Investors in search of a top reopening play certainly have one in Air Canada (TSX:AC).
Indeed, airlines in general have taken a bad beating as a result of the pandemic. Passenger volumes remain way down from pre-pandemic levels. However, capital costs remain high, and all airlines are struggling with high fixed costs in this low-revenue environment.
That said, this amount of operating leverage can be a good thing for companies in an economic turnaround. Air Canada is the kind of stock you want to own if you think the economy’s moving in the right track. Indeed, with travel restrictions due to be lifted (or at least eased) at some point, things will get better … eventually.
But for now, questions remain. Among the most pertinent, investors want to know how quickly this recovery will unfold. Let’s dive into this a bit more.
Economic reopening requires accelerated vaccine rollout Although most sectors can power through partial restrictions imposed by the government, the airline space ..
With Canadian equity markets trading close to their all-time highs, investors could turn their focus to value stocks amid rising concerns over high valuations. Value stocks are the ones that are fundamentally strong and offer healthy growth prospects but are trading at a significantly lower valuation. Here are four such companies that can outperform the broader equity markets this year.
Suncor Energy With the improvement in economic activities and the expectation of economic expansion, oil prices have rebounded strongly and are trading above pre-pandemic levels. Higher oil prices could benefit oil-producing companies, such as Suncor Energy (TSX:SU)(NYSE:SU). However, the company is still trading 38.5% lower than its January 2020 levels. Its valuation also looks attractive, with its price-to-book and forward price-to-sales multiples standing at 1.1 and 1.2, respectively.
Apart from rising oil prices, the improvement in operating metrics could also boost the company’s financials. The m..
Tim Harrison, Marketing and Communications Director at Input Output Global (IOG), Cardano’s developer company, published a job advertisement for a Data Engineer, Consulting Lead, Java Consultant, Solutions Architect, and other positions at this company.
The applicants will have the opportunity to, according to Harrison, become part of a new “dedicated team”. Their objective will be to support Cardano’s growing community.
In addition, IOG’s new team will help brim Cardano’s user “on board” as the platform approaches its third Hard Fork Combinator (HFC) event “Alonzo”. With a tentative deployment date set for Q3, 2021, Alonzo will integrate Cardano’s smart contract platform Plutus.
Harrison said the network is currently experiencing an increase in developer’s interest:
As we draw ever closer to rolling out #smartcontracts on #Cardano, we’re seeing a HUGE spike in developer interest. Exciting times. So we’re building a new dedicated team to help properly serve this fast-growing community & help bring them on board.
Per IOG’s announcement, Cardano’s developer has around 300 employees. Distributed in over 50 countries around the world, the company claims to embrace different cultures and people. The company states the following:
We aim to make collaboration between diverse people fun, exciting, and always rewarding. Many companies say they ‘think outside the box’ – for IO Global it’s more, ‘we think outside the geography’.
IOG doubles down on Cardano’s Ouroboros Omega Alonzo is the last of 3 HFC, IOG began to implement them and Cardano’s smart contract capabilities with “Allegra” back in 2020. Later, “Mary” was rollout along with the platform’s native tokens functionality.
When Plutus goes live on the mainnet, IOG and Cardano’s community will achieve an important milestone. The smart contracts will expand the network’s use cases and could bring a new wave of users and developers seeking to leverage its features.
After, as Cardano’s inventor Charles Hoskinson sta..
The EV sector continues to be a hot one. These days, Apple (NASDAQ:AAPL) is in the limelight after announcing the possibility of launching an EV car of its own.
While rumours of an Apple car have died down somewhat, there’s still a tonne of optimism among investors today. Many Apple enthusiasts are awaiting such an announcement and are now speculating as to who a potential partner could be on this project.
I remain cautiously optimistic that Canadian auto player Magna International (TSX:MG)(NYSE:MGA) could be in the running.
Here’s a look at the speculation and why Magna may be a great buy regardless of the Apple Car discussion.
Symbiotic relationship good for both parties To understand how Magna fits into the Apple Car discussion, we first need to understand Apple’s business model. And what better product to look at than the iPhone?
Apple’s iPhone has become the cash cow for Apple over the years. These products are where Apple earns its big margins. Indeed, Apple is able to achie..
Spin Master (TSX:TOY) is a leading global children’s entertainment company creating exceptional play experiences through a diverse portfolio of innovative toys, entertainment franchises, and digital games. Spin Master is focused on growth through continuous innovation, international sales growth, developing evergreen global entertainment properties, establishing a leading position in digital games, and leveraging the company’s global platform though strategic acquisitions.
Global scale Over the past decade, Spin Master has expanded the company’s international footprint, established sales and distribution offices around the world, and now distributes products in over 100 countries. During this time, Spin Master made strategic acquisitions of brands, resulting in significant growth, and diversifying brand portfolios and expanding into new categories, while also providing recurring revenue and opportunities for further innovation.
Spin Master’s diverse product offerings reduce the compa..
Dogecoin is the hottest crypto of 2021, taking a major bite out of Bitcoin and Ethereum’s gains this year. These astronomical numbers the altcoin has done this year has sucked in more and more investors. However, anyone who didn’t have their DOGE bags packed previously could be in for some pain instead of “much wow.”
Here’s a closer look at the two sell signals that started showing their teeth as of today.
Every Dog Has Its Day, And It’s Been The Year Of Dogecoin According to Oxford Languages, the phrase “every dog has its day” refers to the idea that “everyone will have good luck or success at some point in their lives.”
