A roundup of some of the North American equities making moves in both directions today
On the rise
Clearwater Seafoods Inc. (CLR-T) rose 3.1 per cent on Tuesday, a day after announcing that it’s reached a “landmark agreement” on the Arctic Surf Clam fishery with 14 First Nations communities in Nova Scotia and Newfoundland and Labrador “to the benefit of all parties.”
“The voluntary agreement will be effective immediately and benefits to participating First Nations are retroactive to January 2019. The Agreement will provide millions of dollars in benefits to First Nations through annual revenue sharing, training, leadership development, employment, as well as procurement of goods and services from Indigenous suppliers. The partners also commit to work together to submit an Expression of Interest in any new upcoming DFO process,” said the company in a release.
A day after falling 37.4 per cent on the heels of a before-market announcement of the mutual termination of Luxfer Holdings PLC’s proposed US$612-million acquisition as well as disappointing quarterly results, New Peformance Materials Inc. (NEO-T) was up 11.7 per cent.
The stock was upgraded by an analyst at CIBC World Markets, who sees “better days ahead.”
“We see little change to NEO’s sound long-term fundamentals, including growing markets for rare earths engineered materials, solid management and a strong balance sheet,” said Scott Fromson. "As for China concerns, NEO has successfully operated in-country for 28 years, employing Chinese management. We see the sell-off as a buying opportunity and we stick our neck out on an upgrade.”
Goldcorp Inc. (G-T) rose 3.4 per cent despite announcing an illegal work stoppage at its Cerro Negro mine in Argentina by the AOMA mining union.
“All mining ceased when the work stoppage began late on March 8, 2019 and processing activities have now been discontinued with the exhaustion of surface stockpiles,” the company said in a statement. “Mining and processing could be safely restarted immediately following the return of the workforce. Our focus is on personnel safety, environmental protection and full permit compliance while we consult with the union and engage in prescribed dispute resolution protocols.
“The company is actively working along with the Union and the relevant Governmental Authorities to work toward resolution and restart the operation.”
On the decline
Shares of Boeing Co. (BA-N) continued to fall on Tuesday, sitting down 6.1 per cent as the Germany, France and the U.S. joined several other nations in becoming the latest to ground its best-selling line 737 MAX 8 aircraft.
On Monday, Boeing, which is currently the world’s largest planemaker, fell as much as 13.4 per cent in the wake of Sunday’s Ethiopian Airlines crash that killed 157 people.
“The Boeing news is in focus as it is a big part of the U.S. economy and whether Boeing is responsible in some way or if there is a problem in its aircraft is something investors are still trying to digest,” Rick Meckler, partner at Cherry Lane Investments in New Vernon, N.J., told Reuters.
“We have extensive analytical data supporting the safety of these aircraft,” an Air Canada statement said.
Shares of SNC Lavalin Group Inc. (SNC-T) erased early gains and finished down 0.1 per cent Tuesday after it was awarded a three-year framework agreement by Chevron Australia to provide multi-disciplinary engineering and design services, including asset reliability and integrity management services and brownfield modification engineering support.
The agreement was signed under its Atkins Australia Pty Ltd subsidiary.
“The acquisition of Atkins in 2017 has strengthened our engineering capabilities, providing added benefit to our clients in Australia," said SNC’s president of oil and gas Christian Brown in a release. “Our knowledge and expertise in asset integrity and brownfield engineering ensures our client’s assets are able to run at maximum production while minimizing downtime and we look forward to continuing our longstanding relationship with Chevron.”
“Empire has aggressively begun to tackle its structural and efficiency shortcomings while taking steps to establish vectors of future growth (eg Farm Boy, Ocado relationship),” said Keith Howlett. “In baseball terms, we are still in the early innings. The extent to which the planned $500-million of Project Sunrise cost savings (generated over three years, FY18–20) are visible at the EBITDA line will be one of the key signposts of progress.”
Eight Capital has agreed to purchase 18,382,400 units of the Toronto-based company at a price of $1.36 per unit. 48North said it intends to use the proceeds to fund inventory and for working capital and general corporate purposes.
F5 Networks Inc. (FFIV-Q) sat 7.7 per cent lower after announcing after market close on Monday the US$670-million acquisition of privately held NGINX.
On Tuesday, an equity analyst at JP Morgan downgraded the network software maker’s stock, calling the purchase price “expensive” and believing the deal will prove tough to digest for a value investor.
Dick’s Sporting Goods Inc. (DKS-N) dropped 11 per cent after projecting 2019 profits that fell short of expectations on the Street and announcing it will stop selling hunting rifles and ammunition in 125 of its stores.
The Pennsylvania-based company is expecting earnings in the range of US$3.15 to US$3.35, versus the average analysts’ estimate of US$3.34.
The sporting goods retailer also said it will replace Reebok merchandise with a new-in house private label brand. That led to a decline in both Nike Inc. (NKE-N) and Under Armour Inc. (UAA-N) shares, which sat 0.4 per cent and 0.9 per cent lower, respectively.
“We think that it [the private label] will do more business there than we did with Reebok,” said CEO Edward Stack in a conference call with analysts.
With files from wires and staff