Buzz on the Bullboards: Challenges amid inflation and geopolitical tensions

Last week saw the Canadian and U.S. stock markets grappling with a host of challenges, from surging inflation data to escalating tensions in the Middle East. Adding to the mix, a historic trial commenced in New York, as former U.S. President Donald Trump faced allegations of falsifying business records and unlawfully influencing the 2016 presidential election.

Overall market performance

Amid these turbulent times, market indices on both sides of the border experienced notable fluctuations. Investors nervously monitored economic indicators and geopolitical developments for clues about future market direction.

Stock highlights

Despite the broader market uncertainties, several stocks made significant moves last week, capturing investors’ attention across various sectors:

Canopy Growth Corp. (TSX:WEED, Forum) – Shareholders of Canopy Growth overwhelmingly approved the creation of a new class of exchangeable shares, paving the way for the company’s accelerated entry into the lucrative U.S. THC market.

Their voice was heard loud and clear, with a staggering 95.56 per cent of shareholders voting in favour, Canopy USA is poised to make imminent strides with the anticipated acquisition of U.S. assets.

“With this successful shareholder vote complete, our Canopy USA strategy is advancing and is poised to make Canopy the first and only U.S. listed cannabis company offering shareholders unique exposure to the rapid growth of the U.S. cannabis market,” Canopy Growth’s CEO, David Klein, said. “Canopy USA can now move quickly to acquire its U.S. assets in Wana, Jetty, and Acreage, and we expect Canopy Growth to begin highlighting Canopy USA’s financial performance to our shareholders later this year.”

Canopy Growth Corp stock is up 113.16 per cent on the month.

New Found Gold Corp. (TSXV:NFG, Forum) – This mining sector standout announced promising results from its drill program at the K2 Zone within the Queensway project in Newfoundland and Labrador.

With 51 diamond drill holes completed, New Found Gold aims to further define high-grade gold mineralization, signaling continued growth potential in the mining industry.

“K2 is an expansive and complex structure with a sizeable associated damage zone. Our growing understanding of this evolving zone has led to better targeting of high-grade domains and allowed us to expand on them and look for new areas that either were overstepped or found outside of the prior drill footprint,” Melissa Render, VP of exploration of New Found, said in a statement. “Recognizing the significance of the Glenwood Shear Zone has proven to be another important revelation, where K2 seems to have developed between it and the AFZ. This relationship is likely an important one to understand and opens the possibility that the Glenwood, like the AFZ, is another conduit for channelling gold-bearing fluids. Exploration will continue in the greater K2 area, both looking to extend K2 to depth, in addition to looking below it and adjacent to the Glenwood Shear Zone. Follow-up drilling is also planned on several interesting gold-bearing fault zones that were identified during our reconnaissance grid drilling program completed on the west side of the AFZ.”

New Found Gold Corp. stock is up 2.65 per cent on the month.

Exro Technologies Inc. (TSX:EXRO, Forum) – In the tech sector, Exro Technologies finalized its merger with SEA Electric Inc., consolidating their positions as leaders in e-mobility. With Exro acquiring all outstanding shares of SEA Electric, the merger is expected to propel the combined entities to new heights, valuing SEA Electric at an impressive C$402 million.

Former SEA Electric stockholders received 31.463 common shares of Exro and 34.4999 convertible preferred shares of Exro for each share of SEA stock. As a result of the transaction, Exro issued 146,453,200 common shares and 160,589,446 preferred shares and SEA Electric became an indirect wholly owned subsidiary of Exro.

Exro Technologies Inc. stock is down 13.15 per cent on the month, but 141.82 per cent higher than it was five years ago.

Looking ahead

As we move into the new week, investors are advised to remain vigilant and stay informed about market developments. With ongoing geopolitical tensions and economic uncertainties, prudent decision-making and adaptability will be crucial in navigating the ever-changing landscape of global markets.

Making your way in the world today takes everything you’ve got

In times of volatility and uncertainty, it’s essential for investors to stay informed and agile. By keeping abreast of market news and developments, investors can position themselves to seize opportunities and navigate potential challenges. As we embark on the week ahead, let’s remain proactive, informed, and focused on the long-term goals.

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