A roundup of some of the North American equities making moves in both directions today
On the rise
"In the context of the Company’s long-term strategy of developing a sustainable, multi-asset, mining business, Torex regularly assesses a range of alternatives that may include transactions that fit Torex’s stringent criteria, provided such a transaction is accretive to shareholder value on a per share basis,” it said in a statement. “Although it is the Company’s policy to avoid commenting on market speculation and rumours, Torex confirms it is not in dialogue with or considering a transaction with any resource company and, to clarify recent incorrect market speculation and rumours, Torex is not in dialogue with or considering an acquisition or transaction with TMAC Resources Inc..”
On Monday, Marlin Sams Fund L.P, which holds a 4.1-per-cent stake in the company, demanded a corporate governance review and reform in a letter to Torex’s board of directors.
“While at the recent Denver Gold Show, we were disturbed to hear once again that the Company has considered, or is considering, the acquisition of TMAC Resources, Inc. (”TMAC")," said the New York-based Fund. “We have attempted to ignore this rumor, but have become increasingly concerned because we have heard it repeatedly (independently and from multiple sources) in the market.”
U.S. retailer Bed Bath & Beyond Inc. (BBBY-Q) jumped almost 21 per cent after hiring Target Corp.’s Mark Tritton as chief executive officer, months after its long-time head, Steven Temares, left the company under pressure from activist investors.
Mr. Tritton joined Target in 2016 and is currently its chief merchandising officer. He takes over his new role at the houseware retailer in November, Bed Bath & Beyond said in a statement.
His focus at Bed Bath & Beyond will be to enhance store and online experience and improve its product offerings, the company said.
“While it remains to be seen if he is the right person for the job, the merchandise improvements at Target during his tenure have been impressive, particularly the repositioning within home and apparel,” Gordon Haskett analyst Chuck Grom said.
On the decline
Shares of Canadian pot producer Hexo Corp. (HEXO-T) dropped 23 per cent after it withdrew its forecast for next year on Thursday, citing regulatory uncertainty around the cannabis market and a slower rollout of its retail stores.
“Withdrawing our outlook for fiscal year 2020 has been a difficult decision,” Sebastien St-Louis, CEO and co-founder of Hexo said in a statement. “However, given the uncertainties in the marketplace, we have determined that it is the appropriate course of action. We are also placing a greater focus on profitability. We are evaluating our plans and operations to see where we can be even more efficient."
Hexo said it expects net revenue for the fourth quarter to be approximately $14.5-million to $16.5-million, which is below the FactSet consensus of $24.8-million. Net revenue for the year is expected to be approximately $46.5-million to $48.5-million.
“Canopy Growth is honored to welcome this exceptional leader as Chair of our Board of Directors,” said CEO Mark Zekulin. “David’s leadership has been extremely valuable to our Board at this pivotal moment in Canopy Growth’s history, and I am confident that he will continue to add value in his new capacity as Board Chair in the years ahead.”
Mr. Klein will take over, effective immediately, from interim chairman John Bell, who will continue as a director on the board.
In July, Canopy fired its co-founder, co-Chief Executive Officer and Chairman Bruce Linton after Constellation expressed disappointment over the company’s financial performance.
Village Farms International, Inc. (VFF-T) dropped 8.7 per cent after it announced a $25-million bought-deal financing. It has an agreement with a syndicate of underwriters that has agreed to purchase 2,660,000 common shares for $9.40 each.
The company intends to use the net proceeds for working capital and general corporate purpose
Delta Air Lines Inc. (DAL-N) lost 1.5 per cent after it reported a greater-than-expected increase in quarterly profit on Thursday thanks to “surprise” demand growth, prompting the airline to accelerate its hiring of pilots, flight attendants, and airport workers, Chief Executive Ed Bastian told Reuters.
Delta, the first of U.S. airlines to publish quarterly results, posted a 13.1-per-cent rise in net income to US$1.5-billion in the quarter to Sept, 30 on total adjusted revenue of US$12.6-billion, up 6.5 per cent from a year earlier.
Adjusted earnings per share reached US$2.32, beating analysts’ expectations for profit of US$2.26 per share, according to IBES data from Refinitiv.
“The size of the demand surprised us,” Mr. Bastian said in a telephone interview, attributing the earnings growth to strength in its core product and markets, as well as incremental pick-up of demand that rivals who own the idled Boeing 737 MAX were not able to meet."
Shares of Boeing Co. (BA-N) fell 1.1 per cent after Southwest Airlines Co. (LUV-N) and Brazil’s Gol Linhas Aereas grounded a total of 13 its 737 NG airplanes, the companies said, after U.S. regulators ordered urgent inspections.
Southwest said it had taken two planes out of service, while Gol had grounded 11. Both airlines are major operators of the 737, including the NG variant and the more recent MAX, which has been grounded for months after two deadly crashes.
The U.S. Federal Aviation Administration last week told aircraft operators to inspect 165 older 737 NG planes for structural cracks within seven days, after cracking was found on a small number of planes. Nearly all the 165 jets were Southwest aircraft, officials said.
Southwest, which did not find any issues in the “vast majority” of planes, said it “removed the two aircraft from our operation and reported the findings to Boeing and the FAA.”
Its shares were 0.3 per cent higher.
With files from staff and wires