The wise investor | Cascades is “back in the penalty box”

Every Sunday, we shine the spotlight on elements of financial and stock market news that may be useful to investors, but which might have gone under the radar

There is now only one analyst offering to buy Cascades’ shares out of the five who officially follow the title of the Quebec paper company.

Matthew McKellar of RBC and Hamir Patel of CIBC withdrew their buy suggestions on Thursday after learning of the year-end performance of Waterfalls.

Matthew McKellar believes the outlook is becoming less compelling, while Hamir Patel expects the stock to fluctuate in a range until management reestablishes credibility with investors.

Hamir Patel is particularly disappointed with the weaker than expected performance in the containerboard sector, the weak forecasts for the first quarter and the withdrawal of forecasts for 2024. According to him, this explains why the stock is “back on the bench”. penalties”. The extreme reaction on the stock market seems to prove him right. The stock lost 20% on Thursday and 9% on Friday.

Five leaders of ECB, including the CEO, have just purchased a little more than $1 million worth of shares in the Montreal telecoms giant. CEO Mirko Bibic alone bought half a million worth of them. On February 12, he purchased a block of 9,900 shares at a unit price of $50.60. Board members Sheila Murray, Calin Rovinescu and Karen Sheriff, as well as Karine Moses, senior vice-president, content development and news, and president, Quebec division, for their part purchased blocks of shares between February 12 and 15.

There National Bank will publish its start-of-year results on Wednesday. There Laurentian will reveal his on Thursday. Expectations are higher for banks as the chances of a soft landing for the economy have increased, inflation is easing, possible rate cuts appear to be around the corner and as the stock market employment remains strong. National Bank shares are up more than 25% since their low in mid-October and have never been at such a high level since the arrival of Laurent Ferreira as CEO in November 2021.

The Montreal IT services company CGI, which has spent an average of $1 billion per year on share repurchases for the past five years, announced Friday the repurchase of $250 million in shares belonging to its founder and executive chairman, Serge Godin. A total of 1.7 million shares are being repurchased for cancellation at a unit price of $149.26, the equivalent of a 3% discount to Thursday’s closing price.

The firm indicates that Serge Godin is carrying out this transaction for estate planning purposes. It will still exercise control over 53% of voting rights and 10.5% of outstanding shares. Market reaction: CGI shares hit an all-time high on Friday.

The 50% dividend reduction announced Wednesday by the Quebec renewable energy producer Innergex is substantial. Although it appeared largely anticipated, the decision reflects a policy intended to be more conservative in the distribution ratio and does not seem linked to a deterioration in the cash flow outlook. This is possibly a factor that contributed to the positive reaction observed on Thursday on the stock market. The publication of less bad results than expected surely helped too. On Bay Street, six out of nine analysts still recommend buying the stock.

A member of the board of directors of TFI has just purchased nearly $300,000 worth of shares in the Montreal trucking company. Sébastien Martel purchased a block of 1,500 shares on Tuesday at a unit price of $194.71. He joined the board last year.

An administrator ofAlimentation Couche-Tard has just donated $275,000 worth of shares in the Laval convenience store chain. A member of the Couche-Tard board of directors since September, Marie-Ève ​​D’Amours sold a block of 3,354 shares on February 16 at a unit price of $82. Marie-Ève ​​D’Amours is the daughter of one of the founders of Couche-Tard and the treasurer of the Fondation D’Amours, an organization which, in particular, defends people with intellectual disabilities and supports children in vulnerable situations .

Investment professionals are reminding their clients these days that the deadline to contribute to their RRSP for 2023 is Thursday. The deadline is February 29, not February 1er March like last year because 2024 is a leap year. The TFSA contribution limit is $7,000, which brings the cumulative contribution room to $95,000.

The Quebec titles of the National Bankof Dollarama, ofADFof Couche-Tardof CNof WSPof TFI and of CGI all hit a 52-week high this week on the Toronto Stock Exchange.

On the other hand, those of TaigaofInnergex and of MTY reached a 52-week low this week.

source site-55