Items that may only interest or educate me ….
Canadian Economic news, US Economic news, Cyber weekend, Passing of an investing giant, ChatGPT turns 1….
Well, that was quite the November to remember, wasn’t it? It has only been a day but the investor optimism that propelled the markets higher in November seems to have carried over to December as the S&P 500 had its best day of the year to keep the November rally rolling into December. This optimism largely stems from analysts’ belief that the central banks are finished raising rates. Talk has turned from when will the banks stop raising rates to when will they start lowering rates.
Hopefully investor confidence will provide a strong tailwind leading into the annual Santa Claus rally. The rally typically lasts from mid December to early January. During this period, the markets have performed well 75% of the time. Let us hope Santa Claus arrives early and stays late. 😊
Canadian Economic news
This past week’s key economic data that the Bank of Canada (BoC) considers when deciding whether to raise or lower the interest rate.
Gross Domestic Product
Statistics Canada’s latest report on the Canadian economy, as represented by Gross Domestic Product (GDP), showed the economy shrunk in the third quarter at an annualized rate of 1.1%, following a revised second quarter increase of 1.2%.
On a quarterly basis, GDP fell 0.3% after growing 0.3% in the second quarter. The main reason for the decline was the drop in exports of energy products, down 25.4%. The import of goods and services also fell, down 0.2%. An increase in the import of cars and trucks was more than offset by a decline in consumer products. These declines were partially offset by increases in government spending and investment in housing.
In September, GDP was up 0.1% after being flat in August. There was growth in 10 of the 20 sectors with the biggest gains coming in ‘Construction’, up 1.0%, and ‘Manufacturing’, up 0.9%. The biggest declines were in ‘Management of companies and enterprises’ and ‘Arts, entertainment and recreation’, down 6.6% and 2.1%, respectively. Year over year, GDP gained 0.6%. The biggest contributor was ‘Public administration’ (government spending) and ‘Healthcare’ The largest declines were seen in ‘Management of companies and enterprises’ down 35.8% and ‘Agriculture, forestry, fishing and hunting’, down 18.5%.
Its better than the flat growth reported in the second quarter, but a far cry from the US’s 5.2% growth (see US economic news, below). Fortunately, the preliminary data for October shows GDP growing by 0.2%. Technically Canada is not in a recession, but we are in danger of falling into a recession.
Labour Force Survey (LFS)
The LFS for November revealed 25,000 new jobs, exceeding analysts’ expectations of 15,000. This marked the second consecutive month of sluggish growth, around 0.1%. The ‘manufacturing’ sector saw the most significant monthly job increase (1.6%), while ‘natural resources’ experienced the largest decline in jobs (1.4%). Annually, the ‘transportation and warehousing’ sector saw the biggest gains, while ‘finance, insurance, and real estate’ suffered the most losses (2.6%).
Meanwhile, the unemployment rate continued its upward trend, rising from October’s 5.7% to 5.8%. This marks a 0.8% increase since April, aligning with the slowdown in job growth. The current rate is close to pre-pandemic levels but is predicted to rise further as businesses grapple with the effects of higher interest rates.
Notably, average hourly wages grew by 4.8%, mirroring the increase in October. This suggests that wage growth remains steady despite the economic slowdown. Unfortunately, it is also a sign of lingering inflation pressures.
The slowdown in job creation and rising unemployment corroborates the latest GDP report, indicating a decelerating Canadian economy.
Canadian market volatility
The Canadian Volatility Index (VIXC), represented by the TSX 60 VIXI, ended the week at 10.71, down considerably from last week’s reading of 13.06. Investors are becoming more bullish about the markets because of a growing belief that interest rates in Canada and the US have reached their peak. In the context of the VIXC, a reading above 20 is considered high, while below 20 is deemed low.
US Economic news
This past week’s key data points that the Federal Reserve (Fed) considers when deciding whether to raise or lower the interest rate.
Personal consumption expenditures
The latest Personal Consumption Expenditures (PCE) price index report revealed a continued slowdown in inflation. In October, headline PCE, or overall inflation, grew less than 0.1%, down from September’s 0.4% gain. This decline aligns with analysts’ forecasts. Year over year, Headline PCE rose 3.0%, again in line with analysts’ forecasts.
