A roundup of some of the North American equities making moves in both directions today
On the rise
Boyd Group Income Fund (BYD-UN-T) jumped 9.2 per cent on Thursday after its fourth-quarter results, released before the bell, exceeded expectations.
In a research note, Desjardins Securities analyst David Newman said: “BYD is on track to meet/beat its plan to double revenue over the five-year period ending in 2020 (15-per-cent CAGR). While the technician shortage remains a challenge, BYD is gaining traction with its enhanced benefits, training and other retention programs in the U.S.. BYD guided to maintenance capex in the range of 1.5–1.7 per cent of sales in 2019 (versus our estimate of 1.6 per cent).”
Curaleaf Holdings Inc. (CURA-CN) was up over 31 per cent after announcing on a conference call that CVS Health Corp. (CVS-N) will begin selling its products in more than 800 stores.
Neovasc Inc. (NVCN-T) sat 1.6 per cent higher after announcing the Higher Regional Court in Munich dismissed the case brought by Edwards Lifesciences CardiAQ LLC against the B.C.-based company in Germany.
CardiAQ had claimed full ownership rights to one of Neovasc's European patent applications for its Tiara transcatheter mitral valve. In June, 2017, the first-instance court in Munich had awarded co-ownership rights to CardiAQ.
"We are pleased that after full consideration of the evidence, the German courts have now recognized that CardiAQ made no contribution to the invention or development of the Tiara," said Neovasc CEO Fred Colen in a statement. "With this decision, which we strongly believe would be confirmed, even if appealed to and accepted as a case by the German Supreme Court, Neovasc is free to pursue its European patent application and has the sole right to commercialize the Tiara in Europe and help treat patients suffering from debilitating mitral valve disease. We will continue to vigorously defend our intellectual property against any attempts by third parties to infringe on these rights."
DIRTT Environment Solutions Ltd. (DRT-T) jumped 9.2 per cent after reporting stronger-than-anticipated fourth-quarter financial results after the bell on Wednesday.
The Toronto-based office interior design and manufacturing company reported adjusted EBITDA and revenue for the quarter of $17.5-million and $98.7-million, respectively, blowing past the consensus expectations on the Street of $19.1-million and $86.5-million.
Raymond James analyst David Quezada said: “We continue to believe DIRTT is in the early stages of sweeping organizational changes that will unlock the potential of the company’s compelling value proposition. These include the introduction of lean manufacturing processes—which will reduce inventory and optimize staffing levels—formal budgeting process, and an integrated marketing strategy—which we expect will provide a lift to sales and improve visibility. Ultimately, we see potential for optimized manufacturing to create the headroom for reduced pricing (the price premium for DIRTT solutions has hindered sales in the past) and propel significant sales growth; this could potentially surpass the 20-per-cent CAGR [compound annual growth rate] the company has delivered since 2013.”
Despite releasing a weaker-than-anticipated revenue outlook for the current quarter, Micron Technology Inc. (MU-Q) rose 9.6 per cent after the chipmaker said it sees a recovery in the memory chip market coming.
The Boise, Idaho-based company is projecting revenue for its third fiscal quarter of between US$4.6-billion and US$5-billion, missing analyst expectations of US$5.3-billion.
“We are taking decisive action to reduce our supply growth to be consistent with industry demand,” Chief Executive Sanjay Mehrotra said on an investor call. “The long-term demand trends for Micron remained very healthy, with tremendous growth opportunities across multiple markets.”
An equity analyst at Citi downgraded his rating for the stock in response to Wednesday’s release.
Apple Inc. (AAPL-Q) was up 3.7 per cent after an equity analyst at Needham upgraded its stock, seeing the potential for a 20-per-cent share price rally over the next year.
Shares in Levi Strauss & Co. (LEVI-N) surged 31 per cent in their debut on Thursday, giving the jeans maker a market value of US$8.7-billion. The stock opened at US$22.22, from its offering price of US$17, which was better than the expected range of US$14 to US$16.
On the decline
Canopy Growth Corp. (WEED-T) dropped 1.3 per cent in the wake of announcing the acquisition of AgriNextUSA in an attempt to expand south of the border.
AgriNext CEO Geoff Whaling will join Canopy Growth USA as a strategic adviser.
“The United States is the next stop on Canopy Growth’s desired path to becoming a leading, revenue-generating company focused on all aspects of cannabinoids and their potential," said Canopy co-CEO and chair Bruce Linton in a release. “Our significant investments, acquisitions and compilation of talented leaders such as Geoff will position us for swift expansion throughout the United States. By collaborating with a pioneer like Geoff, who has been involved with our team since our earliest days in 2013, we will aim to turn hemp supplied by American farmers into a wide range of products.”
After receiving a downgrade by an equity analyst at BMO Nesbitt Burns, shares of Martinrea International Inc. (MRE-T) fell 3.3 per cent, while Magna International Inc. (MG-T) closed slightly higher.
Photon Control Inc. (PHO-T) was down 3 per cent after reporting its fourth-quarter revenue fell to $8.2-million from $11-million a year earlier.
“Our Q4 2018 results were consistent with our prior outlook, reflecting depressed levels of wafer fabrication equipment spending, along with continued inventory reduction strategies by our customers, in light of the prolonged downturn. While we are managing the business with prudent control of expenses during the current industry slow-down, we continue to invest in R&D in support of future growth and are extremely positive about the long-term prospects of the Company and our served markets,” the company stated in a release.
Biogen Inc. (BIIB-Q) plummeted 29.2 per cent after the Massachusetts-based biopharmaceutical company and its Japanese partner, Eisai Co Ltd, said they would discontinue two studies testing an Alzheimer’s drug. The company said the decision came after results of a futility analysis conducted by an independent data monitoring committee indicated “the trials were unlikely to meet their primary endpoint upon completion.”
“This disappointing news confirms the complexity of treating Alzheimer’s disease and the need to further advance knowledge in neuroscience. We are incredibly grateful to all the Alzheimer’s disease patients, their families and the investigators who participated in the trials and contributed greatly to this research," said Biogen CEO Michel Vounatsos in a release.
In response to the news, Biogen stock was downgraded by nine analysts on the Street as of mid-day, according to Bloomberg data.
Boeing Co. (BA-N) slipped 0.9 per cent as U.S. lawmakers increased pressure on its executives to testify about two crashed 737 MAX jets.
The Senate hearing, at an unspecified date, would be the first time that a U.S. congressional committee has called Boeing executives to appear for questioning about 737 MAX passenger plane crashes in October in Indonesia and March 10 in Ethiopia.
With files from wires and staff