This past week, with a lull in economic news, corporate earnings captured the spotlight – and they certainly delivered. Fueling investor optimism further were the revised US Consumer Price Index numbers for December, indicating lower inflation than initially reported. This shift has led investors to speculate about the potential for the Federal Reserve to lower US interest rates sooner rather than later. Despite these positive signals, it wasn’t all smooth sailing. The TSX faced challenges as concerns grew over the possibility of sustained high interest rates.
Let’s see how these events moved the markets and influenced the portfolios.
Items that may only interest or educate me ….
Canadian Economic news, US Economic news, Time for a change in the Magnificent 7? ….
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.
Bank of Canada monetary policy notes
The Bank of Canada’s governing council recently disclosed the deliberations from their monetary policy meeting on January 24, crucial for setting Canada’s benchmark interest rate.
During this meeting, the six-member council evaluated the global economic situation, noting that global economic growth has slowed less than anticipated, thanks in part to a stronger-than-expected US economy. While US consumer spending has remained robust, it is anticipated to slow as higher interest rates begin to dampen spending. In Europe, although economic growth has been mild, it is expected to recover over the next two years. Globally, inflation has decreased, primarily due to lower oil prices, and is projected to reach the 2% target set by numerous central banks.
Domestically, the council agreed that elevated interest rates have moderated consumer spending and job openings have reverted to pre-pandemic levels. However, the persistence of high wage growth, in the absence of productivity improvements, poses a challenge. Inflation, primarily driven by rising shelter costs such as mortgages and rents, remains above 3%. The council projects inflation to stay around 3% until the latter half of 2024 before it starts to taper off, aiming for the 2% target by 2025.
Choosing to maintain the interest rate at 5%, the council expressed concerns that underlying price pressures, like wage increases and shelter costs, could potentially send inflation higher. The consensus was to avoid prematurely reducing rates to avoid future hikes if the inflation trends reverse.
While they did not rule out another rate hike, the council’s future discussions are expected to center on how much longer they should maintain the current rate. They were unsure on the timing of a future rate cut.
In summary, interest rates are set to remain unchanged for the near term. However, in a recent BoC survey, market participants anticipate the rate to start falling from the 22-year high of 5% following the bank’s meeting on April 10. Lets hope the market participants are right. 😊
Labour Force Survey (LFS)
The January Labour Force Survey (LFS) released by Statistics Canada revealed positive developments in the Canadian job market. The economy added 37,000 jobs, significantly exceeding analyst expectations of 15,000 new jobs. This stronger than expected gain reflects a 0.4% monthly increase in employment, and 3.1% increase on an annual basis.
Furthermore, the unemployment rate declined to 5.7% in January, down from 5.8% the previous month and exceeding analyst expectations of a slight uptick to 5.9%. This represents the first decrease in unemployment since December 2022.
Average hourly wages rose by 5.3% on an annual basis after rising 5.4% in December. While this growth remains above the BoC’s target, the slight deceleration offers a potential sign of easing wage pressures. Higher wages tend to put upward pressure on inflation.
A strong labour report, a falling unemployment rate and persistent wage growth provides some breathing room for the BoC to maintain the current interest rate. The stronger than expected employment suggests the BoC will maintain the rate through April and the first cut will not occur until June. With these promising signs of economic growth, it will be interesting in the coming months to see if Canada’s job market continues to grow or if this is just a temporary upswing.
Canadian market volatility
In the great white north, the pulse of the Canadian stock markets – often measured by the ‘fear gauge,’ known as the VIXC, and represented by the TSX 60 VIXI – remained calm, ending the week at 11.05. This is a slightly more relaxed than the previous week’s 11.63. For those new to the term, the VIXC measures market volatility; think of it as the market’s heartbeat, where higher numbers mean more anxiety, and lower ones indicate confidence. This dip in the VIXC reflects a week of strong earnings reports across various sectors, including technology and energy.
With the ‘fear gauge’ readings typically considered ‘high’ above 20 and ‘low’ below 20, the current 11.05 positions the Canadian markets firmly in the low volatility zone. This suggests that investors are feeling pretty good about the Canadian markets’ prospects.
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.
