Buzz on the Bullboards: Do you have these stocks in your portfolio?

This past week, the TSX has been riding a wave of optimism, buoyed by expectations of potential interest-rate cuts in the United States.

However, the index recently snapped an impressive eight-session winning streak after data revealed that Canada’s inflation rate had fallen to a low not seen since 2021. While this development has tempered some of the bullish sentiment, the TSX remains a focal point for investors keen on navigating the evolving economic landscape. In this context, three TSX stocks have made significant news recently, capturing the attention of market participants.

Tourmaline Oil Corp. (TSX:TOU, Forum), Canada’s largest and most active natural gas producer, has made headlines by signing a deal to acquire all issued and outstanding common shares of Crew Energy Inc. (TSX:CR, Forum) The all-stock transaction is valued at C$1.3 billion, translating to C$6.69 per Crew share, including Crew’s net debt, estimated at C$240 million. In exchange, Tourmaline will issue 18.77 million common shares, offering Crew shareholders 0.114802 of a Tourmaline share for each Crew share held, representing a 70 per cent premium over the 20-day volume-weighted average price.

This acquisition aligns with Tourmaline’s ongoing consolidation strategy under the National Energy Code of Canada, reinforcing its long-term growth plan. The deal significantly enhances Tourmaline’s South Montney asset base and is expected to be immediately accretive to the company’s financial and reserve metrics, adding more than C$200 million to the company’s anticipated 2025 free cash flow.

The acquisition includes low-decline average base production of 29,000-30,000 barrels of oil equivalent (boe) per day, along with proven and probable reserves of 473.2 million boe.

Crew’s extensive drilling inventory, which includes more than 700 Tier 1 locations, complements Tourmaline’s existing operations. The transaction, expected to close on Oct. 1, 2024, positions Tourmaline as an even more formidable player in the Canadian energy sector.

PyroGenesis Canada Inc. (TSX:PYR, Forum), a high-tech company that designs, develops, manufactures, and commercializes advanced plasma processes, has released new data from its ongoing commissioning of the HPQ Silica Polvere Inc. (HSPI) Fumed Silica Reactor (FSR) pilot plant. The updated process modelization work, conducted by PyroGenesis, highlights the commercial and environmental advantages of the HSPI Fumed Silica project compared with conventional industry processes.

Since the project’s inception in July 2021, the energy required to produce 1 kilogram of fumed silica at commercial scale using the FSR has been reduced from an estimated 10-15 kWh to a range of 8-12 kWh. This represents a 20 per cent reduction in energy requirements, which translates to a significant enhancement in the environmental benefits of the project. The HSPI FSR technology now requires 92 per cent less energy compared with conventional processes, which typically consume 100-120 kWh per kg of fumed silica produced.

The reduction in energy consumption and associated greenhouse gas emissions positions the FSR project as a potential game-changer in the industry. With energy production in Québec generating 1.7 grams of CO2 equivalent per kWh, the HSPI FSR technology is expected to emit only 0.0136 kg of CO2 per kg of fumed silica produced. This represents a potential reduction of up to 99.9 per cent in the carbon footprint compared with conventional production methods.

The implications are significant, particularly in markets such as Canada and Europe, where the adoption of the HSPI FSR process could lead to substantial reductions in CO2 emissions, equivalent to removing thousands of cars from the road annually.

Tilray Brands Inc. (TSX:TLRY, Forum), a popular lifestyle and consumer packaged goods company, has announced the expansion of its Solei cannabis product lineup. Solei is a cannabis wellness and lifestyle brand known for its carefully formulated products and innovative formats that cater to various consumer needs.

Building on the success of its initial beverage launch in the summer of 2023, Solei has introduced two new infused sparkling beverages: blood orange and dark cherry. These beverages focus on lower THC levels, with dominant CBD and CBG cannabinoids. The blood orange flavour features 5mg THC and 10mg CBG, while the dark cherry flavour includes 5mg THC and 10mg CBD. These beverages are designed to elevate any occasion with their unique recipes and nano-emulsified cannabinoids.

In addition to beverages, Solei has launched a new extra strength deep tissue stick. This topical product is designed to support rest and recovery, featuring a refreshing cinnamon scent and a 1:1 balance of THC and CBD. The deep tissue stick is made with ingredients such as shea butter, coconut oil and jojoba oil, delivering a tiger balm-like sensation to help with relaxation. The stick comes in 500mg THC and 500mg CBD doses.

As the TSX continues to navigate a dynamic economic environment, these recent developments underscore the importance for investors to stay informed and conduct thorough due diligence. Whether it’s Tourmaline Oil’s strategic acquisition, PyroGenesis’ technological advancements, or Tilray Brands’ product innovations, these stocks demonstrate the diverse opportunities within the Canadian market. Staying updated on such news is crucial for investors looking to make informed decisions and keep their portfolios resilient in a rapidly changing landscape.

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(Top image: Crew Energy Inc.)