Running for the exit.
Canaccord Financial Inc. has let go two analysts as it scales back coverage, betting there is not enough money to be made in the forestry and oil field-services businesses to justify research on the stocks.
Canaccord, which operates in the securities business as Canaccord Genuity, also lost an analyst in an area that is a core business for the firm. Steve Butler, who covered large gold stocks, left the company. There's a good chance he will end up working in the gold industry.
Like all Canadian brokerages, Canaccord is trying to rein in costs to deal with slow markets. Forestry and oil field services companies don't produce a lot of revenue from trading and underwriting for the firm.
Gold does, so look for Mr. Butler to be replaced.
(Boyd Erman is a Globe and Mail Reporter & Streetwise Columnist.)
Return to Streetwise home page.
The Globe has launched a Streetwise and ROB Insight newsletter, with content available exclusively to subscribers of Globe Unlimited. Get the best of our exclusive insight and analysis delivered straight to your inbox in a daily e-mail curated by our editors. Sign up for it and other newsletters on our newsletters and alerts page.