EYE ON EQUITIES / / STOCKS THAT SHOULD BE ON YOUR RADAR SCREEN

NVIDIA CORP.

(NVDA-NASDAQ)

Thursday's close

$9.13, down $1

Nvidia Corp., a maker of graphic chips for high-performance video games and for industrial and communication applications, has released a worse-than-expected sales preannouncement, said Citigroup Global Markets analyst Glen Yeung.

Downside: The target of the buy-rated shares was slashed to $14 (U.S.) from $20, although with 32 per cent of their value in cash, there is "limited" risk of a downturn below $8.50 to $8.75.

FIRST NATIONAL FINANIAL INCOME FUND

(FN.UN-TSX)

Thursday's close

$16.55, down 5¢

First National Financial Income Fund's results for 2011 are likely to be hurt by slowing housing activity and lower mortgage origination margins, said RBC Dominion Securities analyst Geoffrey Kwan.

Downside: The unit price target was reduced to $20 from $26 and the 2010 earnings to $2.10 a unit from $2.53, with a 2011 forecast of $1.72. The units yield 9.1 per cent and are rated "outperform."

TRANSALTA CORP.

(TA-TSX)

Thursday's close

$20.93, up 42¢

TransAlta Corp., an electric generating company, expects markets to remain weak until 2011 and Chad Friess, a UBS Securities Canada analyst, sees "no light at the end of the tunnel yet" given the weak natural gas prices, which play a large role in the power market.

Downside: The shares are reiterated "neutral" with a price target of $22.

BELL ALIANT REGIONAL COMMUNICATIONS

(BA.UN-TSX)

Thursday's close

$25.86, down 17¢

Bell Aliant Regional Communications Income Fund, which operates wireline businesses in Atlantic Canada, Ontario and Quebec, is reducing costs to match declining sales, said Beacon Securities analysts Michael Mills and Philip Bassil. It plans to close three of its five contact centres in Atlantic Canada, eliminate some post-retirement benefits and use more third-party contractors.

Downside: The units, which yield 11.3 per cent, are reiterated "hold" with a price target of $25.

LABRADOR IRON MINES LTD.

(LIM-TSX)

Thursday's close

$4.47, down 27¢

Labrador Iron Mines Holdings Ltd. has been issued certificates for the construction of four open-pit mining and processing facilities by the government of Newfoundland and Labrador, said Geordie Mark, an analyst with Haywood Securities.

Upside: The shares are reiterated "sector outperform" with a price target of $10.20.

SOURCE / BLOOMBERG