Posted at 6:00 a.m.
A private Connecticut investment firm has just taken a 10.2% stake in mdf tradeoperator of e-commerce platforms in Longueuil.
Long Path Partners revealed to stock market authorities on Friday that it had purchased shares of mdf in April and thus become the company’s largest shareholder ahead of the Fonds de solidarité FTQ, which holds a 5.4% stake.
Long Path Partners says it invests for the long term in a “limited” number of “high quality” companies with “predictable” activities.
Bellus Health is the big winner of April in Quebec on the Toronto Stock Exchange with an appreciation of 19% during the month, whileHexo is the big loser with a decline of 32%.
The significant downturn in the action of Richelieu Hardware since its peak in February leads the firm Cote 100 to say that the title of the Montreal supplier of hardware products is undervalued.
“Our valuation is $49 a share and we recommend buying it at $40 or less. The time is once again opportune to buy the shares of this quality company”, underlines one in the most recent financial letter of Cote 100, published in the last days.
To justify its position, Cote 100 cites growth history, balance sheet, profitability, operations in a fragmented market environment with “many” acquisition targets, sustainable competitive advantages, exposure to the renovation market (less cyclical than real estate), the management team, as well as the pricing power of the company.
Cote 100 stresses that a risk watching over Richelieu is the rise in interest rates. “In conditions of high inflation, central banks raise rates in an effort to raise the cost of credit (borrowing money) and keep inflation under control. As a result, applications for mortgages or real estate construction and renovation will likely decline, which could impact financial results. »
The shareholders of Bomber must authorize Thursday at an annual meeting the consolidation of the shares of the Montreal manufacturer of business jets. Consolidating the shares will significantly reduce the stock’s volatility and gradually attract new long-term investors, believes Konark Gupta of Scotia.
The analyst expects a 10-to-1 consolidation as business jet makers General Dynamics and Textron have 200-300 million shares outstanding and Canadian peers CAE and Air Canada have between 300 and 400 million shares outstanding.
The big boss of Richelieu Hardware has just purchased $110,000 worth of shares in the Montreal hardware supplier. Richard Lord bought a block of 3,000 shares on Wednesday. Marc Poulin, a member of the board of directors, bought a block of 2,000 shares on April 21.
Dollarama represents a way to go on the attack despite inflation, underlines the portfolio manager Philippe Hynes, of the firm Tonus Capital, in the quarterly letter that he has just sent to his clients. “Dollarama is an excellent example of a company that can thrive in times of inflation. »
He points out that in the face of rising costs, Dollarama has been able to quickly adjust its prices in the past while continuing to meet the growing demand of bargain-hunting consumers.
“We also noted this after our meeting with management in December 2018: Dollarama’s performance will exceed expectations in the event of inflationary pressures. Its competitors will have to raise their prices and Dollarama will benefit disproportionately from these increases. In-store sales will then experience a significant increase. »
Dollarama is taking advantage of the current situation to gradually introduce items at a new price of $5, an announcement that investors have been waiting for since 2016, he said.
“In this context, management anticipates an increase of between 4% and 5% in comparable store sales for the current year, a forecast that we consider very conservative. »
The announcement Tuesday by the Quebec company OpSense of Health Canada’s approval of its new guidewire for use in transcatheter aortic valve replacement procedures is a positive signal that US Food and Drug Administration (FDA) approval should follow later this year. “FDA clearance is now more likely, which puts the whole program at risk,” says analyst Rahul Sarugaser of Raymond James.
The Quebec titles of Theratechnologies, Stella Jones, 5N More, Lion, Tecsys, Dorel, Savaria, Coveo, Richelieu Hardware, Lassonde, Bausch Health, mdf trade and Neptune all hit 52-week lows this week. At the opposite, Food Couche-Tard again hit a 52-week high on the Toronto Stock Exchange.