Baystreet.ca RSS Feed http://www.baystreet.ca/rss/MasterRSS.aspx en-us Copyright (c) 2021 Baystreet.ca Inc. All rights reserved. 1/18/2021 3:24:39 AM <![CDATA[Cenovus Energy "OUTPERFORM"]]>Fri, 15 Jan 2021 11:59:00 ESThttps://www.baystreet.ca/articles/analyst_ratings.aspx?63455<![CDATA[Why Oil Will Keep Rising In 2021]]>Fri, 15 Jan 2021 08:08:00 ESThttps://www.baystreet.ca/articles/commodities.aspx?id=4455Friday, January 15, 2021


Why Oil Will Keep Rising In 2021


We have seen strong moves higher in the key crude oil benchmarks-WTI, and Brent, in the last several months. This was initiated by the advent of positive news on the Covid front that the vaccines in development were extremely efficacious, promising an endpoint to the spread of the virus. This upward trend in crude was boosted by the gradual decline in U.S. shale production and inventories over the same period.

Finally, the move in early January, by OPEC+ to restrain output into mid-2021, and an extra "gift" from Saudi Arabia to remove another 1-million BOPD from the market, provided the impetus for WTI to rise firmly into the $50s. In this article, we will discuss key reasons that we think the upward trend for crude will continue this year. Why?

Demand will return

In spite of the current lockdowns which inhibit demand, the trend is higher. As implementation of the vaccines increases the pool of the virus-immune population, business activity will resume creating demand for refined petroleum products. The graph below shows the EIA’s, Energy Information Agency, forecast of the trend for refined products over the next couple of years. For gasoline, the primary motor fuel used in the U.S. moves gradually higher in the second half of 2021, and then moderates in 2022, just below the levels of 2019. The EIA makes some assumptions about work from home and reduced commuting in this forecast. The forecast is not so robust for jet fuels, showing slight growth in 2021, but a return to near 2019 levels in 2022. Total demand increases to and slightly exceeds 2019 levels by 2022.

This is bullish for oil prices.

The political and macro environment will push supplies lower
Elections have consequences. The concentration of power over the next couple of years, with Democrats controlling all three branches of government, will make increases in U.S. production very unlikely. From recent 2020 highs where the U.S. produced over 13 mm BOPD, production in response to low prices has fallen to 11.0 mm BOPD. We will see an enhanced and stricter regulatory environment in the coming years. The U.S. will be put firmly on a path where renewable fuels are increased at the expense of petroleum-based fuels. The anticipated re-entry of the U.S. into the Paris climate accords will only exacerbate this trend. Fossil fuels will become scarcer, and that is bullish for prices.

OPEC+ has surprised the world with its resolve to finally push prices higher. Using its might as one of the world’s top three crude oil producers, and its unchallenged position as the world’s lowest-cost producer, Saudi Arabia unilaterally chose to withdraw another 1-million BOPD from global markets beyond its OPEC+ commitments. It was this action that moved the oil markets above $50 for the first time since early March 2020. What this suggests strongly is that the cartel is resuming its traditional role of setting crude prices for the world.

The decline of U.S. supplies will return pricing power firmly to OPEC+. The recently obtained $50 handle is likely to be a floor price going forward. The glut we’ve had to deal with over the last few years will continue to dissipate as capital restraint by U.S. shale producers keeps the overall trend down. OPEC+ really has only one mission-providing the maximum return for its members by balancing supply and demand. The western economies’ current infatuation with climate change, is less of a motivator for the key countries that make up OPEC+. Their economies are driven primarily by the export of crude oil, and they all want higher prices.

OPEC+ resuming the swing producer role is bullish for oil prices.

Commodity prices will boom
Last fall I wrote an Oilprice article where I posited that there might be a commodity boom on the horizon. There is no commodity that is more fundamental to the world economy than crude oil. Among the things that drive crude oil other than scarcity is the fact it’s priced in dollars, which makes it very susceptible to inflationary pressures.

MarketWatch

The dollar index has declined over the last year but has recently seen support with a weeklong trend higher. A stronger dollar is bullish for oil prices because you get less oil for the dollar which means you need to spend more of them to get the same amount. This is inflationary and as noted above crude is very susceptible to this pressure.

Nor can we ignore the amount of stimulus that the global economy has unleashed in response to the virus. We think as the infection rate begins to decline governments will begin to address the historically low interest rates that have helped to provide liquidity in the pandemic. There is a price to be paid for the tidal wave of cash distributed thus far, and the further stimulus to come as the Biden administration assumes control of the economy. Classic monetary theory tells us that part of the price is likely to be inflation.

There is a temptation to compare this crisis to the financial crisis of 2008. There the Treasury borrowed about $500 bn to provide the liquidity that staved off a collapse of the financial system. So far in the U.S. alone, nearly 4-trillion dollars-worth of stimulus have been authorized, with other actions taken by the Federal Reserve to ensure that institutions, corporations, and small businesses had the funds they needed to operate. As noted previously the Biden administration is just getting started and has discussed trillions more in financial stimulus for the economy.

Marketwatch

Commodity prices rose sharply between, 2008-2011 in the face of the stimulus provided in response to the Financial Crisis of 2008. The same index below shows that over the last six months the index has risen sharply. This increase is certainly related to the amount of stimulus provided and expected to be provided by the global economy.

Marketwatch

As noted earlier in this article, crude oil is the most fundamental and volatile of the commodities.

A rising or sharply rising price environment for commodities is strongly bullish for higher oil prices.

Your takeaway

Brevity keeps us from discussing all the factors that might impact oil prices over the short term. With the information provided in this article, we think a strong case is made for a continued moderate rise in oil prices for the rest of this year.

Longer-term we are expecting a spike in crude prices as shrinking supplies fail to meet rising demand. We view this as being inevitable, as I noted in a prior Oilprice article. Under-investment by the key international oil companies over the last six years will create a scenario where the industry simply will be unable to respond to increased demand in a timely fashion.

By David Messler for Oilprice.com

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<![CDATA[Progress Fades on Q4 Results]]>Fri, 15 Jan 2021 10:30:00 ESThttps://www.baystreet.ca/articles/techinsider.aspx?id=2635Friday, January 15, 2021

Progress Fades on Q4 Results


Progress Software Corp (NASDAQ:PRGS) reported better-than-expected results for its fourth quarter, but issued weak forecast for the current quarter.

The Bedford, Mass.-based Progress, the leading provider of products to develop, deploy and manage high-impact business applications, today announced Q4 revenue of $122.4 million increased 5% year-over-year on an actual currency basis, and 4% on a constant currency basis.

Non-GAAP revenue of $129.1 million increased 5% on an actual currency basis, and 4% constant currency basis. Operating margin was 15% and Non-GAAP operating margin was 37%.

Diluted earnings per share was $0.39 compared to diluted loss per share of $0.11 in the same quarter last year.

On October 5, 2020, the company completed the acquisition of Chef Software, a global leader in the growing DevOps and DevSecOps markets.

"I am thrilled with our results both for the fourth quarter and the full year 2020 and believe they reflect the durability of our business and our success in executing our total growth strategy,” said Yogesh Gupta, CEO at Progress.

"Chef extends our long-standing leadership position in the developer ecosystem, we are very pleased with the customer response and the rapid pace of the integration. The investments we’ve made to bolster our M&A capabilities, combined with the large, fragmented and growing DevOps market opportunity, position us well to execute on our total growth strategy for years to come, enabling us to deliver sustained shareholder value."

PRGS shares tumbled $3.68, or 7.5%, to $45.13.

