Montreal-based industrial valve manufacturer Velan was added this week to a short list of small-cap stocks likely to receive a buyout offer.
Published at 7:00 a.m.
Debt is the only Quebec title on the list developed by the Toronto firm Atrium Research. Atrium estimates that Velan is the gold standard for nuclear power plants, with more than 80% of the world’s reactors using its valves.
Velan launched a strategic review two years ago which resulted in an agreement for its sale to the American company Flowserve at a price of $13 per share. Velan having installations in France, the operation was blocked by the French government for reasons of “national security”.
The appetite for nuclear power has since shifted in Velan’s favor and its stock today trades below the acquisition price offered by Flowserve even though Velan’s stock has more than doubled in 2024.
National Bank Financial on Tuesday modified its recommendation on the stock of Couche-Tard. Analyst Vishal Shreedhar now suggests buying the stock of the Laval convenience store chain. Its decision reflects its expectations for improved growth. Although he says he continues to find the context for convenience stores “difficult”, he believes that Couche-Tard will perform better in the coming quarters than other comparable large-cap stocks in his coverage universe.
Lightspeed lost the support of Barclays bank on Friday. Analyst Raimo Lenschow withdraws his buy recommendation on the stock of the Montreal provider of technological solutions for merchants as the company’s review of strategic alternatives drags on. The analyst says he believes most of the benefits of converting customers to Lightspeed’s payment solutions have been exhausted. Investors will have to be patient because expectations remain too high, he says.
The Canadian National gained a follower earlier this week. Analyst Brian Ossenbeck, from the American bank JPMorgan, now suggests buying the shares of the Montreal rail carrier.
TD withdrew its purchase suggestion on the shares of the Montreal pilot training specialist on Monday CAE. Tim James’ decision is essentially linked to the valuation of the stock, an argument often unpopular with small investors. The stock’s surge of more than 50% since its August low appropriately discounts, according to the analyst, the progress made in the defense sector, the outlook for profit margins, as well as the cyclical backdrop and the change in sentiment linked to recent initiatives to improve capital returns. There are now 6 analysts out of 12 to suggest buying.
The recent weakness in the stock of Known intrigues BMO analyst Tamy Chen. The title of the Montreal dairy processor has lost more than 15% since the beginning of December. The new low that the action has just reached seems a little too punitive. The abrupt departure on December 23 of Frank Guido, named chief operating officer three months earlier, may have contributed to the decline.
The executive chairman of the board of directors of Tecsys has just sold nearly $110,000 worth of shares in the Montreal-based supplier of supply chain management software. Dave Brereton sold a lot of 2,400 shares on January 3 at a price of $44.84. He also sold shares last month.
An insider of NanoXplore recently sold nearly $110,000 worth of shares in the Montreal graphene producer. Sandra Pupatello sold a total of 41,000 shares on January 2 at a unit price of $2.60. She is a member of the board of directors of Martinrea, an Ontario automotive supplier with a 23% stake in NanoXplore.
The Montreal retailer DavidsTea is one of the Quebec stars to begin 2025. Its action crossed the $1 mark on the stock market this week. The stock is up 80% so far this year and has more than doubled since the company’s most recent quarterly results were presented on Dec. 17.
A manager at Reitmans has just sold nearly $60,000 worth of shares in the Montreal clothing retailer. Executive Vice President Richard Wait sold 21,967 shares on Tuesday at a price of $2.51 per share. The company announced two months ago that Richard Wait would retire in April.
Quebec titles of Lassonde, 5N Plus et G Mining Ventures all hit a 52-week high this week on the Toronto Stock Exchange.
On the other hand, those of Boralex, Stella-Jones, Goodfellow, Groupe Dynamite et Known reached their lowest level in the last 52 weeks this week.
