Monday , November 30 2020

Market movers: Shares see action on Monday – and why

A roundup of some of the North American stocks makes movements in both directions today


Shares of Manulife Financial Corp. (MFC-T) rose 3.2%. In the early trading on Monday after a Saskatchewan court decided on the company in the Mosten Investment LP case

Mosten had argued that the terms of a universal life insurance policy originally held by a doctor but purchased by hedge funds allowed it to deposit an unlimited amount with Manulife and receive an annual guaranteed return of at least 4%.

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In October, the prominent US short-seller Muddy Waters revealed a short position in Manulife, believing in a loss in the previously well-known lawsuit could lead to a fall in the share price.

"In his decision, Judge Scherman of the Saskatchewan Court of Queen's Bench stated that the policy in question does not allow for unlimited stand-alone investment opportunities within the Carrier Fund," the company said in a release. "In particular, the Court found that payments to the contract are" limited to funds paid or invested to pay current and future insurance costs, related premiums, specified management fees, and allowable accrued investments ".

"This is in line with our view that this case was legally unfounded and commercially absurd, and that consumers buy universal life policies, and the insurance companies issuing these policies never intend to make the policies act as deposit or securities contracts."

Precision Drilling Corp. (PD-T) increased 3.7%. After announcing Monday, it has sold its five drilling rigs and water treatment business brand Terra Water Systems in Mexico. The company sold the five available rigs and associated equipment at US $ 48 million, while the Terra award was not revealed.

"From the point of view of investors, this has been found money," said Raymond James analyst Andrew Bradford in a research note. "We've been arguing for some time that the market effectively allocates a low value to Precision's active rigs. This transaction shows that well-equipped rigs can have a significant sales value, even if they don't work."

In addition, the Calgary-based company announced that it has signed three-year contract renewals for two rigs in Saudi Arabia.

It also said it has initiated the repayment of US $ 30 million senior notes in 2021 over the available cash.

"Although not explicitly stated, it is reasonable to conclude that Precision's targeted debt reduction area has shifted from its original $ 100 million to $ 150 million range – perhaps as much as $ 40 million (the Canadian equivalent of the advertised redemption) said Mr Bradford. "This would bring Precision's debt relief plans to between 16 percent and 21 percent of current market value.

"We have also argued that debt relief may not be the most exciting way to equity returns, but it is among the most reliable."

Cervus Equipment Corp. (CERV-T) rose 4.3%. After marketing better than expected quarterly results.

In a research paper, Acumen Capital analyst Brian Pow stated: "The results from Q4 / 18 provided further evidence that CERV has introduced disciplinary activities. Growth in the agricultural segment could temper as Canadian farmers had lower net cash production and are dealing with A weaker Canadian dollar to buy more expensive equipment. Strong demand for Class 8 trucks is expected to help CERV's transport dealers.

Hexo Corp. (HEXO-T) jumped almost 6%. Having received an upgrade from a Cormark Securities equity analyst who believes the Newstrike Brands Agreement is its first meaningful acquisition and helps expand the cultivation platform and incremental distribution in five provinces.

Curaleaf Holdings Inc. (CURA-CN) jumped 9.1% In the wake of Acres Cannabis buying 70 million. USD, which drives Nevada's largest growing plant.

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"Acres Acres is an important step in expanding our vertical platform in Nevada. Acres runs a flagship dispute at the heart of Las Vegas and complements our existing state assets extremely well, and more importantly, we can manage the consistency, quality and production costs of our own cannabis products. "says Chief Executive Curaleaf Joseph Lusardi in an announcement. "We have built the most accessible, reliable and reliable cannabis brand and are very excited about the prospects in Nevada for both retail and wholesale activity."

Harvest One Cannabis Inc. (HVT-X) rose 15.2 percent after announcing that it has entered into an agreement to become a medical cannabis supplier to Shopppers Drug Mart.

The Vancouver-based company will supply the retail chain with its Satipharm branded products.

"We are extremely proud to work with Shoppers Drug Mart to supply them with our premium indoor grown cannabis under Satipharm's health and wellness brand," said CEO Grant Froese in a release. "We see this supply agreement as a further step towards fulfilling our vision of being a vertically integrated brand of cannabis health, wellness and self-care. We continue to expand our capacity to support our growing brand portfolio, which includes our recent announced transaction with Delivra as well as our existing brands Dream Water, Satipharm, Royal High and Captain's Choice. "

Apple Inc. (AAPL-Q) set 0.3 percent higher after the surprise launch of a new 10.5-inch iPad Air and an update to its 7.9-inch iPad Mini prior to its March 25 event, where it is expected to start a TV and video service, its next generation AirPods and an AirPower wireless charger mat.

Shares of Nike Inc. (NKE-N) rose 0.5%. After several equity analysts raised their target price for their share before the release of Q3 results on Thursday

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Credit Suisse's Michael Binetti said: "Nike's share gains are accelerating. In the United States, Nike has improved innovation driven Foot Locker (FL) to one of the best holidays in 2019 SSS [same-store sales] results across our coverage (FL SSS increased 9.7 percent in F4Q). Nike manufacturer's speed accelerates. In our F3Q talks, Nike suggested that the reduction of undifferentiated retail sales to 20 percent of US sales from 60 percent preceded the plan – including a faster DTC [direct-to-consumer] shift, which will support premium ASPs & GM upside. We believe that Nike is in the early innings of a sustainable global shaft acceleration to continue to FY20. "

Canaccord Genuity's Camilo Lyon said: "We believe the company is well-equipped to beat Q3 consensus EPS by 64 cents. As such, we increase our 2H19 sales and EPS forecasts to reflect stronger women's NA growth after Adidas shortage of supply was revealed, we are now projecting Q3 revenue growth / EPS of 7.3 percent / 65 cents vs. 6.5 percent / 60 cents earlier, expecting North America (11.5 percent estimate) to show sequential acceleration from Q2 with balanced growth in both w / s and DTC Our channel controls combined with solid results from FL indicate increasing scale and robust sales thrus in several key footwear platforms (Vapor Max, Air Max 270, React). for growth in FQ2, we expect that Jordan will accelerate gradually in FQ3, as we believe that sales thrus continued to strengthen on the back of a sharper launch calendar, and finally, we believe that clothing continued its accelerated growth in FQ3, powered by st profession in fleece, jackets and NBA clothing (led by the Lakers).

Marriott International Inc. (MAR-Q) was 1.9 percent higher on Monday and revealed a three-year plan to open more than 1,700 hotels around the world, returning up to $ 11 billion. USD to shareholders and achieve a full-year profit of up to US $ 8.50 per share. share by 2021.

On the decline

Boeing Co. (BA-N) decreased 2.4% In the wake of a couple of weekend newspaper reports, raised additional questions about the certification process for its 737 MAX jets before two recent deadly crashes.

On Sunday, the Wall Street Journal reported that the US Transport Department examined the Federal Aviation Administration's approval of the 737 MAX and its anti-stall (MCAS) system.

The Seattle Times reported that Boeing's security analysis of 737 MAX's air traffic management system was critical.

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Facebook Inc. (FB-Q) fell 3.1%. After the stockholding was downgraded by an equity analyst at Needham & Company following the completion of several key executives.

With files from staff and wires

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