It was hedge fund legend Ray Dalio who said: “He who lives by the crystal ball will eat shattered glass.”
Many stock markets may have seen a higher start to the year so far, but there is far from a universal sentiment across the sectors, with some companies having a rougher start to 2024 than others.
We put the spotlight on three companies in three sectors this week that are leading their Bullboards in discussion with some similar price patterns. Just because a company is the most talked about, does not necessarily mean it is performing well. Likewise, sometimes bad news works better than a positive spin.
The first, a popular stock in its own right that has seen more red than green this year is Tilray Brands Inc. (TSX:TLRY, Forum).
The cannabis player recently closed its acquisition of Truss Beverage from Molson Coors (TSX:TPX.A).
Source: Truss Beverage.
Announced this past summer, the purchase affords Tilray an approximately 40 per cent market share in Canadian cannabis beverages backed by Truss‘ high-growth brands, including XMG, Mollo, House of Terpenes and Little Victory. It will also better position the company to compete in the almost C$100 million revenue sub-sector, which is expected to grow because of more permissive regulations, as well as in the rapidly expanding billion-dollar functional beverage market.
Tilray stock ended Wednesday nearly 2 per cent lower, trading at C$2.69. The stock has lost 36 per cent year-over-year.
Clinical stage pharmaceutical outfit Theralase Technologies Inc. (TSXV:TLT, Forum) announced positive bladder cancer study results from its Phase II non-muscle invasive bladder cancer clinical study.
Theralase provided 63 patients with the primary study treatment that was designed to evaluate the safety and efficacy of its proprietary Study II Drug, Ruvidar (TLD-1433).
The team revealed the treatment demonstrated a complete response of 54 per cent at 6 months, 38 per cent at 12 months and 37 per cent at 15 months, all of which exceeds the International Cancer Bladder Group guidelines.
At the 80-day assessment visit, the study’s clinical data indicated that 56 per cent of evaluated patients reached a complete response and 63 per cent achieved a total response while at 450 days 37 per cent of patients reached a complete response and 41 per cent reached a total response.
Source: Theralase Technologies.
Theralase received fast-track designation from the U.S. Food and Drug Administration (FDA) in 2020 for Ruvidar’s evaluation in study II. The fast track designation from the FDA allows the study II treatment to be the first intravesical, patient-specific, light-activated, Ruthenium-based proportion of days covered for the treatment of patients diagnosed with BCG-Unresponsive NMIBC CIS.
The company is working to complete the study for all patients in 2024 and would allow clinical data lock-in by mid-2026 with a potential Health Canada and FDA approval by 2026 or 2027.
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Ruvidar is a patented proportion of days covered with 12 years of published peer-reviewed preclinical research. The current study uses the therapeutic dose of Ruvidar activated by the study’s device, TLC-3200 medical laser system.
The study is focused on enrolling and treating roughly 100 patients in up to 15 clinical study sites across Canada and the United States.
Closing at just $0.16 a share, Theralase has also had a rough go, down almost 50 per cent in the past year.
One of the most interesting stories talked about on the Bullboards this week has been around major digital asset miner, Hut 8 (TSX:HUT, Forum).
National shareholder rights litigation firm, Schall Law, is investigating the diversified Bitcoin stock after claims crucial information was withheld from investors.
Investigators seek to determine if it issued false and/or misleading statements and/or failed to disclose information pertinent to investors.
It came to Schall Law’s attention after J Capital Research released a report titled: “The Coming HUT Pump and Dump: Management hiding stock ownership through undisclosed related party, a stock-promoter cabal, and a host of left-for-dead assets.”
J Capital’s accusations towards Hut 8 conclude that, “Ultimately, we strongly believe that shareholders are likely to feel the pain of being on the wrong side of an over-levered pump-and-dump, only to be left holding the most inefficient Bitcoin miner, which is unprofitable even at a Bitcoin price of over $60,000.”
Hut 8 CEO, Jaime Leverton. Source: NASDAQ.
The investigation was announced a day after Hut 8’s CEO, Jaime Leverton, and team rang the NASDAQ’s opening bell to mark the completion of its all-stock merger with U.S. Data Mining Group, Inc. doing business as U.S. Bitcoin Corp.
Hut 8’s team issued a response, stating the company is aware of a short report, calling J Capital Research, a “self-proclaimed group of biased activists who clearly disclose that they will profit if a company’s share price declines.”
Despite the controversy, Hut 8 stock ended Wednesday rising a decent 0.12 per cent bump to close at C$8.54 per share.
It can be a daunting challenge to keep track of every noteworthy move happening in the markets. A helpful way to keep up with the news is the weekly Buzz on the Bullboards to make sense of it all.
With record-breaking markets and optimism on one side and a presidential civil trial on the other, the coming weeks are sure to be just as exciting. For previous editions of Buzz on the Bullboards: click here.
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