 months. 3-Sector Underperform: The stock is expected to underperform the average total return of the analyst's coverage universe over the next 12 months. Other Ratings: Tender: Investors are guided to tender to the terms of the takeover offer. Under Review: The rating has been temporarily placed under review, until sufficient information has been received and assessed by the analyst. Risk Rankings Low: Low financial and operational risk, high predictability of financial results, low stock volatility. Medium: Moderate financial and operational risk, moderate predictability of financial results, moderate stock volatility. High: High financial and/or operational risk, low predictability of financial results, high stock volatility. Caution Warranted: Exceptionally high financial and/or operational risk, exceptionally low predictability of financial results, exceptionally high stock volatility. For risk-tolerant investors only.

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