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<![CDATA[Economic Calendar]]>Mon, 18 Jan 2021 03:24:39 ESThttps://www.baystreet.ca/articles/econ_calendar.aspx?id=18125January 2021
 

DATE

STATISTIC FOR CURRENT MONTH PREVIOUS MONTH
Monday, January 4, 2021 Markit Canada Manufacturing PMI: 9:30 am Dec The Index registered 57.9 in December, up from 55.8 in November, signaling the strongest overall improvement in business conditions since the survey began in October 2010. The index registered 55.8 in November, up slightly from 55.5 in October, signaling another robust expansion in business conditions.
Tuesday, January 5, 2021 Raw Materials Price Index: 8:30am Nov The Raw Materials Price Index increased 0.6%, mostly because of higher prices for crude energy products and crop products. The Raw Materials Price Index increased 0.5%, mostly due to higher prices for animals and animal products and crop products.
Tuesday, January 5, 2021 Industrial Product Price Index: 8:30am Nov The Industrial Product Price Index fell 0.6% in November, driven mainly by lower prices for lumber and other wood products. The Industrial Product Price Index fell 0.4% in October, driven mainly by lower prices for lumber and other wood products.
Thursday, January 7, 2021 IVEY Purchasing Managers Index: 10:00am Dec The index dropped to 46.7 from November's 52.7, and down from the 51.9 figure in December 2019. The index moved higher by 52.7, down from October's 54.5, and way down from the 60 figure in November 2019.
Thursday, January 7, 2021 Canadian International Merchandise Trade: 8:30am Nov In November, Canada's merchandise exports increased 0.5%, while imports edged down 0.3%. As a result, Canada's merchandise trade deficit with the world narrowed from $3.7 billion in October to $3.3 billion in November. In October, Canada's merchandise exports increased 2.2% and imports rose by 1.9%. As a result, Canada's merchandise trade deficit with the world was virtually unchanged at $3.8 billion in October.
Friday, January 8, 2021 Labour Force Survey: 8:30am Dec Employment fell by 63,000 (-0.3%) in December—the first decline since April. The unemployment rate was 8.6%, little changed from 8.5% in November. Employment rose by 62,000 (+0.3%) in November, following an increase of 84,000 (+0.5%) in October. The unemployment rate was 8.5% in November, down 0.4 percentage points from a month earlier.
Friday, January 15, 2021 CREAstats - MLS Sales: 8:30am Dec National home sales rose 7.2% on a month-over-month (m-o-m) basis in December. Home sales recorded over Canadian MLS® Systems edged back by 1.6% between October and November. Small declines in October and November notwithstanding, monthly activity is still running well above most of history.
Monday, January 18, 2021 Canada's International Transactions in Securities: 8:30am Nov --- Non-residents added $6.9 billion of Canadian securities to their portfolios in October, with the bulk of the investment in government bonds. Meanwhile, Canadian investors acquired $8.0 billion of foreign securities, largely foreign government bonds.
Monday, January 18, 2021 Housing Starts: 8:15am Dec Canada Mortgage and Housing Corporation reported the trend in housing starts was 231,491 units in November, up from 222,989 units in October. This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.
Tuesday, January 19, 2021 Wholesale Trade: 8:30am Nov --- The sale of wholesale products rose 1.0% in October to $66.7 billion. It was the sixth consecutive increase for the sector.
Tuesday, January 19, 2021 Monthly Survey of Manufacturing: 8:30am Nov --- Manufacturing sales rose 0.3% to $54.1 billion in October on higher sales of non-durable products. Nevertheless, sales in the manufacturing sector were 3.0% below their pre-pandemic levels in February.
Wednesday, January 20, 2021 BoC Interest Rate Decision: 10:00am Dec --- The Bank of Canada today maintained its target for the overnight rate at the effective lower bound of ¼ percent, with the Bank Rate at 0.5% and the deposit rate at 0.25%
Wednesday, January 20, 2021 Consumer Price Index: 8:30am Dec --- Inflation rose 1.0% on a year-over-year basis in November, up from a 0.7% increase in October. On a seasonally adjusted monthly basis, the CPI rose 0.3% in November, matching the increase in October.
Thursday, January 21, 2021 New Housing Price Index: 8:30am Dec --- New home buyers saw prices rise 0.6% in November at the national level, with prices up in 21 of the 27 census metropolitan areas surveyed.
Friday, January 22, 2021 Retail Trade: 8:30am Nov --- Retail sales edged up 0.4% to $54.6 billion in October, marking the sixth consecutive monthly increase since the record decline in April.
Thursday, January 28, 2021 Building Permits: 8:30am Dec --- The total value of building permits rose 12.9% to $9.4 billion in November, the third highest value on record—with the highest value having been reached in April 2019.
Thursday, January 28, 2021 Payroll Employment, Earnings and Hours: 8:30am Nov --- The number of employees receiving pay or benefits from their employer—measured in the Survey of Employment, Payrolls and Hours as payroll employment—continued to rise in October, up by 183,700 (+1.2%) from the previous month.
Friday, January 29, 2021 GDP: 8:30am Nov --- Real gross domestic product grew 0.4% in October as 16 of 20 industrial sectors were up in the month.
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<![CDATA[Auto Sales in Canada Hit Brakes in November ]]>Fri, 15 Jan 2021 11:41:00 ESThttps://www.baystreet.ca/articles/economiccommentary.aspx?id=3094Auto Sales in Canada Hit Brakes in November


Canadian auto sales slowed substantially in November, according to figures released Friday by Statistics Canada.

The agency put the downward trend at 9.5% month-over-month (or 10.4% year-over-year), which translates into an annualized selling rate of just 1.65 million units, whereas auto sales had been averaging about 1.8 million units over the past four months.

More stringent lockdowns across major cities and regions in the country were likely the key driver behind the slowdown even though dealerships remained open. Consumer confidence has also been stalling over the past two months with rising COVID-19 cases. Inventory shortages and fewer purchase incentives may also be creating some headwinds to sales as the end of the year approaches. A normalization had already been underway across a broad range of economic activities including retail and auto sales earlier this Fall.

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<![CDATA[Asia Lower as Xiaomi Weaker ]]>Fri, 15 Jan 2021 06:30:00 ESThttps://www.baystreet.ca/articles/foreignmarketwrap.aspx?id=3585Friday, January 15, 2021

Asia Lower as Xiaomi Weaker


Shares of Chinese smartphone maker Xiaomi plunged on Friday trade after U.S. President Donald Trump’s administration placed the firm on a blacklist of alleged Chinese military companies.

The Nikkei 225 faded 179.08 points, or 0.6%, to 28,519.18

The Japanese yen traded at 103.67 per U.S. dollar, stronger than levels above 104 against the greenback seen earlier this week.

The Hang Seng index in Hong Kong gained 77 points, or 0.3%, to 28,573.86.

By Friday’s close in Hong Kong, shares of Xiaomi listed in the city dived 10.26%.

Hong Kong-listed shares of CNOOC, fell 1.1% — after the U.S. Commerce Department announcing Thursday it had added the firm to its entity list, which essentially restricts firms from receiving specific goods made in the U.S.

U.S. President-elect Joe Biden on Thursday revealed details of a $1.9-trillion coronavirus rescue package.

Biden’s proposal, called the American Rescue Plan, includes some familiar stimulus measures in the hope of sustaining families and companies till vaccines are widely distributed. Some of the proposed measures include stimulus checks as well as unemployment support.

In other markets

In Shanghai, the CSI 300 slid 12.38 points, or 0.2%, to 5,458.08.

In Korea, the Kospi index subtracted 64.03 points, or 2%, to 3,004.87

In Singapore, the Straits Times nicked higher 4.87 points, or 0.2%, to 3,004.87.

In Taiwan, the Taiex Index 90.8 points, or 0.6%, to 15,616.39.

In New Zealand, the NZX 50 skidded 91.18 points, or 0.7%, to 13,024.70.

In Australia, the ASX 200 let go of 0.08 points to 6,715.43.

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<![CDATA[U.S. President-Elect Joe Biden Introduces $1.9-Trillion Stimulus Bill ]]>Fri, 15 Jan 2021 06:39:00 ESThttps://www.baystreet.ca/articles/globalmarkets.aspx?id=2757U.S. President-elect Joe Biden has unveiled a $1.9-trillion COVID-19 "rescue package" aimed at supporting households and businesses through the remainder of the pandemic.

The proposal, called the "American Rescue Plan," includes several familiar stimulus measures in the hope that the additional fiscal support will sustain U.S. families and firms until the COVID-19 vaccine is widely available.

Biden’s plan includes the following:

Direct payments of $1,400 to most Americans, bringing the total relief to $2,000, including December’s $600 payments.

Increasing the federal, per-week unemployment benefit to $400 and extending it through the end of September.

