It was not a good week for traditional conglomerates as commercial break ups spread across the world. Earlier in the week, 129-year-old General Electric announced it was splitting into three units centred around aviation, healthcare, and energy. In Japan, industrial giant Toshiba stated it would be splitting into three companies focused on infrastructure, semiconductors, and electronics. Finally, to close the week, 135-year-old Johnson & Johnson revealed plans to split into two publicly traded companies: consumer products (Band-Aid bandages, Aveeno and Neutrogena skin care products, and Listerine, etc.), and pharmaceutical & medical devices.
Is this the end of the conventional multi business conglomerates? Are we seeing the rise of the 21st century conglomerates, such as Alphabet (Google) and Amazon. Only time will tell.
Lets see what else happened in the markets and portfolios this past week ….
Market News
The letter ‘V’, as in V-shaped, was the pattern for all four markets this past week. The Toronto Stock Exchange (TSX) had string of 4 consecutive record high market closes interrupted by a mid week dip but rebounded to close the week at a record high. Early in the week the TSX was lifted by talk of cannabis legalization in the US pushing Canadian cannabis stocks upward before a mid week pullback. On Thursday, inflation fears sent gold prices higher pushing the TSX’s gold and resource stocks higher. Finally, on Friday, a huge 11% spike by Shopify enabled the TSX to finish the week in positive territory and with a greater percentage gain than its three American counterparts.
South of the border, the three major indexes all followed the same V shaped path: up – down – up. A mid week pullback ended eight straight sessions of all-time closing highs for the S&P 500 and the Nasdaq. The blue-chip Dow Jones Industrial Average notched its second consecutive record closing high on Monday before it too followed the same downward path. On Friday all three Indexes headed back upward but it wasn’t enough to prevent each of them with a loss for the week. The US markets were propelled upward by the good news US infrastructure bill, the downward movement was likely caused by profit taking after a strong run up, as well as fears of inflation. On Friday, as with Shopify on the TSX, technology stocks, particularly Apple and Microsoft, drove the markets upward, but not enough to finish the week higher than last Friday.
Portfolio News
Once again, all three portfolios finished in positive territory. Not only did they all post another weekly gain, but they all beat the major US Indexes. As technology stocks are the largest component of all three portfolios, the strong finish to the week by the technology sector is what likely pushed them into positive territory. It definitely did for Portfolio 3 where Shopify is the largest holding.
Companies on the Radar
No new companies have come onto my radar this week
As with last week, I’m looking to add shares in the following companies, in no particular order:
Portfolio Update
Portfolio 1
Portfolio 1 for the week ended November 12, 2021 UP 
Thanks to a big upward move in share price on Friday for PayPal, Trade Desk, Sea Limited, and Cloudflare, portfolio 1 nudged its way into positive territory for the week. The rest of the US technology stocks had a good week to offset the drop in share price for Celsius Holdings (energy drinks) and Canadian technology companies Lightspeed Commerce and Nuvei. Turning cash into Rivian Automotive shares for a 30% gain didn’t hurt either.
Activity
Bought Rivian Automotive (NASD:RIVN) As evidenced by the past few weekly updates, I’ve had my eye on Rivian for a few months ago. Why such interest in a company that has barely over $0 revenue and nearly $1 billion in losses? Glad you asked. Other than the financial numbers, there is a lot to like about this company. To start, its founder led with a great vision for the company. Both Amazon and Ford are invested in the company, with Amazon placing an order for 100,000 electric vans. On a side note, I find it interesting that Ford is a major investor in what could become their largest rival for the electric pickup market. Back on track, the company has had a lot of positive hype and despite not having delivered a vehicle until very recently, there is strong appeal for the brand and its mission (preserving the natural world). With over 55,000 pre-orders and the initial deliveries of their vehicles earlier this month they are a first mover in the emerging electric pickup, SUV and van market. I don’t know if I’ll ever own a Rivian but for now, I’m glad to be an owner of the company. The challenge will be whether to hold the shares if/when the share price drops once the hype wears off or to sell the shares and take profit, with the plan to buy back in once the reality of very little revenue and growing expenses sets in. Hmmm.
Dividends
Dividends Received this week for the following companies:
Companies followed by DRIP (Dividend Re-Investment Plan) indicate additional shares were purchased with the dividend. Any cash leftover was added to the cash balance.
Canadian $
US $
Quarterly Reports
In most cases, financial reports are directly linked to the respective company’s news release or presentation. In cases, where a company does not have a news release for their quarterly earnings report, a link to a news release on Yahoo Finance is provided.
