The Smart Investor | MDF’s largest shareholder increases its stake

Every Sunday we put the spotlight on financial and stock market news that may be useful to the investor but may have stayed under the radar.

Posted at 7:00 am

Richard Dufour

Richard Dufour
The press

The largest shareholder in mdf commerce has just increased its investment in the Longueuil-based e-commerce platform operator.

Long Path Partners told authorities midweek that its stake in mdf is now 11.1%, down from 10.5% in early May.

Long Path Partners became mdf’s largest shareholder last spring, taking advantage of the recent stock crash to increase its investments.

mdf shares continued to slide this week, hitting a low of $1.72 in Toronto on Friday. At the current rate, the company’s market value is less than 80 million.

Earlier this week, Acumen Capital analyst Nick Corcoran withdrew his buy recommendation for mdf, citing “short-term business model risks.” He believes it’s best to stay on the sidelines until managers have demonstrated that “profitable growth” can be generated.

Richelieu hardware again unanimously on Bay Street. With TD’s decision on Friday to recommend the Montreal hardware supplier as a buy, there are now only buy recommendations for the stock. TD’s decision came the day after it released its quarterly results, which beat expectations. Analyst Annett Meaghen says he appreciates Richelieu’s leadership and track record. “In a difficult macro context, these characteristics position Richelieu to continue gaining market share. »

Velan held its annual shareholder meeting virtually on Thursday and presented its financial performance at the beginning of the year. Lester Management’s portfolio manager Stephen Takacsy still believes there will be a transaction to create “shareholder value”. But first, he says, the Montreal-based industrial valve maker must “aggressively” buy back its shares, which are “grossly undervalued.”

Scotia pulled its proposed purchase of the securities of the NC and personal computer. Analyst Konark Gupta says valuations are being cut to reflect a possible downturn next year, similar to 2015-16 and 2020 but not as severe as the 2009 recession already better developed than the market. “Investors could continue to hide in the rail sector until expectations in all sub-sectors fall. »

National Bank Financial sees a significant discrepancy between the current market valuation ofAir Canada and its business prospects. In a note published Wednesday, analyst Cameron Doerksen points out that the Montreal-based airline’s market value is only about 15% higher than it was in July 2020, when planes were essentially grounded and there was no way to resume service to be expected in the foreseeable future.

Given the recent stock market performance of Boralex, TD on Tuesday removed the name of the Quebec renewable energy producer from its list of top investment ideas (Action List Buy). Analyst Sean Steuart still recommends buying the shares.

The Quebec titles of Dollarama, Decided and Bellu’s health hit a 52-week high on the Toronto Stock Exchange this week.

On the other hand, those of ADF group, bomber, Lassonde, Senvest, Theratechnologies, guru, mdf act, Air Canada, transfer, Lion, Dorel and nuvei All made a new 52-week low this week.

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