Stocks we’re watching (31 July 2012)

A handful of stocks worth keeping an eye on as August inches forth:

*Regal Entertainment Group (RGC) is a U.S.-based cinema operator that's feeling the impacts of weak consumer spending and the rise of high-quality home entertainment options made available in our increasingly digital age. Though the movie-going public loves a good blockbuster, RGC's revenue declined and its earnings haven't been great either. Investors might want to stay home and see what's on instead.

*Baker Hughes Inc. (BHI), one of the world's largest oilfield services companies, is on the rise following a better-than-expected quarterly earnings report. BHI's profit rose by 30 per cent to US$439 million, or $1 per share, up from $338 million one year ago, easily beating analysts' expectations. Can BHI's share price climb higher after clearing the $47 mark? Some believe it can.

*Pengrowth Energy Corp. (PGF), an intermediate Canadian oil and natural gas provider, slashed its monthly dividend by 43 per cent in a move to protect the company's "financial and balance sheet strength". But how strong can the Western Canadian oil company be? The acquisition of NAL Energy Corp. led to a capital expenditure reduction that didn't sit well with many analysts. It might be time to pull over to check the oil.

*Teck Resources Ltd. (TCK), the Canadian metals and mining company, saw its revenue slip in the second quarter to $2.6 billion from $2.8 billion one year ago. Profits took a dive by 52.9 per cent to $312 million, or 53 cents per share. Analysts had expected 64 cents per share on revenue of $2.7 billion. Lower coal prices and higher production costs have made their mark on Teck but the company's core products, namely coal, copper, and zinc, remain profitable and its balance sheet is strong.

*Wells Fargo (WFC) is the U.S.'s fourth largest bank by assets and while investing in American banks might not seem prudent at the moment, but as a regional bank, Wells Fargo isn't exposed to Europe or other international markets. This institution isn't as dependent on investment banking or capital markets as is its peers. WFC is America's largest mortgage lender though and it posted record second quarter profits recently.

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