Consumer Price Index (CPI)
Revisions to the December 2023 Consumer Price Index (CPI) report show that prices rose slightly less than originally reported. The overall CPI, also known as headline CPI, increased 0.2% instead of 0.3%, while core CPI, which excludes the volatile energy and food costs, remained unchanged at 0.3%. This downward revision suggests a slightly reduced pace of inflation in December.
American market volatility
Wall Street continues to breathe easy as the CBOE Volatility Index (VIX), better known as the “fear gauge,” settled at 12.93 to end the week, marking a drop from its 13.85 reading the previous week. This decline echoes the positive investor sentiment following a solid week of corporate earnings reports, confirming investor confidence and market stability. Notably, the current VIX sits well below its long-term average of 20, indicating that investors anticipate significantly less volatility ahead compared to historical trends. While fluctuations are always possible, the VIX’s current low suggests smoother sailing for the markets in the near future.
Time for a change in the Magnificent 7?
It is fascinating to see how quickly the investing landscape can change in just a year. Think back to last year when the ‘Magnificent 7’ – Alphabet (NASD: GOOGL), Amazon.com (NASD: AMZN), Apple (NASD: AAPL), Meta Platforms (NASD: META), Microsoft (NASD: MSFT), Nvidia (NASD: NVDA), and Tesla (NASD: TSLA) – were at the forefront, propelling the S&P 500 to an impressive 24% gain for 2023. Fast forward to today, and the dynamic has shifted somewhat, with only a subset of these tech giants continuing to drive significant growth.
As of close of the North American markets on February 9, we have seen notable performances from four of these companies: Nvidia is leading the pack with a remarkable 45.7% increase, followed by Meta at 32.2%, Amazon at 14.8%, and Microsoft with a solid 11.8% gain. These four have collectively contributed to the bulk of the S&P’s 5.4% gain year-to-date. On the other hand, Alphabet has seen a modest increase of 6.7%, while Apple has declined slightly by about 1.9%, and Tesla has experienced a significant drop of nearly 22.1%.
This shift prompts a reflection on whether the title “Magnificent 7” still fits or if a rebranding might be in order. Given the current performance, “Fantastic 4” could be a more fitting moniker, focusing on those truly driving growth. Alternatively, if we are inclined to include Alphabet in the mix for its positive, albeit modest, contribution, “Fantastic 5” might be a suitable update.
Another perspective could involve refreshing the lineup while retaining the “Magnificent 7” name, retaining the top four or five Magnificent 7 companies, and incorporating large companies like Berkshire Hathaway (NYSE: BRK.B) up 11.9%, and Eli Lilly (NYSE: LLY) up 27%, currently ranked 8th and 9th in weighting in the S&P. This approach would not only maintain the spirit of the original name but also introduce a level of diversification reflective of the evolving market dynamics.
Whether sticking with the status quo or considering a new lineup, it is clear that the tech giants continue to play a pivotal role in shaping the direction of the S&P 500. And I am glad I own six of the current Magnificent 7. 😊
Not much economic news this past week, as a result, market movement was largely a result of corporate earnings. Let’s see how they impacted the markets this past week….
Weekly Market Review
Monday: the markets kicked off the new week with all four indexes ending the day in the red. Driving the markets downward was comments made by Fed Chair Jerome Powell when he appeared on “60 Minutes.” He reiterated that the Fed would move cautiously on deciding when to start lowering the benchmark US interest rate. In other words, the Fed was in no hurry to cut the rate. Oil prices increased due to supply concerns in the Middle East.
In Canada, the Toronto Stock Exchange Composite Index (TSX) was weighed down by weak commodity prices and the diminishing chances of an interest rate cut in the US. In trading, every sector ended in the red. Dropping the least were Industrials and Consumer Cyclicals, while Technology and Basic Materials (miners and fertilizer manufacturers) were the deepest in the red.
In the US, the three main American indexes – the S&P 500 Index (S&P), the Dow Jones Industrial Average (DJIA), and the Nasdaq Composite Index (Nasdaq) – were knocked down as investors come to realize interest rates will not be coming down in March. With interest rates remaining high, treasury bond yields started to rise. In trading, Healthcare and Technology were the only two sectors to end in the green, while Basic Materials were the deepest in the red.
Tuesday: the indexes were up and down like a yoyo all day before a late session rally pushed all four into the green. Moving the markets today were mixed quarterly reports and comments from members of the Fed and the BoC. Oil prices crept higher on news the US Energy Department stated crude oil production would not grow as fast as they earlier predicted.
