What are investors thankful for as November draws to a close? Even if you don’t celebrate American Thanksgiving, there’s cause for jubilation as the major stock markets are hovering around record highs and global trade tensions are easing (again).
But the rising tide of the markets aren’t lifting
all ships. Many companies are seeing lower share prices on account of their sectors, tax loss season, or a lackluster performance.
As we head into the holiday season and prepare for Christmas songs and movies to fill our heads once again, keen investors on the Stockhouse Bullboards are keeping their eyes open for value in the markets. Whether they’re looking for a low entry point or discussing their long holds, there has been plenty to discuss lately for the investors and analysts that frequent Stockhouse.
Was the downfall of the cannabis sector overblown, or is the market still reeling? It looks like it depends on which week you’re looking at. We’ve talked a lot about cannabis recently, but not enough focus has been put on
Canopy Growth Corp. (
TSX:WEED,
Forum) and its crazy past few weeks, but the Bullboards have been paying attention and landed the company in second place of the most-watched list.
Like the other major LPs before it, Canopy has largely been riding (and leading) the market wave. On Nov. 14 the company
released its Q2 fiscal results, missing expectations and expediting the descent of WEED shares down from $28.32 on Nov. 8 to $18.78 on Nov. 18. By Nov. 21, however, shares had recovered to $27.03 on good news from US-based earnings, a US move towards decriminalization, and Ontario moving towards a private retail and wholesale system.
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Recently, Canopy has been focusing on how
Cannabis 2.0 will boost its future output and on Nov. 25 announced that it
received a Health Canada license for its beverage facility. Yet the market barely responded to the news and the WEED Bullboard has been trying to figure out what gives. Many users focused on the market likely underestimating the impact of Cannabis 2.0 products, but Stockhouse Member
Starsearcher80 also made a good point about the market still in a bit of a recovery mode.
“You might expect (or want to expect) a bigger jump on the beverage licencing news, but the response so far this morning seems tepid. What I think is happening here is the stock is still "catching up to itself", after the eye-popping rise last week.
This consolidation is completely normal. It's the equivalent of sprinting up a mountain, and you just need to take a break for a moment, pause, catch your breath, and then continue the climb. That the consolidation continues to be at a pretty high level is very encouraging.
I think what we'll see here is a tapering of this consolidation phase, and resumption of the move up. In my humble opinion, there are just too many positive catalysts. Traders playing the shorter timeframes are now out and will be looking for their re-entry point. That should come soon enough.”
(Po?st: Thoughts on the day)
For another company that has had an
interesting week to say the least, look no further than
Kirkland Lake Gold Ltd. (
TSX:KL,
Forum). The company climbed back up in the metals and mining Bullboards as it made headlines with the
announced acquisition of intermediate miner
Detour Gold Corp. (
TSX:DGC,
Forum). Unfortunately, the initial reaction to the acquisition wasn’t exactly positive, as KL shares dropped from $63.32 on Nov. 22 to $52.38 on Nov 25.
Doubtless that wasn’t the market reaction that KL had expected. The all-stock deal would see Kirkland Lake move towards major gold miner status, but it currently mines high-grade gold at lower cost than Detour. The assumed hope is that Kirkland Lake, which on Nov. 6
released solid fiscal Q3 results, will be able to find value in Detour that hasn’t yet been realized.
But since Kirkland Lake is a big name on Stockhouse, the KL Bullboard has been understandably up in arms about the proposed acquisition. After an initial frenzy of reactions, many users have started weighing the benefits and cons of the acquisition on a long term basis, and taking in what analysts and sector experts are saying. One line of thinking about the long-term benefits from Stockhouse Member
westcoast2019 has also been echoed by some industry thought leaders, and is likely the reason KL sought the acquisition in the first place.
“…It seems hard to get my head around our highly profitable miner buying a much lower profitable mine, but in this case, with improving AISC and possible increased output and large exploration potential that Detour couldn't really focus on because of the costs to build and maintain their mine, there are some hopes.
…If gold prices rise substantially Detour's 15.4 million ounce reserve will skyrocket in value. I just keep thinking of $2000 gold after debt-fueled stock markets fall in a recession sometime in late 2020 or in 2021. Gold from the Detour mine being mined at $1000 oz and sold at $2000 oz.
KL sitting with 15 million ounces to mine at Detour Lake over 20 years while mining high grade ore in Australia and Canada with say a billion in their coffers to fund exploration and mine expansions…”
(Po?st: Re another offer for Detour)
Finally we have the technology Bullboards and resurgence of
NexOptic Technology Corp. (
TSX-V:NXO,
Forum) up the rankings. We haven’t highlighted the image tech developer
since June but the company has a large following and investment base on Stockhouse. A glance at the chart of NXO shows us how much we’ve missed, from a spike in September from $0.30 to $0.46, a fall back down towards the end of October to $0.31, and more recently another upswing in November.
The company doesn’t release too much news but has been heavily invested in R&D lately, and the share price is reflective. On Sept. 16 shares spiked after NexOptic
announced significant improvements to its A.I. based imaging system ALLIS, after which it was quiet until a Nov. 20 announcement that it would
launch its DoubleTake advanced binoculars at CES 2020.
While things look like they’re picking up, the NXO Bullboard has been invested in the company for a long time and is waiting to see results. NexOptic’s offerings have the opportunity to “change the game” of imaging if delivered in the right way, but Stockhouse Member
rainorshine59 also remembers the setbacks and expensiveness that set the company back in the past.
“Given the massive potential here, of a 'change' to the optics industry 'as we know it,' I always had that little voice that told me that unless some industry heavyweights from the optics industry got on board this little ‘I think I can, I think I can,’ engine, that going into manufacturing/sales was going to be fraught with risk and error from the inventors/management team as it was constituted 3 years ago.
I now find it verrrrry interesting that as the R&D has advanced, the makeup of the BoD has advanced, and the 'insider' control of the enterprise is now enhanced... or soon will be, and that the share price is back to the level in 2016, when the party began.
And that the P/B is about 1. GoPro is at 4. AAPL is at 13.”
(Po?st: RE:Just be aware of a couple things before the meeting...)
One thing many investors and companies start to think about as the year starts winding down is taxes, and we’re now in the midst of what many call tax loss season. As many investors look to offset capital gains by selling investments with accrued losses, our
newest homepage poll looks at how “invested” Stockhouse readers are in the practice of tax-loss selling. Click the image below or head over to the site to add your input!
(Click image to go to the poll)
This coming weekend may be quiet on the American market front with markets taking a recess today, but you can bet the news and value findings won’t stop flowing through the Stockhouse Bullboards. For previous editions of Buzz on the Bullboards:
click here.