Check back later today for Daniel’s Den and visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,317 and $1,336 so far today…as of 7:00 am Pacific, bullion has rebounded to $1,329, gaining momentum as traders digest a higher-than-expected CPI number from the U.S. this morning…Silver is off 7 cents at $16.48…Copper, Nickel and Zinc are all up again, trading at $3.16, $6.17 and $1.61, respectively…Cobalt is steady at a decade high of $36.97…falling Crude Oil prices should temper Wall Street’s inflation fears…WTI is off another 76 cents at $58.53 while the U.S. Dollar Index has fallen another one-quarter of a point to 89.43, helping the Gold market…
2. Fresh economic data tripped up the equity markets at the open this morning…U.S. consumer prices rose more than expected in January, a further sign in some investors’ eyes that inflation could be firming after a long slumber…the Consumer Price Index, which measures what Americans pay for everything from salad dressing to fares on public transportation, jumped 0.5% in January after rising a seasonally adjusted 0.2% in December, the Labor Department reported…excluding the volatile food and energy categories, so-called core prices were up 0.3% compared to 0.2% in December…economists surveyed by The Wall Street Journal expected consumer prices to climb 0.4% in January, and core prices to increase 0.2%…in the 12 months to January, overall prices rose 2.1%, matching the same annual increase as in December…today’s report, however, also showed that wage inflation – a recent concern of the markets – is actually broadly muted…real average weekly earnings fell a seasonally adjusted 0.8% in January and were up just 0.4% from January 2017…meanwhile, U.S. retail sales unexpectedly fell in January, recording their biggest drop in nearly a year, as households cut back on purchases of motor vehicles and building materials…
3. U.S. shale companies are churning out Crude Oil at a record pace that could overwhelm global demand and reverse the Oil market’s fragile recovery, a top energy market observer has noted…the Paris-based International Energy Agency has concluded in its closely watched monthly report that U.S. shale production is growing faster in 2018 than it did even during the boom years of $100 a barrel Oil prices from 2011 to 2014…the difference this time is that Oil prices are about 40% lower…the situation is “reminiscent of the first wave of U.S. shale growth”, the IEA stated, when a flood of American Oil built up a global glut and sent prices crashing over 4 years ago…the IEA advises governments and corporations on energy trends…
4. The TSX divergence between falling share prices and robust earnings estimates continues to perplex many investors…while Canadian earnings season is still in its early days, analysts are expecting 19% EPS growth year-over-year…since the summer of 2014, the S&P/TSX Composite Index is roughly flat while corporate earnings have actually grown by nearly 30% over that time…initial results from 4th-quarter earnings season in Canada show nearly two-thirds of companies outperforming forecasts…reporting this week are Brookfield Asset, Sun Life, Enbridge, TransCanada, EnCana and Cenovus…
5. U.S. stocks opened lower this morning after 3 straight days of gains…as of 7:00 am Pacific, the Dow is off 104 points…in Toronto, the TSX has slipped 37 points while the Venture is up 4 points at 825…nearest resistance for the Venture is in the low 830’s but the trend points to a strong finish to the month for the Index after its worst-ever start to February…National Action Cannabis (NAC, TSX-V) has eased off in early trading to what should be new support around $1.09 after hitting a fresh high of $1.20 yesterday…iMetal Resources (IMR, TSX-V) has found more high-grade Gold and Copper in surface sampling at its Gowganda West Property adjoining Tahoe Resources‘ (THO, TSX) 4-million ounce Juby deposit in northern Ontario…the focus of attention is on an area (Zones 3A and 3B) several km south of the Tahoe resource where mineralized outcrop featuring chalcopyrite and pyrite quartz veins and quartz stringers has been found over a broad area previously unexplored as it was hidden by layers of moss and vegetation…assays from the latest sampling returned values as high at 34.4 g/t Au and 2.6% Copper…targets continue to be defined for an upcoming drill program…the innovative Canadian Securities Exchange (CSE) says it’s exploring a new platform powered by blockchain that, in theory, will clear and settle stock trades instantly…this function is currently carried out by an arm of TMX Group and takes place 2 business days after a trade is executed…however, the technology behind blockchain – the digital ledger – could upend the way that buying and selling securities are finalized while driving certain costs out of the system…
6. Quebec has signed sizeable cannabis supply agreements with a number of licensed producers, becoming the first large province to line up supply ahead of recreational legalization…Gatineau-based The Hydropothecary Corp. (THCX, TSX-V) has secured the largest agreement, signing a letter of intent to supply 20,000 kilograms of cannabis to the Société des alcools du Québec – the government-run agency which will have a monopoly on recreational sales online and in retail stores – in the first year of recreational use…the company says it’s on track to complete previously announced facility expansions increasing annual production capacity to 108,000 kg of dried cannabis, making it one of Canada’s largest producers…both Canopy Growth (WEED, TSX) and Aphria (APH, TSX) have also signed letters of intent with Quebec’s cannabis agency…
7. Canopy Growth (WEED, TSX) is up in early trading after announcing that it has more than doubled its 3rd-quarter revenue compared with a year ago…the company says revenue totaled $21.7 million for the quarter ended December 31, up from $9.8 million in the last 3 months of 2016…Canopy says it sold 2,330 kilograms and kilogram equivalents of marijuana in the quarter at an average price of $8.30 per gram…that compared with 1,245 kilograms at $7.36 per gram a year earlier…year to date, the company has sold 6,198 kilograms and kilogram equivalents at an average price of $8.11 per gram compared with 3,399 kilograms at an average price of $7.12 per gram in the 9 months ended Dec. 31, 2016, representing an increase of 82% and 14%, respectively…Chairman and CEO Bruce Linton says Q3results were driven by driven by a significant increase in domestic sales as well as sales in the German medical market. “Success in future global medical markets and the recreational cannabis market in Canada will depend not only on capacity, but on strong execution and securing supply agreements with the provinces today. I believe our success on both these fronts is evident as you look at our accomplishments this past quarter,” Linton stated…
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Jon, can you give me an “Educated Guess” as to when you anticipate the selling pressure to die down for AIS?
Comment by Raffi14 — February 14, 2018 @ 10:16 am
Not that it bothers me one bit, but that was quite the exit on ggi. Strange!!
Comment by Laddy — February 14, 2018 @ 12:06 pm
Raffi… March 10th… come on man .. Jon is not a sooth-sayer nor does he have a crystal ball..
Comment by Jeremy — February 14, 2018 @ 2:07 pm
As per post 3. I will go with 2 days before I buy more at higher prices.
Comment by DJD1 — February 14, 2018 @ 3:20 pm
National Bank buyer picked up 430,900 GGI shares today from Paradigm in what seemed like crosses.
Comment by murf — February 14, 2018 @ 3:23 pm
Yes your probably right, some sort of cross with ggi shares, most importantly, about a million $ deal, good sign I would say!!
Comment by Laddy — February 14, 2018 @ 4:01 pm