Biox makes it on BMO's Market Predictions list

We’re now driving a diesel at home, so bring on the biofuel.

With the pending TSX trading of Wellington Financial Fund III portfolio co. Biox Co.’s initial public offering (see prior post “Biox looks set to raise $50 million in IPO” Nov 28-09), it was exciting to see that BMO Financial Group’s economists, market and commodity strategists in Canada and the United States are paying attention to Canada’s largest biodiesel plant.

Here’s a summary of the predictions of Paul Taylor, Chief Investment Officer, BMO Harris Private Banking:

– After the roller-coaster years of 2008 and 2009, where our financial system teetered on the edge of ruin and equity markets imploded, the “story” of 2010 may well be that volatility and systemic risk fade while the economy and capital markets churn out modest, steady progress.
– Global economic growth is likely to return to a rate of around 3 per cent, driven by strong growth rates of 8 to 10 per cent in China and India and held back by weak growth in Core Europe of no more than 1.5 per cent and moderate growth of 2.5 per cent in North America.
– Equity returns will likely moderate versus the heady pace of 2009, but will most likely easily out-pace the alternative returns available from cash and bonds.
– Stocks in the BMO Harris portfolios that are likely to be big movers in 2010 are: Potash, RIM, Sino Forest, Dragonwave, Petro Rubiales, Biox, Enablence Technologies and Mercator Minerals.

MRM
(disclosure – our Fund III owns warrants in Biox)