Core PCE (PCE excluding the volatile food and energy components), the Fed’s preferred inflation metric, edged up 0.2% in October, following a 0.3% increase in September. Annually, Core PCE climbed 3.5%, after a 3.7% gain in September. Both monthly and annual Core PCE figures indicate the pace of inflation is slowing.
Both headline and core inflation numbers are two-year lows. This continued deceleration in inflation provides further weight to the belief among analysts and investors that the Fed has reached the end of its rate hike cycle. In fact, some are suggesting that rate cuts may be coming sooner than previously anticipated. Their next meeting is scheduled for December 13-14, and it will be closely watched to see if they signal a change in their stance on monetary policy.
Gross Domestic Product
According to the Commerce Department’s Bureau of Economic Analysis, the American economy, as measured by Gross Domestic Product (GDP) grew at an annual rate of 5.2%. This was higher than analysts’ expectations of a 5.0% gain and better than the initial estimate of 4.9%.
The strong economy coincides with strong employment reports. When people are working, they have the money to spend and keep the economy rolling. For now, the higher interest rates are having little effect on the economy while inflation eases. It is looking more and more likely the US will be able to avoid a recession. Good news all around!
American market volatility
By the end of the week, the CBOE Volatility Index (VIX) rose to 12.65, up slightly from 12.46 the previous week. Investors are optimistic that the Fed will leave the benchmark rate unchanged leading them to feel bullish about the stock markets. The slight rise in the VIX suggests investors remain relatively unconcerned about volatility in the American stock markets.
Consumer Confidence Index
The latest reading from The Conference Board showed the Consumer Confidence Index (CCI), which measures consumers’ optimism about the state of the economy, increased to 102.0 in November from a downward revised 99.1 in October. Analysts had predicted a reading of 101.0. The increase followed three straight months of declines in the CCI, suggesting consumers are feeling more optimistic and confident about the economy.
With the holiday shopping season shifting into high gear, its great to hear consumer confidence is on the upswing. That ties in nicely with a recent survey from the National Retail Federation that suggests Americans plan to spend about 5% more this year.
Cyber weekend
In the US, the four day Cyber Weekend shopping holiday, from Black Friday through Cyber Monday, generated a record US$ 35.1 billion in online sales, up 7.8% compared to Cyber Week 2022. Black Friday generated US$ 9.8 billion in online sales, a 7.5% increase over a year ago, while Cyber Monday generated US$ 12.4 billion, a 10.1% increase over 2022. An additional US$ 5.6 billion of sales occurred on Thanksgiving while US$ 7.3 billion occurred over the weekend between Black Friday and Cyber Monday. Cyber Monday was the biggest online shopping day in US history.
Online consumer spending increased 7.8% during the Cyber Week frenzy, beating expectations of a 5.4% increase. Keep in mind that the Cyber Week sales figures only include online sales. If you were to include in-store sales, the total Cyber Week sales would be even higher. The holiday shopping was a reminder that retail sales remained strong despite uncertainty in the economy.
Overall, Cyber Week 2023 was a strong year for online retail, with shoppers spending more than ever before. The growth in Buy Now Pay Later (BNPL) usage and cross-border spending suggests that these trends will continue in the years to come.
Charlie Munger: Warren Buffet’s right-hand man
Berkshire Hathaway’s (NYSE: BRK.B) vice chairman Charles Thomas “Charlie” Munger passed away this past week at the age of 99.
Born in Omaha, Nebraska, on January 1, 1924, Munger embarked on a remarkable career, graduating from Harvard Law School in 1951. After practicing law for several years, he established his own investment firm, Wesco Financial Corporation, in 1959.
In what would be a transformational move, Munger joined Berkshire Hathaway in 1978 as vice chairman. Ever since, he has served as a trusted advisor to Warren Buffett, garnering widespread respect for his investment wisdom and profound understanding of human psychology. Buffett aptly described Munger as his closest confidant and right-hand man.
Together, Munger and Buffett orchestrated Berkshire’s transformation from a textile manufacturer into a diversified conglomerate, meticulously acquiring brands like Dairy Queen and Fruit of the Loom while growing stakes in other large public companies. As of the end of September 2023, Berkshire’s top five holdings were Apple (NASD: AAPL), Bank of America (NYSE: BAC), Chevron (NYSE: CVX), Coca-Cola (NYSE: KO), and American Express (NYSE: AXP). Not a bad basket of companies to own outright or partially.
