The smart investor | The mdf is attracting the attention of an American fund

Every Sunday, we pay attention to financial and stock market news items that may be beneficial to investors, but may have passed under the radar.

Posted at 6:00 am

Richard Dufour

Richard Dufour
The Press

A private investment firm in Connecticut acquired only a 10.2% stake mdf tradingoperator of e-commerce platforms in Longueuil.

Long Path Partners announced to stock market authorities on Friday that it bought shares of mdf in April and thus became the company’s largest shareholder before Fonds de solidarité FTQ, which holds a 5.4% stake.

Long Path Partners says it is investing for the long term in a “limited” number of “high -quality” companies with “unpredictable” activities.

Bellus Health was the big April winner in Quebec on the Toronto Stock Exchange with a 19% appreciation on the month, whileHexo was the big loser with a decrease of 32%.

The significant slowdown in the action of Richelieu Hardware since its peak in February led the Cote 100 company to say that the Montreal title supplier of hardware products was undervalued.

“Our valuation is $ 49 per share and we recommend buying it at $ 40 or less. Time again is appropriate to buy parts of this quality company “, underlined one of the latest financial letter of Cote 100, published in recent days.

To justify its position, Cote 100 cited history of growth, balance, profitability, operations in a fragmented market environment with “multiple” acquisition targets, sustainable competitive advantages, market exposure of configuration (less cyclical than real estate), the management team, as well as the company’s pricing power.

Cote 100 stressed that the risk guarding Richelieu is rising interest rates. “In conditions of high inflation, central banks raise rates in an effort to raise the amount of credit (borrowing money) and keep inflation under control. As a result, applications for mortgages or construction and real estate adjustments are likely to decline, which could affect financial results. »

The shareholders of Firefighter should be authorized on Thursday at an annual meeting the merger of parts of the Montreal manufacturer of business jets. The merger of the shares will significantly reduce the volatility of the stock and gradually attract new long-term investors, believes Konark Gupta of Scotia.

The analyst expects a 10-to-1 merger as business jet makers General Dynamics and Textron have 200-300 million shares outstanding and Canadian peers CAE and Air Canada have in between of 300 and 400 million shares outstanding.

The big boss of Richelieu Hardware just bought $ 110,000 worth of shares in a Montreal hardware supplier. Richard Lord bought a block of 3,000 shares on Wednesday. Marc Poulin, a member of the board of directors, bought a block of 2,000 shares on April 21.

Dollarama represents a way to continue the attack despite inflation, underlined portfolio manager Philippe Hynes, of the Tonus Capital firm, in the quarterly letter he sent to his clients. “Dollarama is a great example of a company that can thrive in times of inflation.»

He points out that in the face of rising costs, Dollarama has been able to quickly adjust its prices in the past while continuing to meet the growing needs of bargain -hunting buyers.

“We also noticed this after our management meeting in December 2018: Dollarama’s performance will exceed expectations in case there is inflationary pressure. Its competitors will have to raise their prices and Dollarama will benefit disproportionately. from these increases. In -store sales will experience a significant increase. »

Dollarama is taking advantage of the current situation to gradually introduce the items at a new price of $ 5, an announcement that investors have been waiting for since 2016, he said.

“In this context, management expects an increase of between 4% and 5% in comparable store sales for the current year, a forecast we consider very conservative.»

The announcement on Tuesday of the Quebec company OpSense Health Canada’s approval of its new guidewire for use in transcatheter aortic valve replacement procedures is a positive sign that the U.S. Food and Drug Administration (FDA) should follow up on approval later this year. “FDA clearance is more likely now, which de-risked the entire program,” said the firm’s analyst Rahul Sarugaser Raymond James.

Quebec’s titles Theratechnologies, Stella Jones, 5N More, leon, Tecsys, Dorel, Savaria, Coveo, Richelieu Hardware, Lassonde, Bausch’s health, mdf trading at Neptune all hit a 52-week low this week. On the contrary, Food Couche-Tard again hit a 52-week high on the Toronto Stock Exchange.

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