A humorous look at the companies that caught our eye, for better or worse, this week
Lithium Americas Corp. (STAR)
Lusting over lithium, are we? Don’t ignore the lesson this week of the dangers of a short-lived romance. Lithium Americas Corp. surged on Monday after the company announced U.S. approval of a key federal permit for its Thacker Pass project in Nevada. A day later, stockholders were left feeling jilted as the company unexpectedly issued a flood of new shares. Lithium has been a sexy metal in recent years thanks to its use in the booming electric vehicle segment – but the volatile dynamics of its supply and demand can make for tempestuous affairs with investors.
Hive Blockchain Technologies Ltd. (DOG)
There once was a man from Nantucket
Who kept all his cash in a bucket
Then came cryptocurrency
And a sudden great urgency
To turn overnight into Warren Buffett.
Dreams of getting rich quick from cryptocurrencies were met with a dose of reality this past week as bitcoin tumbled more than 10 per cent, sending shares of crypto miner Hive Blockchain skidding. Budding legendary investors may not be too deterred, mind you; bitcoin is still up threefold from just last fall.
Teck Resources Ltd. (STAR)
If you’re feeling a little down these dark days, look to Dr. Copper. Healthy price gains in the metal offer an encouraging prognosis. A rebound in Chinese manufacturing and an expected ramp-up in electric vehicle production have major Wall Street banks even believing all-time price highs are near. That’s all great news for Teck Resources, which Citi identified this week as one of its favourite picks in the sector. And as we await the economic boom times the metal foretells, take note of Teck’s latest marketing blitz on B.C. Transit, reminding riders that copper coatings on high-touch surfaces are helping to keep those pesky viruses at bay.
Netflix Inc. (STAR)
Do recent subscription fee hikes at the world’s largest streaming service have you wishing you had never cut the cable? Here’s an idea to overcome that regret: Buy Netflix. With a little luck, growth in your investment account will more than cover the cost, and perhaps for years to come. Netflix shares soared to record highs this week as the company beat analyst expectations on net subscriber additions and revenues. Things are going so well, it may even buy back some stock. With many of its original productions back in action after COVID-related suspensions, there’s no telling how many more seasons there will be of this high-flier drama.
BlackBerry Ltd. (STAR)
Maybe it should be renamed BlackBerry In Motion. Shares in the company have been skyrocketing faster than the Waterloo housing market this year, almost doubling in value since the start of this year. There’s been a slew of good news of late, including a patent dispute settlement with Facebook and a partnership with Amazon to work on cloud-based vehicle software. But for now, it is stock market momentum that’s really got this former tech darling charged up. BlackBerry is back with a new kind of playbook – and, for a change, this one is getting rave reviews.
Darcy Keith