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The wise investor | A founder buys Cascades



Each week, we shine the spotlight on financial and stock market news items that may be useful to the investor, but which may have passed under the radar.

One of the founders of Cascades took advantage of a weak stock market to buy nearly $400,000 in shares of the Kingsey Falls paper mill.

Alain Lemaire bought a total of 50,000 shares during the trading sessions of December 16 and 20. The action of Waterfalls hit a 52-week low in Toronto on Tuesday.

Alain Lemaire is Executive Chairman of the Board of Directors of Cascades.

The firm ATB Capital Markets on Tuesday launched its official coverage of the activities of the NC without recommending buying the shares of the Montreal rail carrier. Analyst Chris Murray nevertheless sees the stock at $180 within 12 months. He is also launching a cover of PC by suggesting buying this stock, seeing attractive future growth for CP following the acquisition of Kansas City Southern. Only 5 of the 25 analysts watching CN are suggesting a buy.

The firm Credit Suisse this week launched an official follow-up toFood Couche-Tard and of Dollarama without recommending buying the shares of these two Quebec companies. In the case of Dollarama, analyst Karen Short appreciates the defensive attributes of the Montreal retailer, but underlines that the high level of inventories is to be watched, that competition is likely to intensify in 2023 and that the strength of fundamentals is expected in the title.

As for Couche-Tard, she appreciates in particular the resilience of the sector and the opportunities in a market that is still fragmented, but points out that gasoline margins have possibly reached their maximum and that management’s interest in diversifying activities can potentially complicate the business model. The risk associated with the rise of electric vehicles cannot be ignored, she adds.

The Montreal producer of precious metals aya received new support earlier this week. The firm Eight Capital launched official coverage of Aya’s activities on Monday suggesting the purchase of the title. Analyst Puneet Singh argues that the market is not seizing the opportunity offered by the Boumadine project in Morocco. At the current price, this expert calculates that investors get “free” an option on this asset which is emerging as the next avenue of growth for the company. The seven analysts who follow the title propose the purchase.


Restaurant of the Freshii chain

The circular that will be sent to the shareholders of Freshii in early January may reveal that the Montreal franchisor MTY expressed interest in the Ontario fast food chain. Portfolio manager Philippe Hynes of firm Tonus Capital suspects MTY has been asked to make an offer for Freshii, which on Monday announced its sale to franchisor Les Rotisseries Benny. This demonstrates MTY’s discipline, as it considers the valuation multiple paid relatively high given the current state of the market. The acquirer has a good track record and will need to improve Freshii’s profitability, which is quite possible, he says.

Scotia launched a formal tracking activity this weekAlithya without proposing the purchase of the action of the Montreal company specializing in the digital transformation of organizations. Analyst Divya Goyal talks about a bright future, ambitious goals, and sees Alithya as a rising company in the North American IT services industry. He appreciates the growth potential and the management team, but wants improved profitability before recommending the stock.

The former CEO of National Bank mid-week bought nearly $310,000 in shares ofFood Couche-Tard. Louis Vachon bought a block of 5,000 shares on Wednesday at a unit price of $61.53. He has been a member of the board of directors of the Laval convenience store chain since last year.

The Quebec titles of Tecsys, Dialogue, Lightspeed, Nuvei, Waterfalls, NanoXplore, Lion, Taiga, Alithya, Theratechnologies, PyroGenesis, Hexo and Bitfarms all reached a new 52-week low on the Toronto Stock Exchange this week.

The Toronto Stock Exchange will remain closed until Wednesday to mark the Christmas holiday, while the New York Stock Exchange and the NASDAQ will be closed Monday, but open Tuesday.

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