Increasing the federal minimum wage to $15 per hour.

Extending the eviction and foreclosure moratoriums until the end of September.

$350 billion in state and local government aid.

$170 billion for K-12 schools and institutions of higher education.

$50 billion toward COVID-19 testing.

$20 billion toward a national vaccine program in partnership with states, localities and tribes.

Making the Child Tax Credit fully refundable for the year and increasing the credit to $3,000 per child ($3,600 for a child under age six).

Biden’s plan is the first of two major spending initiatives expected to be unveiled in the first few months of his presidency. The second spending bill, expected in February, will tackle the president-elect’s longer-term goals of creating jobs, reforming infrastructure, combating climate change and advancing racial justice.

Most economists, including Federal Reserve Chairman Jerome Powell, warn that additional relief funding and economic stimulus is needed to help businesses stay afloat until the broader population has access to COVID-19 vaccines.

As of Thursday, the virus had killed more than 384,000 Americans, according to data from Johns Hopkins University.

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<![CDATA[TSXV New Listings]]>Fri, 17 Jan 2020 06:20:00 ESThttps://www.baystreet.ca/articles/ipo_tsx.aspx?id=10023 Company Name Ticker Date ANC Capital Ventures Inc. ANCV.P 17-01-2020 Vincero Capital Corp VCO.P 07-02-2020 Good2Go2 Corp. GOAL.P 13-02-2020 Eclipse Gold Mining Corporation EGLD 18-02-2020 Spectre Capital Corp. SOO.P 21-02-2020 Aphelion Capital Corp. APHE.P 26-02-2020 Canada Nickel Company Inc. CNC 27-02-2020 E36 Capital Corp. ETSC.P 28-02-2020 Zenith Capital Corporation ZENI.P 06-03-2020 Baltic I Acquisition Corp. BLTC.P 11-03-2020 Hansco Capital Corp. HCO.P 12-03-2020 Hakken Capital Corp. HAKK.P 13-03-2020 Moon River Capital Ltd. MOO.P 20-03-2020 Fosterville South Exploration Ltd. FSX 14-04-2020 Newtopia Inc. NEWU 04-05-2020 Standard Uranium Ltd. STND 04-05-2020 Trillium Acquisition Corp. TCK.P 05-05-2020 Israel Capital Canada Corp. IL.P 08-05-2020 Spectra7 Microsystems Inc. SEV 22-05-2020 Whatcom Capital Corp. WHAT.P 02-06-2020 CloudMD Software & Services Inc. DOC 04-06-2020 Freeform Capital Partners Inc. FRM.P 17-06-2020 Kalon Acquisition Corp. KAC.P 26-06-2020 Blue Rhino Capital Corp. RHNO.P 13-07-2020 Lamaska Capital Corp. LCC.P 13-07-2020 Solaris Resources Inc. SLS 13-07-2020 RIWI Corp. RIWI 27-07-2020 New Found Gold Corp. NFG 11-08-2020 GHP Noetic Science-Psychedelic Pharma Inc. PSYF.P 11-08-2020 Ridgeline Minerals Corp. RDG 13-08-2020 Valencia Capital Inc. VAL.P 14-08-2020 Sun Peak Metals Corp. PEAK 17-08-2020 Capitan Mining Inc. CAPT 21-08-2020 Spartan Acquisition Corp. VDKA.P 31-08-2020 Reitmans (Canada) Limited RET 03-09-2020 Altina Capital Corp. ALTN.P 21-09-2020 Deveron Corp. FARM 21-09-2020 Altina Capital Corp. ALTN.P 21-09-2020 Marwest Apartment Real Estate Investment Trust MAR.P 22-09-2020 Rubicon Organics Inc. ROMJ 22-09-2020 Exro Technologies Inc. EXRO 22-09-2020 Stormcrow Holdings Corp. CROW.P 23-09-2020 Nova Royalty Corp. NOVR 01-10-2020 Carebook Technologies Inc. CRBK 06-10-2020 Justify Capital Corp. JST.P 15-10-2020 Montage Gold Corp. MAU 23-10-2020 VLCTY Capital Inc. VLCY.P 28-10-2020 kadestone Capital Corp. KDSX 29-10-2020 Pivotree Inc. PVT 30-10-2020 Hapbee Technologies, Inc. HAPB 30-10-2020 High Mountain 2 Capital Corporation HMCC.P 05-11-2020 High Tide Inc. HITI 19-11-2020 AIM5 Ventures Inc. AIME.P 24-11-2020 Whitehorse Gold Corp. WHG 25-11-2020 Element 29 Resources Inc. ECU 03-12-2020 Tempus Resources Ltd. TMRR 07-12-2020 Cuspis Capital II Ltd. CCII.P 11-12-2020 Jabbo Capital Corp. JAB.P 14-12-2020 Cross Border Capital I Inc. CBX.P 22-12-2020 EFH Holdings Inc. EFH 23-12-2020 Empress Royalty Corp. EMPR 29-12-2020 E2Gold Inc. ETU 30-12-2020 Skylight Health Group Inc. SHG 06-01-2021 HAW Capital 2 Corp. HAW.P 08-01-2021 Summa Silver Corp. SSVR 11-01-2021]]><![CDATA[TSX Closes out Losing Week on Downward Note ]]>Fri, 15 Jan 2021 04:38:00 ESThttps://www.baystreet.ca/articles/marketupdates.aspx?id=9894Friday, January 15, 2021

16:38 PM EST
TSX Closes out Losing Week on Downward Note

MEG, Eldorado in Focus




Stocks in Toronto trudged toward the finish of the second week of calendar 2021, burdened by losses in the energy and gold sector.

The TSX remained behind 49.06 points to close Friday and the week to 17,909.64. On the week, the loss amounted to 133 points, or 0.7%.

The Canadian dollar let go of 0.56 cents at 78.51 cents U.S.

Energy rested heaviest on the exchange, with PrairieSky Royalties losing 58 cents, or 5.1%, to $10.90 and MEG Energy off 26 cents, or 5.3%, to $4.64.

Gold took a licking, too, as Eldorado Gold lost 82 cents, or 5.4%, to $14.36, while Teranga Gold sifted off 58 cents, or 4.4%, to $12.56.

Among other resources, Osisko Mining deducted 22 cents, or 6.3%, to $3.25, while Fortuna Silver Mines dipped 79 cents, or 7.6%, to $9.63.

Consumer staples tried to even things out, with Alimentation Couche-Tard darting $1.80 ahead, or 5%, to $38.09, while Empire Company added 81 cents, or 2.3%, to $36.01.

In communications, Cogeco Communications leaped $5.55, or 4.8%, to $101.55, while BCE traveled 90 cents, or 1.6%, higher to $55.85.

Utilities also gave strong showing, with Canadian Utilities taking on 69 cents, or 2.2%, to $32.18, while Brookfield Infrastructure Partners popped $2.06, or 3.1%, to $68.21.

On the economic beat, the Canadian Real Estate Association reported national home sales rose 7.2% on a month-over-month basis in December.

ON BAYSTREET

The TSX Venture Exchange dipped 6.36 points to 907.99.

The 12 subgroups were evenly divided, with consumer staples up 2.2%, communications improving 1.2%, and utilities clicking 1% higher.

The half-dozen laggards were weighed most by energy, sliding 3.7%, gold, dimming 1.9%, and materials, 1.8% the worse.

ON WALLSTREET

Stocks fell on Friday to close out a tough week as traders weighed President-elect Joe Biden’s $1.9-trillion stimulus plan along with the latest earnings from some of the biggest U.S. banks.

The Dow Jones Industrials shed 180.8 points to finish the week at 30,810.72. Dow Inc. and Chevron both fell more than 3% led the 30-stock average lower.

The S&P 500 dipped 27.29 points to 3,768.25. Energy dropped 4%, posting its worst one-day decline since late November, pressuring the S&P 500.

The NASDAQ stumbled 114.14 points to 12,998.50.

The Dow demurred 0.9% on the week, and the NASDAQ skidded 1.5%, to snap four-week winning streaks. The S&P 500 also lost 1.5% over that time period.

