UnlockRatingThe Risks of Penny Stocks 101: High Volatility and Illiquidity
Penny stocks have low trading volumes and liquidity. Often, controlling shareholders own 90 per cent of the stock’s float, so that any buyers have to pay ever-increasing prices to establish a stock position. This means that even small trades can have large effects on the stock price, making them extremely volatile and difficult to buy at a decent price.
Even worse, of course, illiquidity makes it even harder to sell at a desired price. And, trust us, if you find yourself owning one of these penny stocks, you are going to want to get out at some point. Movements of 50 per cent or more can be common occurrences. Investors may find themselves completely unable to exit positions without accepting a steep loss or may be stuck holding the bag if buyers suddenly disappear.
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Trade deal optimism lift markets to highs
Fresh off an interest rate cut in Canada and the U.S., markets reached yet another record close to cap off a winning week, fueled by apparent progress in China-U.S. trade talks. The TSX rallied 1.07% to a new high of 29,768 and gained 1.65% for the week. For Friday, the S&P rose 0.49%, the Nasdaq 0.72% and the Dow 0.37%, all to new record closes. For the week, the S&P advanced 1.2%, the Nasdaq 2.2% and the Dow 1.05%.
Nine Canadian sectors were in the green, led by outsized gains in materials as well as staples. Energy lost ground. Major movers were Barrick Gold jumping 9.71%, Endeavour Silver 9.25%, First Majestic Silver 7.08%, Energy Fuels 6.23% and CNQ -2.92%. On Wall Street, Apple rallied 3.2% on optimism over its latest iPhone, Newmont popped 4.34%, Paramount Skydance rallied 5.85% and Warner Bros. Discovery 3.37%, while Intel gave back 3.24%.
In commodities, gold increased more than 1% to US$3,683 while WTI slid 1.35% to US$62.70. Bitcoin lost ground by about 2% to US$115,285. The U.S. 10-year yield rose to 4.139%.
🥇 Barrick Gold Corp (ABX-N) +9.71%
⛏ Endeavour Mining Capital (EDV-T) +9.25%
🥈 First Majestic Silver (AG-N) +7.08%
⛏ Energy Fuels Inc. (EFR-T) +6.23%
🛢 Canadian Natural Rsrcs (CNQ-T) -2.92%
🍎 Apple Inc (AAPL-Q) +3.2%
🥇 Newmont Goldcorp (NGT-T) +4.34%
🎞 Paramount Skydance Corporation (PSKY-Q) +5.85%
📺 Warner Bros. Discovery (WBD-Q) +3.37%
💾 Intel (INTC-Q) -3.24%
🅱 Bitcoin (BTCUSD) (CRYPTO:BTC) -2%
UnlockRatingDoesn't think it will get eaten, but a lot of software companies need to adapt. They can either make acquisitions to make themselves more competitive, or hire smart developers to create in-house AI solutions. There will be a lot of angst and a lot of investor uncertainty.
Some will suffer, but others will adapt and prosper.
This Week’s Stock Picks & BNN Top Picks Summary: PIPR-N, ELVA-T and 23 Stock and 1 ETF Top Picks (Sep 12-18)
This week were 23 Stock and 1 ETF Top Picks in a wide range of industries: Financials, Industrials, ETF, Basic Materials, Healthcare, Technology and Consumer. Here are this week´s Top Picks as selected by: Michael O’Reilly, Billy Kawasaki, Hap (Robert)… read more
Rates down, stocks up
A day after the Canadian and American central banks cut interest rates by 25 basis points–and the U.S. Fed penciling in two more this year–the major indices in Toronto and New York rallied to record highs. On the strength of tech, the TSX added 0.45% as BlackBerry rallied 2.19% and Shopify 3.03%. Elsewhere, Capital Power jumped 6.15%, Barrick Gold 2.19% and Ivanhoe Mines sank 6.48%. Sectors were actually mixed with telcos lagging the most. Gold declined US$13 to US$3,646 while WTI gave back 0.58% to US$3,646.
Unsurprisingly, tech led Wall Street’s gains, helped by a collaboration announced between Nvidia and Intel. NVDA rose 3.49%, but Intel soared 22.77%. The tech-heavy Nasdaq jumped 0.94%, the S&P 0.48% and the Dow 0.27%. Also noteworthy were Synopsys popping 12.86%, Crowdstrike 12.82% and Live Nation sinking 2.77% after Washington slapped it with lawsuit, alleging what countless concert-goers already know: Ticketmaster allegedly allows scalpers to inflate concert tickets while the company profits. The U.S. 10-year yield held around 4.1%, though Bitcoin added 1.6% to US$117,500.
