• The S&P 600 & TSX20 are down by 1.39% and 0.66% respectively
  • Bonds see a rush of capital as investors move out in ‘riskier’ assets. The Canadian 10-year bond up by 0.04% and the US 10-year bond down by 0.04%

Friday’s market movers

Investors should be aware that when they invest in the small-cap industry they are exposed to more market risk, this should not be seen as a reason not to buy the common stock of these businesses but as an indication that there is great potential to make great buying choices and accumulate wealth.

The saying goes on Wall Street:

“To gain higher returns the investor should take on more calculated risk”

How true this is depending on the person asked, but most would agree. The Small Caps this week did well for their shareholders, the top gainers increased in value on average by about 52% & the “losers” lost about 30% for the day. This shows the “bullish” sentiment going into the end of the week in the Canadian market.

AMPD Ventures Inc. is a technology company that provides cloud and computing solutions to games and digital media companies in Canada and the United States. It offers solutions for video games and eSports, digital media production, big data analysis, collection, and visualization applications.

Spectra7 Microsystems Inc. operates as an analog semiconductor company in Canada and China. The company offers virtual reality (VR) products, including VR7050 to enable lightweight and ultra-thin active interconnects for gesture recognition and motion control.

Spectra7 ready to produce GaugeChanger

2020-10-29 11:43 ET – News Release

Mr. Raouf Halim reports

SPECTRA7 ENABLED 400GBPS ACTIVE COPPER CABLES ACHIEVE PRODUCTION READY STATUS AT MOLEX

Up-and-coming news to watch out for and why?

Economic data points

  • Canada Balance of Trade on Wednesday, November 04, 2020
  • Canada Unemployment Rate on Friday, November 06, 2020
  • BoC Gov Macklem Speech on Friday, November 06, 2020

Earnings

Paypal earnings per share in the 3 month period ending June 30 were $1.29 per share and analysts forecast their earnings for this previous quarter ending September 30 will be closer to 0.94 per share.  This compression in earnings is in line with the impact the COVID pandemic has had on international travel. But the stock has been tearing up the market and is up 66% year to date and closed today at 186 up 0.35% for the day.

 

Alibaba earnings per share in the 3 month period ending June 30 were $17.64 per share and analysts forecast their earnings for this previous quarter ending September 30 will be closer to $14.18 per share.  This compression in earnings is in line with the impact the COVID pandemic has had on international transactions and consumer demand. But the stock has been tearing up the market and is up 38% year to date and closed today at 304 down by 2% for the day.

Uber earnings per share in the 3 month period ending June 30 were $(1.02) per share and analysts forecast their earnings for this previous quarter will be closer to $(0.61) per share.  This expansion in earnings is in line with growth in the delivery service sector as users order from Uber Eats more. We should also factor in the growth in the use of rideshare services as people avoid using public transportation. On top of that, the stock has been tearing up the market and is up 7% year to date and closed today at 33 down by 1% for the day.

It goes without saying that analysts’ expectations are merely guesses and taking them at face value is a gambler’s game. But this information is not completely useless as it is a great indicator of where most of the securities analysts are expecting earnings to go in the foreseeable future.

The reality of the beauty contest that is the stock market is that if every stock is somebodies’ favorite, then every price should be viewed with skepticism even those that may seem like risk-free investments.

HAPPY HUNTING!

 

Written By:

Taku Ndachena

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