2007's winners and losers on the TSX

As 2007 entered the history books, it's 'woulda, coulda, shoulda' time as investors looked back to find the stocks they should have bought in bulk at the start of the year.

Of course, that means it was also time to look back on the year's real stinkers — stocks that badly underperformed on the 262-stock S&P/TSX composite index.

In 2007, there was no shortage of stocks in either category as zooming commodity prices, management missteps, a lofty loonie, great products, more competition, the credit crunch, or flawless execution combined to create real standouts — good and bad.

Some winners:                                                                                                       (data as of Dec. 31, 2007)

Petrobank Energy and Resources (PBG - TSX)

Calgary-based Petrobank was the best-performing energy stock in the benchmark TSX index in 2007. Its shares more than tripled in value and are up a whopping 2,500 per cent in the past three years. It's pioneered an oilsands recovery technique that's more effective and friendlier to the environment than traditional methods.

Potash Corp. (POT - TSX)

Oil wasn't the only commodity to catch fire in 2007. Potash Corp. shares more than doubled in the year as the price of fertilizers hit the roof on growing demand from China. Takeover speculation only added to the lustre of the Saskatoon-based company's stock.

Research in Motion (RIM - TSX)

There are now 12 million subscribers to RIM's Blackberry service and that number is growing by about 20,000 a day. A habit of consistently beating analysts' earnings expectations helped the stock of this Waterloo, Ont.-based high-tech star to more than double in 2007.

Agrium (AGU - TSX)

Agrium, like Potash Corp., is also in the fertilizer business. That's been a good niche to occupy lately. The Calgary-based company has been busy ramping up production to take advantage of higher prices. Agrium shares were up 96 per cent year-over-year.

Thompson Creek Metals(TCM - TSX)

Until May, Thompson Creek Metals used to be known as Blue Pearl Mining — which still didn't tell you that its business is nothing but molybdenum mining. But investors found out and sent the stock up by 76 per cent in 2007. Steady demand and low inventories had several analysts pressing the buy button for "moly," which is used to strengthen steel.

WestJet Airlines (WJA - TSX)

WestJet discovered that the best way to make money in the airline business is to buy fuel-efficient planes and fly your planes as full as possible. The high dollar prompted more Canadians to fly to the U.S. (more business for WestJet) and made it easier to pay those U.S.-dollar denominated fuel bills (more profit for WestJet). The shares gained 50 per cent in 2007.

Timminco  (TIM - TSX)

This stock still isn't part of the S&P/TSX composite index. But if Timminco maintains its stock performance, it's only a matter of time. Timminco shares started 2007 below 30 cents and ended the year around $18. Toronto-based Timminco finds itself in the solar sweet spot — it makes silicon metal used in solar panels.

Some losers:

Quebecor World (IQW - TSX)

This Montreal-based company is the largest commercial printer in the world. But the printing business isn't what it used to be and shows few signs of a turnaround. Throw in low prices, a failed refinancing plan, operating inefficiencies, huge losses, and ratings downgrades, and before you know it, the shares plunged to an all-time low. The stock ended down almost 87 per cent on the year.

Mega Brands (MB - TSX)

Mega Brands — formerly Mega Blocks — was caught in the cross-hairs of a massive toy recall of its Magnetix building sets after a number of children swallowed loose parts from the toys. It also lost sales from production delays in China. Its stock — once a market darling — lost 76 per cent of its value. Its turnaround plan includes shifting more work to China.

Cinram International (CRW.un - TSX)

Cinram is in the business of making recordable DVDs and CDs by the millions. That's not the easy recipe for growth it used to be. Throw in the fact that it pays its distributions in Canadian dollars but gets most of its revenues in U.S. dollars and you have the makings of a cash squeeze. Its decision in early November to suspend distributions prompted a bailout by investors. Its trust units fell 75 per cent on the year.

Biovail (BVF - TSX)

Pharmaceutical company Biovail is facing a raft of generic competitors for its drugs, FDA delays in getting product approval, and few big revenue drivers in its product pipeline over the next couple of years. As a result, its stock lost almost 46 per cent in 2007.

Loblaw (L - TSX)

Canada's biggest grocery chain had its lunch eaten by a number of factors this year — margin pressures, price cuts, restructuring charges and earnings misses. They all combined to send its shares to a seven-year low. The stock lost just over 30 per cent in 2007.

CIBC (CM - TSX)

Just about everything that could go wrong, did go wrong for CIBC this year. Its biggest stumble came in October, when it revealed that it has $9.3 billion of exposure to the slumping subprime mortgage market — more than any other Canadian bank. It warned near the end of the year that it could face a charge of up to $2 billion. The stock lost more than 28 per cent in 2007.   

Coventree Inc. (COF-TSX)

Toronto-based finance company Coventree Inc. isn't in the main S&P/TSX composite index. And at this rate, it won't ever get in. It's a casualty of the fallout from the slumping U.S. subprime mortgage market. The company, which sponsors trusts that issued non-bank asset-backed commercial paper (ABCP), warned investors its future is "highly dependent" on financial industry attempts to get the battered third-party ABCP market working again. Coventree shares were worth $15 at the start of the year. It was a penny stock by the end.