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In the Marketplace

BY ALM Staff
May 31, 2007

Alter Moneta of Montreal has announced the appointment of two leasing and finance business development executives in western Canada in response to growing business opportunities generated by energy and construction-related projects. The appointments of Shawn Cardinell, of Burlington, Ontario, and Gary Goodman, of Edmonton, Alberta, are part of a strategic plan to grow the company following a recent financial investment from Bear Stearns Merchant Banking. The company's plan is to expand its geographic footprint and more than double its 110-employee workforce by 2012. A growing independent financial services company, Alter Moneta currently has key locations throughout Canada and the United States and is also backed by Caisse de depot et placement due Quebec, the largest institutional fund manager in Canada.

Cardinell will serve the company's vendor/dealer network for Ontario-western Canada. He was previously employed by Volvo Financial Services Canada. Goodman also will have responsibility for developing new business opportunities in Western Canada. After serving for two decades with the Royal Bank of Canada, he held senior account management positions with both GE Capital Solutions and CitiCapital Commercial Corporation in Edmonton.

Truck Repos increased in 2006. Nassau Asset Management of Westbury, NY has released its NasTrac Quarterly Index ('NQI'), showing that repossessions and liquidations of tractor-trailer trucks rose nearly 8% in 2006 compared with 2005. This rise in repossessions likely indicates another challenging year is ahead for small-to-mid-sized trucking businesses. In fact, Nassau President, Edward Castagna, stated that 'truck repossessions and liquidations have been on an upward trend for seven of the past eight quarters, and current conditions indicate this trend will continue.' He cites the instability of fuel prices and the drop in new home construction as possible causes. In addition, there are general economic factors to consider. 'Problems with the sub-prime mortgage industry, for example, are making it harder for struggling businesses everywhere to squeeze equity from their real estate.' The upside, according to Castagna, is that there is a steady market for used trucks. This market should remain strong in the short term due in part to the fact that the new 2007 trucks meeting new EPA diesel engine regulations have engines that are unproven, cost more to maintain, and are being avoided by buyers for as long as possible.

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