Together they transformed Berkshire into one of the most successful and long-lasting business partnerships that resulted in a multi billion-dollar conglomerate with dozens of business units. Shareholders would annually flock to Omaha, Nebraska to attend Berkshire’s Annual General meeting to hear Buffet and Munger discuss the company and respond to shareholder questions.
Munger adhered to a value investing philosophy, advocating for buying stocks below their intrinsic value. He also embraced a contrarian approach, willingly purchasing stocks that had fallen out of favor with other investors. According to Buffett, Munger’s most significant contribution to Berkshire’s success was his insistence on prioritizing “wonderful businesses at fair prices” over the conventional wisdom of acquiring “fair businesses at wonderful prices.”
Munger’s contributions to the world of investing earned him widespread recognition. He was not only a member of the Forbes 400, an annual ranking of the 400 wealthiest Americans, but also an inductee into the Barron’s Hall of Fame, an award reserved for financial advisors with exceptional long-term performance. Moreover, he was bestowed with the Graham and Dodd Award, the highest honor bestowed upon value investors.
Munger’s legacy extends far beyond his investment acumen, encompassing his profound understanding of human behavior and his unwavering commitment to ethical conduct. His wit and wisdom, often expressed through his long, rambling speeches, captivated audiences worldwide. He was a true original, a man who left an indelible mark on the world of investing and beyond.
Happy birthday ChatGPT
OpenAI unveiled ChatGPT, a form of artificial intelligence (AI), to the public on November 30, 2022. Initially launched as a complimentary service, it swiftly gained traction, attracting over a million users within just two days. By January 2023, ChatGPT boasted over 100 million users, establishing itself as the fastest-growing consumer application to date. The latest iteration, GPT-4, rolled out in March 2023 as a paid subscription service.
ChatGPT transcends the boundaries of a conventional chatbot, like you see in online Help chat sessions. It has evolved into a sophisticated computer program capable of engaging in natural conversations. Unlike traditional chatbots that rely on predefined scripts and responses, ChatGPT possesses the remarkable ability to comprehend and respond to human queries in an engaging and conversational manner. Its capabilities extend beyond mere communication, encompassing the generation of diverse creative text formats, including poems, code, scripts, musical pieces, emails, and letters. Chatbots can produce text remarkably like human speech, but with access to a broader knowledge base and operating at a far swifter pace than their human counterparts.
While still under development, ChatGPT has mastered a wide range of tasks, including:
- Providing informative answers to questions, regardless of their open-ended, challenging, or unusual nature.
- Diligently following instructions and completing requests quickly.
ChatGPT version 3.5, accessible with limited features at no cost, utilizes knowledge derived from pre-existing data up to September 2021. Consequently, it may lack information on recent events, developments, or changes. GPT-4, offered as a subscription service, boasts real-time access to the internet and the capability to generate AI images.
A year has elapsed since ChatGPT’s public debut, and during that time, it has evolved into a powerful tool with diverse applications. With its potential to revolutionize human-computer interaction, ChatGPT has ignited the race for AI market share among the technology giants. AI has become the technology world’s darling, propelling the share prices of companies that provide AI products or services ever higher. Prior to the AI frenzy, I was fortunate to invest in several heavyweight technology companies. While I would love to claim far sightedness in recognizing AI’s emergence and the subsequent benefits for these companies, it was primarily a stroke of luck.
AI stands at its infancy, and the future holds exciting possibilities. Will AI enhance productivity and simplify our lives, or will it morph into SkyNet, wreaking catastrophic harm on humanity? The answer lies in the hands of responsible developers, users, and the passage of time.
One birthday, one passing. Let’s see what else happened this past week….
Weekly Market Review
Monday: All four major North American indexes – the Toronto Stock Exchange Composite Index (TSX), the S&P 500 Index (S&P), the Dow Jones Industrial Average (DJIA), and the Nasdaq Composite Index (Nasdaq) – ended in the red. Investors were busy spending money on Cyber Monday, it just was not in the stock markets today. Elsewhere, the latest economic data out of China called into question the health of that country’s economy. Oil prices fell ahead of an OPEC+ meeting.
