Buzz on the Bullboards: Planes, trains and (electric) automobiles

This week, Canada’s main stock index experienced a broad-based rally, pushing the TSX to a new intraday record high on Monday. The energy sector initially led the charge, but falling crude prices and disappointing quarterly results from major domestic banks soon dampened the momentum, dragging the index lower. As the week progressed, declining oil prices continued to weigh on the TSX, reflecting the current volatile market conditions.

All this while the country dealt with (brief) job action from Canada’s two largest rail companies and the federal government’s decision to impose tariffs on Chinese-made electric vehicles. Investors have had lot on their minds and that’s not even accounting for the numerous companies on the TSX and Venture Exchange that have been making news this week.

While this was going on, several TSX-listed companies made headlines with significant developments. Here’s a look at three of the most newsworthy stocks this week:

Air Canada faces potential pilots strike

Air Canada (TSX:AC, Forum) is under intense scrutiny as more than 5,400 of its pilots might strike as early as Sept. 17, after overwhelming support for a strike mandate. With a 98 per cent approval rate, this mandate is a critical development in the ongoing negotiations between the airline and the Air Line Pilots Association that have been in progress since June 2023.

Negotiations, initially overseen by a federal conciliator until Monday, have now entered a 21-day cooling-off period, making Sept. 17 the earliest possible strike date. Despite significant progress in the talks, wages and scheduling remain key issues. To mitigate potential disruptions, Air Canada has introduced a goodwill policy allowing customers to change their travel plans without additional costs if booked for Sept. 15 to 23, 2024.

This potential strike adds to the challenges Air Canada has faced in its post-pandemic recovery. After struggling with energy costs and tepid demand, the airline returned to profitability in 2023 and reported net income of C$2.2 billion. However, the looming strike could jeopardize its ongoing recovery efforts, especially given its net income-positive status in three of the past four quarters, including C$410 million in Q2 2024.

Datametrex surges with strong financial performance

Canada’s tech sector saw positive news this week with Datametrex AI Ltd. (TSXV:DM, Forum) reporting robust financial results for the first half of 2024. The company achieved revenue of approximately C$1.3 million, with expenses totalling C$821,000, resulting in a gross profit margin of around 37 per cent from its IT services in Korea.

This performance highlights Datametrex’s ability to thrive in a competitive market, underscoring the effectiveness of its “deep and narrow” approach. The success of its AI/tech division, driven by the “land and expand” strategy, has been especially obvious. By strengthening and expanding partnerships with key clients in the services, finance and public sectors, Datametrex has solidified its reputation among investors.

Canopy Growth’s Wana Brands launches first-of-its-kind marketplace

In the cannabis sector, Canopy Growth (TSX:WEED, Forum) made waves with the launch of Wanderous, a unique marketplace from its subsidiary, Wana Brands. This platform offers a first-of-its-kind shopping experience, bringing together innovative and trustworthy hemp-derived products in one streamlined location.

Wanderous features a curated selection of gummies and infused beverages from six premium brands, including Wana, Cann and Charlotte’s Web, among others. As demand for hemp-derived THC and CBD products continues to grow, Wanderous aims to provide consumers with a quality selection. All products are third-party lab tested to cater to individual needs such as better sleep or stress relief.

… and that’s the way it was

As these stories unfold, they are a reminder how important it is to stay informed about market developments. For investors, keeping an eye on the latest news and trends is crucial for making timely decisions that can positively impact their portfolios. Whether it’s navigating the potential disruption at Air Canada, capitalizing on the growth in tech with Datametrex, or exploring new opportunities in the cannabis market with Canopy Growth, being informed is key to successful investing.

For previous editions of Buzz on the Bullboards, click here.

The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.

(Top photo: Air Canada)