RBC Capital has released a list of stocks on the S&P/TSX Composite Index it claims will have the most “predictable” positive performance.

“Predictability factors tend to perform well during low earnings growth environments or periods of high market volatility,” RBC analyst Chad McAlpine said in a note on Wednesday. The list was produced using RBC's proprietary computer models and boasts “defensive, high-quality names ... they offer strong growth profiles at attractive valuations,” he said.

Telus Corp.(TU)  and BCE Inc. (BCE) are expected to finalize a decision to upgrade their cellular networks for 3G soon. This means equipment costs of C$75,000 to C$100,000 per site, according to Jeffrey Fan at UBS Securities. With roughly 5,000 locations for both companies, he told clients that this translates into anywhere from C$360-million to C$480-million in total combined costs.

Meanwhile, Nokia Siemens Networks and Huawei Technologies are the companies Mr. Fan considers well-positioned to capitalize on the additional spending from Telus and Bell Canada.

Quebecor World Inc. (IQW) shares were up 92% or C$0.13 to C$0.27 at 11 a.m. ET on Wednesday after the company said it has been awarded a new contract with The McGraw-Hill Companies extending into 2014.

The new agreement is valued at approximately C$285-million over its term and covers a wide range of educational textbooks, ancillary products, professional learning products and catalogs.

While doubts about the C$52-billion leveraged buyout led by the Ontario Teachers’ Pension Plan have left shares of BCE Inc. (BCE) more than 15% below the offer price of C$42.75, Canada’s largest telecom company hopes to show that it is on solid footing when it reports fourth quarter results today.

Ahead of this report, UBS analyst Jeffrey Fan upgraded BCE to a “buy” with a target price of C$42.75.

Now that Quebecor World Inc. (IQW) has filed for creditor protection, parent Quebecor Inc. [QBR.B/TSX] is ready to move on and should be all the better for it, according to UBS analyst Jeffrey Fan.

Quebecor Inc. took a big step in severing ties with Quebecor World on Monday following the latter's creditor protection announcement, by formally advising Quebecor World that it must remove "Quebecor" from its corporate name.

Cormark Securities analyst David McFadgen officially shut the book on Quebecor World Inc. (IQW) coverage after the company announced earlier this morning that the rescue financing proposal from Quebecor Inc. and Tricap Partners was rejected by Quebecor World's lenders.

In a note to clients he said:

Accordingly, it will seek bankruptcy protection [CCAA] today. We are cutting our target from $C0.25 to NIL. Given the equity of Quebecor World is now basically worthless, we are dropping coverage of [it].

Shares in Quebecor World Inc. (IQW) fell to new lows on Wednesday as the printing giant headed toward a bank-imposed deadline with a proposed bailout plan that would leave existing shareholders with a fraction of the company's equity.

Quebecor World stock fell 42% to $0.47, while its two classes of preferred shares fell by 30% and 44%. The equity values collapsed after the company said late Monday a bailout package proposed by parent Quebecor Inc. and Brookfield Asset Management Inc. unit Tricap Partners would give the two financiers new stock equal to 75% of the firm's equity.

With earnings season under way, investors are looking for companies that will beat expectations. They are also watching out for those that may disappoint. And that’s where our friends at StarMine come in.

Using the research firm’s SmartEstimate, which is based on the most recent forecasts from the most accurate analysts, we are able to highlight some of the names whose profits are expected to meet or beat consensus estimates, and those who may yield negative earnings surprises. However, this time around there were few compelling selections on the positive side, so we will focus on some names that may disappoint.

Can't decide between cable companies and telecoms for your next 2008 stock pick? RBC Dominion Securities analyst Jonathan Allen is betting that cable is the safer option of the two as free cash flow in the sector should expand significantly over the next year or two.

Of the top cable stocks, Mr. Allen recommends Rogers Communications Inc. (RG), Shaw Communications Inc. (SJR), Cogeco Cable Inc. [CCA/TO] and Quebecor Inc. (IQW) as the upcoming wireless auction is expected to create uncertainty in the telecom space.

Quebecor World Inc. (IQW) is racing to avoid bankruptcy given deadlines of Jan. 15 to secure $125-million in new financing and until the end of the month to refinance its credit facility debt. The requirement to reduce the troubled commercial printer’s current credit facility to $500-million by Feb. 29 comes from both its banking syndicate and the sponsors of its North American securitization program.

Last week, Quebecor World acknowledged that it may not secure the necessary financing. Gimme Credit’s Shelly Lombard seems to agree with this outlook, calling the deadlines “seemingly impossible.” The analyst even joked that Quebecor World might need to use its presses to print money rather than magazines.

The immediate replacement of Quebecor World Inc. (IQW) CEO Wes Lucas with CFO Jacques Mallette is yet another shuffle in what has been a “revolving door” of executive movements at the Montreal-based printer, says Drew McReynolds of RBC Capital Markets. The analyst noted that this is the fifth CEO Quebecor World has had since Charles Cavell retired in 2003.

In a note he told clients that,

Although the financial and operational background of Jacques Mallette could serve the company well during this challenging period, we believe it is essential for management to maintain continuity on achieving the efficiency targets set up under the five-point transformation plan of Wes Lucas.

Quebecor (IQW) declared a dividend on preferred shares when it released terrible earnings. The press release dated Nov 7 said:

The Board of Directors of Quebecor World Inc. declared today a dividend of CA$0.3845per share on Series 3 Preferred Shares and CA$0.43125 on Series 5 Preferred Shares. The dividends are payable on December 1, 2007 to shareholders of record at the close of business on November 19, 2007.

Quebecor World Inc. (IQW) has plunged roughly 70% in less than a month, continuing the decline in recent days after the commercial printer’s refinancing plan fell through due to weak credit markets.

The shares may not have much further to fall, but RBC Capital Markets’ Drew McReynolds still sees no shortage of risks for the company.

This Quebecor World (NYSE: IQW) research note was put out Monday morning by Genuity Capital Markets. There’s no beating around the bush. Despite having a US$1.2 billion market cap. and US$570MM of EBITDA forecast for 2007, their lenders knocked back QW’s credit facility from US$1 billion (of which only US$100MM was drawn) to US$750MM, which must be dropped to US$500MM by next summer.

The rate also rose from 6.8% as at 12/06 to what Genuity estimates is 8%. Genuity thinks this is due to moves in LIBOR, but the US$ LIBOR is 5.23% this am, versus 5.37% a year ago; Sterling LIBOR has risen from 5.13% to 6.278% in a year.

Investors may be worried that Quebecor may trip its debt covenants, but management is confident these can be re-established, the analyst told clients in a note.

The struggling commercial printer had another money-losing quarter, but earnings per share did come in line with second quarter estimates at UBS.

"The next big catalyst for cable stocks will come when operating/capex pressure abates and free cash flow expands significantly in the next 1-2 years," he wrote in a note to clients.

This forecast, from RBC Capital Markets analyst Drew McReynolds, has revenue falling 0.9% from a year earlier to US$1.454-billion, which translates to a 2.5% decline in earnings before interest, taxes, depreciation and amortization to US$125-million. The consensus estimate is US$130-million.

However, given Quebecor's accelerated restructuring, he would not be surprised by significant deviation from quarterly estimates.

Despite news from the company when it released earnings Tuesday that its retooling program will end earlier than expected, by summer, and some promising indicators, the situation looks bleak to Mr. Bayard.

Investors in the second-largest commercial printer in North America may find out when it publishes 2006 results on Tuesday.

Some analysts seem to think so, but hardly see this as any reason to get excited.