In Canada, lower oil prices overwhelmed the optimism caused by record cyber weekend sales to drag the TSX lower. This week Canada’s big banks present their fourth quarter earnings. Investors expect higher bad debt provisions to lead to another quarter of lower profits. In the Canadian sectors, Technology, Basic Materials (miners and fertilizer manufacturers) and Consumer Staples were the only ones to advance. Energy and Industrials dropped the most.
In the USA, investors took another pause after a fourth consecutive week of weekly gains as they prepare for more key inflation data later this week. In the American sectors, Utilities was the only sector to post a gain, while Healthcare and Energy experienced the biggest declines.
Tuesday: a rollercoaster day that saw all four indexes swing above and below the break-even line before they all finished in positive territory. After the November rally investors are trying to determine if there is more to the rally or if its overdone and a pullback is coming. Oil prices rose ahead of an upcoming OPEC+ meeting where additional supply cuts are expected to be announced.
In Canada, the TSX barely made it into positive territory after the first of Canada’s big banks, the Bank of Nova Scotia (TSE: BNS) missed profit expectations due to higher loan provisions. The loss in the Financials sector was offset by the higher oil prices, which pulled oil companies higher. In trading, only Basic Materials and Energy ended higher, while Consumer Staples and Financials fell the most.
In the US, investors are trying to decide what the Fed is thinking after one member said she thought the interest rate would have to go higher, while another member thought the current rate was appropriate to get inflation down to 2%, depending on the economic data. With key economic data out later this week, investors were reluctant to boldly move back into the markets. In trading, Basic Materials and Technology recorded the biggest gains, while Healthcare and Industrials were the only sectors to decline.
Wednesday: another mixed day in the markets with the TSX and DJIA finishing higher while the S&P and Nasdaq ended barely below the breakeven line. Investors were processing more mixed messages from Fed officials. One cautioned about keeping rates “too high for too long”, while another was “skeptical” inflation was headed towards the 2% target without another rate hike.
In Canada, investor optimism in the US about the end of rate hikes spilled into Canada, pushing the interest sensitive sectors higher. Another good day for energy companies as they saw their share prices follow oil prices higher. In trading on Bay Street, Financials and Industrials had the biggest gains while Telecommunications Services and Utilities suffered the biggest losses.
In the US, today’s GDP report showed the economy grew faster than forecast. Data from the same report also suggested that inflation was on a downward trend. Both are good news for consumers and investors. In trading on Wall Street, Financials and Telecommunications Services posted the biggest gains, while Consumer Staples and Utilities posted the biggest declines.
Thursday: the last day of a red-hot November ended with another mixed day. The DJIA, TSX and the S&P finished the day in the green. Investors continue to believe the Fed has finished raising the US benchmark rate after the Fed’s preferred measure of inflation showed inflation continues to fall. Oil prices dipped slightly after OPEC+ members agreed to voluntarily cut production by one million barrels per day (BPD). Saudi Arabia also extended their existing production cut of one million bpd, to bring the total reduction to approximately two million bpd. With a reduction in supply of that size, we are likely to see higher prices at the pump. ☹
In Canada, the TSX finished off its best month in three years. Positive earnings reports from two of Canada’s big banks combined with news indicating Canada’s GDP grew in October pushed the index higher. Trading in the Canadian sectors was led higher by Telecommunications Services and Financials, while Consumer Staples and Technology declined the most.
In the USA, the DJIA closed at its highest point of the year and all three indexes posted their best monthly performance of 2023. Healthcare and Financials were the best performers in the American sectors, while Technology and Consumer Cyclicals were the worst performers on the day.
Friday: after a shaky start to the trading day, the indexes found their footing and resumed their upward momentum, starting December moving in the right direction. At a speaking engagement, Fed Chair Jerome Powell said it was clear the higher interest rates were having the desired effect on inflation. However, he warned that it was too early to conclude rate hikes were finished or to speculate when interest rates could start to fall. His comments only seemed to reinforce investors’ belief that rate hikes were at an end. Oil prices continued their downward drift.