On Friday, investors got fresh looks at major banks such as JPMorgan Chase, Citigroup and Wells Fargo. JPMorgan reported better-than-expected earnings, but the stock fell more than 1%. Wells Fargo swooned 7.8% and Citigroup also declined 6.9%, even after posting earnings that beat analyst expectations.

Biden’s proposal, called the American Rescue Plan, includes increasing the additional federal unemployment payments to $400 per week and extending them through September, direct payments to many Americans of $1,400, and extending the federal moratoriums on evictions and foreclosures through September.

The plan also calls for $350 billion in aid to state and local governments, $70 billion for COVID testing and vaccination programs and raising the federal minimum wage to $15 per hour.

Meanwhile, the U.S. Commerce Department said retail sales fell 0.7% in December. Economists polled by Dow Jones expected sales to remain flat.

Prices for the 10-Year Treasury regained lost ground, lowering yields to 1.09% from Thursday’s 1.13%. Treasury prices and yields move in opposite directions.

Oil prices handed back $1.39 to $52.18 U.S. a barrel.

Gold prices erased $25.50 to $1,825.90 U.S. an ounce.




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<![CDATA[Stocks in Play: Gratomic Inc.]]>Fri, 15 Jan 2021 12:28:08 ESThttps://www.baystreet.ca/articles/stocksinplay.aspx?id=31921Friday, January 15, 2021

12:28 PM EST - Gratomic Inc. : Announced that the foundations of its product marketing and sales strategy have been officially defined. During the commissioning phase, due to begin in March 2021, the company will be testing production quality and quantity. In order to support this development, Gratomic has plans in place to upgrade its laboratory facilities at Aukam. This will enable us to properly characterize the initial production batches generated during the commissioning process, and feedback the information to our Process Control, in order to define parameters required to ensure repeatability and efficiency of the production. Gratomic Inc. (V.GRAT) shares were up 2.86 percent at 0.36.

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<![CDATA[Graphite Demand Set to Increase as 125 Million EVs Expected to Hit the Road]]>Fri, 15 Jan 2021 12:26:52 ESThttps://www.baystreet.ca/articles/stockstowatch.aspx?id=9538Friday, January 15, 2021

Graphite Demand Set to Increase as 125 Million EVs Expected to Hit the Road


With the electric vehicle (EV) boom showing no signs of slowing, graphite is under big demand. Used as an essential material for producing the anode of lithium-ion batteries, it already made it onto the USGS list of 35 minerals considered critical to the U.S. “USGS also sees a major spike in U.S. demand for graphite when Tesla Motor's Gigafactory, an enormous lithium-ion battery facility being constructed in Nevada, is fully operational.”

In addition, consider this. By 2030, the world will see 125 million EVs on the road, which means we’ll need a good deal of graphite, according to Mining News North. By 2025, according to UBS, one is six cars sold will be electric. But for that to happen, we need plenty of graphite. Higher demand is creating opportunity for EV and graphite-related companies, including Gratomic Inc. (TSXV:GRAT)(OTCQB:CBULF), Tesla Inc. (NASDAQ:TSLA), General Motors Company (NYSE:GM), Graphite One Inc. (TSXV:GPH)(OTC:GPHOF), and Mason Graphite Inc. (TSXV:LLG)(OTC:MGPHF).

Gratomic Inc. (TSXV:GRAT)(OTCQB:CBULF) BREAKING NEWS: Gratomic Inc. is pleased to announce that the foundations of its product marketing and sales strategy have been officially defined. During the commissioning phase, due to begin in March 2021, the company will be testing production quality and quantity. In order to support this development, Gratomic has plans in place to upgrade its laboratory facilities at Aukam. This will enable us to properly characterize the initial production batches generated during the commissioning process, and feedback the information to our Process Control, in order to define parameters required to ensure repeatability and efficiency of the production.

As a supplement to our main strategic focus on the battery industry and graphene applications (see press release from Dec 30th, 2020), Gratomic will pursue the development of graphite grades commonly used in applications such as graphitic foil, lubricants, crucibles, refractories, friction materials and ceramics, among others.

This will allow the Company to diversify our portfolio and optimize the output of the processing plant. Filling the remainder of the Aukam Book in terms of offtake and purchase schedules. In the coming weeks, Gratomic will pursue the preparation of samples for 53 graphite end users around the world, in order to begin the testing and homologation procedures that precede the use of our product into the most technical applications.

Gratomic's Product Marketing team has requested an additional 550 kg of graphite samples be shipped to Toronto for conversion to SG16 Battery Grade product specifications in addition to the initial shipment of 243Kg of graphite, which was previously dispatched (see press release from Oct 28,2020). Both samples are destined for distribution to Battery OEM Manufacturers.

"This strategy, only possible thanks to the restless efforts of our team on site, will put Gratomic on a privileged position to make a solid transition to a commercially viable Company", says Armando Farhate, COO & Graphite Marketing and Sales Leader.

"We have one of the best marketing teams in Graphite. Their strategy for filling the remainder of our processing capacity is brilliant and will elevate our credibility as a market leader in the vein graphite industry" said Arno Brand, Gratomic President & CEO.

Gratomic wishes to emphasize that no Preliminary Economic Analysis, Preliminary Feasibility Study or Feasibility Study has been completed to support any level of production. In fact no mineral resources, let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam Property.

The Company engaged Dr. Ian Flint, Ph.D., P. Eng. (BC), a Qualified Person as that term is defined under National Instrument 43-101 Standards of Disclosure for Mineral Projects to complete a preliminary economic assessment (PEA) on the Aukam Processing plant based upon a resource estimate to be prepared by another Qualified Person. The study, its recommendations, and their subsequent implementation, will provide conclusions and recommendation at a PEA level of comfort relating to the scale up of the existing processing plant to a commercial scale processing facility that will provide the desired concentrate grades and production rates. A preliminary economic assessment is preliminary in nature, and there is no certainty that the preliminary economic assessment will be realized.

The Company is not in a position to demonstrate or disclose any capital and/or operating costs that may be associated with the processing plant, nor the Company's ability to fulfil its obligations to deliver the 1800 tonnes of graphite as required by the purchaser orders.

Other related developments from around the markets include:

Tesla Inc. (NASDAQ:TSLA) reported, “In the third quarter, we produced just over 145,000 vehicles and delivered nearly 140,000 vehicles. In terms of days of sales, new vehicle inventory declined further in Q3 as we continue to improve our delivery efficiency. Our net income and cash flow results will be announced along with the rest of our financial performance when we announce Q3 earnings. Our delivery count should be viewed as slightly conservative, as we only count a car as delivered if it is transferred to the customer and all paperwork is correct. Final numbers could vary by up to 0.5% or more. Tesla vehicle deliveries represent only one measure of the company’s financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors, including the cost of sales, foreign exchange movements and mix of directly leased vehicles.”

General Motors Company (NYSE:GM) announced it sold 771,323 vehicles in the fourth quarter of 2020. Total sales for the quarter were up 5 percent year over year. GM had its best fourth quarter retail sales since 2007, with deliveries up 12 percent. Sales for the calendar year were 2,547,339 units, with total deliveries down 12 percent year over year and retail deliveries down 6 percent. GM estimates it gained market share across the board in total, retail and fleet deliveries for both the fourth quarter and calendar year. Retail sales for the industry began to recover in May and reached pre-pandemic levels during the fourth quarter. Sales to fleets are recovering but remain sharply lower, especially daily rental deliveries. Average transaction prices set fourth-quarter and full-year records at $41,886 and $39,229, respectively.

Graphite One Inc. (TSXV:GPH)(OTC:GPHOF) announced an adjustment to the net smelter royalty purchase entered into with a third party on October 8, 2020. On October 15, 2020, the Company announced that it had entered into an agreement to acquire a 2% net smelter production royalty (NSR) from a third-party against certain claims that are held by the Company, and which make up a part of the Company's Graphite Creek Project in Alaska.