In Canada, BoC governor Tiff Macklem said more time was required to let the higher rate continue to drive down prices. In trading, it was a day of broad-based gains in the Canadian sectors, led by Healthcare and Financials. Technology was the only sector to end in the red.
In the US, Fed officials separately echoed Fed Chair Powell’s earlier comments that the Fed was not ready to declare the battle with inflation was over, and it was too early to suggest when rates might start to fall. However, one member said the economy was on the path to a soft landing, where higher rates cause inflation to fall back to 2% without the economy going into a recession. In trading, Basic Materials and Healthcare were the big gainers, while Telecommunications Services and Technology were the only sectors to end in the red.
Wednesday: all four indexes ended higher today after another Fed official said the Fed was in no hurry to lower the US interest rate. However, she said the Fed was getting closer to it 2% target and rate cuts could occur “later this year.” Oil prices continued their climb as concerns about supplies from the Middle East continue to lift the price.
In Canada, the TSX ended the session barely in the green. Technology and Industrials were the only sectors to end higher, while Utilities and Healthcare were the farthest in the red of the remaining sectors.
In the US, strong quarterly earnings reports helped the S&P close at another record high and is quickly closing in on the 5,000 mark for the first time ever. In trading, the Technology and Industrials were the best performers, while Telecommunications Services and Consumer Staples and Energy were the only sectors to slip lower.
Thursday: After a slow start that saw all four indexes in the red, the markets rallied in the afternoon to send all three American indexes into the green while the TSX fell short. A mixed bag of earnings results was the main driver of the indexes today. Oil prices rose after Israel rejected a Hamas ceasefire proposal.
In Canada, the TSX fell as investors come to grips with Canadian interest rates remaining higher for longer. In trading, Technology and Energy were the leading Canadian sectors, while Telecommunications Services and Utilities suffered the biggest declines.
In the USA, upbeat earnings lifted the S&P to another record high, briefly breaking the 5,000-point level for the first time ever before closing slightly below the mark. The DJIA also set a new high. In trading in the American markets, Energy and Consumer Cyclicals posted the biggest gains, while Telecommunications Services and Utilities dropped the most.
Friday: a mixed day in the markets that saw the DJIA as the only index to end the day in the red. A revision to US December inflation data showed inflation fell more than initially reported, causing investors to believe the US interest rate may start to fall sooner rather than later in 2024. Oil prices continued to rise on supply concerns because of ongoing tensions in the Middle East.
In Canada, a strong jobs report for January and upward momentum from the US markets lifted the TSX into positive territory to close at its highest level in one week. In trading on Bay Street, the Technology and Industrials sectors drove the index higher, while Consumer Cyclicals dropped the most.
In the US, the combination of positive inflation news with more strong earnings reports gave investors reason to celebrate, sending the technology heavy Nasdaq briefly above the 16,000 level and the S&P to close over the 5,000 mark for the first time ever. In trading on Wall Street, the American sectors were led higher by Technology and Consumer Cyclicals. Energy and Consumer Staples were the only two sectors to end lower.
Weekly Market and Portfolio Review
For the week, the TSX (SPTSX) slipped 0.4%, the S&P 500 (SPX) advanced 1.4%, the DJIA (INDU) was flat, and the Nasdaq (CCMP) gained 2.3%.
| Index | Weekly Streak |
| TSX: | 2-week losing streak |
| S&P: | 5-week winning streak |
| DJIA: | 5-week winning streak |
| Nasdaq: | 5-week winning streak |
After comments from Federal Reserve members momentarily halted the momentum, corporate earnings took center stage to reignite the upward trend. The earnings reports did not disappoint. They were not only better than expected but also demonstrated a remarkable consistency that propelled American markets to new heights, as illustrated in the accompanying chart above. Adding to the optimism were inflation figures for December, which showed a smaller increase than previously reported, leading investors to anticipate a potential cut in US interest rates sooner rather than later.
This week marked a milestone as the S&P 500 crossed the 5,000 mark for the first time, establishing a new record high. The DJIA also reached a record level. Despite a seemingly stagnant performance, the DJIA managed a modest gain of 0.04% over the week, subtly extending its winning streak. The Nasdaq briefly surpassed 16,000 before settling just shy of it, approaching its all-time high set in November 2021.
