A roundup of some of the North American equities making moves in both directions today
On the rise
Blackberry Ltd. (BB-T) jumped 13.1 per cent following the premarket release of better-than-anticipated fourth-quarter results.
The Waterloo, Ont.-based tech company reported adjusted earnings of 11 cents a share, ahead of the 6 cents consensus forecast on the Street. Net profit was $51-million, or 8 cents a share versus a loss of $10-million or 6 cents a year earlier.
“We delivered on all of our fiscal 2019 financial commitments and created a solid foundation for continued profitable revenue growth in fiscal 2020," said chairman and CEO John Chen. "I am pleased to note that BlackBerry is recognized as a $1 billion plus revenue company in security software. The combination of BlackBerry Cylance's lightweight AI and machine learning cybersecurity capabilities with BlackBerry Spark, our secure communications platform, will make our endpoint management and embedded software products stronger and more essential for enterprises to generate value from the Internet of Things.”
Hudbay Minerals Inc. (HBM-T) jumped 2.8 per cent a day after the miner approved a $122-million early works program for its Rosemont copper project in Arizona.
That led an equity analyst at Credit Suisse raised its target price for the stock (to $12.50 from $10.50.
“We rate Hudbay outperform due to the stock’s positive outlook following receipt of necessary Rosemont permits and improved operations across its portfolio,” said Mark Llanes in a research note.
Meanwhie, Industrial Alliance Securities analyst George Topping said: “The early start to Rosemont is another win for management following receipt of the final permits at Rosemont and two straight good quarters, beating the street expectations. We expect current management to prevail from the proxy battle and recommend shareholders vote for that outcome. While our base case is for a proxy fight at the AGM (May 7), and the positive funds flow that comes ahead of that, there is a chance that Waterton (Private, 12% holder and still buying stock in the market) reverses course and books trading profits, and therefore with either outcome we could see short-term pressure after the meeting, regardless of the result, as the losing side sells.”
Aimia Inc. (AIM-T) rose 1.8 per cent following a release Thursday outlining its strategic direction in the wake of the sale of its flagship Aeroplan program.
An equity analyst at Industrial Alliance Securities raised his rating for its stock on Friday morning.
“With Aeroplan now divested, Aimia is focusing on using its acquired knowledge and experience in building and managing loyalty programs to invest in and consolidate other loyalty programs around the world,” said Neil Linsdell.
Eve & Co Inc. (EVE-X) was up 7.7 per cent after receiving a “buy” rating from an equity analyst at Haywood Securities.
“We believe that Eve & Co is well positioned to complete its greenhouse expansion that will enable the Company to scale up production towards 50,000 kg per year from the current 10,000 kg of annual capacity," said Neal Gilmer.
On Friday, the Toronto-based female-focused cannabis brand announced the remaining $4-million principal amount of senior unsecured convertible debentures of the initial $10-million principal amount of debentures issued by the company in June 2018 has now been converted into common shares.
Hydro One Inc. (H-T) was up 0.9 per cent after the company named BC Hydro’s Mark Poweska as its new president and chief executive officer.
Mr. Poweska spent 25 years at B.C. Hydro and is currently executive vice-president of operations for the government-owned company. He replaces Mayo Schmidt, who was forced out of Hydro One last July by Ontario Premier Doug Ford.
Laurentian Bank Securities analyst Nauman Satti said: “Mr. Poweska brings with him 25 years of experience with BC Hydro, where he worked across multiple business segments. Given the similar scale and scope of Hydro One and BC Hydro, Mr. Poweska’s experience should bode well for Hydro One.”
On the decline
Enbridge Inc. (ENB-T) was down 1.7 per cent after Michigan Governor Gretchen Whitmer ordered state departments and agencies to take no further action on legislation enacted in late 2018 authorizing construction of an oil pipeline tunnel beneath lakes Huron and Michigan.
Ms. Whitmer made the move Thursday after Attorney General Dana Nessel issued an opinion labeling the law unconstitutional. Both Democrats, who were elected last year, had opposed a deal to build the Straits of Mackinac tunnel reached by former Republican Gov. Rick Snyder and Enbridge.
In response, Enbridge said: “After reviewing the statement issued by Michigan Attorney General Nessel and Governor Whitmer's executive directive, Enbridge Inc. is surprised and disappointed they have taken this position with respect to the legislation when the Straits tunnel project will further enhance the safety and reliability of a critical piece of infrastructure that supports the State, its communities and the environment. We intend to seek clarification from the Administration on a path forward. Line 5 will continue to safely operate, as it has for more than 60 years. Numerous independent reviews have concluded that the line is safe.”
Charlotte’s Web Holdings Inc. (CWEB-CN) fell 1.9 per cent after its fourth-quarter results fell short of expectations on the Street.
The Colorado-based company reported revenue and earnings per share of $21.5-million and 3 cents, respectively, missing the Street’s projections of $23.1-million and 6 cents. EBITDA fell short of estimates due largely to higher-than-anticipated expenses.
However, the company pointed to the 2018 Farm Bill, which received Congressional approval in mid-December, as a catalyst moving forward.
“We believe this important legislation will have a positive impact on consumer access to hemp-derived CBD products and for our valuable farming communities throughout the country," said president and chief executive officer Hess Moallem.
With files from staff and wires
David Leeder