The wise investor | The main shareholder of Supremex raises its stake

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




Supremex’s largest shareholder has once again increased its stake in the LaSalle company specializing in the manufacturing of envelopes and packaging products.

The trust of the late businessman Jerry Zucker (former CEO of La Baie) informed stock exchange authorities on Thursday that it had acquired a block of 150,600 shares.

This transaction, worth $628,000, brings the trust’s stake in the company to just over 24%. Supremex.

The quality and sustainability of the dividend of ECB continue to talk. Analyst Adam Shine of National Bank Financial added his two cents this week. In a note published Friday, he says there is nothing to fear. “One of the last things on the list of concerns year after year in the telecommunications sector in this country is the security of BCE’s dividend. » He expects another 5% increase in early February and does not see the possibility of a freeze or reduction anytime soon.

Quebecor begins to repurchase its shares for cancellation purposes. Videotron’s parent company bought back nearly 1.3 million shares in August. This is the first time that Quebecor has bought back shares since last fall and analyst Vince Valentini of TD said he was surprised to see these buybacks shortly after the acquisition of Freedom and just before the auctions for blocks of spectrum next month.

The share buyback signals, he said, that Quebecor is not concerned about financing subscriber growth at Freedom because management intends to maintain a balanced approach to gaining market share ( that is, no disruptive price war strategy) or that the company is not worried about overbidding (or overspending) for spectrum.

Whatever the reason, the buyouts are, in his opinion, positive for Quebecor and the wireless industry.

TD’s Brian Morrison noted Thursday that he expects Dollarama revises its forecasts upwards for same-store sales during the unveiling of the Montreal retailer’s results on Wednesday. He’s not the only one who thinks so. For the market surge to continue, Dollarama must continue to demonstrate that it is gaining market share.

Alithya gained a new admirer this week. Analyst Neeham Upadhyaya, from iA Capital Markets, launched official coverage on Tuesday of the activities of the Montreal company specializing in the digital transformation of organizations by recommending the purchase of the stock. Alithya is on the verge of a breakthrough, according to this expert who points out that the company is growing at a steady pace. He expects a “significant” improvement in margins over the next two years. “Operating in a stable industry provides a safety net for turnover,” he says. They are now five out of seven analysts to suggest buying.

Another leader of Saputo has just purchased shares of the Montreal dairy processor. Frank Guido, President and Chief Operating Officer of the U.S. Dairy Products Division, purchased the 1er September a block of 3,400 shares at a unit price of $29.56.

A sector rotation is coming, according to strategist Sébastien Mc Mahon at iA Global Asset Management.

Recent price movements in the stock markets present interesting convergence opportunities, such as purchases in the energy sector rather than the technology sector or in the materials sector rather than US stocks.

“We therefore made a tactical trade by taking a long position in energy and a short position in technology, which aims to benefit from the rotation between technology (growth) and energy (value)”, he is clarified in its monthly analysis published this week.

“The relative performance of these two sectors since the start of 2023 follows a mirror image, making energy a good candidate for a pairs arbitrage transaction. More specifically, since the July peak, we have also seen a marked deterioration in market breadth (measured by the percentage of stocks trading above their 50-day moving average) in the technology sector. , while it reached 100% in the energy sector. »

Quebec titles of Couche-Tard, ADF, WSP, TFI And CAE all hit a 52-week high on the Toronto Stock Exchange this week.

On the other hand, Transcontinental, Fiera Capital And PyroGenesis slipped this week to a 52-week low.


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