For Dogecoin, the last few days have been the “day” for crypto investors everywhere. Since January 1 of this year, the meme altcoin is up more than 9000% ROI. Not bad for a coin that was created as a “joke.”
Related Reading | Dogecoin Rallies After Elon Musk Commits “Literal Moon” to DOGE Bulls
These returns, however, are nothing to laugh about and some of the best the industry has to offer. Dogecoin has even made kibble out of Bitcoin and Ethereum – the two top cryptocurrencies by market cap.
The Shibu Inu adorned altcoin is beloved across the mainstream, promoted by the likes of Elon Musk, Snoop Dog, and more. The performance has been ‘best in show’ worthy all along, however, two TD 9 sell signals might be putting this rally to sleep for good.
A Duo Of Sell Signals Against The Dollar And Bitcoin Pack A Mean Bite Dogs are known to get a little over excited, and eat a little too much or play a little too hard. Dogecoin has rallied so hard, it might be time to play dead.
But first, this old dog could roll over, according to the TD Sequential indicator.
An imperfect TD 9 setup has triggered after a sizable rally | Source: DOGEUSD on TradingView.com Trading against the dollar, a TD 9 sell setup has appeared after an astronomical gain in recent days. The signal could wipe out as much as 80% from the coin’s price tag.
Related Reading | The Be..
The DeFi sector saw a sharp drooped in its Total Value Locked, according to DeFi Pulse data. At the time of writing, the metric is recovering quickly and stands at $54.93B. Sitting at the number six spot on the top 10 DeFi protocols by TVL with $3.88B, SushiSwap could be on the verge of taking a leading position.
Source: DeFi Pulse Uniswap’s v3 deployment is around the corner, but its competitor remains in the innovative race. Since January 2021, SushiSwap has been taking over the total Weekly DEX Volume, as research firm Messari reported.
Presently, SushiSwap generates around 15% of the weekly DEX volume. In comparison, Uniswap is responsible for around 11% of the same metric, as shown in the chart below.
Source: Messari How SushiSwap’s BentoBox and Kashi operate Recently, SushiSwap released a new “aggressive strategy”. Its objective, to grow beyond its current use case as an automated market maker. The strategy revolts around BentoBox and Kashi Lending.
The first product is a single vault that contains the assets deposited by users and makes them available for DApps “builts off of the vault”, as Messari stated. In contrast with similar products, BentoBox is more efficient when transferring the token, more efficient in terms of gas fees and complexity, easier to integrate, and has “a single token approval for use”.
On the other hand, Kashi is a lending and margin trading platform. Created as BentoBox’s first DApp, Kashi operates with “isolated lending pairs”, as Messari stated.
Users lending assets in Kashi can yield an interest rate. The lending pairs work with a similar mechanism as that of liquidity pools, a user provides the asset as collateral for the lender, Messari adds:
By having specific lending pairs where the collateral can only be used to borrow one specific asset (eg. in a ETH/SUSHI pair, deposited ETH acts as the collateral for SUSHI and only SUSHI), the risk for users can be isolated to the quality of assets and oracle used for the pair.
The airline-specific bailout is finally here, and Air Canada (TSX:AC) is the first and the biggest beneficiary of the taxpayers’ money. Then why is the stock falling? Why are analysts lowering their price target? The only reason is the equity dilution. In the $5.9 billion bailout, there is a $500 million equity component.
The Canadian government has equity warrants that give it a right to own around a 5% stake in Air Canada with immediate effect. The government has more equity warrants that it can access over the next 10 years as and when AC accesses bailout money in the form of unsecured loans. This has gotten investors worried; is the bailout a good option?
Air Canada’s financial condition before the bailout When the government announced the sizeable $5.9 billion bailout, the amount attracted investors. This is the amount AC needs to stay afloat for another year, as its financing avenues start drying up. Last year, the airline raised $6.78 billion through a series of equity and deb..
How diversified is your portfolio? Diversification is one of the most important rules of investing, and one that continues to baffle investors. We often hear about selecting several stocks from different areas of the economy. But what about whether one or more of those options are recession-proof stocks?
Including one or more recession-proof stocks within your portfolio adds an additional element of diversification that you will benefit from during the next slowdown. Fortunately, the market provides plenty of options to choose from.
The one-in-a-century stock What is the measure of a successful investment? Could it be having a storied history of success that spans back over a century? Or perhaps providing investors with a handsome dividend spanning back over that long 100-year period?
BCE (TSX:BCE)(NYSE:BCE) offers all of that and much more. BCE is one of the largest telecoms in Canada, with a national reach that blankets the entire country with one or more subscription services. Th..
Although TSX stocks at large exhibit premium valuations amid their all-time highs, many Canadian names are still trading below their fair values. They could soon catch up and deliver decent returns to investors. Here are three undervalued TSX stocks for long-term investors.
The North West Company The North West Company (TSX:NWC) is a $1.7 billion Canadian retailer that sells food and everyday products to underserved communities and neighbourhood markets. It mainly operates in northern Canada, western Canada, rural Alaska, and the Caribbean.
North West particularly caters to niche markets and derives a major chunk of its revenues from essentials. The company has managed a slow but consistent revenue growth in the last five years. North West reported a compounded annual net income growth of 6% in this period.
Particularly, North West makes relatively lower profit margins, possibly due to its low-profile locations, compared to its bigger peers.
North West pays consistent dividends and..