Thursday, October 7, 2021 - BEFORE THE OPEN
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Thursday, October 7, 2021
STOCKS
Source: FactSet (5pm EDT)
BEFORE THE OPEN
Source: Thomson Reuters
Futures tracking Canada's main stock index rose, riding on an improving global
mood that was lifted by hopes that Washington could resolve its debt-ceiling
standoff, while a dip in oil prices eased worries of higher inflation. Oil prices fell
after the U.S. said it was considering selling oil from its strategic reserves and as
Russia said it was ready to stabilise the natural gas market. Gold prices edged
lower, and the U.S. dollar held steady as investors steered clear of big bets
before U.S. jobs data that could determine the Federal Reserve's monetary COMMODITIES & CURRENCIES
Source: FactSet (5pm EDT)
policy normalisation plans.
STOCKS IN THE NEWS
Source: Thomson Reuters
Moderna (MRNA):
Moderna plans to invest about $500 million to build a factory in Africa to make
up to 500 million doses of mRNA vaccines each year, including its COVID-19 shot,
as pressure grows on the pharmaceutical industry to manufacture drugs on the
continent.
Sanofi SA (SNY):
French healthcare company Sanofi said on Wednesday that it had found positive
results from the first study into a high-dose influenza vaccine with a COVID-19
mRNA booster. Sanofi said the interim results from the study of Sanofi's Fluzone GLOBAL INDICES
Source: FactSet (5pm EDT)
High-Dose Quadrivalent vaccine with Moderna's COVID-19 mRNA investigational
booster dose showed the vaccines had similar immunogenicity responses and a
similar safety and tolerability profile.
Tilray Inc. (TLRY):
Canadian pot producer Tilray reported a 43% rise in first-quarter revenue, driven
by strong demand for cannabis after coronavirus-led lockdowns. The world's
largest cannabis producer by sales said its revenue rose to $168 million in the
quarter ended Aug. 31 from $117.49 million a year earlier. Net cannabis revenue TSX SECTORS
Source: FactSet (5pm EDT)
jumped 38%. The company said it was on track for at least $80 million in cost
savings from its deal to merge with Aphria.
THINGS TO KNOW
Source: Bloomberg Finance L.P.
There’s plenty of relief evident in markets this morning as Senators seem to
have all but agreed on a deal on a short-term increase in the debt ceiling.
Yesterday’s ADP employment data for September came in much stronger than
expected, with the pace of hiring indicating that companies are having greater
success filling open positions since the end of enhanced federal unemployment
benefits. In the sometimes confusing world of cryptocurrencies, where joke
coins can rally more than 350% because of an Elon Musk tweet, there is one
thing that is supposed to make sense: stablecoins. The potential postponement
of the debt ceiling deadline and the reversal of some of the surge in energy
prices is helping risk appetite.
NOT FOR DISTRIBUTION TO THE UNITED STATES. This publication is a general market commentary and is provided for informational purposes only. The author(s) is not a Research Analyst and this
communication is not the product of Canaccord Genuity Corp.’s Research Department. It should not be construed as a research report or investment advice.
For important information, please see the Important Disclosures beginning on page 9 of this document.