In Canada, the TSX closed at its highest point since mid September as investors believe rate cuts are coming in 2024. In trading, it was a day of broad-based gains in the Canadian sectors. Telecommunications Services and Industrials posted the biggest gains while Energy and Consumer Staples made the smallest gains.
In the US of A, investor optimism pushed the S&P to its highest closing level of 2023 and the Nasdaq rebounded from yesterday’s pullback. In trading, it was a good day for the American sectors with all sectors in the green, led by Basic Materials and Industrials. Bringing up the rear were Energy and Technology.
Weekly Market and Portfolio Review
For the week, the TSX (SPTSX) advanced 1.7%, the S&P 500 (SPX) added 0.8%, the DJIA (INDU) surged 2.4% and the Nasdaq (CCMP) climbed 0.4%.
| Index | Weekly Streak |
| TSX: | 1-week winning streak |
| S&P: | 5-week winning streak |
| DJIA: | 5-week winning streak |
| Nasdaq: | 5-week winning streak |
As shown in the chart above, it was another good week in the markets with all four major North American indexes ending the week in positive territory. It was good news on the economic front this past week as the Fed’s preferred inflation gauge, Core PCE, continued to show signs of slowing. As well, recent data has shown consumer spending has slowed, the job market is cooling, and inflation continues to fall. Analysts now see an economic soft landing as achievable rather than the recession many predicted. All of this has investors confident that the Fed might soon pause or even reverse its rate hike cycle.
The DJIA was propelled to a yearly high by broad gains across many of its components, particularly its medical, industrial, and financial components. The S&P also reached its highest point of the year, fueled by investor optimism that rate hikes were finished. Investor confidence overcame mixed earnings from Canada’s big banks to lift the TSX back into positive territory for the week. Finally, a Friday surge was able to extend the Nasdaq’s weekly win streak to five weeks.
I hope the weekly advances become a full-on nine reindeer Santa Claus rally. 😊
All portfolios enjoyed another week in the green, as you can see in Chart 1 below, fueled by a rising market. Portfolio 1, though weighed down by drops in its five technology giants, still managed a gain, thanks to impressive performances from Global-E (NASD: GLBE), General Motors (NYSE: GM), and CrowdStrike (NASD: CRWD) – all up over 10% each!
Portfolio 2 and 3 tied for the biggest weekly gains. No single stock in either portfolio made a large move up or down, driven by steady, solid growth riding the overall positive market tailwind.
Monthly Market and Portfolio Review
November was a great month for the indexes. The TSX (SPTSX) gained 7.2%, the S&P 500 (SPX) rose 8.9%, the DJIA (INDU) advanced 8.8% and the Nasdaq (CCMP) jumped 10.7%.
November saw a dramatic turnaround in the markets, with all four indexes experiencing strong gains for the month, as shown in the chart above. This marked a significant rebound from the October gloom, fueled by a combination of positive factors.
A stronger-than-expected earnings season provided a strong foundation for the rally. Falling inflation added further momentum, coupled with growing optimism that interest rates in Canada and, especially, the US are nearing their peak. Recent economic data and comments from Fed officials have bolstered this optimism, leading analysts, and investors to believe that rate cuts may be on the horizon as inflation continues to slow down in both countries.
The S&P had one of the best performances in the past decade, as investors bet the Fed could finally be done raising interest rates. The DJIA had its best month since October 2022, while the S&P and the Nasdaq’s had their best monthly gains since July 2022. As for the TSX, it had its best month since November 2021.
As momentum increases, be it up or down, the harder it is to stop. In the case of November in the stock markets, momentum was definitely upward, and investors are coming back into the markets to avoid missing out on the rally. Inflation going down equals stocks going up. 😊
As good a month as it was for the indexes, if was even better for the portfolios, particularly Portfolio 3, as shown in Chart 2 below. The month got off to a fast start and continued throughout November. There was only one week where one of the portfolios, Portfolio 1, did not advance. Otherwise, each portfolio posted a weekly gain, every week. Much better than October!