TMX Group (TSX:X)
Selected highlights from their third quarter 2021 financial results on November 8, 2021
- Revenue of $231.3 million, up 11% from $207.6 million in Q3/20
- Net income in Q3/21 was $76.9 million, compared with a net income of $70.0 million for Q3/20
- Net income in the nine months ended September 30, 2021 was $250.6 million, compared with a net income of $207.9 million, for the nine months ended September 30, 2020
Invitae (NYSE:NVTA)
Selected highlights from their third quarter 2021 financial results on November 8, 2021
- Revenue increases more than 66% on volume growth of 89% from Q3 2020
- Achieved gross profit for the third quarter of 2021 of $26.7 million, compared to $22.1 million in the same period in 2020
- The company has adjusted its 2021 annual revenue guidance to $450 million – $475 million, or year-over-year revenue growth of between 60% and 70%
The Trade Desk (NASD:TTD)
Selected highlights from their third quarter 2021 press release on November 8, 2021
- Record third quarter revenue of $301.1 million
- Customer retention remained over 95% during the quarter, as it has for the previous 7 years
- Revenue growth of 39%
PayPal (NASD:PYPL)
Selected highlights from their third quarter 2021 financial results on November 8, 2021
- Total Payment Volume (TPV) reaches $310 billion with 416 million active accounts
- GAAP EPS of $0.92 compared to $0.86 in Q3’20
- Operating Cash Flow of $1.51 billion, growing 15%; Free Cash Flow of $1.29 billion, growing 20%
- Strong Balance Sheet with $20 billion in cash, cash equivalents and investments; total debt pf $8.9 billion
Nuvei Corp (TSX:NVEI)
Selected highlights from their third quarter 2021 news release on November 9, 2021
For the 9 months ended September 30, 2021:
- Revenue increased 97% to $512.7 million from $260.3 million
- Net income increased by $221.0 million to $94.7 million compared to a net loss of $126.2 million
- Cash flow from operating activities of $201.9 million increased from $49.0 million
Kneat.com (TSX:KSI)
Selected highlights from their third quarter 2021 news release on November 10, 2021
- Third quarter revenues increase 91% to $3.7 million
- Software as a Service revenues increased 276% to $2.6 million, compared with $0.7 million for the third quarter of 2020
- Gross margin increased 182% to $2.0 million compared with $0.7 million for the third quarter of 2020 and gross profit margin increased to 54% compared with 37% for the third quarter of 2020.
Unity Software (NYSE:U)
Selected highlights from their third quarter 2021 financial results on November 9, 2021
- Revenue was $286.3 million, an increase of 43% from the third quarter of 2020
- Loss from operations was $126.8 million, or 44% of revenue, compared to loss from operations of $141.7 million, or 71% of revenue, in the third quarter of 2020
- Free cash flow in the third quarter of 2021 was $34.2 million, compared to $10.9 million for the same period last year.
- Cash, cash equivalents, and restricted cash were $766.3 million as of September 30, 2021, compared to $1.8 billion as of September 30, 2020
FuboTV (NYSE:FUBO)
Selected highlights from their third quarter 2021 presentation on November 9, 2021
- 945K Subscribers for 3Q21, up from 455K in 3Q20
- Advertising revenue up 147% since 3Q30, from $7.5m to 18.6m
- Net loss of $105.9m compared to a loss of $274.1m in 3Q20
- Average revenue per user up 10%, from $67.70 in 3Q20 to $74.54 in 3Q21
GDI Integrated Facility Services (TSX:GDI)
Selected highlights from their third quarter 2021 financial results on November 10, 2021
- Third quarter revenue of $ 408.4 million, an increase of $ 43 million over third quarter 2020
- Third quarter 2021 net income of $ 9.4 million, or $.41 per share
For the 9 months ended September 20, 2021
- Revenue reached $1.164 billion, an increase of $117.2 million, or 11.2%, over the corresponding
period of 2020. - Net income was $36.5 million or $1.59 per share compared to $31.0 million or $1.42 per share in the corresponding period of 2020.