📱 BlackBerry (BB-T) +2.19%
🛍 Shopify Inc. (SHOP-T) +3.03%
💡 Capital Power (CPX-T) +6.15%
🥇 Barrick Gold Corp (ABX-N) +2.19%
⛏ Ivanhoe Mines Ltd (IVN-T) -6.48%
💾 NVIDIA Corporation (NVDA-Q) +3.49%
💾 Intel (INTC-Q) +22.77%
💾 Synopsys Inc (SNPS-Q) +12.86%
💾 CrowdStrike Holdings (CRWD-Q) +12.82%
📺 Live Nation Entertainment Inc. (LYV-N) -2.77%
🅱 Bitcoin (BTCUSD) (CRYPTO:BTC) +1.6%
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UnlockRatingOur PAST TOP PICK with TMHC is progressing well. To remain disciplined, we recommend trailing up the stop (from $57) to $65 at this time.
UnlockRatingLikes them. About 10% of his firm's dividend growers mandate is invested in them. A leveraged play on the economic growth of the regions they operate in. Economic growth has been tepid and lacklustre, Canada's GDP print for G2 was negative.
But market's forward looking, and bank prices reflect that we're likely to see an acceleration in the economy. BOC rate cuts set that in motion and added fuel to the fire yesterday. The Major Projects Office policy thrust is very encouraging. We're going to cut red tape and build things. A game changer. These projects will be debt-financed, which should be growth-positive for the banks' lending books.
Stable, well-governed, well-managed, tight oligopoly. Must-have for businesses and individuals. His portfolios are long and strong this area. Prefers the larger banks, smaller ones just don't have the scale.
Note that EQB has had some tragic turnover in the C-suite, and LB is broken.
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BUZZING ON SOCIAL MEDIAS
UnlockRatingUnlockRatingRisks of Penny Stocks 101: Lack of Transparency
Penny stock companies are often not required to disclose the same level of financial or business information as companies listed on major exchanges. This lack of transparency makes it difficult for investors to perform adequate research or to assess the true value and health of the business, increasing the risk of loss.
Accounting regulations can be lax, especially with over-the-counter (OTC) or Chinese companies. The OTC market actually uses a skull-and-crossbones symbol to alert investors of the higher risk of some of its listed companies. Do you really want to buy a stock where the regulators of the exchange utilize the poison symbol to warn you off investing in it?
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UnlockRatingThe insane moves in Figma, Bullish and Circle Internet are unsustainable and we are in an IPO bubble. He's bullish this market, but not these recent IPOs. Take profits, if you own.
Markets mixed after rates cut
To no one’s surprise, the Bank of Canada on Wednesday cut the key lending rate by 25 basis points to 2.5% while the U.S. Fed followed suit at 25 points to 4.0-4.25%. Fed Chair, Jerome Powell, also penciled in two more cuts this year based on a weakening jobs market and “elevated” inflation. Market reaction was mixed with the TSX and S&P essentially flat while the Nasdaq shed 0.33% and the Dow gained 0.57%.
In Toronto, telcos led five sectors moderately higher while tech led the laggards modestly lower. Mining stocks were mixed with Ivanhoe gaining 3.03% and Barrick Gold 2.32%, but First Majestic Silver sinking 3.08%. Goeasy slumped 2.76%, while Energy Fuels rallied 4.82%. In New York, Nvidia slipped 2.62%, Uber skidded 4.99% and Broadcom sank 3.84%, but Workday popped 7.25% and Hologic rallied 7.68%.
In commodities, gold declined US$31 to US$3,658 while WTI slipped 0.85% to $64. The U.S. 10-year yield edged up 4.078%.
⛏ Ivanhoe Mines Ltd (IVN-T) +3.03%
🥇 Barrick Gold Corp (ABX-N) +2.32%
🥈 First Majestic Silver (AG-N) -3.08%
🏛 goeasy (GSY-T) -2.76%
🛢 Energy Fuels Inc. (EFR-T) +4.82%
💾 NVIDIA Corporation (NVDA-Q) -2.62%
🚕 Uber (UBER-N) -4.99%
🧬 Broadcom (AVGO-Q) -3.84%
💾 Workday (WDAY-Q) +7.25%
👨⚕️ Hologic (HOLX-Q) +7.68%
UnlockRatingMost product that retailers carry comes from a foreign jurisdiction. The reason is that we've gone through a couple of decades of globalization, where it was cheaper to produce in those foreign jurisdictions and so the model worked.
We're reversing that, but not doing it over a couple of decades. We're reversing it over a very short period of time. Ultimately, these tariffs have to be paid for by someone. Even though some companies might say they'll absorb them, the pressure will be relentless for them to pass them on to the customer. It's just a matter of how and when so that there's the least amount of damage to their brand, company, and stock.
Weekly 52-Week Low (or 52-Week High): BMO-T, LBS-T, LUC-T, CFX-T and More 52-Week Highs and Lows (Sep 10-16)
52-Week High TSX Stocks Here’s this week’s 52-week high stocks on Stockchase… 🏛 Financials 🛢Basic Materials ⚡ Energy 🚚 Industrials 🛍 Consumer 💻 Technology 👨⚕️; Healthcare 💡; Utilities 52-Week Lows TSX Stocks Here’s this week’s 52-week lows stocks on… read more