(Image via SweetWater Brewing Co.)
It happens every year, the mood among North American markets changes drastically once American Thanksgiving passes and despite a “socially distanced” holiday this year, that still holds true.
Traders are now juggling the end of their fiscal years with one hand, gifts, and holidays with the other. It is a sentiment shared by companies as well, who look to end the calendar year on a positive note, pushing any last second rallies for their shares as attractive investments for the tax sell-off season.
Stock plays that look like they are on the rebound are always a magnet for hot discussions on the Stockhouse Bullboards, as investors and analysts debate whether to put up money into what is part of a long-term recovery or short-term rally.
We highlight three companies in three sectors this week that have either seen a surge or a dip heading into the winter season. Who could be continuing their trend upward? Let’s break down what is happening and see which investments are worthwhile bargains or potential pitfalls. One of the best sectors to begin with is cannabis, where a lot of activity has gone on under the weight of the COVID-19 pandemic ….
Aphria Inc. (TSX: APHA, Forum) closed the accretive, strategic acquisition of
SW Brewing Company, LLC, one of the largest independent craft brewers in the US based on volume (pictured at top). Beginning with the flagship 420 beverage offerings, SweetWater has created an award-winning lineup of year-round, seasonal and specialty beers, a portfolio of brands closely aligned with a cannabis lifestyle.
HEXO Corp. (TSX: HEXO, Forum) has repositioned the
UP Cannabis brand with a differentiator of 20% THC or higher in all dried flower products, every time. With a focus on consumer feedback, HEXO has launched a new campaign to support UP’s re-entry to the market, aiming to become “Canada’s Cannabis”, and has adapted processes and systems to deliver improvements on quality and freshness, at a fair price.
“Canadian cannabis consumers have been clear with their demands since legalization and, until now, the entire industry has struggled to give consumers what they are looking for. We know that they want consistently superb quality and high THC at a competitive price,” said HEXO CEO and co-founder Sebastien St-Louis. “We’ve listened and have adapted systems and processes to offer just that.”
(Aurora Cannabis stock chart, Dec 2019 – Dec 2020. Click to enlarge.)
Edmonton-based
Aurora Cannabis (TSX: ACB, Forum) is making market moves in the Middle East. The Canadian cannabis giant just struck a two-year deal to supply Israeli medical cannabis operator
Cantek Holdings with 4,000 kilograms of bulk dried flower annually. According to the report, the flower will be processed into finished product and co-branded under the Aurora and Cantek brands. Having secured all necessary export and import permits, the initial shipment of cannabis under the Agreement occurred during the week of November 16th, 2020.
ACB has struggled to get its share value back to were it was this time last year when it was over $40, but should its plan work out, getting in now at less than half of that could be a benefit if its prices continue to climb.
Shares of
Sona Nanotech Inc. (CSE: SONA, Forum) have been hit hard in recent months. Following a series of upsets for its prospective COVID-19 rapid antigen test, the medical company has seen its stock lose nearly 90% of value since early-October 2020. Undeterred, the company is now seeking
additional data to amend the FDA and Health Canada submissions, but will use its existing data set to pursue certification in the EU and Saudi Arabia.
Both health authorities have expressed their issues with Sona’s platform, with the former downgrading the test’s application and the latter withdrawing the test pending further trial. However, Sona’s private testing revealed that Health Canada’s own commissioned review of the antigen tests brought up some discordant results around its sensitivity. The company’s activity has also caught the attention of several law firms who are investigating its operations.
This brings us to our Investor Pulse Poll question of the week. Last week, we asked if a company has a connection to COVID under its operations, be it a treatment platform or some form of new contact tracing or some sort of social-distancing tool, does that perk your interest as an investor? The results were nearly split.
Continuing this theme, what about the publicized advancements made by the likes of Pfizer and BioNTech around a COVID vaccine? This good news was attributed to a bump in market performance last month, but does the chance of a vaccine really give you hope for a quick economic turnaround? Let us know your thoughts by clicking on the poll image below.
(Click image to vote in the poll.)
Another advancement by a solid company,
StageZero Life Sciences Ltd. (TSX: SZLS, Forum) a medical business whose operations revolve around the detection of multiple disease states through whole blood was issued a receipt by the Ontario Securities Commission in respect of its
final prospectus at the beginning of the month.
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Clinical stage pharmaceutical company
Theralase Technologies Inc. (TSX-V:TLT, Forum) managed to keep its revenue remained predominantly flat, year over year, according to its new
Q3 2020 financial report at $527,474 (compared to $514,891). This is actually a decent feat, given the spread of the COVID-19 pandemic, which saw most health care practitioners temporarily close their practices and place any purchasing decisions on temporary or permanent hold.
Gold miner
Novo Resources Corp. (TSX-V: NVO, Forum) has been a common name among top metals and mining discussion. In late November, NVO had agreed to revised terms for ASX-listed
Calidus Resources Ltd.’s acquisition of the
Blue Spec gold-antimony project in Western Australia.
Novo also announced a non-brokered flow through and non-flow through financing. Global macro asset management firm
Crescat Capital LLC has agreed to make a strategic investment representing a 10.3% ownership of the Company post funding. They will have an option to participate in future financings to maintain their 10.3% interest for a three-year period from the date of closing.
(Image via Novo Resources Corp.)
Whenever a company is under legal investigation, it always draws an uptick in investor attention, for better or worse, and Vancouver, BC-based exploration and development operation
Northern Dynasty Minerals Ltd. (TSX:NDM, Forum) has found itself in such crosshairs under several firms, such as national entity
The Schall Law Firm, who is investigating claims on behalf of investors for violations of securities laws and is asking anyone who believes has sustained losses of $100,000 or more to contact them.
Finally, we have
Nevada Copper Corp. (TSX: NCU, Forum), who is looking to head into 2021 with its operations ready to ramp up thanks to some healthy financing coming on deck. NCU stated that it had agreed to non-binding terms with its senior lender,
KfW IPEX-Bank GMBH and is also engaged in ongoing discussions with other lenders to provide a combined financing package of at least $30 million (USD). The company is working with KfW and the other lenders with the aim of executing binding agreements for loan facilities and being able to receive funding by the end of the month.
If there is one thing to guarantee, the year is wrapping up quickly, as is the trading season ahead of the Christmas holiday. Even though this is just the beginning of December, there are only a few more editions of Buzz on the Bullboards to come in 2020 to see how the hottest stocks and sectors are faring heading into the new year. For previous editions of Buzz on the Bullboards:
click here.