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What’s cooking in the new Capital Ideas Digest?
An idea to navigate the rocky oil market, analysts initiate coverage on two cannabis stocks, and a private equity-type long-term holding for your portfolio.
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CANADIAN ANALYSTS’ CALLS
INITIATIONS
Cormark Securities starts coverage with a "buy" and a target of $1.10 (Canadian).
Desjardins upgrades to "buy" from hold and keeps the target at $45.
RBC boosts the target to $21 from $20, giving the stock a projected upside of 36%, and maintains an "outperform" after the company reported "solid" quarterly results.
Barclays moves the target to $53 from $52 citing the company's dominant position, significant growth prospects, compelling economics and pricing flexibility.
U.S. ANALYSTS’ CALLS
BTIG has slapped a "sell" on the social media company with a target of $5 (U.S.). The stock closed yesterday at $9.89.
B. Riley FBR upgrades to "buy" and lifts the target to $50 from $48.
Chipmakers and semi equipment makers continue to get hit as the consensus seems to be that the cycle is turning in the notoriously volatile sector. Stifel Nicolaus cuts the target on this one to $84 from $99.
Case in point. Goldman Sachs cuts to 'neutral" and lowers the target to $50 from $68.
STOCKS THAT MAY MOVE
is buying six commercial properties for $61.7 million (Canadian) and ofering of $35 million of trust units. It also says it will internalize management and graduate from the TSX Venture Exchange to the Toronto Stock Exchange.
continues it buying spree picking up Europe's largest producer of hemp and a hemp processor for $6.2 million in cash.
has named board member Dr. Michael Guerriere as its new CEO efective Oct. 22, succeeding Tim Lukenda. Mr. Guerriere has 25 years of experience in medicine, healthcare and technology, the company said.
is up more than 8% in pre-market trading after settling a patent dispute with Activas Labs over irritable bowel treatment Xifaxan.
took a wider than expected quarterly loss of $147 million on weaker sales.
says Argentina's new tax on exports could hurt its cash flow.
A Brazilian court has ruled that the gold company's mine should be examined by federal authorities and its state licenses reviewed. Belo Sun says its licenses remain valid and it will seek clarification.
is planning to sell live, full-size Christmas trees online.
With files from The Globe and Mail, Reuters and Bloomberg News.
MARKETS
TSX and U.S. equity futures are mixed.
The MSCI Asian Pacific index of stocks fell for a 10th session, the longest bout of weakness in 16 years, while Asian stocks ex-Japan hit their lowest levels since July 2017 with both the Hang Seng index and Shanghai Composite lower.
CURRENCIES
The Canadian dollar is essentially flat at $76.51 U.S.
India’s rupee is plumbing fresh alltime lows, emblematic of the weakness in emerging market currencies at the moment.
Bitcoin is drifting lower at $6,264, according to CoinDesk, as the overall cryptocurrency crash hits 80%, surpassing the 78% drop following the Nasdaq Composite’s bust starting in 2000.
COMMODITIES
West Texas Intermediate crude oil is up 1.2% to $70.06 (U.S.) a barrel, however OPEC is cutting its 2019 oil demand forecast and says economic risk is skewed to the downside.
Gold is listless at $1,200 an ounce.
DAILY UPDATE
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Mark Bunting | Publisher
Capital Ideas Media