Conversely, the TSX experienced a minor setback despite an uptick in oil prices. The index was affected by falling commodity prices and a robust Canadian employment report, which revealed job growth significantly exceeding expectations. While a strong job market is beneficial for the economy, it reduces the urgency for the Bank of Canada to lower the benchmark interest rate—a move many investors had been hoping would happen sooner rather than later.
Overall, the gains of the American indexes easily compensated for the TSX’s minor slip. Hopefully, next week’s US CPI report shows inflation continuing to drop, opening the door for the Fed to lower the US interest rates in the late spring. The thought of rate cuts would certainly give investors something to get excited about, and most likely send all four indexes higher and into the win column. 😊
| Portfolio | Weekly Streak |
| Portfolio 1: | 6-week winning streak |
| Portfolio 2: | 6-week winning streak |
| Portfolio 3: | 1-week winning streak |
This week marked a strong performance for all three portfolios, each topping the best performing index, the Nasdaq, as illustrated in the accompanying chart below. Portfolio 1 stood out as the top performer, driven by significant gains (share price changes greater than 10% up or down) in the technology sector. Cloudflare (NYSE: NET) led with a remarkable 31% increase, followed by notable advances in semiconductor firms: Lattice Semiconductor (NASD: LSCC) surged by 12%, Navitas Semiconductor (NASD: NVTS) by 19%, and indie Semiconductor (NASD: INDI) by 25%. Other contributors included Celsius Holdings (NASD: CELH) with a 12% uplift and Nuvei (TSE: NVEI) with an 11% rise. However, a 25% decline in Lightspeed Commerce Inc (TSE: LSPD) tempered Portfolio 1’s overall gain. Additionally, Nvidia and CrowdStrike reached new all-time highs, with Amazon hitting a 52-week peak.
Portfolio 2 also enjoyed a good week, propelled by MongoDB (NASD: MDB) and Disney (NYSE: DIS), which saw increases of 13% and 10%, respectively. Microsoft’s climb to an all-time high further boosted this portfolio’s performance.
Portfolio 3, though slightly lagging behind its counterparts, still fared well. Alongside Cloudflare’s impressive rally, it benefited from Adyen’s (NASD: ADYEY) 24% jump, and a 10% rise in Shopify’s (TSE: SHOP) share price, rounding off a week that saw all three portfolios grow in value.
Companies on the Radar
This week, the radar list is undergoing a refresh, welcoming Brown & Brown (NYSE: BRO) and bidding farewell to Kinaxis (TSE: KXS). Both Kinaxis and Celestica (TSE: CLS) operate within the supply chain sector. However, I prefer Celestica because in addition to offering supply chain solutions, it also manufactures electronic devices integral to the supply chain. This dual revenue stream, encompassing both product manufacturing and supply chain solutions, positions Celestica more favorably on my list compared to Kinaxis, which focuses on cloud-based supply chain solutions. While Kinaxis’s recurring revenue model is very appealing, my preference leans towards Celestica’s broader revenue base.
Brown & Brown, a major American firm, specializes in selling insurance and reinsurance products and services to a wide range of clients, including individuals, businesses, and organizations worldwide. As a family-owned entity known for its strategic acquisitions, Brown & Brown consistently seeks to broaden its market presence and venture into new arenas through regular purchases of other companies. This growth strategy has yielded positive outcomes, with the company showing steady increases in revenue, net income, earnings per share, and cash flow over the past three years. Additionally, the company offers a modest dividend, serving as an added bonus for investors.
Brown & Brown joins the other five holdover companies from the previous week on the Radar List shown below:
- Equitable Bank (TSE: EQB), a mid sized Canadian bank that provides financial services to consumers and businesses.
- McDonald’s (NYSE: MCD), the large sized American global fast-food chain.
- Ulta Beauty (NASD: ULTA), a major American beauty product retailer, with over 25,000 products from 600 brands.
- Celestica Inc., a medium sized Canadian company that manufactures electronic products and provides supply chain services to companies around the world.
- Lumine Group (TSE: LMN), a young Canadian mid sized company that acquires communications and media software companies and then strengthens and grows those companies.
