Chyanne Fickes, VP Investments, Stone Asset Management says markets are not overvalued and there's lots of room for them to run higher.
Inside the Market's roundup of Canadian small caps making news and on the move today. This post will be updated during the trading day.
CanWel Building Materials Group Ltd. beat second-quarter estimates with an EPS of 24 cents versus the consensus of 16 cents. The company announced that its second-quarter revenues were up 12.2 per cent from the same time last year, increasing to $226-million from $210-million. Building material distributor Canwel said that the increase was driven by higher demand for products after the particularly harsh winter Canada saw this year. Gross margin also increased 28 per cent.
In response to the earnings, Raymond James upgraded CanWel Building Materials to "outperform" from "market perform" and raised its price target to $6.50 (Canadian) from $5.50.
Shares in the company are up nearly 6 per cent in early trading.
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Altus Group Ltd. announced today it has acquired RealNet Canada Inc., a leading, privately owned Canadian real estate information services company. Terms were not disclosed, but the company said the acquisition is expected to be immediately accretive to adjusted earnings per share.
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Besra Gold Inc. has suspended two gold mining operations in Vietnam, citing the Vietnamese Quang Nam provincial tax department's "coercive measures" as the reason why. The company did not disclose the particulars of the coercion. The two operations have been struggling due to a contested export tax assessment and less than ideal weather conditions, with the $12-million U.S. tax assessment having only been repealed just this past April. The company has said that the provincial government's actions this time around are "illegal." Besra's assets in the country are Vietnam's biggest gold operation.
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Ballard Power Systems has received a purchase order from New Flyer Industries for the delivery of Ballard's first next-generation FCvelocity-HD7 fuel cell power module to a North American bus manufacturer.
Delivery is due later this year. The module will be used in a New Flyer fuel-cell bus that will be deployed under the U.S. Federal Transit Administration (FTA) National Fuel Cell Bus Program, Ballard said in a statement.
Shares in Ballard are up more than 3 per cent in early TSX trading.
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Technology licensing company Wi-LAN Inc. announced that it has licensed patents related to networking capabilities of non-standard devices to Koninklijke Philips N.V. and Philips Electronics North America Corp. The company had originally acquired the patents back in April. The terms were kept confidential.
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Haywood Securities downgraded Luna Gold Corp. to "sell" from "buy" and cut its price target by 80 cents (Canadina) to $1.05.
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Clarus Securities initiated coverage on Espial Group Inc., a provider of digital TV software to service providers, with a "buy" rating and $4 (Canadian) price target. "As an early adopter of Comcast's RDK framework, the company is now positioned to more successfully penetrate the cable STB market in advance of a major industry shift to next-generation video services," commented Clarus analyst Eyal Ofir.
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Aquila Resources Inc. said it has received positive results from a new preliminary economic assessment on its Back Forty gold and zinc project in Michigan's Upper Peninsula. The PEA contemplates mining 16.1 million tonnes of mineralized material over the 16-year life of mine. The PEA "demonstrates the potential for a diverse earnings stream with a payable metal value mix of 41.2 per cent gold, 40.5 per cent zinc, 12.0 per cent copper, 5.7 per cent silver, and 0.6 per cent lead," the company said.
Shares in Aquila spiked 20 per cent at the start of today's trading.
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ATAC Resources Ltd. said it has completed a positive Preliminary Economic Assessment for the oxide portion of the Tiger Deposit located at the western end of the Company's 100 per cent-owned Rackla Gold Project in the Yukon. The Tiger Deposit was discovered in 2007 and is distinct from the more recent larger scale Carlin-type discoveries located 100 kilometres to the east, which remain the exploration focus of the company.
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Groupe Bikini Village Inc. today announced that it has applied to list on the TSX Venture Exchange. It has also applied to voluntarily delist from the Toronto Stock Exchange. This follows Toronto Stock Exchange's delisting review, which was initiated in March. Shares surged 24 per cent on the news.
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IDM Mining Ltd. announced results of a Preliminary Economic Assessment for the Red Mountain gold project in northwestern British Columbia.
Rob McLeod, CEO of IDM Mining, said, "With capital and operating costs that are estimated to be among the lowest in the global gold industry and a near-term development plan now in place that provides a clear path to commercial operations, this study outlines both the potential economic and potential technical viability of the Red Mountain underground gold project. With the significant exploration upside on the Property, along with additional drilling and engineering work, we anticipate the project economics can be further improved."
Shares in the company rose nearly 10 per cent on Tuesday, before the PEA results were announced this morning.
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Paladin Energy Ltd. said it has finalized a $190-million (U.S.) deal to sell a 25 per cent joint-venture equity stake in its flagship Langer Heinrich uranium mining operation in Namibia to CNNC Overseas Uranium Holding Limited, a wholly owned subsidiary of China National Nuclear Corp.
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Marathon Gold Corp. today announced positive results of new trenching and bedrock sampling in the Rainbow and Sprite Zones of its Valentine Lake property. Shares are up more than 20 per cent in mid-afternoon trading.
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Triox Ltd. said that it has agreed with eQube Technology and Software Inc. and Catalyst Gaming Corp. to amalgamate eQube, Triox and a wholly-owned subsidiary of Triox. The new entity and Catalyst will form a strategic partnership to develop growth opportunities, such as new gaming partnerships, new database customers and services, strategic expansion to other platforms, growth through potential merger and acquisition targets and other business opportunities.
Catalyst will aim to privately place $1.5-million worth of common shares of a wholly-owned subsidiary of Triox at $0.50 per share. Catalyst will also arrange for a capital injection into eQube through the purchase of $1.5-million in current outstanding eQube preferred shares from existing shareholders. Catalyst will receive warrants in the amalgamated company in exchange.
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Celestica Inc. has completed a program share repurchase and cancelled 1.4 million subordinate voting shares purchased from Citibank at $12.17 (U.S.) per share. The bank had acquired these shares for its own account during the term of the share buyback program.