Andlauer Health Services (TSX:AND)
Selected highlights from their third quarter 2021 news release on November 10, 2021
- Revenue increased 37.5% to $104.2 million, compared to $75.8 million in the three months ended September 30, 2020 (“Q3 2020”)
- Net income and comprehensive income increased 41.8% to $12.2 million, compared to $8.6 million in Q3 2020
Well Health Technologies Corp (TSX:WELL)
Selected highlights from their third quarter 2021 financial results on November 10, 2021
- Quarterly revenues of $99.3 million in Q3-2021 reflecting a 711% year-over-year (YoY) increase compared to Q3-2020
- Virtual Services revenues increased to $18.0 million in Q3-2021, representing 597% YoY growth as compared to Virtual Services revenue of $2.6 million in Q3-2020
- Over 93% of WELL’s revenue was either recurring or highly re-occurring in nature
- Delivered 582,958 total omni-channel patient visits in Q3-2021, representing a YoY increase of 139%
Celsius Holdings Inc (NASD:CELH)
Selected highlights from their third quarter 2021 financial results on November 11, 2021
- Revenue of $94.9 million, up 157% from $36.8 million in Q3 2020
- Gross profit of $37.7 million, up 115% from $17.5 million in the year ago quarter
- Net income of $2.7 million compared to $4.8 million in year ago quarter
For the 9 months ended September 30:
- Revenue of $210 million, up 121% from the 9 months ended September 30, 2020
- Gross profit of $86.5 million, up 99% from $43.5 million in the year ago quarter
- Net income of $7.3 million compared to $6.9 million in the 2020 period
Docebo Inc. (TSX:DCBO)
Selected highlights from their third quarter 2021 news release on November 11, 2021
- Revenue of $27.1 million, an increase of 68% from the comparative period in the prior year
- Net income of $0.7 million, or $0.02 per share, compared to net loss of $1.2 million, or $0.04 per share for the comparative period in the prior year
- Docebo is now used by 2,636 customers, an increase from 2,025 customers at the end of September 30, 2020
- Strong growth in average contract value, calculated as total Annual Recurring Revenue divided by the number of active customers, increasing from $31,900 to $39,275
Algonquin Power & Utilities Corp. (TSX:AQN)
Selected highlights from their third quarter 2021 press release on November 11, 2021
- Revenues of $528.6 million, an increase of 40% compared to the third quarter of 2020
- Adjusted Net Earnings1 of $97.6 million, an increase of 11% compared to the third quarter of 2020
Yellow Pages (TSX:Y)
Selected highlights from their third quarter 2021 financial results on November 12, 2021
- Total revenues decreased 11.7% year-over-year and amounted to $70.9 million for the three-month period ended, mainly due to the decline of higher margin digital media and print products and to a lesser extent to lower margin digital services products, thereby creating pressure on gross profit margins
- Net earnings increased to $13.7 million, or to $0.51 per diluted share
- Cash flows from operating activities decreased by $8.0 million to $24.7 million for the three-month period ended September 30, 2021 compared to $32.7 million for the same period last year
Boston Omaha (NASD:BOMN)
Selected highlights from their third quarter 2021 financial results on November 12, 2021
- A third quarter net loss of $0.89 per diluted share, compared with net income of $0.13 a year earlier
- Revenue for the quarter was $14.5 million, up from $11.6 million a year earlier
- Cash flow from operations for the nine months ended September 30, 2021, was $6,620,097, compared to $3,492,006 for the nine months ended September 30, 2020
- Book value per share was $17.03 at September 30, 2021, compared to $14.01 at December 31, 2020
Portfolio 2
Portfolio 2 for the week ended November 12, 2021: UP
MongoDB and Microsoft are the two companies that really drive Portfolio 2 higher. The combination of these two rapidly appreciating share price companies along with cash generating dividend stocks has made a good combination for growth while lowering risk. While the two technology companies get the headlines, the other companies’ share price quietly moves upward while generating cash which is re-invested into additional shares thanks to dividend re-investment plans, also know as DRIPs.
Activity
No significant activity to report this week.
Dividends
Dividends Received this week for the following companies:
Companies followed by DRIP (Dividend Re-Investment Plan) indicate additional shares were purchased with the dividend. Any cash leftover was added to the cash balance.
Canadian $
US $
No US$ dividends this week.
Quarterly Reports
In most cases, financial reports are directly linked to the respective company’s news release or presentation. In cases, where a company does not have a news release for their quarterly earnings report, a link to a news release on Yahoo Finance is provided.
Zynga (NASD:ZNGA)
Selected highlights from their third quarter 2021 financial results on November 8, 2021
- Quarterly revenue of $704.7 million, up 40%
- Quarterly advertising and other revenue and bookings were $134 million, both up 99%
- On Track to Finish 2021 with Zynga’s Best-Ever Annual Topline Performance
Kneat.com (TSX:KSI)
Selected highlights from their third quarter 2021 news release on November 10, 2021
- Third quarter revenues increase 91% to $3.7 million
- Software as a Service revenues increased 276% to $2.6 million, compared with $0.7 million for the third quarter of 2020
- Gross margin increased 182% to $2.0 million compared with $0.7 million for the third quarter of 2020 and gross profit margin increased to 54% compared with 37% for the third quarter of 2020.
