Market movers: Stocks seeing action on Tuesday – and why

A round-up of some North American stocks moving in both directions

Ascending

Corus Entertainment Inc. (CJR.BT) rose Tuesday after reporting better-than-expected financial results for the first quarter before the bell

The media company said it had net income of $ 76.7 million for the quarter ended November 30th, which is attributable to shareholders, or 37 cents per diluted share. The result was earnings of $ 78.1 million, or 37 cents per diluted share, for the same quarter a year earlier.

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Revenue for the three month period was $ 420.4 million compared to $ 467.9 million. The consensus expectation on the street was $ 417.3 million.

Adjusted, Corus earned 38 cents per share, just like in the prior-year quarter, but topped Street’s estimate of 31 cents.

Corus owns 33 specialty television services, 39 radio stations and 15 conventional television stations, as well as other assets.

Lightspeed POS Inc. (LSPD-T) picked up after it was revealed that the company is adding suppliers to its business as the Canadian tech company competes with dominant retailers like Amazon.

Montreal-based Lightspeed, which makes cloud software for retailers and restaurants to manage its cash registers and point of sale systems, launched a new line of business on Tuesday to help retailers replenish their inventory.

The system, called the Lightspeed Supplier Network, will be rolled out to bicycle stores, pet stores, jewelry stores and outdoor sporting goods retailers in North America.

The new feature will help small retailers and independent sellers compete better with Amazon, said founder and CEO Dax Dasilva.

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“A large e-commerce retailer like Amazon has great transparency in the entire supply chain – lots of data. In this case, we use all available data to help independent, small and medium-sized businesses and their suppliers, ”said Dasilva.

The system is intended to provide Lightspeed’s retail customers with an online marketplace where they can search for new, popular product suppliers. Another goal is to make uploading product descriptions and photos for online shopping more efficient for small stores at a time when the COVID-19 pandemic has forced more local stores to rely on e-commerce.

The first Cobalt Corp. (FCC-X) jumped after it signed a contract with Glencore on Tuesday and made a preliminary pact with a unit of China Molybdenum Ltd for cobalt shipments from the Democratic Republic of the Congo.

The agreements come after First Cobalt received US $ 10 million in government loans and grants last month to expedite the startup and expansion of North America’s first cobalt refinery in Ontario.

The Democratic Republic of the Congo is the world’s leading manufacturer of cobalt, a key component of the lithium-ion batteries that power the fast-growing electric vehicle sector.

Toronto-based First Cobalt announced that it will source cobalt hydroxide at market prices from Glencore’s Kamoto Copper co-operation for five years beginning in the fourth quarter of 2022.

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The Canadian company has also announced that it will conclude a definitive contract with Moly’s Chinese subsidiary IXM SA for cobalt from CMOC’s massive mining of Tenke Fungurume in the Democratic Republic of the Congo during the same period.

Walmart Inc. (WMT-N) was active on Tuesday after it was confirmed it had entered into a strategic partnership with investment firm Ribbit Capital to create a new fintech startup.

The startup, which will be majority-owned by the world’s largest retailer, expects growth through collaborations and acquisitions with other fintech companies, Walmart said in a statement.

Ribbit Capital’s current investment portfolio includes the Robinhood mobile investment platform and the Credit Karma consumer technology platform.

U.S. grocer Albertsons Cos Inc. (ACI-N) posted gains after increasing its annual profit forecast and beating quarterly sales estimates on Tuesday as coronavirus cases continue to force more consumers to cook their meals at home.

The company, which also owns the Vons and Safeway supermarkets, forecasts fiscal 2020 earnings of between $ 3.05 and $ 3.15 per share, compared to its previous guidance of $ 2.75 to $ 2.85.

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Several US grocery retailers have expanded their e-commerce platforms from online ordering to flexible delivery options as consumers change their shopping methods when they stay away from large crowds and gatherings.

The company’s net and other sales increased 9.3 percent to $ 15.41 billion for the third quarter ended December 5, compared to an estimate of $ 15.34 billion according to IBES data from Refinitiv.