CANADIAN EQUITIES OF INTEREST
Listed Alphabetically by Symbol
Topaz Energy Corp.* (TPZ: $17.18), Net Change: -$0.57, Change: -3.21%
Acquisition of GORR in Weyburn Unit; 14% dividend boost
• TPZ announced $238M in acquisitions yesterday after the close, the bulk of which ($188M) went towards purchasing a 5%
GORR on Whitecap's Weyburn Unit
• In total, the added assets are expected to increase cash flow by ~$31M, suggesting a purchase price of 7.7x cash flow
• With the acquisitions, TPZ also announced a 14% increase in its dividend, bumping the quarterly dividend to $0.24 (from
$0.21), which is the second dividend increase for the company this year
• Since inception, the Weyburn Unit has produced ~540M bbls out of the 2.3Bln bbl OOIP estimate, and based on current
production volumes, has a 2P reserve life index of 24 years
Wheaton Precious Metals Corp.* (WPM: $47.48), Net Change: $0.48, Change: 1.02%
Minor setback at Salobo; still tracking to achieve 2021 guidance
• Yesterday after market close, Vale, the owner and operator of the Salobo mine for which Wheaton holds a streaming
agreement, announced that a fire has partially affected a conveyor belt and copper concentrate production has been
suspended
• Vale noted that the fire was put out by emergency teams and no injuries or environmental damage occurred
• Production of copper concentrate at Salobo is suspended and Vale's initial assessment indicates that operations should
resume by the end of October
• Other activities including mining and maintenance are proceeding as normal and Wheaton expects to release its Q3/21 results
on November 4th, after market close
US EQUITIES OF INTEREST
Listed Alphabetically by Symbol
Calyxt Inc.* (CLXT: $3.01), Net Change: -$0.15, Change: -4.75%
Synthetic biology initiative could re-rate the stock
• CLXT delivered positive news by announcing a concerted move into synthetic biology, and its plant-based synthetic biology
endeavor marries newly named technology platform PlantSpring with a new BioFactory pilot bioreactor for rapid engineering
and prototyping of plant-derived compounds
• CLXT’s newly named PlantSpring technology platform has been the culmination of the company’s deep expertise in plant
metabolism, its technologies, tools, systems, and its increasingly advanced AI and machine learning capabilities
• Following production with PlantSpring, molecules are then integrated with CLXT’s newly minted BioFactory which expands
upon the company’s existing research and production methods to incorporate outdoor agriculture systems with controlled
environment agriculture and bioreactor-based production systems
• The company’s manufacturing process will rely on plant cell matrices and features initial growth rates that have presented
strong productivity curves
UiPath* (PATH: $51.32)
FORWARD IV highlights innovation and vision that sets PATH up for category leadership
• UiPath introduced its latest release 2021.10, highlighted by expanded integrations, a new bot security partnership with
CrowdStrike, and improved functionality for accelerating the development and use of automations
• UiPath’s vision is to accelerate RPA automation in the cloud, which alleviates infrastructure burdens, lowers TCO, and
ultimately enables customers to focus on improving processes versus managing machines, compute, memory, etc.
• UiPath introduced several new capabilities to the platform that help make automations easier to build, expand use-cases,
and improve overall security and governance – all which will become available October 25
Thursday, October 7, 2021
Unless otherwise noted, the above commentary is derived from research published by Canaccord Genuity Corp and/or Canaccord Genuity LLC. For more information, please contact your investment
advisor. For current disclosures, please visit our Online Disclosure Database at http://disclosures.canaccordgenuity.com/EN/Pages/default.aspx.
2INDUSTRY UPDATE
Oil
Market – Bloomberg/Platts
• WTI (November) is down 1.5% to $76.25 and Brent (December) is down 1.1% to $80.21 and WTI is lower and extending
Wednesday's 1.9% decline, while crude is only slightly lower for the week after big gains to start the week
• While surging natural gas prices in Europe and Asia have propelled oil prices higher in recent weeks, global oil prices also
softened yesterday after Russia said that could increase natural gas supply to the market
• While OPEC and its allies continued its plan to ease production cuts by 400K a month at this week's meeting, Iraq's oil minister
said $100 a barrel oil isn't stable for the market
• Saudi Aramco cut nearly all of its November official selling prices for Asia, Mediterranean, European, and US bound cargoes
United States – FT
• US energy secretary Jennifer Granholm raised the prospect of releasing crude oil from the strategic petroleum reserve and
did not rule out a ban on crude oil exports
• The comments came during a FT event on Wednesday, and comes after the White House requested OPEC and its allies
increase its output faster than planned
OPEC+ – Reuters
• Iraq's oil minister Jabbar said he believes that $75 to $80 a barrel oil is fair and that $100 oil would not be stable for the
market
• The comments came after oil traded above $83 a barrel on Wednesday, the highest since Oct-18, driven in part by the OPEC+
decision to hold onto its production plan
• Jabbar also said that Iraq plans to increase its oil production capacity to 8M bpd by 2027, and to increase export capacity to
6M bpd from the current 4M by the end of 2024
OPEC+ – Platts
• The US EIA's latest International Energy Outlook said that global energy demand and energy-related carbon emissions will
continue to rise through 2050, with oil remaining the largest energy source
• Global energy demand will increase by 47% in the next 30 years, driven by population and economic growth, particularly in
developing Asian countries
• Liquid fuels will make up 28% of global energy demand by 2050, a 36% increase from 2020 levels; however, renewables will
increase by 165% from 2020 levels to make up 27% of total demand
Source: FactSet
Thursday, October 7, 2021
Unless otherwise noted, the above commentary is derived from research published by Canaccord Genuity Corp and/or Canaccord Genuity LLC. For more information, please contact your investment
advisor. For current disclosures, please visit our Online Disclosure Database at http://disclosures.canaccordgenuity.com/EN/Pages/default.aspx.
