By Angela Harmantas
This week we’re looking at some of the bright spots that do indeed exist in the markets despite the seemingly constant flow of bad news lately. Today on Smallcappower we dissect the latest Ubika Energy 20 index performance, while looking at a few stocks that have performed exceptionally well over the past 52 weeks – one TSXV-listed company has even managed a whopping 6150% gain. A head this week, Canadians will get a chance to see how our big banks are coping with the weak loonie and low oil prices – here’s what you need to know today:
The Ubika Energy 20 Index fell over the past month following a steep drop in the crude oil price. Slumping Chinese markets and the increasing oil supply glut were the two main catalysts for the 20.8% decline as markets continue to struggle under the pressures of US$30 oil on the horizon. However, a few bright spots: Granite Oil Corp. gained 12% after announcing they will be increasing their monthly dividend; elsewhere, we may expect to see a boost in natural gas prices after the US Energy Information Administration reported that supplies have grown by 53 billion cubic feet, less than analysts’ expectations of around 70 billion cubic feet.
With the global stock markets continuing to take a beating, it can be difficult to locate those few success stories that still exist. Thankfully, there are some companies on the TSX and TSXV that have managed to exponentially increase their share price. Our team of analysts compiled a list of 5 companies with over 500% gains from their 52-week lows. The biggest mover? GoldMoney Inc. (TSXV:XAU), which describes itself as a full-reserve and gold-based financial services group (think Bitcoin, but with gold as a currency). Backed by big-name investors such as Dundee Capital Markets, Sprott Inc. and CanaccordGenuity, the share price has gained a whopping 6150% over its 52-week low.
The Canadian business sector will be eagerly anticipating earnings reports by the Big 6 banks this week. It’ll be the first time that we’ll see how the banks have coped since the oil price shock and the drastic decrease in the Canadian dollar’s value. We may be in for some bad news, at least according to analysts quoted in this CBC News article, which also outlines a worst-case scenario where low prices combined with weak economic activity could lead to defaults on loans in the oil patch. Watch this space, folks.
Do you have a burning question you’d like answered by an investment expert or analyst? Let me know and I can post the answer here in the blog. Contact me by email at angela@smallcappower.com or on Twitter: @aharmantas.
