Mutual fund manager Fidelity has just increased its stake in Quincaillerie Richelieu to more than 10%.
The purchase of shares during the June 14 session triggered the requirement to disclose Fidelity’s position to authorities in early July.
Fidelity is Richelieu’s largest shareholder and the only one with a 10% or more stake in the Montreal hardware supplier. Fidelity started July with 5.8 million shares of Richelieu in its portfolio.
Asset manager Jarislowsky Fraser sold large blocks of Transcontinental shares throughout June to drag his stake in the Montreal-based company well below 10%. Jarislowsky tells authorities he started July with 4.7 million shares, the equivalent of a 6.5% stake. He still remained Transcontinental’s largest institutional shareholder as of July 1, but held 11% of Class A shares earlier this year before proceeding with sale transactions.
Risk appetite continues to grow, as if investors have already forgotten the lessons learned in 2022, notes Montreal portfolio manager Philippe Hynes in Tonus Capital’s quarterly letter sent this week.
Investors are interested in stocks that have already risen sharply and likely peaked, he said.
Philippe Hynes sees ratings increasing rapidly.
He wonders how much longer companies will be able to protect their profit margins by forcing their customers to accept price increases and predicts that expectations for earnings per share growth will be lowered, that companies will make layoffs and that the unemployment rate will rise. “This scenario would solve one problem, which is inflation, but would create another: a downward revision in profits that would disappoint investors. »
With only one trading session to go in July, Dialogue (64%) – which this week received a takeover offer from Sun Life Financial – is the Quebec stock showing the strongest appreciation this month on the Toronto Stock Exchange. . Coveo (36%), Lion (34%), Colabor (31%), Dorel (25%) and Laurentian Bank (24%) also had an excellent month on the stock market.
The title of the Montreal biopharmaceutical Theratechnologies will be worth four times more than Friday at the opening of the markets on Monday. The announced combination to bring the company into compliance with NASDAQ listing requirements will be done on Monday.
The techno-real estate company Sonder, founded in Montreal, is also considering a consolidation of its shares in the near future. The board of directors of this company specializing in one-off stays will ask its shareholders, during a meeting scheduled for September 15, to approve a resolution to this effect. A reverse stock split would allow the stock to be worth more than US$1 and thus comply with NASDAQ listing requirements. Sonder’s board also believes that a higher stock value would improve the stock’s liquidity and could attract longer-term investors.
Primarily due to the stock’s recent appreciation, TD removed iA Financial Group from its list of top recommendations earlier this week. TD nevertheless continues to propose the purchase of the share of the Quebec financial services company.
Montreal pharmaceutical company Therapeutique Knight’s announcement this month to offer to buy back up to 10% of its shares over the next 12 months is not unanimous. Stifel analyst Justin Keywood points out in a research note that Knight has been repurchasing shares at higher prices over the past five years and believes it would make more sense to deploy the capital elsewhere. purposes, in particular to acquire pharmaceutical assets. “The reduction in the number of shares also highlights potential liquidity issues in the stock, which may affect the valuation,” he adds.
Quebec securities of BRP, Colabor, iA Financial Group, Dialogue, Uni-Select, MolsonCoors, Coveo, Stella-Jones and Groupe ADF all reached a 52-week high on the Toronto Stock Exchange this week. Conversely, those of Cogeco, Saputo, Theratechnologies and Pyrogenesis hit a 52-week low this week.
