Despite recent bank failures and high inflation’s dampening of economic productivity, the Canadian stock market is brimming with potentially untapped value.
Firstly, the fall of Silicon Valley Bank, Signature Bank and Silvergate Bank in the U.S., and the near miss for the loss-making Credit Suisse following its acquisition by UBS, have left most investors fearing that ripple effects may spread across sectors and lead to another bear market.
Secondly, Statistics Canada reported February inflation at 5.2 per cent, which is down from 8.1 per cent last June – an encouraging trajectory for those affected by high food and fuel prices – but still well above the Bank of Canada’s (BoC) 2-per-cent target.
Consensus sees the BoC continuing to pause on rate hikes, despite the U.S. Fed’s 0.25-per-cent move earlier this week, due to ongoing banking sector instability. Conversely, an accelerating slowdown in the U.S., which is Canada’s most important trade partner, would undoubtedly affect our economic output and give the BoC plenty of food for thought, a scenario we can see reflected in the TSX’s over 4-per-cent drop since early March.
This uncertainty about our central bank’s next policy decision, slated for April 12, places all eyes on how Canadian industry fluctuates in response to turmoil in Europe and the U.S. over the next two-and-a-half weeks.
That said, regardless of where the macro wind blows, the market will continue to recognize a business’ intrinsic value over the long term and reward investors who identify value before the herd comes rolling in. TMH readers lent most of their attention this week to three stories from companies that fit this description, where long growth runways, industry tailwinds, and readily comprehensible use cases have arguably yet to be fully reflected in share price action.
RevoluGROUP (TSXV:REVO) equity investment suitor adjusts timeline, reaffirms commitment
RevoluGROUP (REVO) has signed a third addendum to its binding MOU with a European financially regulated entity allied with a UAE-based financial consultancy firm.
The addendum reiterates that, despite exposure to U.S. financial institutions Silvergate and Signature Bank, the suitor remains wholly committed to concluding its investment with RevoluGROUP.
CEO Steve Marshall spoke with Simon Druker about the news.
RevoluGROUP Canada (REVO) is up by less than 15 per cent over the past five years, despite an impressive number of fintech verticals currently under development and a payments app licensed in 120 countries.
Trillion Energy (CSE:TCF) announces substantial 2022 year-end reserves report
Trillion Energy (TCF) has shared its third-party December 31, 2022 year-end reserves report.
Net present value of proved and probable (P2) natural gas reserves (NPV10%) increased to US$432 million net to Trillion, up from US$82 million (2021), a 426-per-cent YoY increase.
The company intends to unlock the value of its reserves through a development program this year.
Colin Robson, VP Corporate Development, spoke with Brieanna McCutcheon about the news.
Trillion Energy International (TCF) is up by over 200 per cent since inception in February, 2020, and 50 per cent YoY, indicating an alignment between shareholder value, Europe’s energy crisis, and the company’s strategically positioned Turkish natural gas production.
Nextech3D.ai’s (OTCQX:NEXCF)(CSE:NTAR) Toggle3D reports almost 1,000 per cent user growth
Nextech3D.ai’s (NTAR) Toggle3D.ai has crossed over 1,000 sign-ups.
The CAD-to-3D-model platform attained the user milestone over 2 months, representing an over 963-per-cent change since January 2023.
Dasha Vdovina, Chief Product Officer at Toggle3D, spoke with Brieanna McCutcheon about the news.
Nextech3D.ai (NTAR) is up by 192 per cent since inception in November 2018, catalyzed by the global shift toward e-commerce and the company’s suite of tools to enhance virtual commercial relationships through artificial intelligence and augmented reality.
