Though some may have expected the markets to be relaxed heading into the holidays, many investors and brokers know that this is their time to shine. With every twist and turn the global economy has been throwing our way, staying active is definitely the right move.
And as predicted last week, the stars have aligned for a few companies and shareholders have received early gifts courtesy of rising stock prices. Of course, not everyone can be so lucky (some companies are getting coal in their stockings), but the users on the Stockhouse Bullboard are fantastic at sifting through and highlighting the top value plays.
The end of personal fiscal years is right around the corner and everywhere you look are signs of increased activity. Investors looking to cash in, brokers looking for a big deal or two, and companies looking to impress. Everyone is trying to win heading into the finish line, so let’s look at some of the stocks that are standing out from the rest.
Have you heard the word about
Wallbridge Mining Co Ltd. (TSX:WM, Forum)? The latest success story to capture the attention of the Bullboards, shares of the junior miner
more than doubled in October, then following a weaker November started to climb back up once again. Last week, WM went from $0.73 on Dec. 3 to $0.83 on Dec. 9.
Though the company’s original rise was attributable to its own successful results, the latest market surge comes courtesy of
Kirkland Lake Gold Ltd. (
TSX:KL,
Forum). On Nov. 29, Wallbridge announced it closed a
private placement financing of $42.5 million, and though details were initially scarce, it became clear that Kirkland Lake was behind the private placement and had become a 9.9% shareholder in the company. A Dec. 9
announcement confirmed this with the appointment of Kirkland Lake’s CEO to WM’s Board of Directors.
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Does this mean Wallbridge is the next target for a buyout from Kirkland Lake? The WM Bullboard has been heavily debating what’s next for the company (and how long until it reaches $1.00 or gets bought out) and zeroed in on one shareholder both companies have in common: billionaire Eric Sprott. As Stockhouse Member
mepatriot posited in their post, having Sprott involved and commenting publicly on the company can be both positive and detrimental.
“Is having a billionaire junior gold expert this heavily involved in the ownership of a potential takeout target a net positive, or negative?
On one hand, his reputation for identifying and ‘de-risking’ explorers is probably very comforting and confirming from their perspective.
On the other hand, his presence probably prevents any major from ever getting in "cheap," which, of course, is good for we ‘little people...’”
(Po?st: The Sprott Effect...from a hungry major's perspective)
While the top cannabis Bullboards look mainly unchanged, a notable new face by the name of
Kalytera Therapeutics Inc. (TSX-V:KLY, Forum) generated a lot of discussion. Why is KLY’s climb notable? The CBD biotech company is a penny stock, attractive to many small-cap investors but rarely generating enough buzz to top the lists. That is, unless there’s big money-making news abound.
A glance at the chart shows that KLY shares and trade volume both increased towards the start of December. Then on Dec. 2, the company
reported its latest fiscal results, recorded a net loss, and shares dropped back down. But the drop was as small as it was brief, the volume was nowhere near what it was before the release, and KLY shares have started to climb again.
As far as the Kalytera Bullboard is concerned, that means the “big” news is still soon to arrive. A large debate is raging on the forum right now over whether or not the company is about to be bought or go bankrupt, and although both sides have made compelling arguments, Stockhouse Member
edrose highlights that the company’s ongoing CBD research has definitely made it a target for big pharmas.
“[How many companies have] good results in a phase 2 study for a condition where’s there currently no treatment and only trading at $0.04.
PHASE 3 WILL BE DONE, money will come from either a LICENCING deal, partner or buyout. Results are too good to just drop the research...”
(Po?st: They need money to start phase 3 how many companies have…)
Anytime the industrials Bullboards have
Bombardier Inc. (TSX:BBD.B, Forum) take the top spot by a consistent margin, you can expect some big news.
Last time was before the release of the company’s
latest quarterly release on Halloween, and the results set BBD on track back above $2.00. Lately, however, it has started to decline again, and the latest news barely made a dent.
The current focus for the Canadian manufacturer (and its investors) has been on production of its Global Aircraft line. On Dec. 4 Bombardier followed up a media advisory from
a day earlier with the announcement that the company
had signed a lease agreement for a brand new facility with the Greater Toronto Airports Authority to relocate its Global Aircraft assembly.
While the announcement was positive on paper, the new facility isn’t slated for completion until 2023 and the BBD Bullboard is focused largely on the present. Bombardier has already committed to delivering many aircraft in the short term, and while many users are expecting the company will follow through after performing well last quarter, Stockhouse Member
cseriesaddick was one of many that are waiting until they see the deliveries firsthand.
“They've got to put them in the air first. When the interior of the aircraft is completed, they start predelivery flights and, as such, usually accumulate more than 10 hours of flight time per aircraft. Only two aircrafts have started predelivery flight, unless, of course, they hide it from Flightaware, which is still possible, but not likely. When I'll see these aircrafts in the air, I will start relaxing.”
(Po?st: RE:The Bomber is aiming to meet deliveries)
If you can believe it, we’re already almost halfway into December. As the year winds down, we’ve been polling Stockhouse investors on their
tax-loss selling strategies to see how many people capitalize towards the end of the fiscal year. With more people reporting, it seems like more people heavily reduce their portfolio than we expected!
Yet bargain hunting remains squarely in the lead, and the Investor Pulse Poll will remain open
on our homepage for another week. Head on over or click the image below to cast your vote and let us know how (and if) you participate in the season.
(Click image to go to the poll)
Next week we’ll be doing our 2019 wrap-up, priming up the year ahead, and seeing if the holidays have a positive effect on the markets in the form of a “Santa Claus Rally.” Stay tuned, and for previous editions of Buzz on the Bullboards:
click here.