Mason Graphite Inc. (TSXV:LLG)(OTC:MGPHF) announced that it has formalized initial governance changes, which include the appointment of Mr. Fahad Al-Tamimi as Chairman of its Board of Directors, the appointment of Messrs. Peter Damouni and Simon Marcotte as executive directors of the Company and the grant of an aggregate of 6,925,000 stock options to directors, members of management, consultants, and employees of the Company. Mr. Fahad Al-Tamimi, a director of the Company since June 2020, has been appointed Chairman of the Board. Mr. Al-Tamimi is a seasoned businessman who was the founding investor in Mason Graphite in 2012, and who recently led a successful effort to bring meaningful changes to the Board. Mr. Al-Tamimi beneficially owns approximately 9.92% of the issued and outstanding common shares of the Company.

Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Gratomic Inc. by a third party. We own ZERO shares of Gratomic Inc. Please click here for full disclaimer.

Contact Information:
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<![CDATA[USD/CAD - Canadian Dollar Retreats]]>Fri, 15 Jan 2021 09:50:54 ESThttps://www.baystreet.ca/articles/forex_trader.aspx?id=63461
Biden announced a $1.9-trillion spending package. The juiciest details had already been leaked, and there were not any surprises. Traders unwound short U.S. dollar positions against AUD/USD, NZD/USD, and USD/CAD in particular. The greenback was also in demand due to a bout of profit-taking ahead of the long weekend in the U.S. Monday is Martin Luther King Day.

Traders were also mildly risk-averse ahead of Joe Biden’s inauguration on January 20. Last week’s invasion of the U.S. Capitol forced authorities to increase security.

The U.S. dollar rallied earlier this week on fears that the inflationary impact from Biden’s Relief spending would force the Federal Reserve to begin tapering their quantitative easing purchases, earlier than expected. Yesterday, Fed Chair Jerome Powell tried to put a stop to such speculation. He said the Fed had many tools to use to combat inflation, without the need to raise rates, saying "the time to raise rates is no time soon."

The Canadian dollar is vulnerable to additional weakness due to the latest measure imposed by some provincial governments to combat the spread of the coronavirus. Montreal has a curfew, and Ontario is in a "State of Emergency." Canada is also behind the vaccination curve. The U.K. expects to vaccinate 500,000 per day starting next week. Meanwhile, Canada is not likely to be a position to increase vaccinations until some time in April, at the earliest.

EUR/USD is undermined by COVID-19 issues, and Dutch and Italian politics. German Chancellor Angela Merkel is reportedly planning to increase lockdown measures. The Dutch government could resign because of a childcare subsidy scandal. The Italian government may face a confidence vote. However, losses were curtailed, in part because of Powell’s remarks.

U.S. Retail Sales headlines a parade of economic data that includes Michigan consumer Sentiment, Business Inventories, and Producer Prices. The data will not be a factor for FX as markets are looking ahead to the inauguration.

Rahim Madhavji is the President of KnightsbridgeFX.com, a Canadian currency exchange that provides better rates than the banks to Canadians]]>
<![CDATA[Citigroup Vaults On Beating Quarterly Projections]]>Thu, 12 Oct 2017 10:07:02 ESThttp://www.baystreet.ca/articles.aspx?id=38460Earnings per Share came in for the quarter at $1.42, as opposed to $1.32 expected by experts. Revenue was $18.173 billion versus $17.896 billion expected. Fixed income trading: $2.877 billion versus a projected $2.84 billion

Said CEO Michael Corbat, "We had revenue increases in many of the products we have been investing in, tightly managed our expenses, and again saw loan growth in both our consumer and institutional businesses.”

Citi reported a 3% year-over-year increase in global consumer banking revenue. In North America, retail banking revenue rose 12%, excluding mortgages. Citi cited "continued growth in loans and assets under management," as well as higher interest rates.

The bank's international consumer business saw an 8% revenue increase, driven by higher loans and deposit volumes growth.

Citi's end-of-period loans, meanwhile, rose 2% to $653 billion, while deposits increased by 3% to $964 billion.

Shares of Citigroup have risen 26% this year, easily outperforming the broader market. The S&P 500 has gained 14% in 2017.

Citigroup's stock has also outperformed those of other big banks. Shares of JPMorgan Chase and Bank of America are up 11.9% and 16.9%,, respectively.

Folks who follow macroeconomic developments are also aware that Citigroup could benefit from tighter monetary policy in the near future. The U.S. Federal Reserve signaled a December rate hike in the summary of its Sept. 20 meeting.
Shares in C opened Thursday took on 31 cents to $75.25. ]]>
<![CDATA[Enterprise Group’s Hart Oilfield Rentals: Custom, Cost-Effective Infrastructure]]>Thu, 12 Oct 2017 09:51:46 ESThttp://www.baystreet.ca/articles.aspx?id=38459


Simply, if you are building a mining or oil business Hart rents customized equipment for project sites, drilling & completions and facilities that require mobile infrastructure.

It makes zero sense to expend valuable capital to purchase generators, offices, WC’s etc. As well, each project is different so flexibility, customization and ease of transport is key.



“Our large competitive advantage is the ability to what we refer to as ‘combo technology,” states Joel Bardwell, Senior Manager at Hart. “Whether on a skid or one of our proprietary portable trailers, we can deliver not only the equipment required, but customize it to be the most cost effective. Customers appreciate the approach and with our ongoing R&D and patent/patent pending profile, both served us well during the downturn and positions us well for the rapidly increasing business, both from previous and new clients.”

Hart currently has 6 locations that are strategically located throughout west central and northern Alberta and northeastern British Columbia. These 6 locations have allowed Hart to establish 6 complimentary “service circles” that slightly overlap and allow Hart to deliver oilfield site set-up services and equipment rentals efficiently to its customers as well as respond quickly to requests for service or repairs to its equipment when required.

Early on, Hart realized that the uniqueness of its approach warranted patent filings for equipment as well as industrial designs. With approximately 25 equally divided between Canada and the US, the practice both cements Hart’s reputation as an innovator as well as protect the Company and Enterprise shareholders from interlopers.

There are always interlopers.



It should also be noted that Hart does not sell the custom equipment. Hart is constantly developing equipment to add to its robust and state of the art rental pool: And all with
safety the primary consideration.

Just as with all the Enterprise Group’s subsidiaries, attention to detail is a given. Reactive and proactive to customer needs is what cuts it out of what is already a small herd. Whether resource, municipal needs, pipelines or any other infrastructure pursuit, that word - infrastructure - should be reflected to a greater or lesser degree in every portfolio. US peers are hitting new highs and others, such as Enterprise’s share price is being wrongly assaulted by a volatile oil price.

The bottom line is that over the years Enterprise has made savvy, money making purchases and sales. TC Backhoe sold in 2016 for approximately C$20 million. The Company was purchased in 2007 for C$12 million and under the Enterprise umbrella generated $150 million. The sale was done during the recent downturn, but had been planned previously and drastically lowered and improved the Company’s financials.

Having successfully steered through a blistering downturn, which seems to have unfairly punish a stock that has a breakup of C$0.85 but is trading at C$0.30, it seems a good addition to a junior portfolio.

Investors will also note that as the Company is traded on the TSX that adds to a list of bonafides to Enterprise that investors would be wise to take stock.



Legal Disclaimer/Disclosure: This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. Baystreet.ca assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Baystreet.ca has been compensated ten thousand dollars for its efforts in distributing the TSX:E profile on its web site and distributing it to its database of subscribers. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report. ]]>
<![CDATA[WADA Lifts CBD Ban for Professional Athletes and their Doctors]]>Thu, 12 Oct 2017 08:02:09 ESThttp://www.baystreet.ca/articles.aspx?id=38458
The World Anti-Doping Agency (WADA) just removed hemp-derived cannabidiol (CBD) from its 2018 List of Prohibited Substances, freeing up athletes in the largest international athletic associations in the world like the IOC and FIFA as well as major sports leagues like UFC, NCAA, NFL, NBA, NHL, MLB, and many more to use CBD-infused products as to treat pain and inflammation based disorders.

As WADA is a global governing body, now athletes around the world can use CBD to treat pain, inflammation and injuries, without the risk of league suspension or a loss of sponsors. Professional athletes around the world can now use Phivida’s CBD infused functional foods and natural health brands, free from WADA restrictions, for the first time in the history of competitive sports.

Cannabinoids have just got mainstream, starting with the major leagues. But it’s investors, and CBD-infused infused functional foods and natural health products brands that stand to benefit the most.

