A roundup of some of the North American equities making moves in both directions today
On the rise
Thescore Inc. (SCR-X) jumped 14.3 per cent in early afternoon trading on Friday after announcing that the New Jersey Division of Gaming Enforcement (DGE) has granted an initial approval for its subsidiary, Score Digital Sports Ventures Inc. to engage in Internet and mobile sports wagering activities in the state.
TheScore plans to undertake a soft-launch phase of its sportsbook app with a select group of sports bettors in the state in the coming days, ahead of its anticipated state-wide launch in advance of football season.
Callidus Capital Corp. (CBL-T), the struggling lender controlled by Catalyst Capital Group Inc., jumped 75.6 per cent after it said on Thursday its second-largest investor has agreed to buy out the minority shareholding to take the company private.
Under the deal, Braslyn Ltd. will offer 75 cents for each share not owned by Catalyst. Callidus reported the latest in a string of quarterly losses on Wednesday, and its shares closed at 41 cents on the Toronto Stock Exchange on Thursday.
On Friday, several analysts dropped their target prices for the marijuana producer’s stock in response to the news.
A day after its shares fell as much as 15 per cent, General Electric Co. (GE-N) was up 8.4 per cent.
Fraud investigator Harry Markopolos, who blew the whistle on Bernard Madoff’s Ponzi scheme, said GE was concealing deep financial problems, prompting a sharp rebuke from GE’s new CEO.
Nvidia Corp. (NVDA-Q) was 6.9 per cent higher after its quarterly revenue and profit, released after the bell on Thursday, beat Wall Street estimates, benefiting from a better-than-expected performance of its gaming and automotive chips business.
Citi analyst Atif Malik said: “After four consecutive quarters of year-over-year decline in sales on crypto and data center industry weakness, sales growth looks set to resume in the Jan-Q on normalization in gaming and data center demand. Management expects data center sales to grow in 2H which is directionally in-line with Citi’s US cloud spend capex model.”
Deere & Co. (DE-N) was up 3.6 per cent despite it third-quarter earnings, released before the bell on Friday, missed Wall Street estimates, hurt by the U.S.-China trade war that has dented the demand for farm equipment, forcing the company to revise down its full-year profit and sales growth forecasts.
For the quarter ended July 28, the company reported an adjusted profit of US$2.71 per share, up 4.6 per cent from a year earlier. That compared with the average analyst estimate of US$2.85 per share.
Sales at its agriculture & turf segment, which accounts for the bulk of the company’s revenues, declined 6 per cent year-on-year to US$5.95-billion in the quarter. Overall, equipment sales were down 3 per cent.
Cannabis producer CannTrust Holdings Inc. (TRST-T) was up 4.6 per cent after revealing on Thursday that the sale of more than half of its stock of marijuana and around a quarter of its plants have been suspended following the discovery of unlicensed cultivation at its facilities. Regulator Health Canada last month found unlicensed cultivation in five rooms at a CannTrust facility.
On the decline
Applied Materials Inc. (AMAT-Q) lost 1 per cent despite revealing better-than-expected estimates for quarterly revenue on Thursday after market close.
The chip gear maker cautioned that recovery in the memory chip market is unlikely before 2020.
Citi analyst Atif Malik said: “AMAT noted that 2019 WFE [wafer fabrication equipment] expectations are unchanged with WFE spend down in the mid to high teens, albeit with memory softer than in May and foundry/logic stronger. Management remains optimistic for a U shaped recovery in 2020 with sustained foundry/logic spend and NAND picking up before DRAM. Display investments are still expected to be down 33 per cent year-over-year in 2019 in line with prior expectations. More importantly, management expects all three end markets to grow next year led by NAND in silicon, OLED in display, and spare parts in services on recovery in memory fab utilization.”
With files from Jeffrey Jones, Brenda Bouw and wires