Laurentian Bank (STAR)
LB – TSX
“One bank, bank for sale. It’s going cheap. Only two billion dollars … or thereabouts.” In this modern-day adaptation of the hit musical, Oliver!, Laurentian Bank CEO Rania Llewellyn embraces the role of Mr. Bumble as she shops Canada’s ninth-largest bank to the highest bidder. Will the bank, beset by a languishing stock price and earnings as thin as gruel, find happiness in the arms of one of the Big Six? Or will it remain an orphan in the consolidating financial services industry? With Laurentian’s stock trading well below its 2017 highs even after this week’s gains, you’ve got to think shareholders will “want some more.”
Canopy Growth (DOG)
WEED – TSX
Everything is funnier when you’re stoned. For example, Canopy Growth investors were laughing hysterically after the cannabis producer announced plans to reduce its onerous debt by making cash payments totalling about $194-million and issuing 90.4 million common shares and $40.4-million of convertible debentures. When the stock plunged about 40 per cent on Friday after the news, more howling ensued. But the biggest laughs of all came after investors realized that Canopy’s shares have plummeted 99 per cent since the federal government legalized recreational cannabis nearly five years ago. Hilarious!
TransAlta Renewables (STAR)
RNW – TSX
Test your business knowledge! Shares of TransAlta Renewables surged after: a) a powerful tornado in Alberta caused the turbines at one of the company’s wind farms to spin so fast that “we basically generated a year’s worth of electricity in about five minutes,” the company said; b) the renewable power producer announced a pilot project in Ottawa in which “hot air expelled by politicians will be converted into clean, green energy that will power up to one million homes, helping Canada meet its climate goals.”; c) parent company TransAlta Corp. said it will acquire the outstanding shares of TransAlta Renewables it does not already own in a deal valued at $1.38-billion or $13 a share. Answer: c.
Intact Financial (DOG)
IFC – TSX
Where there’s smoke, there’s fire. And where there’s fire, there’s usually an insurance company taking a financial hit. Shares of Intact Financial skidded after the property and casualty insurer estimated second-quarter “catastrophe losses” of $421-million – more than double what some analysts expected – with wildfires accounting for nearly half of the losses in Canada. A spring ice storm and flood in Quebec also contributed to “a very active season for catastrophes – a reminder of the growing ct of climate change on both forest fires and severe weather events,” said Charles Brindamour, Intact’s CEO. Has he not heard that climate change is a hoax?
Viasat (DOG)
VSAT – Nasdaq
If a satellite malfunctions in space, does it make a sound? I don’t know, but down here on Earth you could clearly hear the screams of Viasat investors. Shares of the satellite company plunged after it disclosed an “unexpected event … that may materially affect the performance of the ViaSat-3 Americas satellite.” Launched on April 30, the satellite is a key part of the company’s plan to expand its North American broadband internet business. Viasat said existing customers are not affected by the malfunction, but the huge drop in the company’s stock price means a lot of shareholders’ money has been lost in space.
John Heinzl