Shares in U.S. satellite imagery company Maxar Technologies Inc. were up 18 per cent after the company announced it would sell its Canadian space robotics business to a consortium led by Northern Private Capital for C$1 billion ($765 million), in a bid to ease its debt.
Maxar will retain its U.S.-based space robotics division, which is responsible for developing the robotic hardwares used in NASA’s Mars 2020 rover. The transaction, combined with the recently completed sale of real estate in Palo Alto, reduces Maxar’s overall debt by more than $1 billion, Maxar said. As of September, Maxar had a total debt of $3.1 billion.
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Reitmans [Canada] Ltd. shares were down 8.7 per cent in the wake of the death this weekend of its chairman and CEO.
Jeremy Reitman was a stalwart of the Canadian womenswear scene who guided Montreal-based Reitmans Ltd. through the changing landscape of the retail industry. He was head of the 93-year-old family business for a decade, serving as president before taking over as CEO and chairman.
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TC Energy Corp. shares were down just over 2 per cent in relatively heavy volumes for a holiday week. There was no apparent fresh news on the stock, although there was a report that Fidelity Select Natural Gas Portfolio added the Canadian pipeline company to its investments.
According to data analyzed by Bloomberg, the Fidelity mutual fund added 7,800 shares valued at US$397,347. Enbridge Inc. was the biggest investment, representing 8.6 per cent of disclosed assets.
Also Monday, two analysts reaffirmed their buy ratings on TC Energy. Scotiabank’s Robert Hope nudged up his price target by $1 to C$73. TD Securities’ Linda Ezergailis reiterated a price target of $76.
Last week, TC Energy announced that Alberta Investment Management Corp. (AIMCo) and New York-based KKR & Co. will acquire a majority stake in its Coastal GasLink natural-gas pipeline.
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Canada Goose Holdings Inc. shares were down more than 5 per cent amid an unflattering article on the company from Barron’s. The article points out that the company’s signature parkas are stuffed with goose down and trimmed with coyote fur, making the company a continued target of animal-rights activists.
The company has countered that it makes “function-first apparel” and is committed to “ethical sourcing and responsible use of all animal materials in our products.”
The stock tumbled earlier this month after DA Davidson analyst John Morris suggested Canada Goose jacket prices are getting marked down this holiday season, a claim the company has denied, Barron’s noted. For the December quarter, Wall Street is expecting only 12 per cent year-over-year growth in sales. That would be its slowest quarterly growth since the company went public in 2017.
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Tesla Inc. shares were down about 3 per cent after analysts at Cowen said the automaker will deliver fewer vehicles than the low end of its guidance for the year.
Cowen said the company is poised to deliver between 95,000 and 101,000 vehicles for its fourth quarter. This would put deliveries for the year at roughly 356,000, below the 360,000 to 400,000 range the company has given as a guidance, the analysts said. Cowen said its stock may suffer as a result.
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The Horizons Marijuana Life Sciences ETF was down more than 4 per cent Monday to a record low as pessimism continues to grow in the cannabis sector as the year winds down.
Last week, Aurora Cannabis Inc.’s chief corporate officer Cam Battley stepped down and Hexo Corp. announced an offering of 15 million shares at a 14 per cent discount, giving investors even more reason to be nervous of holding shares in the sector.
With files from The Canadian Press and Reuters
Darcy Keith