750% Gain and More To Come
    Good morning

    We’ll be interviewing executives today with Cannex Capital (CSE:CNNX) and Isodiol (CSE:ISOL), two promising companies in the cannabis sector, which is suddenly again all the rage after Constellation’s $5.2 billion injection into Canopy Growth.

    Watch out for these interviews early next week.

    The Capital Ideas Digest will return August 21.
    The Morning Note continues with its regular schedule.

    Morning Need to Know by Capital Ideas Research

    Getting you ready for your investing day

    August 16, 2018
    Written & compiled by Mark Bunting, Publisher, Capital Ideas Media

    CANADIAN ANALYSTS’ CALLS

    INITIATIONS

    Tervita (TSX:TEV) CIBC starts coverage of Canada's largest oilfield waste management and environmental services company with an "outperformer" and a 12-18 month price target of $13.50. The stock closed Wednesday at $9.30.

    Canopy Growth (TSX:WEED;NYSE:CGC)

    Canaccord Genuity upgrades to "speculative buy" and moves the target to $50 from $34, saying Constellation Brands $5.2 billion investment in the company is a "transformational industry event". Canaccord acknowledges that WEED trades at 29 times 2020 EV/EBITDA but says the company has 12 times more cash than its closet competitor and has global first mover advantage. Echelon Wealth Partners sees the deal as a "very strong endorsement" of Canopy but maintains a sell and moves the target to $34.50 from 30.

    Theratechnologies (TSX:TH) Mackie Research has helped investors to a 750% gain on this stock since it launchedcoverage. Mackie maintains its "buy" rating and atarget of $19.50, giving the stock an additional potential return of 116%.

    TransGlobe Energy (TSX:TGL;NASDAQ:TGA) RBC boosts the price target to $5 from $4.30, implying 23% upside, and maintains an "outperform".

    BSR REIT (TSX:HOM.UN) Industrial Alliance upgrades to "strong buy" and keeps the target at $11.

    LXR&Co (TSX:LXR) Canaccord Genuity downgrades the stock and cuts the target to $0.45 from $3 after the company said it was planning to restate its historic financial results, which could result in a breach of a convenant on a credit facility, and said it will undergo a strategic and financial review.

    U.S. ANALYSTS’ CALLS

    CenturyLink (NYSE:CTL) RBC lifts the target to $27 (U.S.) from $22, which implies 30% gains, and maintains an "outperform" after the company's "solid" quarter and that it increased its full-year forecast.

    Cisco Systems (NASDAQ:CSCO) is a much slower grower compared to its heyday although a triple in five years is not bad. RBC is lifting the target to $52 from $50, expecting 22% gains, and maintaining its "outperform" after the company beat estimates with its earnings and raised its guidance.

    Embraer (NYSE:ERJ) Morgan Stanley raises the Bombardier rival to "overweight" saying the stock ofers an attractive riskreward after a recent sellof.

    STOCKS THAT MAY MOVE

    StorageVault Canada (TSXV:SVI) This acquisitive consolidator of storage units took a Q2 net loss of $9.2 million loss, compared to a loss of $3 million a year ago due to $14.3 million of depreciation and amortization and $1.9 million in stockbased compensation. Q2 revenue nearly doubled to $23.2 million, and existing self-storage stores revenue jumped by 5.6% from last year.

    Wal-Mart (NYSE:WMT) is up 11% in pre-market trading after the world's largest retailer said e-commerce sales surged 40% from last year, a faster pace than the 33% recorded in the previous quarter.

    BCE (TSX:BCE) BellMedia has struck a deal to be the exclusive Canadian broadcaster of programming for Vice Media. Vice previously had a deal with Rogers Media that was not renewed.

    Best Buy (NYSE:BBY) is making its largest-ever purchase by buying GreatCall for $800 million in cash. GreatCall is an emergency response services company for seniors and has about 900,000 subscribers.

    Amazon.com (NASDAQ:AMZN) is reportedly looking into buying cinema chain Landmark theatres.

    JD.com (OTC:JD) is down after China's second-largest ecommerce company missed sales estimates and took a Q2 net loss.

    With files from The Globe and Mail, Reuters and Bloomberg News.

    MARKETS

    TSX and U.S. equity futures are solidly higher as the U.S. and China are planning low-level trade talks and Qatar has pledged $15 billion to struggling Turkey.Canadian manufacturing sales in June rose 1.1%, better than forecast.

    CURRENCIES

    The Canadian dollar is steady at $76.11 U.S.

    Bitcoin is up 0.7% to $6,313, according to CoinDesk,

    COMMODITIES

    West Texas Intermediate is up 0.5% to $65.32 a barrel.

    Copper, seen by many as a good gauge of the future direction of the economy, has fallen into bear market territory- down more than 20% from its recent high – partly on concernof slowing growth in China and emerging markets.

    Gold is drifting $1,183.50 an ounce.

    Daily Update

    If you missed the Namaste 420 Live on Wednesday, check it out to get CEO Sean Dollinger’s opinion on the ramifications of the Constellation Brands/Canopy Growth deal. And if you missed the Mid-Summer Cannabis Investing Live Webinar the other day, you’ll be able to view it on the Small Cap Power website later today.

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    Have a great day!

    Mark Bunting | Publisher
    Capital Ideas Media