According to Allied Research, the global anti-Inflammatory therapeutics market is projected to top $106 Billion USD by 2020, dominated by OTC drugs like Ibuprofen ($14.2 billion USD by 2022). The US opiate drug as an additional $17.7 billion USD by 2021 dominated by Oxycontin, Percocet and Vicodin. Both the NSAIDs and opiate markets are dominated by pain and inflammation pharmaceutical mogul Bayer (BAYN.DE), with a market capital of over $96 billion.

Cannabidiol is widely studied as a powerful anti-inflammatory and was even part of a US Department of Health patent application for anti-oxidant and neuroprotectant properties.

RISING DEMAND FOR CBD-INFUSED PRODUCTS

Timing the market is vital for maximizing investment returns. There is no better example of fortunate timing than WADA’s announcement coinciding with the launch of Phivida Holdings Inc.’s CBD-infused functional foods and natural health products, and the filing of prospectus for an initial public offering and an application to list its class A shares on the Canadian Securities Exchange (CSE).

As a premiere CBD brand, Phivida is perfectly positioned to capture a leadership market share in this emerging global natural health products market. The Phivida IPO offers investors with exposure to three major growth trends within a global health and wellness $1 Trillion USD in 2017.

Bloomberg predicts US cannabinoid products as a $50 billion USD market by 2020. Within the cannabinoids market, Phivida has created its own unique products category – functional CBD edibles.

High Times magazine produces a top ten edibles list and this year six of them were cannabinoid infused beverages. Phivida specializes in the CBD beverages avoiding a saturated confectionary soft drinks market with functional CBD iced teas, CBD protein shakes and CBD vitamin juices.

Health care practitioners, and now sports medicine professionals, and major nutraceutical distributors cite the paradigm shift from chemical based pharmaceuticals to phytonutraceuticals.

Supplements as a whole market is exploding, having gone from a $37 billion US estimate in 2015, to an expectation of $220 billion globally by 2022.

Nutrition Business Journal cites the two fastest growing categories as; meal replacements (14.8%) and sports nutrition (11.6%), two flagship CBD product lines at Phivida – both infused with a high dose of cannabidiol. Phivida’s nanoencapsulation technology loads CBD into a protective, hydrophilic, liposomal membrane that bonds better with cells. The result is a faster acting longer lasting absorption rates, with up to 400% more bioavailability and a timed release for enhanced duration in the bloodstream, and solubility.

Functional foods have surpassed traditional food topping a $100 billion USD back in 2015. The functional food industry is in the process of a massive consolidation as over $10 billion USD of new M&A deals were completed in 2016 alone.

Major food companies are acquiring new organic and functional food brands at a staggering rate, lead by multi-national conglomerates such as Hains Celestial (NASDAQ: HAIN), PepsiCo (NYSE:PEP) and General Mills (NYSE:GIS).

It’s no wonder that major retailers in both the grocery sector, and the nutritional supplements space are champing at the bit to grow their selection of products for consumers.

WADA’s prohibition lift may be the catalyst needed for supplement giant GNC Holdings Inc. (NYSE:GNC) to get its year back on track. Having fallen from over $20 to just over $8 within the year, the ability to introduce new lines of nutritional supplements with pain relieving qualities could be a shot in the arm for GNC.

Whereas major grocery and pharmacy chains, such as Canadian retail giant Loblaw Companies Inc. (TSX:L)(OTC:LBLCF), which owns the well-established Shoppers Drug Mart chain. Unlike GNC, which to-date has been reluctant to carry CBD products in-store, Shoppers Drug Mart has been very open about its willingness to carry CBD and marijuana-related products on its shelves.

It’s still to be determined when and if that same level of acceptance will be seen on the US side of the border. GNC currently doesn’t carry any CBD-infused products, selling only hemp proteins as a remotely close cousin. Nor is CVS Health Corporation (NYSE:CVS), yet.

Online mega-retailer Amazon.com Inc. (NASDAQ:AMZN) is already selling CBD products. On track to hit the very first $1 trillion valuation, Amazon is ahead of the curve on the blossoming CBD sector.

Whole Foods CEO John Mackey stated he would support cannabinoid products sold in Wholefoods “if only the plant was legal to use and the local community approved.”

Not only is CBD-Hemp Oil extract legal under the Farm Bill, but WADA’s new rules has the potential for a massive demand from professional athletes, sports medicine practitioners and alternative health care practitioners and the everyday active health conscious consumer. It looks like John might get his wish.

Plant-based supplements like CBD are no longer limited to the estimated 17,500 licensed alternative health care practitioners, as majority of supplements are now sold through big box FCMD (food, club, mass and drug) retail locations.

Walgreens, CVS and Walmart combined for a total of 27,087 on-site pharmacists at 15,208 stores across the United States. With Amazon’s acquisition of Wholefoods earlier this year, it’s clear that the majors are looking to capitalize on the health-conscious consumer.

Now it’s a matter of CBD’s true market infiltration to take hold, and for producers to begin stocking only the best CBD infused FFNHP formulations.

Primed and ready to supply these retailers with timely product, Phivida boasts an entire line of CBD functional foods and natural health products, doctor formulated for enhanced athletic performance and everyday preventative health for active families.

INDUSTRY AND ORGANIC ADVANTAGE

Totally legal, and boasting a laundry list of health benefits, cannabidiol (CBD) is making waves through the food and beverage industry in the form of several new products.

So it’s no wonder that any new producer of CBD products will want to seek out the expertise of those already familiar with the food and beverage industry.

Assembling an impressive array of talent, Phivida’s management team is built to master not only its formulation, but also its branding and retail distribution.

Among the names on the company’s deck are Directors Bill Ciprick and James Bailey, who each come with decades of branding and distribution experience for industry heavy-hitters, such as Proctor and Gamble Health Care, and Red Bull Canada.

But for the consumer, the most important aspect to consider beyond retail availability is that of the product’s organic, whole-plant blends and formulations.

Phivida infuses full-spectrum CBD Hemp Oil extracts into special blends of functional foods and natural health products (FFNHP). All nanoencapsulated CBD used in Phivida’s products is hemp-derived from licensed hemp farms and federally legal and eligible for sale in any retail channel.

The company’s CBD-infused functional beverages are nanoencapsulated for enhanced bioavailability, and doctor-formulated for targeted outcomes. Phivida boasts quality-, and safety-tested products that are cGMP manufactured to the highest quality assurance standards.

Phivida CBD Vitamin Drinks use certified organic and plant-based ingredients. Phivida’s CBD infusions are also vegan, gluten- and soy-free with no sugar added and contain at least 35% RDA of Vitamin B complex and Vitamin C.

Other key sports performance ingredients include premium electrolyte replacements, glutamine for muscle, bone and joint repair, resveratrol for added anti-oxidants, blended in an all-natural fruit and vegetable puree with no artificial colours or flavours added.

Former President of the BC College of Naturopaths, Dr. Brian Martin, states; “Phivida offers legal, clinical grade, CBD, third-party tested, and safe for practitioners to recommend to athletes and patients.” Marijuana is federally illegal in the United States, but hemp provides a legal option for clinicians. WADA’s new ruling now opens CBD to team physicians, physiotherapists, nutritionists and kinesiologists. “Phivida is a high-quality brand for athletes who need healthier, non-addictive treatments for pain and inflammation,” said Dr. Martin.

WADA’s now-positive stance on CBD represents a great opportunity for Phivida. Competitive athletes in high-impact sports like football, hockey and mixed martial arts are often plagued with a lifetime of debilitating physical injuries and mental health conditions.

Phivida’s CBD infusions give athletes, their trainers, and medical staff a whole-plant nutraceutical alternative to highly addictive opiate pharmaceuticals to treat chronic pain and inflammation from these injuries and afflictions.

ATHLETIC ENDORSEMENT

Earlier this year, the New York Times published a neuropathology study that found that 99% of former NFL players tested positive for Chronic Traumatic Encephalopathy (CTE). The NFL supports the NFL Players Association’s (NFLPA) study on the use of cannabinoids to treat chronic pain inflammation based disorders, like CTE, according to a Sports Illustrated article published on August 1st, 2017.

