“The obstacle in the path becomes the path. Never forget, within every obstacle is an opportunity to improve our condition.”
That text comes from the 2014 book by businessman Ryan Holiday, “The Obstacle Is the Way: The Timeless Art of Turning Trials into Triumph.” Though it is a decade old, it still reads like a how-to for those who find themselves needing to extract the potential out of an unavoidable crisis.
On the Stockhouse Bullboards, small-cap investors continue to look for the current and hot plays to capitalize on during a still-uncertain market, while other longer-term plays lose interest.
This week, we highlight three companies from three sectors that are at the top of discussion.
Oil and gas company Baytex Energy Corp. (TSX:BTE, Forum) saw its stock dip since reporting a Q4 loss after a profit in the same period last year.
The Calgary-based company posted revenue of C$782.7 million amounting to a loss of C$459.7 million, shaving off 55 cents per share.
For the year, the company reported a loss of C$172.9 million, or 24 cents per share. Revenue was reported as C$2.51 billion.
Baytex reported an increase in production per basic share by 16 per cent in 2023, compared with 2022. Production for the full-year 2023 averaged 122,154 barrels of oil equivalent per day (boe/d) (85 per cent oil and natural gas liquids (NGLs)), compared with 83,519 boe/d in 2022 (84 per cent oil and NGL).
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Production in Q4/2023 averaged 160,373 boe/d (83 per cent oil and NGL), exceeding guidance of 158,000 to 160,000 boe/d, and up 6 per cent from Q3/2023 on exploration and development expenditures of $199 million, 10 per cent below guidance.
Proved developed producing reserves increased by 49 per cent, from 124 million barrels of oil equivalent (MMboe) to 185 MMboe. Proved reserves increased by 55 per cent, from 264 MMboe to 410 MMboe. Proved plus probable reserves increased by 51 per cent, from 438 MMboe to 663 MMboe.
Exploration and development expenditures totalled C$1.013 billion in 2023, compared with guidance of C$1.035 billion. The team drilled 303 wells in 2023. For the second half of the year, exploration and development expenditures totalled C$608 million, consistent with the company’s plan after the acquisition of Ranger Oil Corp. in June.
Global cannabis stock Tilray Brands’ (TSX:TLRY, Forum) subsidiary Truss Beverages is releasing a lineup of new cannabis-infused non-alcoholic seltzers under its Mollo brand.
The seltzers boast qualities of high cannabigerol (CBG) minor cannabinoid content. So far, Mollo seltzers are the only cannabis-infused seltzer style beverage in the Canadian market to primarily focus on minor cannabinoids and higher CBG content.
Mollo launched a few new additions to its non-alcoholic lager lineup last year, including Mollo 5 and Mollo 10 beverages, along with a non-alcoholic cannabis-infused apple cider beverage, ORCHARD CHILL’R, featuring a mix of THC and CBG.
Available at retail next month, Mollo’s new seltzers come in three flavours: pineapple, mango and lemon.
The company pointed out that consumers are consuming more cannabis beverages and requesting lower sugar content and new flavour options. According to recent Ontario Cannabis Store wholesale data, seltzers represent 25 per cent of trending cannabis beverage unit sales and continue to grow year after year.
PyroGenesis Canada (TSX:PYR, Forum) has received all major equipment to construct its Fumed Silica Reactor pilot plant in Québec.
The plant is part of a project with HPQ Silica Polvere – a subsidiary of HPQ Silicon (TSXV:HPQ) – to produce fumed silica for a variety of markets at an initial capacity of 50 tonnes per year (tpy). Commissioning is on schedule for Q2 2024.
Fumed silica is a powder most often used as a thickening agent, anti-caking agent and stabilizer to improve texture and consistency. It can be found in adhesives, paints, sealants and batteries, as well as products in personal care, pharmaceuticals, agriculture (food and feed), construction, the powdered food industry and the auto industry. The global fumed silica market was valued at US$1.3 billion in 2022 and is projected to reach US$2.1 billion by 2032.
The Fumed Silica Reactor, built by PyroGenesis and owned by HPQ, converts quartz into commercial-grade fumed silica in one low-carbon step without the use of harmful chemicals required by conventional methods.
An internal HPQ study based on a 1,000-tpy scenario demonstrated the reactor’s potential to generate an EBITDA margin three times higher than the industry average, while requiring only 7 per cent of the investment and 14 per cent of the emissions compared with a conventional fumed silica plant.
One thing that is abundantly clear in today’s market is that every week has brought new stories, and new companies, to the forefront. What potential diamond in the rough will the Stockhouse Bullboards find next week?
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