Please keep in mind that these are only companies that have piqued my interest. This is not a recommendation or financial advice. You should do your own research or contact a professional before making any investment decisions.
The Radar Check was last updated February 9, 2024.
Portfolio Update
Portfolio 1
Portfolio 1 for the week ended February 9, 2024: UP 
- Costco’s (NASD: COST) Chief Financial Officer (CFO) Richard Galanti is scheduled to leave the company on March 15 after being in that role for over 30 years. He will be replaced by Gary Millerchip, the CFO at The Kroger Co. (NYSE: KR). Mr. Galanti will remain in an advisory role until January 2025 to ensure continuity.
- CrowdStrike (NASD: CRWD) was the only vendor selected among eight other cybersecurity providers as Customers’ Choice in the 2024 Gartner Peer Insights Voice of the Customer for Vulnerability Assessment. The Peer Insights are opinions of individual end users based on their own experiences.
- Telus (TSE: T) announced that through their network upgrade from copper wire to fibreglass strands, the company reduced their greenhouse gas emissions by 7,400 tons since 2018. In addition, the 3,600 tons of reclaimed copper has been recycled or strategically repurposed. Better network quality and speeds, and better for the environment. Well done! 😊
- Alphabet’s Google renamed its AI chatbot from Bard to Gemini. They also announced a more powerful version of the chatbot called Gemini Advanced, available via subscription for US$ 19.99 per month.
- BCE Inc. (TSE: BCE) announced they planned to let go 4,800 employees as the company attempts to lower expenses during uncertain times for the Canadian media company.
- Nvidia announced they plan to create a business unit that will build custom artificial intelligence (AI) chips for other companies, including Microsoft, Google, and Amazon.
Activity
Sold: Liberty Live Group (NASD: LLYVK) A few shares were received as part of the Formula One Group (NASD: FWONK) restructuring. I was not interested in Liberty Live so as part of my goal to lower the number of companies in this portfolio, this was an obvious company to let go.
Sold: Quinsam Capital Corporation (CN: QCA) Quinsam is an investment bank that specializes in the cannabis industry. Shares were purchased in 2018 hoping one of Quinsam’s investments would be able to take advantage of the then impending legalization of cannabis in Canada. Unfortunately, the cannabis market has not lived up to the hype and none of Quinsam’s investments have paid off. I do not see anything ever coming of Quinsam so as part of my goal to lower the number of companies in the portfolio, all remaining shares have been sold.
Sold: FuboTV (NYSE: FUBO) I bought Fubo back in 2021 when it was a sports streaming service that featured live gambling on its sports programming. The company dropped live betting and became a sports streaming service only. I should have sold it then but held on hoping it would get bought by another bigger streaming service company looking for live content. This never happened and is highly unlikely with the recent creation of a new super sports streaming service provided by the sports networks of Disney, Fox Corporation (NASD: FOX), and Warner Bros. Discovery (NASD: WBD).
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 past week.
Quarterly Reports
TMX Group Limited
All currency listed in millions of Canadian dollars, except for per share data.
Selected highlights from their fourth quarter 2023 financial results on February 5, 2024
- Revenue of $301.5 for the three months ended December 31, compared to $275.7 for the same period in 2022. An increase of over 9%.
- Net income of $94.4 for the three months ended December 31, compared to net income of $110.5 in the same period in 2022.
- Diluted earnings per ordinary share of $0.31 for the three months ended December 31, compared to earnings of $0.37 per share for the same period in 2022.
- Revenue of $1,194.1 for the year ended December 31, compared to $1,114.9 for the same period in 2022. An increase of over 7%.
- Net earnings of $388.2 for the year ended December 31, compared to net earnings of $581.8 in the same period in 2022.
- Diluted earnings per ordinary share of $1.28 for the year ended December 31, compared to earnings of $1.94 per share for the same period in 2022.
PayPal Holdings, Inc.
All currency listed in millions of US dollars, except for per share data.
Selected highlights from their fourth quarter 2023 financial results on February 7, 2024
- Revenue of $8,026 for the three months ended December 31, compared to $7,383 for the same period in 2022. An increase of almost 9%.
- Net income of $1,402 for the three months ended December 31, compared to net income of $921 in the same period in 2022.
