Upgrades/Downgrades/News
- Admin
- Sep 15, 2015
- 5 min read
September 15 - Markets have been acting oddly lately through quiet summer trading, holidays and leading upto the Fed comments and possible interest rate move. We don't see an interest rate hike as likely, but will be more confident trading in the markets either way after this uncertainty is removed.
September 15 - There was one upgrade of note with Linamar (LNR) being upgraded to buy from hold at Canaccord Genuity. The stocks is indicating a flat to slightly higher open but should run on this upgrade so we will be looking for a good day trade.
This proved to be a fantastic day trade, even better than expected, as the stock rose 7.2% from the open.
September 9 - The Bank of Canada has left the overnight rate at 0.5% as expected, now we wait for the U.S. Fed rate announcement next week. Bombardier (BBDb) was up in Europe on news of a large order as well as that they rejected a Chinese offer to buy the entire rail unit. If you have an Instagram account you probably noticed subtle ads are appearing on your feed, just as with Facebook and Twitter. Facebook said they would monetizing Instagram and it has begun, which should help Facebook's revenue and earnings in all subsequent quarters.
September 9 - In analyst actions today Canadian Natural Railway (CNR.TO) was upgraded for the second day in a row, this time by Raymond James to outperform from market perform, while RBC upgraded Canfor Pulp Products (CFX) to an outperform. Canfor Pulp Products is indicating a much higher open but another way to play Canfor is through the controlling entity Canfor Corp (CFP), which is down on the day near 52 week lows.
September 8 - Cott (BCB) was upgraded to outperform from sector perform at RBC. Even though this looks like it will open much higher we are still looking at a trade.
Cott closed up 10.76% (6.8% from the open) for a great day trade.
September 8 - Raymond James upgraded Precision Drilling (PD), Canyon Services Group (FRC) and Labrador Iron Ore (LIF) to outperform from market perform. Labrador Iron Ore provided a great trade Friday and the momentum should continue upwards today. Precision Drilling and Canyon Services Group are both indicating much higher opens on a down day for oil so we will likely stay away from these names.
Labrador Iron Ore closed up 5.22% while Precisions Drilling and Canyon Services Group both closed well below the open.
September 8 - Stantec was upgraded to buy from hold at Dundee. Just above a 52 week low with a decent dividend this is an attractive looking trade here.
Stantec opened up 2.5% so we did take a trade here and although the stock did rise a bit further, it closed up a modest 3.17%.
September 8 - Also, on the analyst front Raymond James downgraded Athabasca Oil to market perform from outperform while TD upgraded Canadian Natural Railway to buy from hold. Athabasca Oil trading under $1.50 from a high over $7 is not an attractive short and Canadian Natural Railway is indicating opening up nearly 3% so neither of these names appear appealing here.
September 4 - Friday before the long weekend in North America is not short on news: Canada: BB (Blackberry) biggest purchase ever (Good Technology), CAS (Cascades) downgraded by RBC to sector perform from outperform, CHRb (Chorus Aviation) upgraded to buy from hold at TD and Labrador Iron Ore (LIF) upgraded to strong buy from hold at Canaccord Genuity. Monthly jobs beat in Canada, miss in US (with upwards revisions for previous 2 months). Fed rate hike still on the table but most consider unlikely, so we will still have to wait and see.
Blackberry always jumps on news then usually pulls back so we would not jump in on this news and might even consider a short if it moves up enough.
Cascades is a long-term dividend paying holding but it might be worth a short day trade on this downgrade.
Chorus Aviation and Labrador Iron Ore are both dividend-paying companies that have been showing some upside so we will be looking to day trade both.
Chorus Aviation provided a couple of small 1% trades as it was range bound all day.
Cascades did not work as a short, also remaining range bound all day and never falling much below the open.
Labrador Iron Ore provided great day trading, rising right after the open, retesting that level a few times, then accelerating into the close up 6.59%.
September 2 - Another calm day after yesterday's storm. Bell Canada (BCE) was upgraded to buy from hold at TD, saying that they could acquire Allstream from Manitoba Telecom (MBT) or eventually the entire company. Manitoba Telecom has been a long-term holding for a nice dividend with some takeover potential, but other than that we do not like the Canadian telecom space, just not enough potential upside. AT&T (T) was also upgraded on the US side and currently this is our only other telecom holding, although we are constantly watching European names that were badly beaten recently, but have now rebounded nicely. Alimentation Couche-Tard (ATD.b) is moving again after yesterday's earnings (some $3 Sep $54 Calls are looking good here). Other than that pretty bored already today. Maybe BNN Marketcall guest Brendan Caldwell will offer some interesting picks when he talks Canadian Value Stocks 1-2 pm.
September 2 - Amica Mature Lifestyles (ACC) being acquired for $18 a share according to BNN but no news anywhere else apparently. The stock is halted so not likely possible to get a trade in this, but we will try. Fortunately we do at least hold a small position already.
September 1 - Another busy red day in the markets. We have been waiting for another leg down since last Monday's drop followed by the immediate bounce. Again, we emphasize whether it is a correction or bear market having stocks plummet then rebound within minutes does not qualify, so there will be more sideways trading and downward pressure. Canada is in a technical recession but this is due to commodity prices (mostly oil) and will not be a true prolonged, widespread recession. Energy names are starting to get a lot more attention long and a lot of smart money is nibbling away. First Energy has been upgrading a few names to top picks: CPG and PEY yesterday (both had great moves) and Secure Energy Services (SES) today. The bottom may not be in yet so have some cash ready for day trades and other opportunities. Also, if you're a premium subscriber and access the top picks database you were watching Merus Labs yesterday and hopefully caught some of that great 9% move. A few more to watch this week.
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