Portfolio 1 rode the tailwind of its Magnificent 7 companies Alphabet (NASD: GOOGL), Amazon (NASD: AMZN), Apple, Nvidia (NASD: NVDA) and Tesla (NASD: TSLA). Its one losing week was weighed down by a drop in Nvidia’s share price when it delayed the shipment of AI chips for China. Portfolio 2 was propelled by the overall rise in the markets, in particular its one Magnificent 7 member company Microsoft (NASD: MSFT). Last, but certainly not least, Portfolio 3 had an outstanding month. It also benefitted from the rising markets, but it received an additional boost thanks to a jump of 47% in Shopify’s share price in November.
Please sir, I want more! 😊
Monthly Portfolio & Index performance for November, 2023.
Companies on the Radar
I made some changes to my radar list this past week. Gone are Stantec (TSE: STN) and Uber (NYSE: UBER). New to the list are Cognizant Technology Solution (NASD: CTSH) and Decisive Dividend Corporation (TSXV: DE).
Cognizant is a large cap American professional services company. They provide consulting and outsourcing services to clients throughout the world. I am intrigued by their exposure to AI, and robotics, among other areas, in a few areas including Financials, Healthcare and Technology.
Decisive is a small cap Canadian company involved in several manufacturing areas. The company typically acquires existing profitable manufacturers from owners/founders who are looking to retire and sell their company to someone who will continue to grow and build the business. I like the idea of acquiring small, successful businesses and helping them grow. It reminds me of how Berkshire Hathaway grew to be the conglomerate it is today. I also like the 6+% dividend at today’s share price. 😊 Decisive has lots of room to grow, and along the way it pays a healthy monthly dividend.
These two companies join the six holdovers from last week:
- PHX Energy Services (TSE: PHX) a small Canadian company that provides drilling technology and services to oil and natural gas exploration companies throughout the world, but mainly in North America.
- Toll Brothers Inc. (NYSE: TOL), a mid size American company that builds luxury homes throughout the US.
- McDonald’s (NYSE: MCD), the large cap American fast-food chain.
- TFI International Inc. (TSE: TFII), a mid-sized Canadian transportation and logistics company operating across North America.
- Celestica Inc. (TSE: CLS), a medium sized Canadian company that manufactures electronic products and provides supply chain services to companies around the world.
- MTY Food Group Inc. (TSE: MTY), a small cap Canadian consumer cyclical company that operates and franchises quick service and casual dining restaurants throughout North America and internationally.
The Radar Check was last updated December 1, 2023.
Portfolio Update
Portfolio 1
Portfolio 1 for the week ended December 1, 2023: UP 
- Berkshire Hathaway sold its 2.5% stake in the Indian digital payments provider Paytm for $164 million.
Berkshire’s vice Chairman Charlie Munger passed away at the age of 99. - Amazon announced their latest chip designed specifically for its Amazon Web Services cloud based artificial intelligence (AI) services – the Trainium2. Amazon says it is four times faster than its predecessor and twice as energy efficient.
- To show it can generate cash, and lots of it, General Motors announced it plans to buy back up to US$ 10 billion worth of its shares. That would be GM’s largest ever stock buyback program. In another shareholder friendly action, GM increased its dividend by 33% to US$ 0.12, starting in 2024. As a shareholder, both are good news. Now, about the share price…..
- Alphabet’s Google business unit reached an agreement with the Canadian government to pay Canadian news companies for links to their content. Google will pay C$ 100 million into a fund that will go towards supporting the Canadian news business. Part of the agreement allows Google to only deal with a single group representing all Canadian news organizations rather than having to deal with each news company individually.
- Telus (TSE: T) and BCE’s (TSE: BCE) Bell division acquired new 3800 MHz spectrum licences nationwide. The new spectrum will allow them to provide faster wireless speeds with greater capacity in order to provide the next generation of 5G services.
- Canada’s second largest bank, Toronto Dominion (TSE: TD) announced they took a C$ 266 million after tax restructuring charge in their fourth quarter when they eliminated 3,000 positions.
- Tesla delivered their first twelve Cybertrucks this week, however, the company doesn’t expect to start regular deliveries of the all-wheel drive edition and the Cyberbeast (extended range) version until 2024, and the base model in 2025. Prices for the Cybertruck will start at US$60,990, 50% more than the company initially said it would in 2019. Investors were not impressed as the share price of Tesla stock dropped.
Activity
Received interest on TD 1-year cashable GIC.
