Aurora Cannabis shares lift as net losses improve, while Lightspeed Commerce shares tumble on rising U.S. 10-year yield. Here are the past week’s winners and losers
Submitted by Marijuana News on Tue, 10/05/2021 - 11:18
Aurora Cannabis released its fiscal 2021 results on Monday with a decline in revenues to $245 million, from $269 million the prior year. Operating expenses decreased to $283 million, from $466 million in 2020, which resulted in an improvement in the company’s net loss to $695 million, from $3.3 billion the prior year. Aurora Cannabis produces, distributes and sells cannabis and cannabis-related products around the world with brands such as Aurora, San Rafael ’71 and CanniMed, to list a few.
Cenovus Energy Inc. (CVE.TO) +1.8%
West Texas Intermediate, a benchmark oil price, hit a one-month high on Monday at $75.45 before dipping to $73.68 on Thursday. Despite the subsequent drop in prices, shares of Cenovus opened higher on Monday and continued its momentum throughout the week, closing almost three per cent higher by Wednesday. In its second-quarter fiscal 2021 results, Cenovus reported revenues of $10.6 billion, up from $2.2 billion in 2020. Operating expenses increased significantly, resulting in net income of $224 million for the quarter, up from a $235 million loss the prior year.
Agnico Eagle Mines Limited (AEM.TO) +0.6%
In a press release Tuesday, Agnico Eagle announced it would merge with Kirkland Lake Gold and operate under the Agnico name. In the all-stock transaction, Kirkland Lake shareholders will receive 0.7935 of an Agnico Eagle common share per share of Kirkland Lake. In its second-quarter fiscal 2021 results, Agnico Eagle reported mining revenues of $966 million (U.S.) with net income of $190 million. For the same period, Kirkland Lake reported revenue of $663 million with net income of $244 million. Shares of Agnico gained three per cent by market open Thursday.
Losers
Lightspeed Commerce Inc. (LSPD.TO) -17.8%
Shares of Lightspeed took a tumble last week due to an increase in the U.S. 10-year yield coupled with a report by short-seller Spruce Point Capital Management saying that there is potential for a 60 per cent to 80 per cent decrease in its share price. In the report, Spruce Point asserted that, “LSPD baits investors with its massive potential in its payments solution, but we believe it has not been transparent about competitive pressures and material margin decline,” adding that Lightspeed will be forced to compete directly with Shopify and Amazon. Shares of Lighstpeed closed almost 17 per cent lower by Thursday.
Kirkland Lake Gold Ltd. (KL.TO) -6.6%
While the merger was well-received by Agnico Eagle shareholders, investors of Kirkland Lake were less thrilled, pushing the share price down almost nine per cent from market close Monday to market open Tuesday. The stock recovered slightly throughout the week, but still closed lower than Monday open. Kirkland Lake acquires, produces and operates gold properties around the world with headquarters in Toronto.
Open Text Corporation (OTEX.TO) -4.8%
The U.S. 10-year yield was on the rise last week, which negatively impacted the technology industry that depends on low yields to increase the value of future cash flows. Open Text’s share price decreased four per cent from Monday open to Wednesday close. The company designs, develops, markets and sells information management solutions around the world. In its fiscal 2021 report, ended June 30, the company reported revenues of $3.4 billion (U.S.), up from $3.1 billion the prior year. Both cost of goods sold and operating expenses increased, however, the growth in revenue was enough to boost net income to $311 million, from $234 million the prior year.
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