- Diluted earnings per ordinary share of $1.29 for the three months ended December 31, compared to earnings of $0.81 per share for the same period in 2022.
- Revenue of $29,771 for the year ended December 31, compared to $27,518 for the same period in 2022. An increase of over 8%.
- Net earnings of $4,246 for the year ended December 31, compared to net earnings of $2,419 in the same period in 2022.
- Diluted earnings per ordinary share of $3.84 for the year ended December 31, compared to earnings of $2.09 per share for the same period in 2022.
BCE Inc.
All currency listed in millions of Canadian dollars, except for per share data.
Selected highlights from their fourth quarter 2023 financial results on February 8, 2024
- Revenue of $6,473 for the three months ended December 31, compared to $6,439 for the same period in 2022. An increase of less than 1%.
- Net income of $435 for the three months ended December 31, compared to net income of $567 in the same period in 2022.
- Diluted earnings per ordinary share of $0.97 for the three months ended December 31, compared to earnings of $0.92 per share for the same period in 2022.
- Revenue of $24,673 for the year ended December 31, compared to $24,174 for the same period in 2022. An increase of over 2%.
- Net earnings of $2,327 for the year ended December 31, compared to net earnings of $2,926 in the same period in 2022.
- Diluted earnings per ordinary share of $3.87 for the year ended December 31, compared to earnings of $3.68 per share for the same period in 2022.
Pinterest, Inc.
All currency listed in thousands of US dollars, except for per share data.
Selected highlights from their fourth quarter 2023 financial results on February 8, 2024
- Revenue of $981,262 for the three months ended December 31, compared to $877,209 for the same period in 2022. An increase of almost 12%.
- Net income of $201,178 for the three months ended December 31, compared to net income of $17,491 in the same period in 2022.
- Diluted earnings per ordinary share of $0.29 for the three months ended December 31, compared to earnings of $0.03 per share for the same period in 2022.
- Revenue of $3,055,071 for the year ended December 31, compared to $2,802,574 for the same period in 2022. An increase of over 9%.
- Net loss of $35,610 for the year ended December 31, compared to a net loss of $96,047 in the same period in 2022.
- Diluted loss per ordinary share of $0.05 for the year ended December 31, compared to a loss of $0.14 per share for the same period in 2022.
Lightspeed Commerce Inc.
All currency listed in thousands of US dollars, except for per share data.
Selected highlights from their third quarter 2024 financial results on February 8, 2024
- Revenue of $239,695 for the three months ended December 31, compared to $188,697 for the same period in 2022. An increase of over 27%.
- Net loss of $40,229 for the three months ended December 31, compared to a net loss of $814,802 in the same period in 2022.
- Diluted loss per ordinary share of $0.26 for the three months ended December 31, compared to a loss of $5.39 per share for the same period in 2022.
- Revenue of $679,054 for the nine months ended December 31, compared to $546,278 for the same period in 2022. An increase of over 24%.
- Net loss of $131,424 for the nine months ended December 31, compared to a net loss of $995,541 in the same period in 2022.
- Diluted loss per ordinary share of $0.86 for the nine months ended December 31, compared to a loss of $6.64 per share for the same period in 2022.
Cloudflare, Inc.
All currency listed in thousands of US dollars, except for per share data.
Selected highlights from their fourth quarter 2023 financial results on February 8, 2024
- Revenue of $362,473 for the three months ended December 31, compared to $274,700 for the same period in 2022. An increase of almost 32%.
- Net loss of $27,865 for the three months ended December 31, compared to a net loss of $45,917 in the same period in 2022.
- Diluted loss per ordinary share of $0.08 for the three months ended December 31, compared to a loss of $0.14 per share for the same period in 2022.
- Revenue of $1,296,745 for the year ended December 31, compared to $975,241 for the same period in 2022. An increase of almost 33%.
- Net loss of $183,949 for the year ended December 31, compared to a net loss of $193,381 in the same period in 2022.
- Diluted loss per ordinary share of $0.55 for the year ended December 31, compared to a loss of $0.59 per share for the same period in 2022.
Trisura Group Ltd.
All currency listed in thousands of Canadian dollars, except for per share data.
Selected highlights from their fourth quarter 2023 financial results on February 8, 2024
- Revenue of $754,953 for the three months ended December 31, compared to $595,742 for the same period in 2022. An increase of over 26%.
