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The Week of April 4th to April 10th, 2016 “A Brief Look Back Into Tomorrow”

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The Week of April 4th to April 10th, 2016 “A Brief Look Back Into Tomorrow”

 

 

 

 

 

The  new trading week began on Monday, April 4th with the major North American markets still at or near multi-month highs but looking perhaps somewhat overextended as brokers encouraged investors to lock in recent hard earned gains.

 

 

 

Lithium stocks had a good start to the week as investors renewed their enthusiasm for the rare-earth companies following a weekend update that Tesla Motors (TSLA-Q) had received over 300,000 deposits of U$1,000 for its Model 3 electric car, that would be powered lithium-ion batteries.

 

 

 

The share price of Virgin America (VA-N) soared up by over 41.5% to US$16.15 after Sir Richard Branson’s company accepted a US$2.6-billion all-cash takeover offer from Alaska Air Group (ALK-N).

 

 

 

Pure Gold Mining (PGM-V) shares’ rose by over 14.5% to $0.28 after the mineral explorer reported encouraging drill hole gold assays from it Madsen gold project in the historic Red Lake district of Ontario.

 

 

 

Shareholders’ of SunEdison (SUNE-Q) were shocked to see their investment plunge by almost 51% to US$0.21 after the Wall Street Journal reported the alternative energy company was preparing to file for bankruptcy protection.

 

 

 

On Tuesday, April 5th Technical analysts David Tippin & Ron Meisels commented – “The markets could continue to surprise by extending the current uptrend with a little pause, but a more likely scenario is a healthy period of pull back and consolidation.” (For a complete copy of this report please contact ‘rod.blake@canaccord.com’.)

 

 

 

Interest in gold issues continued with the share price of Pure Gold Mining (PGM-V) surging up by another 34.5% to $0.37 as investors continued to buy into the company’s Madsen gold project assays released the day before.

 

 

 

Governments have a way of putting a damper on market enthusiasm as was the case for the share price of Allergan plc (AGN-N) that dropped by 15% to US$41.63 after a U.S. Treasury statement that it would move to block the proposed tax induced US$160-billion takeover of the Ireland based drug company by America’s giant Pfizer Inc. (PFR-N).

 

 

 

Wednesday, April 6th saw the price of Bee Vectoring Technologies (BEE-V) buzz higher by over 11% to $0.45 on word that Virginia Tech was going to use the company’s Erwinia Amylovora or Fire Bright bug control product in a U.S. sanctioned trial.

 

 

 

Two days and two government decisions when the U.S. Justice Department sighted competition issues in filing a lawsuit to stop Halliburton (HAL-N) from its US$35-billion taking over of  fellow petroleum services company Baker Hughes (BHI-N).

The price of Harley-Davidson (HOG-N) shares’ fell by 7% to US$46.34 after analysts lowered their revenue estimates for America’s largest motorcycle company.

 

 

 

Nulegacy Gold (NUG-V) shares’ soared up by over 46.5% to $0.22 on Thursday, April 7thon word that OceanaGold Corp. (OGC-T) had purchased $6.67-million of the junior mining company and its flagship Iceberg project in the prolific Cortez gold trend of Nevada.

 

Pacific Sunwear (PSUN-Q) shares’ plunged by almost 45% to US$0.05 after the California based PacSun retailer applied for Chapter 11 bankruptcy protection.

 

 

 

Baker Hughes reported that the number of active American natural gas drilling rigs fell to a 30-year low of 88 – well down from the 1,600 rigs working in 2008.

 

 

 

Friday, April 8th began with Statistics Canada surprising the market by stating that the economy created a much better than expected 40,600 new jobs in March and that the country’s unemployment rate eased by 0.2% to 7.1%.

 

 

 

Meanwhile, the Canadian housing market remained relatively strong as Canada Mortgage and Housing Corp. (CMHC) reported a better than expected seasonally adjusted 204,251 new housing starts in the month of March.

 

 

 

And we got our third government intervention in a week as the U.S. Justice Department once again sighted competition concerns in rejecting Canadian Pacific’s (CP-T) plan to set up a voting trust to run Norfolk Southern Corp. (NSC-N) in advance of its proposed takeover of its American railway rival.

 

 

 

Alliance Fiber Optic Products (AFPP-Q) shares’ surged up by over 19% to US$18.44 following a Corning Inc. (GLW-N) US$350-million all-cash takeover offer for the fiber-optics and communications equipment company.

 

 

 

Conversely, the share price of Gap Inc. (GPS-N) fell by almost 14% to US$23.84 after the retailer reported that higher inventories may affect its bottom line performance in the current quarter.

 

 

 

During the WeekThe CRB Spot Commodity Index reached a new 7½-month high of 406 and the TSX Venture Exchange established a new 81/2-month closing high of 604.

 

 

 

BCE Inc. (BCE-T) at $59.92, Kinross Gold (K-T) at $5.14 and Vecima Networks (VCM-T) at $12.00 all established new TSX 52-week trading highs while Black Diamond Group (BDI-T) at $3.74,  Newalta Corp. (NAL-T) at $1.65, Torstar Corp. (TS.B-T) at $1.47 all set new        52-week trading lows.

 

 

 

For the WeekThe Dow Industrials and S&P 500 Index lost an identical 1.21% to 17,577 and 2,048 respectively, while the NASDAQ Exchange was lower by 1.30% to 4,851. In the Go Bluejays north, the TSX composite Index eased lower by 0.32% to 13,397 while the lowly TSX Venture Exchange rose by 3.96% to 604.

 

 

 

With commoditiesgold bullion gained 1.47% to US$1,242, with copper down by 3.24% to US$2.09, while crude oil surged up by 7.42% to US$39.52 and natural gas gained 0.78% to US$1.99. Overall, the CRB Spot Commodity Index rose by 1.25% to exit the week at 406.

 

 

 

The Canadian dollar improved by 0.08% against its American cousin to end the week at US$0.7691.

 

 

 

And the closely watched CBOE Volatility Index or VIX gained 2.25-points to finish the week at a more nervous level of 15.35.

 

 

 

And FinallyKitco Metals reports it will be the marketing agent for The Canadian Mint’s new 100-killogram or 220-pound 99.999% pure gold coin that will have a face value of     CAD$1-million but will actually sell for some US$3,922,300.

Posted April 11, 2016

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