Sold: Copperleaf Technologies (TSE: CPLF). Getting got up in the 2021 bull market, I added Copperleaf Technologies to my portfolio, hoping it would follow the trajectory of other Canadian technology companies that experienced rapid share price appreciation upon going public. Initially, my optimism seemed justified. Copperleaf’s share price did rise, mirroring the trend of other newly public Canadian tech companies like Nuvei (TSE: NVEI) and Lightspeed (TSE: LSPD). However, while Nuvei and Lightspeed have seen their share prices partially recover from the subsequent market downturn in 2022, Copperleaf’s share price has only moved lower over the past 2.5 years. As my interest in the company waned and I started to rebalance the portfolio, Copperleaf became a casualty of my decision to prune non-performing holdings.
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 $
TMX Group Ltd (TSE: X)
US $
Visa Inc (NYSE: V)
Quarterly Reports
Bank of Nova Scotia
All currency listed in millions of Canadian dollars, except for per share data.
Selected highlights from their fourth quarter 2023 financial results on November 28, 2023
- Revenue of $8,308 for the three months ended October 31, compared to $7,626 for the same period in 2022. An increase of almost 9%.
- Net income of $1,385 for the three months ended October 31, compared to net income of $2,093 in the same period in 2022.
- Diluted earnings per ordinary share of $1.02 for the three months ended October 31, compared to earnings of $1.63 per share for the same period in 2022.
- Revenue of $32,307 for the twelve months ended October 31, compared to $31,416 for the same period in 2022. An increase of almost 3%.
- Net earnings of $7,528 for the twelve months ended October 31, compared to net earnings of $10,174 in the same period in 2022.
- Diluted earnings per ordinary share of $5.78 for the twelve months ended October 31, compared to earnings of $8.02 per share for the same period in 2022.
Nano-X Imaging Ltd.
All currency listed in thousands of US dollars, except for per share data.
Selected highlights from their third quarter 2023 financial results on November 28, 2023
- Revenue of $2,479 for the three months ended September 30, compared to $2,438 for the same period in 2022. An increase of almost 2%.
- Net loss of $21,403 for the three months ended September 30, compared to a net loss of $19,126 in the same period in 2022.
- Diluted loss per ordinary share of $0.37 for the three months ended September 30, compared to a loss of $0.37 per share for the same period in 2022.
- Revenue of $7,508 for the nine months ended September 30, compared to $6,446 for the same period in 2022. An increase of over 16%.
- Net loss of $50,528 for the nine months ended September 30, compared to a net loss of $60,406 in the same period in 2022.
- Diluted loss per ordinary share of $0.90 for the nine months ended September 30, compared to a loss of $1.16 per share for the same period in 2022.
CrowdStrike Holdings, Inc.
All currency listed in thousands of US dollars, except for per share data.
Selected highlights from their third quarter 2023 financial results on November 28, 2023
- Revenue of $786,014 for the three months ended September 30, compared to $580,882 for the same period in 2022. An increase of over 35%.
- Net income of $26,669 for the three months ended September 30, compared to a net loss of $54,631 in the same period in 2022.
- Diluted earnings per ordinary share of $0.11 for the three months ended September 30, compared to a loss of $0.24 per share for the same period in 2022.
- Revenue of $2,210,220 for the nine months ended September 30, compared to $1,603,869 for the same period in 2022. An increase of almost 38%.
- Net earnings of $35,644 for the nine months ended September 30, compared to a net loss of $135,764 in the same period in 2022.
- Diluted earnings per ordinary share of $0.15 for the nine months ended September 30, compared to a loss of $0.58 per share for the same period in 2022.
Toronto-Dominion Bank
All currency listed in millions of Canadian dollars, except for per share data.
Selected highlights from their fourth quarter 2023 financial results on November 30, 2023
- Revenue of $13,121 for the three months ended October 31, compared to $15,563 for the same period in 2022. A decrease of almost 16%.
- Net income of $2,886 for the three months ended October 31, compared to net income of $6,671 in the same period in 2022.
- Diluted earnings per ordinary share of $1.49 for the three months ended October 31, compared to earnings of $3.62 per share for the same period in 2022.
- Revenue of $50,492 for the twelve months ended October 31, compared to $49,032 for the same period in 2022. An increase of almost 3%.
