A roundup of some of the North American equities making moves in both directions today
On the rise
MEG Energy Corp. (MEG-T) jumped 6.4 per cent on Monday after National Bank Financial analyst John Hunt raised his rating for its stock.
Mr. Hunt thinks the company’s “high torque model” offers investors a way to play National Bank’s constructive view on global heavy oil.
BSM Technologies Inc. (GPS-T), a Toronto-based provider of real-time positioning system (GPS) fleet and asset management solutions, rose 38.4 per cent after announcing it has entered into a definitive arrangement agreement to be acquired by Geotab Inc.
The purchase price of $1.40 per BSM share represents a total equity value, on a fully diluted basis, of approximately $117.3-million.
“This acquisition will allow BSM’s technology and know-how in important verticals like government and rail to be made available through Geotab’s cost effective, reliable, scalable and secured fleet management platform,” said Geotab chief executive officer Neil Cawse in a release. “The government telematics markets are key opportunities for Geotab and the addition of BSM’s existing activity, level of knowledge and experience will not only benefit Geotab’s government customers but also our strong partner ecosystem that is focused on serving this vertical market. Our expanded team will further equip both Geotab and our network of trusted Resellers with the tools necessary for future success in key growth areas including; municipal, state and provincial government and the electric vehicle market.”
Aimia Inc. (AIM-T) increased 4.4 per cent after announced the terms of its previously announced substantial issuer bid to purchase for cancellation up to $150-million of its common shares.
“The Offer by Aimia Inc. ("Aimia") is being made by way of "modified Dutch Auction", which will allow shareholders who choose to participate in the Offer to individually select the price, within a price range of not less than $3.80 and not more than $4.50 per share (in increments of $0.05 per Share),” the company said. “Upon expiry of the Offer, Aimia will determine the lowest purchase price (which will not be more than $4.50 per Share and not less than $3.80 per Share) that will allow it to purchase the maximum number of Shares properly tendered to the Offer, and not properly withdrawn, having an aggregate purchase price not exceeding $150 million.”
WestJet Airlines Ltd. (WJA-T) sat 0.5 per cent higher after reporting a 1.4-per-cent increase year-over-year in load factor for March. Revenue passenger miles jumped 7.3 per cent, while capacity, which is measured in available seat miles, was up 5.5 per cent.
“WestJet welcomed an additional 104,000 guests in March, a year-over-year increase of 4.8 per cent,” the company said.
On the decline
Maple Leaf Foods Inc. (MFI-T) dipped 1.4 per cent after announcing Monday plans to construct North America’s largest plant-based protein manufacturing facility in Shelbyville, Ind.
The US$310-million plant will be 230,000 square feet, which is expected to more than double its current production capacity, and is expected to be operational in late 2020.
“The new facility will extend the Company’s network of production facilities, which includes facilities in Seattle, Washington, and Turners Falls, Massachusetts,” Maple Leaf said in a release. “In addition, the Company plans to invest in equipment to increase capacity and scale production at its existing facilities.
“The new Shelbyville facility will enable the Company to meet rapidly rising demand for plant-based proteins by supporting its innovation pipeline across its brands. In January, the Lightlife Burger, Ground, Italian Sausage and Bratwurst Sausage were launched as part of a new pea protein-based product line that delivers the sensory experience and taste consumers crave, marking the brand’s most significant innovation launch in its 40-year history. The new line will be among the products made at the new facility, along with other bestselling products from the Lightlife and Field Roast Grain Meat Co brands.”
Canadian cannabis companies were trading down after Cowen analyst Vivien Azer lowered he revenue projections for the sector, suggesting first-quarter growth will likely be modest and the market remains supply constrained.
She thinks Tilray Inc.’s (TLRY-Q) asset-light approach makes it “over exposed” to such tightness, which she thinks may continue for at least 18 months.
Tilray shares dipped 4.8 per cent, while Canopy Growth Corp. (WEED-T) and Cronos Group Inc. (CRON-T) were down 1.9 per cent and 5.3 per cent, respectively.
General Electric Co. (GE-N) dropped 5.1 per cent after an equity analyst at J.P.Morgan downgraded its stock to “underweight,” suggested the Street’s cash flow projections for the coming years are too generous. “
"We believe many investors are underestimating the severity of the challenges and underlying risks at GE, while overestimating the value of small positives,” said Stephen Tusa.
Shares of Boeing Co. (BA-N) fell 4.4 per cent after its stock was downgraded by Bank of America Merrill Lynch analyst Ronald Epstein, who thinks the financial implications of the troubles surrounding its 737 Max aircraft are likely to prove worse than anticipated.
“The reputational loss from these events could erode long-term market share and pricing power of the 737 MAX,” said Mr. Epstein.
With files from staff and wires