The NFLPA was coincided by the launch of the Your Mind Your Body Campaign designed to equip current and former players with the tools needed to achieve a healthy lifestyle, both physically and mentally and encourages an open dialogue on pressing health and safety issues, including CTE, and mental health.

Use of cannabinoid-based alternatives to opiates is not a new issue for the NFL. Many former players have become advocates for CBD as alternatives to narcotics, including former Baltimore Raven Eugene Monroe, Denver Bronco Jake Plummer, Chicago Bear Jim McMahon, and Ricky Williams who publicly stated a belief that “60-70% of all NFL athletes use medicinal marijuana”.

Despite the fact that both the NFLPA and NFL endorse a study of marijuana as a potential pain-management tool, the NFL currently suspends players who test positive for the drug and modified the threshold for a positive test for marijuana (i.e. THC). Finally, WADA’s new adoption of CBD as an approved substance, gives the NFL and its players hope for immediate relief, without controversy.

Phivida’s CBD-infused functional foods and natural health products are formulated with a special blend of nutraceuticals for enhanced athletic performance, and infused with a therapeutic dose of nanoencapsulated cannabidiol from hemp.

"This pain is never going away. My body is damaged," Eugene Monroe, 30, stated in a Washington Post article. "I have to manage it somehow. Managing it with pills was slowly killing me.”

With the lift on the CBD ban, WADA is finally taking sensible action on behalf of the athletes it is tasked to protect.

“Cannabidiol is no longer prohibited,” WADA said, maintaining that THC will remain as a banned substance. WADA cited the reason for the removal of cannabidiol from the banned list was because “it is not a cannabimimetic and does not mimic the effects of THC.”

WADA further clarified: “THC is still a prohibited substance.”

THC or tetrahydrocannabinol is the psychotropic chemical compound in marijuana that contributes to euphoric effects. Many CBD products on the market are marijuana derived and contain THC.

Purity levels in CBD-infused products will give an industry advantage to those producers that can utilize the most CBD, without delivering any THC.

Phivida’s nanoencapsulated CBD-Hemp Oil extracts, edibles and infusions, are federally legal, derived from Farm-Bill-compliant farms, and are now 100% WADA-compliant sources for cannabidiol. As well, they’re coming to a store near you.

Legal Disclaimer/Disclosure: This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. Baystreet.ca assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Baystreet.ca has been compensated eight hundred dollars for its efforts in distributing the Phivida article. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.
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<![CDATA[Valeant (VRX) Cleans Up its Debt]]>Thu, 12 Oct 2017 07:40:19 ESThttp://www.baystreet.ca/articles.aspx?id=38457
Valeant, on October 3, issued a $1-billion debt offering that lower the total upcoming maturities.

Valeant priced its $1-billion principal amount of 5.5% senior notes due in 2025. It will use the proceeds to roll over existing debt. The issuance is not trivial: the lower interest will save the company money while simultaneously pushing out the maturity date.

The low interest rate offered suggests the market has a healthy appetite for Valeant’s debt, so the fear of any bankruptcy is now off the table. Valeant now has around $26 billion in debt and $24 billion net of cash. In June, the company’s net debt was $26.7 billion. The sale of Dendreon raised $811 million, while iNova brought in $923 million. The net effect is that Valeant will have $3.9 billion maturing in 2020.

Assuming Valeant generates $1 billion in free cash flow, the company’s interest on debt in 2020 are covered. It sets the stage for refinancing for the debt due in 2021 and beyond.
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<![CDATA[Athersys Hikes on MultiStem Hookup with Japanese Firm ]]>Wed, 11 Oct 2017 12:24:52 ESThttp://www.baystreet.ca/articles.aspx?id=38456Based on the agreement, Athersys and NCLi will engage in technology transfer activities at NCLi’s facility in Japan, and NCLi will begin contract manufacturing support for commercial development of the product in Japan. Athersys’ collaborator, HEALIOS K.K. (Healios), has an exclusive license to develop and market MultiStem in Japan for ischemic stroke, and is currently conducting its registrational clinical study, TREASURE, in Japan.

A news release issued Wednesday claimed therapeutic treatment with MultiStem may extend the stroke treatment window to 36 hours from the current three to four-and-a-half hours with existing standard of care, which would enable many more stroke patients to receive treatment than under the current standard of care and may also meaningfully enhance patient recovery.
Currently, there are nearly 17 million people that suffer a stroke globally and, on average, someone in the United States has a stroke every 40 seconds.
Athersys shares gained 11 cents, or 4.9%, midday Wednesday to $2.34, within a 52-week trading range of $1.02 to $2.63.
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<![CDATA[Delta Gains Altitude on Q3 Earnings]]>Wed, 11 Oct 2017 11:12:22 ESThttp://www.baystreet.ca/articles.aspx?id=38455The number-two U.S. airline reported adjusted earnings per share of $1.57, beating analysts' expectations of $1.53 a share for a quarter that ended with hurricanes that crippled operations.

Earnings per share were about 8% lower over the year-earlier period.

The airline posted quarterly revenue of $11.06 billion, slightly higher than expectations for $11.03 billion in the three months ended in September.

Delta's passenger revenue per available seat mile — a key income metric — rose 1.9%, in line with the airline's updated forecast earlier last month. It said it expects a 2% to 4% increase in passenger unit revenue in the fourth quarter, but warned that higher fuel costs would likely crimp operating margins for the last three months of the year.

Delta posted higher revenue in domestic and Latin American and trans-Atlantic operations, despite powerful storms in the Southern U.S. in August and September.

Delta executives will likely address the impact from deadly storms that hit carriers' hubs late this summer, as well as a bitter trade dispute between two Delta suppliers, Boeing and Canada's Bombardier.

Hurricane Irma, which struck Florida and Delta's hub in Atlanta, forced the airline to cancel more than 2,000 flights.

Delta shares began Wednesday’s trading up 37 cents to $53.07
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<![CDATA[BlackRock Rocks Markets on Q3 Figures ]]>Wed, 11 Oct 2017 10:42:55 ESThttp://www.baystreet.ca/articles.aspx?id=38454Total assets under management rose 17% to nearly $6 trillion as net inflows easily beat Wall Street expectations.

Here's how the company's results compare to Wall Street's expectations: EPS came in at $5.92 per share, compared with $5.56 expected. Revenue was $3.233 billion versus $3.096 billion expected.

Total assets under management registered at $5.977 trillion versus experts’ projected $5.94 trillion.
Net inflows were $96 billion versus $71.62 billion expected.
BlackRock also said its iShares exchange-traded funds business saw $52.3 billion in long-term net inflows, led by $33.1 billion in equity inflows. Assets under management for iShares totaled $1.640 trillion, accounting for 27% of BlackRock's total assets.

The company said cash assets rose 6 percent from a year earlier to $425.4 billion.

"One of the greatest problems we still have in the world is how much money is sitting on the sideline," according to CEO Larry Fink. "Even in places like Japan, there's $5 trillion in cash earning negative return. In Germany 72% of savings are in bank accounts. We're seeing some of that unlocked (and), we're seeing people put some of that money to work."

The company's stock has been on fire this year, advancing 21.5%. By comparison, the overall S&P 500 is up about 14% in the period. BlackRock shares have also outperformed the financials sector, which is up 13% in 2017.
BlackRock shares opened Wednesday up $2.80 to $468.29 ]]>
<![CDATA[Emblem Positioned to be Disruptive in the Medical Cannabis Industry]]>Wed, 11 Oct 2017 08:44:45 ESThttp://www.baystreet.ca/articles.aspx?id=38453
First, it has become apparent that for the foreseeable future, a few select Canadian marijuana companies will lead the sector growth, particularly over the US.


Second, the virtually unlimited growth in the space will and is being realized through the pharmaceutical developments, particularly in the pain, sleep and anxiety markets. Pain markets alone are $60 billion and will rise over 30% to $83 billion by 2024. Pain and sleep markets are two of the largest component markets.

Key to this growth at companies such as Emblem (TSXV:EMC) is when society embraces marijuana as what could well be the first line of defense and treatment for many afflictions, including the devastating opiate crisis.

