Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Buzz on the Bullboards: The Rebound Season?


Omri Wallach Omri Wallach, Stockhouse
1 Comment| December 5, 2019

{{labelSign}}  Favorites
{{errorMessage}}

As soon as American Thanksgiving passes, the mood in North American markets shifts dramatically. Investors start to contend with holidays, gifts, and vacations on one hand, and the end of their fiscal years on the other.

Companies also look to end the calendar year on a positive note, and any stocks making last-second rallies become attractive investments. The Stockhouse Bullboards fill up with discussions surrounding plays that look to be on the rebound, and investors and analysts debate whether to invest in what is part of a long-term recovery or short-term spike.

This week we’re going to highlight three companies in three sectors that have experienced some dips heading into the Winter but might be on the way back up, and break down what’s happening. Are they worthwhile investment bargains or potential pitfalls?

Click to enlarge

Is Valeura Energy Inc. (TSX:VLE, Forum) on the rebound? Two months ago, the Canadian energy producer hovered just above $2.25, but VLE shares fell below $1.00 after analysts lowered their price target slightly. Last week, however, saw a resurgence. On Nov. 26 shares closed at $0.84, and after climbing into the weekend, closed at $1.23 on Dec. 3.

Click to enlarge

Valeura is developing natural gas holdings in Turkey, and the climb in share price correlates with the Nov. 29 release of positive test results in the company’s Devepinar-1 well. While it looks to be on a recovering track, earlier test results from a different well on Oct. 21 was the catalyst that made analysts worry that Valeura has a lot of work left before it can realize its assets.


What the "Buzz"

Our Bullboards have up to 2 Million pageviews a day. Get the inside scoop on conversations around the most significant trends and stock appreciations in our weekly wrap up.

Get "Buzz on the Bullboards" delivered to your inbox every Thursday!

Buzz on the Bullboards | Sign Up Here



Many investors on the VLE Bullboard are likewise trying to figure out the likelihood of Valeura’s recovery. Dropping from above $2.00 to below a dollar was a big hit for many, but the recent test results look like they could signal the start of a prolonged recovery. Many users wondered what happens next, and Stockhouse Member Sj40mf gave a lengthy breakdown of the possibilities, but so far the results have been relatively smaller, shallower, and need to be expanded on.

“…So far, the lowest zones have shown very manageable amounts of water, and with Dev 1, dry gas. That should reasonably indicate any gas zones below are also dry gas, and maybe even more productive, but since they never fracked Inanli at its deepest level, we can’t even reasonably speculate…”
(Po?st: RE:WHAT HAPPENS NEXT?)


Click to enlarge

A similar story of a potential rebound is happening right now for Antibe Therapeutics Inc. (TSX-V:ATE, Forum). The biotech company has been a constant reappearance on the top healthcare Bullboards charts and has recently gained some more traction as ATE shares might be recovering following a crazy week. Shares climbed to $0.435 on Nov. 27, dropped to $0.38 on Nov. 29, then climbed back to $0.41 on Dec. 3.

Click to enlarge

The drop occurred on Oct. 28 after Antibe released interim Q2 fiscal results that didn’t land well. Part of the blowback came from the completion of the company’s ongoing trial study being pushed to next year, and that was the first release from the company since its last fiscal results back in August.

After a turbulent Autumn that saw shares spike to $0.5 and fall back down, the release didn’t stoke many positive feelings on the ATE Bullboard at first. But shares started to climb back up, and users on the Bullboard were left wondering: Could Antibe pull this off? Waiting on a study to make or break your investment is hard without any news, but as Stockhouse Member MUGMODs pointed out, the company’s calm and patience actually inspires more confidence.

“I think all the longs agree. The technology seems to work and it seems to enhance regular naproxen. We best not fault the steps taken at this time. The timing is unfortunate but in six months we simply wont care about this delay (IMO). Now, if the trial failed or was below expectations, AND we went through all this added trouble, then I'd wonder, ‘What was all this for?’

But the confidence from management is high (as we can see on the corporate presentation). They are willing to be extra cautious and take a lashing for it to ensure the trial isn't stopped due to complications. Moving forward with the FDA meeting request is also a projection of their confidence. We are all here because we expect excellent results, regardless of how pissed we are that there is another delay...
(Po?st: RE:Opportunity)


Click to enlarge

In a different scenario we have DynaCERT Inc. (TSX-V:DYA, Forum) continuing its long fight for the top-spot on the industrials Bullboards. The Canadian manufacturer of carbon emission reduction technology has had an up-and-down couple of months since September but last week was more consistently positive. Shares of DYA climbed from $0.465 on Nov. 27 to $0.495 on Dec. 3.

Click to enlarge

The rise came after DynaCERT announced on Nov. 28 that Eric Sprott had become a significant shareholder in the company. It was a nice boon to the company’ confidence after shares have trended downwards overall for the last two months, punctuated by a few big dips in October and November.

But is one billionaire’s backing enough for a company to succeed? That was one of the questions on the DYA Bullboard (alongside a thorough dissecting of Sprott’s other backings). One thing that kept being repeated, however, was that Sprott’s investment came at what he saw as DynaCERT’s lower threshold. As Stockhouse Member goldtoe highlighted, the backing should show investors that the higher threshold is yet to come.

“[Sprott] said he was happy to get in on the GROUND floor with DYA, the board has a lot of expertise even if the CEO happens to get ahead of himself and the Company, nothing that a shake down on top wouldn't solve. I can imagine that there are other DEEP pockets out there just waiting to jump onboard with controlling interest shares!

…I really do feel like they have turned a corner and they will invest in production and getting the product to market. I know that they might have to get much better at installations... These two areas need all the collective board’s expertise to make sure installations are not a weak component in the whole process!

The company is on the GROUND floor. The financials will surprise to the upside once all the hiccups are ironed out. I think some companies are saying what's the sense in ordering a large volume of units if it's going to take months to deliver and install. I remember also that Nortel made the mistake of financing their sales... not such a great idea. I bet TESLA had a few hiccups along the way, as has Amazon but the main thing is not to make any TERMINAL mistakes…”

(Po?st: Sprott....)


If you’re wondering whether these stocks are on the way up, about to come back down, or hovering in the middle, keep in mind that we’re still in the midst of tax-loss selling season. Some investors sell losing stocks to offset capital gains made in the year and the result is inevitable downwards pressure that makes some companies temporary bargains. We asked Stockhouse readers on our homepage poll how their strategy changes towards the end of the year and so far, the results point towards bargain hunting.

Click to enlarge

However, just as the season isn’t over, neither is the poll. If you’ve yet to contribute your voice and have a solid grasp on your investment strategy for the rest of December, head over to the homepage or click the image below to cast your vote.


(Click image to go to the poll)

One thing is for sure: the season, and the year, are quickly wrapping up. We might only be at the start of December right now, but that means we only have a few more editions of Buzz on the Bullboards to see how the hottest stocks and sectors are faring heading into 2020. For previous editions of Buzz on the Bullboards: click here.


Get "Buzz on the Bullboards" delivered to your inbox every Thursday!

Buzz on the Bullboards | Sign Up Here




{{labelSign}}  Favorites
{{errorMessage}}

Comments

Energy ETF XEG shows clearly that energy sector is on the move as Canadian commodities prices are much higher than 2018 and OPEC+ made new production cuts.
(100)
December 11, 2019

Leave a Comment

You must be logged in to be able to post a comment.