- Net income of $11,320 for the three months ended December 31, compared to a net loss of $40,710 in the same period in 2022.
- Revenue of $2,789,187 for the year ended December 31, compared to $2,014,915 for the same period in 2022. An increase of over 38%.
- Net earnings of $66,941 for the year ended December 31, compared to net earnings of $27,795 in the same period in 2022.
Telus Corporation
All currency listed in millions of Canadian dollars, except for per share data.
Selected highlights from their fourth quarter 2023 financial results on February 9, 2024
- Revenue of $5,198 for the three months ended December 31, compared to $5,058 for the same period in 2022. An increase of almost 3%.
- Net income of $310 for the three months ended December 31, compared to net income of $265 in the same period in 2022.
- Basic earnings per ordinary share of $0.20 for the three months ended December 31, compared to earnings of $0.17 per share for the same period in 2022.
- Revenue of $20,116 for the year ended December 31, compared to $18,412 for the same period in 2022. An increase of over 9%.
- Net earnings of $867 for the year ended December 31, compared to net earnings of $1,718 in the same period in 2022.
- Diluted earnings per ordinary share of $0.58 for the year ended December 31, compared to earnings of $1.15 per share for the same period in 2022.
Portfolio 2
Portfolio 2 for the week ended February 9, 2024: UP
- Disney is teaming up with Fox Corporation and Warner Bros. Discovery to create a super sports streaming service. The service would feature content from Disney’s ESPN, Fox’s FS1, and Warner’s TNT, TBS and TruTV. The new service will offer live sporting events from all the major leagues and be offered directly to consumers. The revenues will be split evenly between the three companies and is expected to start in the fall.
in other Disney news, the company made a US$ 1.5 billion investment in Epic Games, the company behind ‘Fortnite.’ Together they will work together to create a “huge Disney universe” that will allow game players to interact with Disney characters.
The company also increased its dividend by 50% to US$ 0.45 per share, and announced they would begin a US$ 3 billion buyback of their shares. Both are shareholder friendly actions.
Disney will use AI to help companies fit their commercials to fit the mood of the scene within a show. The contextual advertising tool is known as ‘Disney’s Magic Words.’ - MongoDB announced they were a founding member of the US Intelligence Safety Institute Consortium (AISIC), which was established under the US Department of Commerce umbrella. The consortium is intended to create safe and trustworthy AI.
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.
No dividends this past week.
Quarterly Reports
The Walt Disney Company
All currency listed in millions of US dollars, except for per share data.
Selected highlights from their first quarter 2024 financial results on February 7, 2024
- Revenue of $23,549 for the quarter ended December 30, 2023, compared to $23,512 for the quarter ended December 31, 2022. An increase of less than 1%.
- Net income of $2,151 for the quarter ended December 30, 2023, compared to net income of $1,361 for the quarter ended December 31, 2022.
- Diluted earnings per ordinary share of $1.04 for the quarter ended December 30, 2023, compared to earnings of $0.70 per share for the quarter ended December 31, 2022.
Take-Two Interactive Software, Inc.
All currency listed in millions of US dollars, except for per share data.
Selected highlights from their third quarter 2024 financial results on February 9, 2024
- Revenue of $1,366.3 for the three months ended December 31, compared to $1,407.8 for the same period in 2022. A decrease of almost 3%.
- Net loss of $91.6 for the three months ended December 31, compared to a net loss of $153.4 in the same period in 2022.
- Diluted earnings per ordinary share of $0.54 for the three months ended December 31, compared to earnings of $0.91 per share for the same period in 2022.
- Revenue of $3,950.2 for the nine months ended December 31, compared to $3903.7 for the same period in 2022. An increase of over 1%.
- Net loss of $841.2 for the nine months ended December 31, compared to a net loss of $514.4 in the same period in 2022.
- Diluted loss per ordinary share of $4.95 for the nine months ended December 31, compared to a loss of $3.27 per share for the same period in 2022.
Fortis Inc.
All currency listed in millions of Canadian dollars, except for per share data.
Selected highlights from their fourth quarter 2023 financial results on February 9, 2024
- Revenue of $2,885 for the three months ended December 31, compared to $3,168 for the same period in 2022. A decrease of almost 9%.
