As we get through the summer holiday season, the typically calmer market environment presents a prime opportunity for investors to evaluate their portfolios and consider new investments.
The TSX continues to offer a variety of promising stocks, particularly in energy, pharmaceuticals and technology sectors. Here, we highlight three leading Canadian stocks: Baytex Energy, Theralase Technologies and BlackBerry, each presenting unique investment opportunities.
A strong buyback program in the energy market
Baytex Energy, a prominent player in the energy sector, recently announced that the Toronto Stock Exchange has accepted its intention to renew its normal course issuer bid (NCIB). This approval allows Baytex Energy to repurchase more than 70 million of its common shares over a 12-month period that started Tuesday and ends July 1, 2025. This number represents 10 per cent of Baytex’s public float, previously announced in April.
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NCIB programs enable publicly traded companies to buy back a portion of their outstanding shares, which can benefit investors by reducing the number of shares on the market, potentially increasing the value of remaining shares. Under its previous NCIB, Baytex was approved for up to 68.4 million common shares, running from June 29, 2023, to June 30, 2024. By June 18, 2024, the company had repurchased 55.36 million common shares at an average price of C$5.30 per share.
This buyback initiative reflects Baytex Energy’s confidence in its business fundamentals and commitment to enhancing shareholder value. Investors looking for stability and growth in the energy sector should keep an eye on Baytex’s performance over the coming months.
Innovating cancer treatment
Theralase Technologies Inc. (TSXV:TLT, Forum) is a clinical-stage pharmaceutical company focused on the research and development of light and radiation-activated small molecules aimed at safely and effectively destroying cancers, bacteria and viruses. The company recently announced significant progress in its preclinical research with its lead drug formulation, Rutherrin.
Rutherrin has shown promise in repurposing non-cancer drugs for cancer therapy, a strategy that has gained traction after the FDA’s emergency use authorization of repurposed drugs during the COVID-19 pandemic. Drug repurposing involves finding new uses for clinically approved drugs, offering several advantages:
- Reduced research and development costs
- Shortened drug development timelines
- Reuse of drugs with established safety profiles
- Overcoming challenges in rare disease treatment
Theralase has demonstrated in preclinical research that Rutherrin can significantly enhance the efficacy of various non-cancer drugs in killing cancer cells. For example, Withaferin A, traditionally an anti-inflammatory drug, is being investigated to improve cancer treatments. Amiodarone, used for cardiac dysrhythmias, and Metformin, a type 2 diabetes drug, are being explored for their potential in cancer therapy.
Investors interested in innovative pharmaceutical solutions should consider Theralase Technologies, as its pioneering work in drug repurposing could lead to breakthroughs in cancer treatment.
The cybersecurity resurgence
BlackBerry Ltd. (TSX:BB, Forum) stock rose more than 7 per cent last week after its Q1 2024 financial report, which exceeded expectations. Despite a year-over-year revenue decline of 61 per cent, the company reported Q1 revenue of US$144 million, surpassing analyst estimates by nearly US$10 million.
BlackBerry’s strategy to separate its cybersecurity business from its internet of things (IoT) division has resulted in significant savings and operational efficiencies. CEO John J. Giamatteo highlighted the company’s progress towards operational independence and profitability, with its IoT and cybersecurity businesses exceeding revenue expectations.
BlackBerry’s IoT revenue grew 18 per cent year-over-year to US$53 million, while its cybersecurity division reported US$85 million in revenue. BlackBerry’s commitment to enhancing its cybersecurity capabilities is evident in its efforts to thwart more than 3 million cyberattacks in Q1 2024 and its launch of the expanded CylanceMDR, a managed detection and response tool.
The company’s robust performance and strategic focus on high-growth areas make it an attractive option for tech-savvy investors. With BlackBerry looking to catch substantial profitability and cash flow positivity in the near future, it remains a compelling stock to watch.
Stay informed and invest wisely
As the summer holidays provide a momentary lull in market activity, it’s an opportune time for investors to reassess and diversify their portfolios. Baytex Energy, Theralase Technologies and BlackBerry offer distinct opportunities across different sectors. Staying updated with the latest developments and market trends is crucial for making informed investment decisions. Keep an eye on these leading TSX stocks to capitalize on their potential growth and stability in the months ahead.
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(Top photo: file)