3MORNING INK REPORT
Titan leadership
Source: INK Research
As of: Wednesday, October 6, 2021
Company Highlight: Titan Mining (TI)
• The industrial-metals-focused specialty mining group has been trying to establish a breakout from its summer range, and one
of the stocks leading the charge is Titan Mining (TI)
• The stock is up 82.2% over the past month, helped by news of a special dividend of 1% per share to be paid to shareholders
of record as of September 30
• This special dividend represents the firm's inaugural dividend, and the company has the prospect of a regular dividend on its
radar
• The dividend news comes on the back of 22.1 million pounds of zinc production from its Empire State Mine in New York in
the first 6 months of the year
• That was up from 21.6 million pounds from the same period a year ago and zinc prices have recovered from a year ago which
is helping to drive up cash flow
• For the 12-months ended June 30, cash flow was $0.09 per share versus a loss a year earlier
• Helping to boost the stock up our rankings is Executive Chairman Richard Warke and he was buying as the stock rallied, and
he continued to buy even after the stock began trading ex-dividend
• Since September 22, Titan Mining (TI) Executive Chairman Richard Warke (SLS, G, etc.) has spent $390,050 buying shares in
the public market
• His most recent trade took place on October 5 when he bought 200,000 shares at prices from $0.61 and to $0.62 and he now
holds 71.88 million shares representing 51.7% of all shares outstanding
Titan Mining Chart (TI)
Source: INK Research
Thursday, October 7, 2021
Unless otherwise noted, the above commentary is derived from research published by Canaccord Genuity Corp and/or Canaccord Genuity LLC. For more information, please contact your investment
advisor. For current disclosures, please visit our Online Disclosure Database at http://disclosures.canaccordgenuity.com/EN/Pages/default.aspx.
4MARKET MOVERS
Source: FactSet
Thursday, October 7, 2021
Unless otherwise noted, the above commentary is derived from research published by Canaccord Genuity Corp and/or Canaccord Genuity LLC. For more information, please contact your investment
advisor. For current disclosures, please visit our Online Disclosure Database at http://disclosures.canaccordgenuity.com/EN/Pages/default.aspx.
5ASSET CLASS PERFORMANCE
Source: FactSet
*All numbers presented on the table below are based on total return
As of: 10/07/2021 Price Return CAGR
Index Price Daily Weekly Monthly YTD 1 Yr. 3 Yr. 5 Yr. 10 Yr.
S&P TSX 20,191.66 0.04% 0.17% -3.02% 15.82% 24.36% 11.59% 9.96% 8.76%
S&P TSX 60 1,213.09 0.14% 0.29% -2.61% 17.23% 24.67% 12.18% 10.70% 9.32%
S&P/TSX Venture 862.72 -0.53% 0.75% -6.55% -1.44% 22.22% 6.91% 2.40% -5.25%
S&P 500 4,363.55 0.41% 0.09% -3.79% 16.17% 29.83% 16.87% 17.27% 16.44%
NASDAQ Composite 14,501.91 0.47% -0.07% -5.61% 12.52% 30.01% 24.15% 23.48% 20.52%
Dow Jones Industrial Average 34,416.99 0.30% 0.08% -2.69% 12.45% 23.92% 11.63% 16.12% 14.69%
iShares MSCI ACWI ex U.S. ETF 55.00 -0.58% -0.74% -5.89% 4.79% 19.63% 5.82% 5.82% 4.27%
Shanghai - SSE 3,568.17 0.00% -2.03% 1.13% 2.74% 10.88% 8.12% 3.50% 4.22%
France - CAC 40 6,493.12 -1.26% -1.03% -3.71% 16.96% 32.64% 9.51% 10.86% 11.33%
Germany - DAX 14,973.33 -1.46% -2.55% -6.02% 9.14% 16.02% 7.33% 7.22% 10.25%
Italy - FTSE MIB 25,605.73 -1.35% -0.51% -2.50% 15.17% 31.79% 11.22% 12.67% 8.77%
Japan - Nikkei 225 27,528.87 -1.05% -6.82% -7.18% 0.31% 17.48% 7.05% 12.38% 14.57%
U.K. - FTSE 100 6,995.87 -1.15% -1.58% -2.66% 8.29% 17.58% 2.38% 3.99% 6.84%
Australia - ASX 200 7,206.50 -0.58% 0.14% -4.28% 9.40% 20.87% 9.15% 9.85% 10.44%
India - S&P BSE 100 17,926.09 -1.01% -0.21% 1.60% 27.13% 52.23% 20.89% 16.26% 15.66%
Commodity Price Daily Weekly Monthly YTD 1 Yr. 3 Yr. 5 Yr. 10 Yr.
