Brendan McDermid/Reuters
Inside the Market's roundup of some of the Canadian small caps making news and on the move today. This post will be updated during the trading day.
Clarus Securities initiated coverage on Tekmira Pharmaceuticals Corp., a biopharmaceutical company, with a price target that suggests the stock could almost double in the coming year.
"Tekmira has an exceptionally rich pipeline, both in the clinic and preclinical, which, if successful, will be transformative for the company," said analyst David Novak, who rates the company a "buy" with a $22.50 (U.S.) price target. Shares are trading near $12.60 (U.S.) today.
"We believe this pipeline is significantly undervalued, with the market currently attributing to it, a cumulative sum of $7.25/per share. Based on our valuation, any one of Tekmira's lead clinical assets easily justifies, and in fact exceeds, todays current market value."
He notes the company has a strong balance sheet, with cash representing $5.50 in share value. That cash will limit any risk of share dilution resulting from an equity offering.
He said the company is "undervalued any way you cut it."
"Our bottom-up approach focuses on TKM's low to medium-risk pipeline candidates; specifically, TKM-Ebola and TKM-PLK1 (its oncology product). Either one alone, combined with cash, exceeds current market value," he said in a note.
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Home Capital Group Inc. raised its quarterly dividend by 2 cents to 18 cents per common share. It's the company's 17th increase to its dividend in 10 years. "The dividend increase reflects the continuing success of Home Capital's operating subsidiaries, Home Trust Company and PSiGate," the company said.
Shares in the company are up nearly 1 per cent in late TSX trading.
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Surge Energy Inc. reported earnings per share of 20 cents, swinging from a loss of 21 cents a year ago. Surge also said it experienced better-than-expected development drilling results in the second quarter.
Shares in the company - among the most actively traded today on the TSX - are down 0.8 per cent late this afternoon.
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Enterprise Group Inc. has signed a letter of intent to acquire a privately-owned oilfield site services rental company based in Fort St. John, British Columbia. The purchase price will be based on the Acquisition Target's most recent financial statements which are in the process of being audited. The acquisition will be funded by a combination of Enterprise shares, cash, and vendor take-back financing.
M Partners Research analyst Steven Salz said he thinks the acquisition means Enterprise will look to capitalize on opportunities in liquefied natural gas. "This is a critical area in the development of Western Canada's LNG industry. The addition of this company would expedite E's plan to operate three of its subsidiaries in Fort St. John by Q4/14, further positioning for LNG. A total of 15 LNG projects are proposed in Canada, with the National Energy Board having now approved eight export licenses and another six currently under review. Although the pace of approval and build has been anticlimactic for most investors, we believe that the stars are aligning and expect a final investment decision on Pacific NorthWest LNG and/or Kitimat LNG within the next 12 months."
Shares in the company are down 2 per cent in late afternoon trading.
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Uni-Select Inc. said its board has approved the renewal of its normal course issuer bid to repurchase some of its outstanding common shares for a period of 12 months ending August 10, 2015. Up to 250,000 common shares, representing approximately 1.18 per cent of the 21,257,969 common shares of Uni-Select issued and outstanding on July 30, 2014, may be purchased under the NCIB.
The company also announced the appointment of a new chief operating officer. Uni-Select shares are up 10 per cent in late morning trading.
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Teranga Gold Corporation posted a weaker second quarter as gold output dropped 20 per cent to 39,587 ounces versus last year's 49,661 ounces. The company said that it remains on track to meet its full-year production guidance, but expects that final output will be at the lower range. Though the quarter saw lower mined grade and longer-than-expected downtimes during maintenance, the company said that it expects production to significantly improve the second half of the year.
Investors aren't pleased; shares are down nearly 14 per cent in early trading.
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Iamgold Corp. said commercial production at its Westwood Mine in the Abitibi region of Quebec began July 1. While the gold processing plant at the Westwood mine began processing in March 2013, the Westwood mine now is hoisting ore at a sustained level to sufficiently feed the processing plant to enable profitable production, the company said.
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Western Forest Products Inc. reported a second-quarter revenue increase to $296.2-million from $262.3-million last year, helping the company to beat estimates of 6 cents with an EPS of 7 cents. EBITDA was at $40.9-million, which was $4-million below last year's figure. Lumber revenue was up 15 per cent, led by higher sales volumes and improved pricing for key products. Shares are up 2.2 per cent in late morning trade.