Intel Corp. (INTC-Q) rose after sources told Reuters that the chipmaker plans to use Taiwan Semiconductor Manufacturing Co to make a second-generation discrete graphics chip for personal computers that it hopes can help fuel the rise of Nvidia Corp. to fight.

The chip, known as “DG2,” is manufactured using a new chip manufacturing process at TSMC that has not yet been officially named, but is an improved version of its 7-nanometer process, according to the two familiar people.

Intel, long the world leader in chip manufacturing technology, has lost its manufacturing lead in recent years and is now considering outsourcing some of its flagship chips or CPUs for central processors, which are scheduled for release in 2023.

Activist investor Third Point LLC last month sent a letter to Intel’s board of directors asking them to consider keeping chip design and manufacturing under one roof.

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Intel has long outsourced chips other than its flagship CPUs and is a key customer of TSMC, the world’s leading manufacturer of contract chips. The head of the self-driving Intel subsidiary Mobileye told Reuters last month that the next autonomous vehicle processor will continue to be manufactured by TSMC in the 7-nanometer process.

Zoom Video Communications Inc. (ZM-Q) has gone up after announcing it will launch a subscribed public offering of $ 1.5 billion of Class A common stock.

See also: “Stay-at-Home” trading still has legs in 2021: Top investment fund managers

The Las Vegas Sands Corp. (LVS-N) came after it confirmed the death of founder, chairman and CEO Sheldon Adelson, the Las Vegas casino magnate and major donor of Republican politicians, including President Donald Trump. He was 87 years old.

Mr Adelson died Monday night of complications related to the treatment of non-Hodgkins lymphoma, the company said in a statement.

On the retreat

Organigram Holdings Inc. (OGI-T) fell after reporting first quarter results that fell below expectations on the road.

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The Moncton-based cannabis company announced a new loss of $ 34.3 million for the period ending Nov. 30, down from $ 863,000 a year ago to below consensus loss of $ 7.1 million rose. Net sales fell 23 percent to $ 19.3 million, missing the $ 20.3 million forecast.

In a research report, Raymond James analyst Rahul Sarugaser said, “This was another difficult Q, but for reasons slightly different from what we expected. A bright light was slightly higher than expected adult earnings, but this was unfortunately more than offset by poor wholesale sales coupled with lower ASP. In addition, EBITDA was very disappointing due to significantly higher COGS than expected. Since the numbers can’t keep up with that Q, we see signs of a promise that Ms. Marni Wieshofer – a U.S. M&A and branding veteran – has been appointed to the board, indicating that entry into the U.S. marketplace is right in the crosshairs of OGI. “

Soaring electric vehicle maker Nio Inc. (NIO-N) slipped after a stock analyst at Citi downgraded its stock rating to “neutral” based on a buy recommendation.

In a research report released late Monday, Jeff Chung said, “We are downgrading Nio to Neutral (2H) because: 1) We estimate that ET7 will see limited additional sales of 3-4,000 units / month as of Q1 22 becomes; This model could possibly also be called into question by the facelift of model S in the future. 2) The Model Y price can be further reduced towards Rmb270k as 70% of the part content can be shared with Model 3 in China. This should lead to direct competition with NIO’s EC6 and possibly marginalize monthly sales to 1 to 1.5,000 units. 3) We expect NIO to ship 7.8 to 8,000 units in January, but with a monthly slowdown through February / March with limited upside risk in Q1 21. Here our forecasts are becoming more conservative and lowering our shipping forecasts for 2021 / 2022E to 82,000 / 144,000 (from 92,000 / 162,000 units). We’re moving our valuation from 2021-22E to 2022E and increasing our target P / S multiple to 13.2x (current sector average of BEV OEMs) to align with the sector valuation as the NEV prospects strengthen. Our TP will be increased to $ 68.3 (down from $ 46.4). We anticipate a possible revaluation if the company rebounds strongly in March 21 from the previous month or if the company’s software earnings show a strong uptrend in margins. “

With files from employees and wires

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