A roundup of some of the North American equities making moves in both directions today
On the rise
General Electric Co. (GE-N) jumped 8.8 per cent in early afternoon trading on Monday after announced it would sell its biopharma business to Danaher Corp. (DHR-N) for US$21.4-billion. It’s the first major asset sale under new chief executive officer Larry Culp.
“(Larry Culp) has earned his stripes. It is clear that nobody in his job before him - John Flannery or Jeff Immelt - would have probably been able to pull off this transaction with Danaher,” William Blair & Co analyst Nicholas Heymann told Reuters.
“And the price Danaher is paying GE is two times our expectations. This is a home run. It really turns the page now for GE to address liquidity concerns.”
Shares of Danaher rose 8 per cent.
“While North American containerboard prices may still crack next month, we believe Cascades’ valuation more than reflects this risk,” said Hamir Patel.
Copper Mountain Mining Corp. (CMMC-T) jumped 14 per cent after announcing a new integrated life of mine production plan for its Copper Mountain Properties in southern British Columbia, which includes a “modest: expansion to 45,000 tonnes per day.
"The new Integrated Production Plan completely transforms the Copper Mountain operations," said president and chief executive officer Gil Clausen in a release. "For minimal capital and minimal risk, we have the potential to realize significant value as we expect to increase our annual production, double total life of mine production, extend the mine life and decrease unit costs.
On the decline
Shares of Barrick Gold Corp. (ABX-T) dipped 1.6 per cent in Monday afternoon trading after it announced it is offering to buy Newmont Mining Corp. (NEM-N) in an unsolicited, all-share, no-premium transaction. Before market open, Barrick Barrick said it is offering 2.5694 shares for each Newmont share in a deal worth approximately US$17.8-billion.
“The combination of Barrick and Newmont will create what is clearly the world’s best gold company, with the largest portfolio of Tier One gold assets2 and the highest level of free cash flow to drive future growth and support sustainable shareholder returns, run by a management team with an unparalleled record of delivering value,” said Barrick president and chief executive officer Mark Bristow in a statement.
Newmont was down 0.4 per cent in New York.
Meanwhile, shares of Goldcorp Inc. (G-T), which Newmont had previously aimed to purchase in a US$10-billion deal, erased early losses and sat up 0.1 per cent with the move in question.
Kraft Heinz Co. (KHC-N) was down 2 per cent as after Warren Buffett said his company Berkshire Hathaway Inc overpaid in the merger that created it. Berkshire and Brazilian firm 3G Capital had teamed up in 2015 to combine the former Kraft Foods with their H.J. Heinz. They own about half of the merged company, with Berkshire holding a 26.7 per cent stake.
“We overpaid for Kraft,” Buffett said on CNBC television. “I was wrong in a couple of ways on Kraft Heinz.”
Imax Corp. (IMAX-N) fell 4 per cent after an equity analyst at Canaccord Genuity downgraded its stock a day before it releases its quarterly earnings. Aravinda Galappatthige expects weak box-office results to weigh on results. “With another very soft result out of China, we believe the market will continue to factor in a moderated China outlook with respect to the stock,” he said.
Cronos Group Inc. (CRON-T) dropped 4.8 per cent after Jefferies initiated coverage of its stock with an “underperform” rating. Canopy Growth Corp. (WEED-T) was down 1.6 per cent after being given a “hold” rating.
MCAN Mortgage Corp. (MKP-T) dipped 5.1 per cent after announcing net income of $3.5-million, or 15 cents per share, for the fourth quarter, down 67 per cent year-over-year from $10.8-million, or 47 cents per share. The company said income included a $4.2-million unrealized loss on marketable securities, which negatively impacted earnings per share by 17 cents.