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Rogers Sugar Inc. reported a second-quarter net loss of $886,000, with a loss of 1 cent per share versus analyst estimates for a profit of 5 cents. The refined sugar producer said in a statement that the loss was due to a major consumer account which has not reached full distribution and the loss of another major account. The company also attributed weak demand in the market for lowering its sugar volumes. Rogers Sugar shares plummeted 22 per cent back in January when the company released disappointing first quarter results.
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easyhome Ltd. reported that its second-quarter revenues had risen 17.6 per cent to $63.2-million, and that net income was at $4.5-million, up from $3.1-million last year. The company missed expectations slightly with an EPs of 33 cents versus 34 cents. easyhome, which offers financial services to credit-constrained consumers, said the rise in profit was due to its easy financial program and the growth of its consumer loans receivable portfolio.
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MacDonald Dettwiler and Associates Ltd. announced that revenues had jumped to $552.7-million in the second quarter from $450.4-million last year, though it reported an underwhelming EPS of $1.01 compared to analyst estimates of $1.40. Shares have lost seven per cent since June.
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Dundee Precious Metals Inc. reported a net loss of $79.7-million, partially due to losses on hedging gold and copper futures and certain exploration and evaluation assets. The company missed estimates with a loss of 6 cents per share compared to the consensus gain of 8 cents. Lower metal prices and lower output both affected the bottom line. Shares were down nearly 5 per cent this morning.
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Hudbay Minerals Inc. announced an EPS of zero, whereas analysts were expecting a profit of 3 cents, though the company noted this was a big improvement from a loss of 31 cents per share the year before. Cash flow was negatively affected due to poor rail service causing an accumulation of unsold copper, zinc, copper and precious metals, along with recent flooding in Manitoba. Shares have gone up 33 per cent so far this year.
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Trilogy Energy Corp. slightly beat estimates with an EPS of 22 cents compared to the consensus of 21 cents. Sales volume this quarter was 9 per cent higher than the year before, while oil sales volume also increased by 28 per cent. Operating expenditures decreased 20 percent quarter over quarter to $29.3-million.
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Trimac Transportation Ltd. reported that second-quarter revenues before fuel surcharges increased to $95.2-million from $90.4-million the year before. The company slightly missed estimates of 12 cents with an EPS of 11 cents. EBITDA also increased 12.7 percent in the current quarter to $11.5 million. Shares have gained 25 per cent year-to-date.
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Taseko Mines Limited reported an EPS of 1 cent, just missing estimates of 2 cents. Revenues were up 57 per cent to $107-million from $69-million the year before. The increase was due to reduced operating costs and higher copper production during the quarter.
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New Gold Inc. reported adjusted net earnings of 2 cents (U.S.) a share in the second quarter, matching the Street estimate.
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AndeanGold Ltd. announced a non-brokered private placement for the issuance of up to 6 million at a price of $0.05 per unit to raise gross proceeds of up to $300,000. Each unit will be comprised of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share of the company for eighteen months at a price of $0.07 per share.
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Sulliden Gold Corp.s subsidiary Sulliden Mining Capital Inc. has been been granted conditional approval to list on the TSX. The subsidiary is a venture capital company focused on acquiring brownfields and mini companies.
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Lundin Mining Corporation reported second-quarter earnings of $39.7-million (U.S.) , up from last year's $16.6-million. The company beat analyst estimates with an EPS of 7 cents compared to a consensus 6 cents. Lundin said that nickel and lead production exceeded expectations, while its operations saw better production and higher lead grades.
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Baytex Energy Corp. released its quarterly results, with EPS down 2 cents from a year earlier. Funds from operations were $1.45, below consensus of $1.47. But production of 66,900 barrels of oil equivalent per day beat the Street consensus of 65,500. AltaCorp Capital Research called the results "solid" and predicted the Street will look upon them favourably.
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Goldsource Mines Inc. announced a positive Preliminary Economic Assessment on its Eagle Mountain Gold Project in Guyana.
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K-Bro Linen Inc. has named Kristie Plaquin as its new interim chief financial officer after former CFO Christopher Burrows left to take up the CFO position at AutoCanada Inc.
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Marathon Gold Corp. has entered into an agreement with Canaccord Genuity under which a syndicate of underwriters will purchase flow-through common shares at a price of 55 cents per share and units of the company at a price of 50 cents per unit. It will raise $3-million. Shares in Marathon Gold are down 12 per cent in late morning TSX trading.
Darcy Keith