Investors again showed that they react badly to surprises creating uncertainty.
The action of the Montreal company Osisko Gold Royalties lost 10% of its value on Wednesday after the announcement of the “immediate” departure of chairman and chief executive Sandeep Singh.
Looking at Sandeep Singh’s career since taking office three years ago, analyst Carey MacRury of the firm Canaccord was surprised. “The news comes as a surprise given the company’s performance during his tenure and no reason was given for his departure. He considers the reaction of investors to be overblown due to the quality of Osisko Gold Royalties’ portfolio, its growth prospects and its valuation.
Of the 12 analysts who officially follow the stock, 11 still recommend its purchase.
Waterfalls is no longer on RBC’s list of highly recommended Canadian small cap stocks. The firm made the announcement mid-week. This list is made up of about twenty securities of companies whose market capitalization is less than approximately 2 billion dollars at the time of their addition to the list. The names of InterRent And Tamarack Valley Energy are also withdrawn, while those of dentalcorp, Interfor, Minto Apartment And Obsidian Energy are added.
With the stock market surging, the VIX index falling to its lowest level since January 2020 and credit spreads rapidly tightening, the outlook looks pretty good and there is apparently nothing to worry about, strategists at Scotia with a bit of irony in a note published this week. Or should we start talking about complacency? they ask. The low volatility should be taken as an indication that investors are walking on eggshells. In other words: no negative news is expected in their opinion.
The big winner of the first week of July in Québec inc. on the Toronto Stock Exchange 5N More. The title of the Montreal producer of technological materials appreciated by 11% this week. Lion And Goodfellow The second half of the year is also off to a strong start with increases of 10% for the week.
A new round of quarterly earnings disclosure begins this week in the United States with the unveiling of the performance of the first major US banks for the second quarter of their fiscal year. JPMorgan, Wells Fargo And Citigroup will notably make known their figures by Friday.
The CEO ofFood Couche-Tard just donated just over half a million dollars to an unspecified recipient. Brian Hannasch donated a block of 7,826 shares on June 30.
The Quebec titles of Heroux-Devtek, Logistec, H2O Innovation, Transat, Air Canada, Dollarama, Stella Jones And ADF Group all hit a 52-week high on the Toronto Stock Exchange this week.