Crude Oil WTI (NYM $/bbl) 77.43 -1.90% 3.47% 11.98% 61.59% 89.75% 1.37% 8.95% -0.64%
Nat Gas Fin LD (NYM $/btu) 5.68 -10.09% 3.62% 20.44% 124.66% 75.21% 21.77% 10.72% 3.33%
Gold (NYM $/ozt) 1,761.80 0.05% 2.26% -3.92% -7.69% -8.67% 13.48% 7.05% 0.64%
Silver (NYM $/ozt) 22.53 -0.34% 4.87% -9.15% -15.20% -6.73% 15.43% 5.37% -3.45%
High Grade Copper (NYM $/lbs) 4.15 -1.07% -1.23% -4.30% 17.27% 38.52% 14.50% 13.98% 2.48%
Lumber (CME $/bft) 634.70 -0.91% 4.65% -1.83% -8.44% 38.24% 21.91% 13.57% 10.85%
Miscellaneous Price Daily Weekly Monthly YTD 1 Yr. 3 Yr. 5 Yr. 10 Yr.
CAD/USD 0.79 -0.51% 0.89% -0.73% 0.84% 4.99% 0.78% 0.93% -1.88%
Bitcoin USD (CME) 55,700.00 7.88% 35.34% 9.84% 89.55% 423.99% 104.32% - -
10Y Canada Govt Bond (MOD) 143.32 0.17% 0.12% -2.16% -4.23% -4.82% 3.10% -0.27% 0.81%
10Y US T-Note (BMF) 131.73 0.00% 0.20% -1.24% -4.52% -5.26% 3.83% 0.27% -
CBOE VIX (CBF) 21.22 -2.47% -7.72% 4.58% -69.80% -80.12% 11.70% 7.22% -5.62%
All prices are in local currencies
Thursday, October 7, 2021
Unless otherwise noted, the above commentary is derived from research published by Canaccord Genuity Corp and/or Canaccord Genuity LLC. For more information, please contact your investment
advisor. For current disclosures, please visit our Online Disclosure Database at http://disclosures.canaccordgenuity.com/EN/Pages/default.aspx.
6MACRO-EVENT SCHEDULE
Source: Bloomberg Finance L.P.
EARNINGS
Source: Yahoo Finance
Thursday, October 7, 2021
Unless otherwise noted, the above commentary is derived from research published by Canaccord Genuity Corp and/or Canaccord Genuity LLC. For more information, please contact your investment
advisor. For current disclosures, please visit our Online Disclosure Database at http://disclosures.canaccordgenuity.com/EN/Pages/default.aspx.
7MOST READ NEWS
Source: Bloomberg Finance L.P.
1)Futures, Stocks Climb as Debt, Energy Worries Ease: Markets Wrap
2)Stablecoin Tether Grows Into Crypto World’s $69 Billion Mystery
3)Apple Plan for Cars Uses IPhone to Control A/C, Seats, Radio
4)Heart Damage Racks Covid Survivors a Year After Infection: Study
5)BNP Paribas Weighs Plan to Boost Payouts to 60% of Profit
6)London Finance Job Postings Set Fresh Record in Third Quarter
7)ECB Said to Study New Bond-Buying Plan for When Crisis Tool Ends
8)Russia Offers to Ease Europe’s Gas Crisis, With Strings Attached
9)Holders of Evergrande-Linked Jumbo Fortune Bond Yet to Be Paid
10)Senate Poised to Pull Nation Back From Default Brink, for Now
THE LAST DROP: “Dream big and dare to foil.”
- Norman Vaughan
Thursday, October 7, 2021
Unless otherwise noted, the above commentary is derived from research published by Canaccord Genuity Corp and/or Canaccord Genuity LLC. For more information, please contact your investment
advisor. For current disclosures, please visit our Online Disclosure Database at http://disclosures.canaccordgenuity.com/EN/Pages/default.aspx.
