Canada's main stock market, the Toronto Stock Exchange (
), closed up 48 points on Monday, with all sectors except for
Utilities higher. The TSX will close for a half day on Tuesday and
won't reopen again until 9.30am on Friday.
The Info Tech sector was the biggest gainer, led up by
Blackberry (BB.TO, BBRY), which gained 3% after last week's news of
a tie up with Foxconn pleased investors - despite news of a worse
than expected result and more charges being booked. However,
Blackberry did come under some late selling pressure and closed
under $8, having touched a day high of $8.21 earlier.
Easily most actively traded was Colossus Minerals (CSI.TO),
closing down 59% and touching record lows with 13.5 million shares
changing hands, making it the most active on the TSX. The company
this afternoon released a funding deadline update and resource
Meanwhile, Kris Thompson at National Bank of Canada noted while
BlackBerry reported weaker then expect Q3 (Nov) results on Friday,
investors cheered the manufacturing partnership with Foxconn, and
management's targets to achieve cash flow breakeven by the end of
F2015 and profitability in F2016.
Key Takeaways For National Bank were: Revenue declined 56% y/y
to $1.2 bln vs. National Bank's $1.5 bln estimate. Service revenue
of $632 mln was down 13% sequentially. Subscriber count was not
disclosed. 1.9 mln handsets shipped vs. its 4.0 estimate; down 73%
y/y and down 49% q/q. The poor shipments led to another inventory
writedown of $1.6 bln (after a $934 mln charge in the previous
It said: "BlackBerry will eventually outsource all handset
manufacturing to Foxconn, which should aid gross margin. The first
handset will be jointly developed, manufactured by Foxconn and
launched in Indonesia (& in other growth markets) in April
2014. While the balance sheet strengthened on a $1 billion
debenture issuance, FCF was -$361 mln (aided by a tax refund and an
unsustainable inventory reduction). While the commentary and
strategy resonated with investors, we would continue to avoid the
stock. Significant execution risk remains."
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