- Net income of $381 for the three months ended December 31, compared to net income of $370 in the same period in 2022.
- Diluted earnings per ordinary share of $0.78 for the three months ended December 31, compared to earnings of $0.77 per share for the same period in 2022.
- Revenue of $11,517 for the year ended December 31, compared to $11,043 for the same period in 2022. An increase of over 4%.
- Net earnings of $1,710 for the year ended December 31, compared to net earnings of $1,514 in the same period in 2022.
- Diluted earnings per ordinary share of $3.10 for the year ended December 31, compared to earnings of $2.78 per share for the same period in 2022.
Telus
See report under Portfolio 1.
Portfolio 3
Portfolio 3 for the week ended February 9, 2024: UP
- Brookfield Asset management (TSE: BAM) raised $10 billion for its ‘Brookfield Global Transition Fund (BGTF II).’ The fund will invest in companies and technologies that will boost the pace of transitioning to a net zero economy, or an economic state where the amount of greenhouse gases emitted into the atmosphere is balanced by an equivalent amount being removed or offset.
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.
No dividends this past week.
Quarterly Reports
Brookfield Asset Management Ltd.
All currency listed in millions of US dollars, except for per share data.
Selected highlights from their fourth quarter 2023 financial results on February 7, 2024
- Revenue of $1,130 for the three months ended December 31, compared to $1,117 for the same period in 2022. An increase of over 1%.
- Net income of $531 for the three months ended December 31, compared to net income of $613 in the same period in 2022.
- Diluted earnings per ordinary share of $0.23 for the three months ended December 31, compared to earnings of $0.31 per share for the same period in 2022.
- Revenue of $4,062 for the year ended December 31, compared to $3,627 for the same period in 2022. An increase of over 73%.
- Net earnings of $2,137 for the year ended December 31, compared to net earnings of $2,865 in the same period in 2022.
- Diluted earnings per ordinary share of $1.12 for the year ended December 31, compared to earnings of $1.17 per share for the same period in 2022.
Brookfield Corporation
All currency listed in millions of US dollars, except for per share data.
Selected highlights from their fourth quarter 2023 financial results on February 8, 2024
- Revenue of $24,518 for the three months ended December 31, compared to $24,213 for the same period in 2022. An increase of over 2%.
- Net income of $3,134 for the three months ended December 31, compared to net income of $44 in the same period in 2022.
- Diluted earnings per ordinary share of $0.42 for the three months ended December 31, compared to a loss of $0.23 per share for the same period in 2022.
- Revenue of $95,924 for the year ended December 31, compared to $92,769 for the same period in 2022. An increase of over 3%.
- Net earnings of $5,105 for the year ended December 31, compared to net earnings of $5,195 in the same period in 2022.
- Diluted earnings per ordinary share of $0.61 for the year ended December 31, compared to earnings of $1.19 per share for the same period in 2022.
Adyen
All currency listed in thousands of Euro dollars, except for per share data.
Selected highlights from their second half 2023 financial results on February 9, 2024
- Revenue of €886,954 for the six months ended December 31, compared to €721,637for the same period in 2022. An increase of almost 23%.
- Net income of €416,149 for the six months ended December 31, compared to net income of €282,002 in the same period in 2022.
- Diluted earnings per ordinary share of €13.36 for the six months ended December 31, compared to earnings of €9.08 per share for the same period in 2022.
Cloudflare
See report under Portfolio 1.
Telus International Inc.
All currency listed in millions of US dollars, except for per share data.
Selected highlights from their fourth quarter 2023 financial results on February 9, 2024
- Revenue of $692 for the three months ended December 31, compared to $630 for the same period in 2022. An increase of almost 10%.
- Net income of $38 for the three months ended December 31, compared to net income of $34 in the same period in 2022.
- Diluted earnings per ordinary share of $0.10 for the three months ended December 31, compared to earnings of $0.13 per share for the same period in 2022.
- Revenue of $2,708 for the twelve months ended December 31, compared to $2,468 for the same period in 2022. An increase of almost 10%.
- Net earnings of $54 for the twelve months ended December 31, compared to net earnings of $183 in the same period in 2022.
- Diluted earnings per ordinary share of $0.18 for the twelve months ended December 31, compared to earnings of $0.68 per share for the same period in 2022.