“Emblem is focused on developing mainstream medical therapies to deliver consistent, 12-hour relief, with reduced side effects.,” states Gordon Fox, CEO Emblem Corp. “Canada is one of the few jurisdictions in the world –including the USA--with a path to regulatory approval of cannabinoid based medication. ACMPR has mechanisms for approval and these mechanisms are currently being expanded. The Canadian medical community can participate in research and clinical trials and share data and results across provincial boundaries.

With our recently announced exclusive arrangement with CanntabTherapeutics, Emblem is executing to plan.”

The Canntab Deal

Very simply, Canntab has the proprietary sustained release formulation: Emblem is licensed under the Access to Cannabis for Medical Purposes Regulations (the “ACMPR”) to cultivate and sell medical marijuana.

Canada is one of the few jurisdictions in the world with a path to regulatory approval of cannabinoid based medication.

- The current medical cannabis market in Canada is about $400 million. It is searching for better dosage formats. Simple oils have grown to about 35% of the market in less than a year. More appropriate dosage formats are expected to have comparable effects in the market.

- Currently, Cannabis tends to require re-dosing. A titratable, sustained release formulation would have substantial appeal in the chronic neuropathic pain market. Anecdotally, that segment represents a reasonable percentage of the current$400 million medical cannabis market.

- The Canadian non-cannabis chronic pain pharmaceutical market is over $500 million and dominated by opioids and is expected to reach $42.16 billion worldwide by 2021. A cannabinoid based sustained release product has potential to enter that market.



From Emblem’s October 3rd Press Release:

Canntab Therapeutics Limited is a Canadian cannabis oral dosage formulation company based in Markham Ontario, engaged in the research and development of advanced pharmaceutical grade formulations of cannabinoids. Canntab has developed in-house technology to deliver standardized medical cannabis extract from selective strains in a variety of extended/sustained release pharmaceutical dosages for therapeutic use.

The Agreement grants to Emblem the exclusive right in Canada to Canntab’s patents and know-how for the purpose of developing, commercializing, using, selling, and offering the Sustained Release Product for sale under the Emblem brand. The License does not include the right to import or export the Product. The Sustained Release Products will be manufactured by Emblem or by Canntab, after Canntab receives appropriate licensing allowing such manufacture.

As per other Royalty Agreements in the Pharmaceutical Sector terms weren’t disclosed other than ‘double digit” royalty. To be clear this relationship with Canntab is extremely favorable to Emblem.

It cannot be overstated how important a develop this is for patients. Instead of waiting 5-10 years for a therapy to get to patients, cannabis based products take mere months. There is substantial evidence that cannabinoids are effective for the treatment of a number of conditions including (i) chronic pain (ii) nausea, (iii) anxiety and sleep disorders, and (iv) spasticity in patients with Multiple Sclerosis.

The Global Opiate Crisis

While therapies will address particular conditions, anecdotally many patients know and have expressed the efficacy, ease of use and lack of side effects in pain management particularly.

Emblem plans to bring products to deal with neurological pain by fall 2018. Once the 12- hour delivery protocol is established, many afflictions can be addressed via the proper strain and titration.

Investors need to embrace the potential of this market and acquire some exposure. Choose carefully as there are many companies who have and will likely fail or price themselves out of the market.

Emblem’s business plan sets three divisions to be profit centres. From ongoing reasonable to maximum growth:

- Dried flower is the commodity space which provides superior, but generic product

- High quality strains (think aged single malt scotch versus JW Black) for the aficionado

- Top quality strains for ongoing therapeutics’ development.

Margins increase exponentially from dried flower to medical strains. Emblem (TSXV:EMC) is focused on the two markets above dried flower, although will be a major force in all three.

Marijuana Market Maturing Slightly. Invest Carefully, but Invest

The Marijuana space has matured somewhat from mining guys seeing a quick turn in fortunes by announcing some hair-brained participation to get their languishing stock prices up.

Then there the companies who conclude that more marijuana is better and are growing as much as they can.

Finally, there are a few companies, such as Emblem that have a solid growth plan and are not afraid to state their corporate intentions. Many comparisons are made to the UK’s GW Pharma as the direction a developing company should travel.

GW’s Sativex is approved for the treatment of spasticity due to multiple sclerosis in 30 countries outside the United States. The Company has a deep pipeline of additional cannabinoid product candidates which includes compounds in Phase 1 and 2 trials for glioma, schizophrenia and epilepsy. GW’s ADS on NASDAQ in 2013 came at $8.90. Last trade at this writing was $114.07.

Fun Facts

- Some plant biologists got their early weed (60’s, 70’s) experience by serving time for possession, etc.

- Lots of anecdotal evidence that Big Pharma continues to pay doctors to keep their products at the forefront

The five companies that disclosed what they paid doctors over a six-month period (July to December 2016) were:

- AbbVie (NYSE:ABBV) : $4,104,000

- Novartis (NYSE:NVS) : $3,645,026

- Amgen (NASDAQ:AMGN) : $2,365,000

- Bristol-Myers Squibb (NYSE:BMY) : $1,388,187

- Gilead (NASDAQ: GILD) : $539,761



That alone should give Marijuana companies such as Emblem a place in your speculative portfolio.

Oh, yes. 10 percent of patients suffer from Trypanophobia. That fear keeps 20 percent of that number to never seek medical attention. Look it up…

Perhaps with the inevitable insertion of Marijuana based therapies should reduce or eliminate that number.

And how would Big Pharma ‘payola’ doctors for such a readily available and efficacious therapy? Bueller?

Next couple of decades should be interesting; with less pain, more sleep, relief from chronic disease as well as lives saved.

Legal Disclaimer/Disclosure: This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. Baystreet.ca assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Baystreet.ca has been compensated four thousand dollars for its efforts in distributing the TSXV:EMC profile on its web site and distributing it to its database of subscribers. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report. ]]>
<![CDATA[AnaptysBio Makes Waves on Trial Data ]]>Tue, 10 Oct 2017 03:25:01 ESThttp://www.baystreet.ca/articles.aspx?id=38452Said CEO Hamza Suria, “we are very encouraged by the efficacy results to date in this Phase 2a study, which exemplify our strategic focus on developing first-in-class anti-inflammatory antibody therapeutics to help patients suffering from debilitating inflammatory diseases.

“We look forward to further advancing the development of ANB020 for the treatment of patients with atopic diseases.”

The Phase 2a study is currently ongoing and EASI scores will be assessed for each patient up to 140 days post-ANB020 treatment. The company plans to report full data from this trial at a medical conference following study completion.

AnaptysBio is a clinical-stage biotechnology company developing what it calls “first-in-class antibody product candidates focused on unmet medical needs in inflammation”.

Its shares neared the close Tuesday up in the stratosphere, leaping in price $31.02, or 88.6%, to $66.02.
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<![CDATA[Wal-Mart Hikes on Share Buyback Program]]>Tue, 10 Oct 2017 11:30:29 ESThttp://www.baystreet.ca/articles.aspx?id=38451Wal-Mart also unveiled a $20-billion share repurchase program to replace its existing plan. The company says the new authorization will be used over a two-year period.

The big-box retailer explained it will continue to focus on remodeling existing stores and incorporating "digital experiences" in place of building new locations.

Ahead of its annual investor day in Bentonville, Arkansas, Wal-Mart said it expects its U.S. e-commerce business to grow sales by roughly 40% in fiscal 2019. Online transactions surged 60% during the second quarter of this year, the retailer declared in August.

The company still expects adjusted earnings per share for the fiscal year 2018 to fall between $4.30 and $4.40.

For fiscal 2019, Wal-Mart said it expects earnings to increase about 5% year over year. Net sales for fiscal 2019 are expected to grow close to 3%, driven by same-store and e-commerce sales growth, the company added.

In fiscal 2019, across the U.S., Walmart will open fewer than 15 Supercenters and fewer than 10 of its Neighborhood Markets.

For fiscal years 2018 and 2019 combined, Wal-Mart is calling for capital expenditures to be about $11 billion, with e-commerce investments going toward enhancing the retailer's supply chain. Wal-Mart's international business will also invest more in fulfillment capabilities.

Shares in Wal-Mart galloped $3.53, or 4.4%, to $84.06
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