The wise investor | Bitfarms founder liquidates shares

Every Sunday, we shine the spotlight on financial and stock market news items that may be useful to the investor, but which may have passed under the radar.


One of the co-founders of Bitfarms sold one million shares of the Brossard bitcoin miner earlier this week.

Emiliano Grodzki made his trade on Monday. He is CEO and member of the board of directors of Bitfarms. He still has 6.6 million shares left in his account. The company’s stock has been in decline since peaking at $10 last year. The stock closed the week at 86 cents in Toronto. Founded in 2017, Bitfarms made the jump to the stock market in 2019. The stock has essentially returned to its original price from three years ago.

The title of NanoXplore has fallen sharply since the unveiling of financial results in mid-November and this decline in the shares of the Montreal producer of graphene reflects the typical behavior of the impatient small retail investor looking to pocket a quick profit, according to the managers of portfolio Charles Marleau and Bill Mitchell, of the firm Gestion Palos.

“For patient long-term investors like us, the comments made by executives during our recent discussions with them confirm that the company’s growth potential remains significant and that the strategic plan for the next five years is solid. . We took advantage of the downturn to buy even more shares,” they point out in their weekly financial letter.

An administrator at WSP has just purchased nearly $100,000 worth of shares in the Montreal engineering services firm. Birgit Nørgaard bought a block of 600 shares on November 17. She paid a unit price of $159.47. She has been a member of the WSP Board of Directors since 2013.

Opsens is still unanimous on Bay Street, but an analyst adjusted his recommendation on Tuesday after the Quebec company specializing in medical instrumentation presented its year-end performance. Rahul Sarugaser, of the firm Raymond James, still suggests buying the stock, but with a little more restraint. Its suggestion simply changes to “buy”, whereas it was previously a strong buy. This expert continues to show strong confidence in the commercial potential of Opsens’ new guidewire for catheter-based aortic valve replacement procedures. He believes, however, that the stock will fluctuate in the short term given the macroeconomic context which is putting pressure on valuation multiples in the medical technology sector.

“As the death of bitcoin begins to be announced again by some media, it is important to remember that this is not the industry’s first crisis. Each time, bitcoin has risen stronger,” comments Martin Lalonde, portfolio manager at Rivemont, a firm that notably manages a cryptocurrency fund.

“No one doubts at this point that 2022 will be a disastrous year for the mother of cryptocurrencies. However, when you look at the data, when in the past did it make sense to invest in the asset? As we said earlier, this evidence only stands in retrospect,” he adds in his weekly financial letter.

The chairman of the board of directors of Stingray has just purchased nearly $615,000 worth of shares in the Montreal music service provider. Mark Pathy bought a block of 125,000 shares on November 16 at a unit price of $4.90.

The Canadian Securities Administrators saw fit earlier this week to warn investors against trading crypto-assets, “which involves a high level of risk that may not be suitable for many of them”, especially individual investors. . “In general, the value and liquidity of cryptoassets are very volatile,” it says.

“Unlisted crypto-asset trading platforms that Canadians can access may not have essential safeguards in place to protect investors’ assets from loss, theft or misuse. »

The Quebec titles of CGI, 5N More, Subway and Uni-Select hit a 52-week high on the Toronto Stock Exchange this week. In contrast, Guru, BMTC, Hexo and Bitfarms hit a new 52-week low.


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