8Appendix: Important Disclosures
While this product is drawn from sources believed to be reliable, the accuracy and completeness of the information contained herein is not guaranteed. Any reference
to a research report or a recommendation is not a solicitation to purchase or sell any security and it does not consider the individual investment objectives, financial
situation, suitability or risk tolerance of any person or corporation. Accordingly, investors should obtain advice based on their own specific circumstances before making
any investment decision. Canaccord Genuity Wealth Management is a division of Canaccord Genuity Corp. Member – Canadian Investor Protection Fund (CIPF) and the
Investment Industry Regulatory Organization of Canada (IIROC).
Quest®: Canaccord Genuity’s proprietary online valuation and analytical tool which combines consensus market figures with the Quest® Discounted Cash Flow (DCF)
Valuation Model.
Quest® triAngle is Canaccord Genuity’s proprietary 15-factor, stock-picking tool, which systematically measures Value, Quality and Momentum and presents the results
in a simple, easy to understand score. It takes a multi-pronged approach to Value, Quality and Momentum using five factors for each component, which adds more
consistency of performance unlike a reliance on one single measure. It uses a mix of historic and forecast data, and combines absolute valuation data with comparisons
relative to history. The triAngle is designed to generate stock ideas and provide a consistent framework for analysis of portfolio holdings.
Quest® Methodology
Quest® is an analytical tool that involves use of a set of proprietary quantitative algorithms and value calculations to derive a number of corporate performance and
valuation metrics, including assigning a Default Quest® value per share and generating a triAngle Score, which is a relative ranking based on a number of operational
and valuation metrics. These algorithms and value calculations are consistently applied to all the companies included in the Quest® database. Third-party data (including
consensus earnings estimates) are systematically translated into a number of default variables and incorporated into the algorithms. The source financial statement,
pricing, and earnings data provided by outside data vendors are subject to quality control and may also be adjusted to more closely measure the underlying economics
of firm performance. These adjustments provide consistency when analyzing a single company across time, or analyzing multiple companies across industries or national
borders. As the third-party data are updated, the triAngle Score generated by Quest®, and the Default Quest® value per share may change. The default variables may
also be adjusted by the user to produce alternative values, any of which could occur. Additional information about the Quest® methodology is available on request.
Canaccord Genuity Quest® Disclosures
Quest® is at this stage registered in the UK and in the USA, and common law trade mark rights are asserted in other jurisdictions. Quest® is non-independent research
and is a marketing communication under the FCA Conduct of Business rules. All rights reserved. Quest®, CITN®, Companies in the News™, CFROC®, and triAngle™ are
all trademarks of Canaccord Genuity Limited. E&OE. © Canaccord Genuity Limited. For important information and company-specific Quest® disclosures please see
Important Disclosures at the following website (provided as a hyperlink if this report is being read electronically): https://disclosuresquest.canaccordgenuity.com/.
Please note that analyst data and Quest® data may differ due to different sources and calculation methods. The Quest® platform may be found at the following website
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* Canaccord Genuity and its affiliated companies may have a Corporate Finance or other relationship with the company and may trade in any of the Designated
Investments mentioned herein either for their own account or the accounts of their customers, in good faith and in the normal course of market making. The authors
have not received, and will not receive, compensation that is directly based upon or linked to one or more specific Corporate Finance activities, or to coverage contained
in the Morning Coffee.
Canaccord Genuity is the global capital markets group of Canaccord Genuity Group Inc. (CF : TSX)
The recommendations and opinions expressed in this research report accurately reflect the Investment Analyst’s personal, independent and objective views about any
and all the Designated Investments and Relevant Issuers discussed herein.
Canaccord Genuity (Australia) Limited is the Australian affiliate of global capital markets group Canaccord Genuity Group Inc. (CF : TSX). The recommendations and
opinions expressed in this research report accurately reflect the Analyst’s personal, independent and objective views about any and all the designated investments and
relevant issuers discussed herein.
Thursday, October 7, 2021
Unless otherwise noted, the above commentary is derived from research published by Canaccord Genuity Corp and/or Canaccord Genuity LLC. For more information, please contact your investment
advisor. For current disclosures, please visit our Online Disclosure Database at http://disclosures.canaccordgenuity.com/EN/Pages/default.aspx.
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