A roundup of some of the North American equities making moves in both directions today
On the rise
Shares of Walmart Inc. (WMT-N) jumped 3.6 per cent in early afternoon trading on Tuesday after the world’s largest retailer exceeded both profit and revenue expectations in the fourth quarter. Sales at U.S. stores open at least a year rose 4.2 per cent, excluding fuel, in the period, topping the consensus expectation on the Street of 2.96 per cent. Adjusted earnings per share increased to US$1.41 per share, beating the Street’s projection of US$1.33, while online sales grew 43 per cent for the quarter.
Hudbay Minerals Inc. (HBM-T) was up 6.4 per cent in the wake of the release of a new report from Waterton Global Resource Management Inc., its second-largest investor, which suggests its stock could be worth $19 per share if a strategic change is made.
“The current Hudbay is broken due to its deep-rooted problems,” the report said. “Hudbay’s current leadership team has proven unable to effectively run a global mining company, resulting in abysmal 1-year, 3-year and 5-year Total Shareholder Returns (”TSR") relative to its peer group, -35%, -66% and -71%, respectively.(2) Hudbay’s chronic underperformance and significantly discounted valuation is a direct consequence of its: -- Flawed strategy: The Company has a myopic short-term strategy that does not translate into shareholder value in a remarkably long-term industry."
Capital Power Corp. (CPX-T) rose 3 per cent after it announced approval of a normal course issuer bid to purchase and cancel up to 9,034,925 of its outstanding common shares. “Capital Power believes that the market price of its common shares may, from time to time, not reflect the inherent value of the Company, and that purchases of common shares pursuant to the bid may represent an appropriate and desirable use of the Company’s funds,” it said. “Therefore, Capital Power believes that it is in the best interest to proceed with the NCIB.”
The company also released lower-than-anticipated fourth-quarter results. The Edmonton-based independent power generation company reported adjusted earnings per share of 33 cents, which fell 8 cents below the expectation on the Street.
Namaste Technologies Inc. (N-X) was up 6.5 per cent after it announced it has reached a “mutually agreed upon settlement” with former chief executive officer Sean Dollinger “resulting in Mr. Dollinger entering into an advisory relationship with Namaste providing transition support to the company to ensure the best interests of the business and stakeholders are met.”
Lucara Diamond Corp. (LUC-T) sat 7.1 per cent higher after it announced the recovery of a 223-carat, high white gem diamond from its Karowe Diamond Mine in Botswana. “This diamond will be shown alongside the 240 carat and 127 carat, top white gem diamonds reported earlier this year together with other exceptional single diamonds recently recovered from Karowe, at Lucara’s upcoming diamond tender closing on March 7,” the company said ina release.
New Flyer Industries Inc. (NFI-T) was up 2 per cent after announcing an award from the Toronto Transit Commission for an additional 10 forty-foot, zero-emission, battery-electric heavy-duty transit buses.
Great Panther Silver Ltd. (GPR-T) jumped 7.6 per cent after receiving final approval from the Supreme Court of Western Australia for the acquisition of Beadell Resources Ltd., which is now expected to close in the first week of March.
Caesars Entertainment Corp. (CZR-Q) was up 4.3 per cent after activist investor Carl Icahn urged the U.S. casino operator to sell itself after disclosing a 9.78-per-cent stake. “Board should conduct a strategic process to comprehensively assess the best path forward for Caesars and believe that shareholder value might be best served, and enhanced, by selling the company,” Icahn said in a regulatory filing.
On the decline
Emera Inc. (EMA-T) was down 1 per cent despite reporting fourth-quarter adjusted earnings per share of 71 cents before market open on Tuesday, topping the expectation on the Street by 3 cents. The result was a increase of 7 cents from the same period a year ago.
“In 2018, we delivered record adjusted earnings per share and operating cash flow for our shareholders,” said president and CEO Scott Balfour in a press release. “We also made significant progress advancing our strategic initiatives across the portfolio, and are particularly pleased with our solar program in Tampa. Over the last six months we have added approximately 320 MW of solar, comprised of 3.2 million solar panels, with a further 280 MW to be installed over the next two years. We are progressing well on our funding plan for these and other growth initiatives, which includes select asset sales. We continue to strengthen our balance sheet and position us to continue to deliver long term growth for our shareholders.”
Lassonde Industries Inc. (LAS.A-T) dropped 7.9 per cent after an equity analyst at CIBC World Markets lowered his rating for its stock following last week’s release of lower-than-expected preliminary fourth-quarter results. “While some of these U.S. headwinds are temporary and the Canadian business appears robust, we take a more cautious view as certain challenges will likely persist,” said analyst Frederic Tremblay.
Nemaska Lithium Inc. (NMX-T) was down 3.1 per cent after announcing that is has terminated its multi-year supply agreement with Livent Corp. (previously FMC Corp) related to the provision of up to 8,000 tons per year of lithium carbonate starting April 1, 2019. “Despite good-faith negotiations, the corporation was unable to reach a mutually satisfactory outcome with Livent,” stated the company, adding it has “no choice but to exercise its contractual right to terminate the supply agreement.”
With files from Brenda Bouw and Wires