- Net earnings of $10,782 for the twelve months ended October 31, compared to net earnings of $17,429 in the same period in 2022.
- Diluted earnings per ordinary share of $5.60 for the twelve months ended October 31, compared to earnings of $9.47 per share for the same period in 2022.
Portfolio 2
Portfolio 2 for the week ended December 1, 2023: UP
- TC Energy (TSE: TRP) anticipates their core earnings for 2024 to be 5% – 7% higher than this year. They already have contracts for 94% of their Keystone pipeline capacity which ships oil from Alberta to refineries in the American Midwest.
- MongoDB (NASD: MDB) announced the integration of their MongoDB Atlas Vector Search service with Amazon Web Services’ Bedrock service. The integration should make it easier for joint customers to build better, more secure AI applications.
- It appears Disney (NYSE: DIS) is heading for a proxy fight after Disney rejected activist investor Nelson Peltz’s request for seats on Disney’s Board of Directors. Peltz is not impressed with the changes Disney has made to the Board and plans to nominate their own candidates for the next election of directors.
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 $
Fortis Inc (TSE: FTS)
US $
No US$ dividends this past week.
Quarterly Reports
Bank of Nova Scotia
See report under Portfolio 1.
Alimentation Couche – Tard Inc.
All currency listed in millions of US dollars, except for per share data.
Selected highlights from their second quarter 2024 financial results on November 28, 2023
- Revenue of $16,425.6 for the twelve weeks ended October 15, compared to $16,879.5 for the twelve weeks ended October 9, 2022. A decrease of almost 3%.
- Net income of $819.2 for the twelve weeks ended October 15, compared to net income of $810.4 for the twelve weeks ended October 9, 2022.
- Diluted earnings per ordinary share of $0.85 for the twelve weeks ended October 15, compared to earnings of $0.79 per share for the twelve weeks ended October 9, 2022.
- Revenue of $32,048.8 for the twenty-four weeks ended October 31, compared to $35,537.2 for the twenty-four weeks ended October 9, 2022. A decrease of almost 10%.
- Net earnings of $1,653.3 for the twenty-four weeks ended October 31, compared to net earnings of $1,682.8 for the twenty-four weeks ended October 9, 2022.
- Diluted earnings per ordinary share of $1.70 for the twenty-four weeks ended October 31, compared to earnings of $1.64 per share for the twenty-four weeks ended October 9, 2022.
Portfolio 3
Portfolio 3 for the week ended December 1, 2023: UP
- The good news, Shopify’s (TSE: SHOP) merchants (customers) profited big time on Black Friday, making 22% more in sales than in 2022. The better news for us Shopify shareholders, investors pushed the company’s share price reached its highest level since March 2022.
- Brookfield Asset Management raises (TSE: BAM) announced they had raised $28 billion for their global infrastructure fund. The money raised will be used for investment in infrastructure assets throughout the world.
- Already changes can be seen at OpenAI following the ouster and return of Chief Executive Officer Sam Altman. Microsoft now has a nonvoting board seat at OpenAI. Given that they unofficially own 49% of OpenAI, I am surprised they did not get more.
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 $
Enghouse Systems Ltd (TSE: ENGH)
Royal Bank of Canada (TSE: RY)
US $
No US$ dividends this past week.
Quarterly Reports
Royal Bank of Canada
All currency listed in millions of Canadian dollars, except for per share data.
Selected highlights from their fourth quarter 2023 financial results on November 30, 2023
- Revenue of $13,026 for the three months ended October 31, compared to $12,567 for the same period in 2022. An increase of almost 4%.
- Net income of $4,131 for the three months ended October 31, compared to net income of $3,882 in the same period in 2022.
- Diluted earnings per ordinary share of $2.90 for the three months ended October 31, compared to earnings of $2.74 per share for the same period in 2022.
- Revenue of $56,129 for the twelve months ended October 31, compared to $48,985 for the same period in 2022. An increase of over 14%.
- Net earnings of $14,886 for the twelve months ended October 31, compared to net earnings of $15,807 in the same period in 2022.
- Diluted earnings per ordinary share of $10.50 for the twelve months ended October 31, compared to earnings of $11.06 per share for the same period in 2022.
Toronto-Dominion Bank
See report under Portfolio 1.