Disney (NYSE:DIS)
Selected highlights from their fourth quarter and full year 2021 news release on November 10, 2021
- Diluted earnings per share (EPS) from continuing operations for the quarter was income of $0.09 compared to a loss of $0.39 in the prior-year quarter
- Diluted EPS from continuing operations for the year ended October 2, 2021 was income of $1.11 compared to a loss of $1.57 in the prior-year
Chorus Aviation (TSX:CHR)
Selected highlights from their third quarter 2021 financial results on November 11, 2021
- Net loss of $14.1 million, or $0.08 per basic share
- Adjusted net income1of $15.3 million, or $0.09 per basic share
- Adjusted net income was $15.3 million for the quarter, an increase of $4.4 million
- Adjusted net income was $42.4 million year-to-date, a decrease over 2020 of $13.9 million
Portfolio 3
Portfolio 3 for the week ended November 12, 2021: UP
As mentioned earlier in the Portfolio News section, Shopify’s share price had a very big day Friday, rising four times Portfolio 3’s purchase price alone. There was no news from Shopify to justify this upward movement, but I’ll gladly take it. Unity Software, Cloudflare and Microsoft also had a strong Friday.
I decided to put a little bit of cash into a cryptocurrency. I figure if I have even a tiny amount of the currency, I’ll follow it a bit more closely and hopefully get a better understanding and appreciation of Ethereum, cryptocurrencies in general, and the underlying blockchain technology.
Activity
Ethereum (ETH) Purchased less than C$ 200 of Ethereum to get familiar with cryptocurrency. I was able to acquire 0.02842 of an Ethereum coin at a price of C$ 6137.23, including transaction fee.
Dividends
Dividends Received this week for the following companies:
Companies followed by DRIP (Dividend Re-Investment Plan) indicate additional shares were purchased with the dividend. Any cash leftover was added to the cash balance.
No dividends this week
Quarterly Reports
In most cases, financial reports are directly linked to the respective company’s news release or presentation. In cases, where a company does not have a news release for their quarterly earnings report, a link to a news release on Yahoo Finance is provided.
Unity Software (NYSE:U)
Selected highlights from their third quarter 2021 financial results on November 9, 2021
- Revenue was $286.3 million, an increase of 43% from the third quarter of 2020
- Loss from operations was $126.8 million, or 44% of revenue, compared to loss from operations of $141.7 million, or 71% of revenue, in the third quarter of 2020
- Free cash flow in the third quarter of 2021 was $34.2 million, compared to $10.9 million for the same period last year.
- Cash, cash equivalents, and restricted cash were $766.3 million as of September 30, 2021, compared to $1.8 billion as of September 30, 2020
Fortuna Silver Mines Inc. (TSX:FVI)
Selected highlights from their third quarter 2021 financial results on November 10, 2021
- Record sales of $162.6 million, an increase of 95% from the $83.4 million reported in the same period in 2020, due primarily to gold sales from the Yaramoko mine of $49.0 million and from the Lindero mine of $41.8 million
- Net income of $0.2 million or $0.00 per share, compared to $13.1 million or $0.07 net income per share reported in Q3 2020. Net income was lower due primarily to $10.5 million in transaction costs related to the acquisition of Roxgold Inc., and $9.6 million settlement of the disputed royalty claim with the Mexican Geological Service
- Free cash flow from ongoing operations1 of $33.8 million compared to $30.1 million reported in Q3 2020
- Silver and gold production of 1,711,881 ounces and 65,425 ounces, respectively
Kneat.com (TSX:KSI)
Selected highlights from their third quarter 2021 news release on November 10, 2021
- Third quarter revenues increase 91% to $3.7 million
- Software as a Service revenues increased 276% to $2.6 million, compared with $0.7 million for the third quarter of 2020
- Gross margin increased 182% to $2.0 million compared with $0.7 million for the third quarter of 2020 and gross profit margin increased to 54% compared with 37% for the third quarter of 2020.
GDI Integrated Facility Services (TSX:GDI)
Selected highlights from their third quarter 2021 review presentation on November 10, 2021
- Third quarter revenue of $ 408.4 million, an increase of $ 43 million over third quarter 2020
- Third quarter 2021 net income of $ 9.4 million, or $.41 per share
For the 9 months ended September 20, 2021
- Revenue reached $1.164 billion, an increase of $117.2 million, or 11.2%, over the corresponding
period of 2020. - Net income was $36.5 million or $1.59 per share compared to $31.0 million or $1.42 per share in the corresponding period of 2020.