The new week begins on Monday, May 11th with investors sense a change of leadership may be developing as more and more resources and their related issues seem to be establishing new intermediate uptrends.
AutoCanada Inc. (ACQ-T) shares’ gained over 7.75% to $44.87 when no less than four analysts upgraded their thoughts on the stock.
Crocodile Gold (CRK-T) shares’ rose by almost 13% to $0.305 after the Australian gold miner agreed to a merger with Newmarket Gold (NGN-T).
And the shareholders’ of Rosetta Resources (RODE-Q) were pleased to see their investment surge up by over 25% to US$23.56 on word that the Texas based petroleum company had accepted a US$2-billion all stock takeover proposal from Noble Energy (NBL-N).
Meanwhile, the U.S. Bureau of Ocean Energy and Management approved Royal Dutch Shell’s Arctic drilling program in the Chukchi Sea off-shore Alaska. (One wonders if drilling in arctic waters is considered to be less environmentally sensitive than running an oil pipeline across farmland in Nebraska.)
Tuesday May 12th saw the shares’ of AOL Inc. (AOL-N) surge up by over 18.6% to US$7.93 on word the digital news/advertising & content company had agreed to a US$4.4-billion all-cash takeover from wireless giant Verizon Communications (VZ-N).
While on a related note, Sprint (S-N) and Verizon Communications (VZ-N) agreed to pay a combined US$158-million fine for unauthorized charges on customer phone bills.
Corporate fines to government were front and centre again on Wednesday, May 13th when Enbridge Inc. (ENB-T) announced that the pipeline company would pay the State of Michigan US$75-million to cover the costs of cleaning up the 800,000 gallons of oil that spilled into the Talmadge Creek and Kalamazoo River in 2010.
Trican Well Service (TCW-T) shares’ fell by almost 14.5% to $4.32 when the oilfield company sighted a 44% drop in rig activity for a greater than expected drop in 1st quarter financials, and worse still, triggered the dropping of its $0.30-a-share annual dividend.
While on a related note, Williams Cos. (WMB-N) announced they would purchase the remaining 42% of natural gas infrastructure subsidiary Williams Partners (WPZ-N) in an all-stock deal worth some US$13.8-billion.
Meanwhile, BitGold Inc. (XAU-V) a start-up company that settles worldwide commercial transactions with gold bullion began trading on the TSX Venture Exchange.
Canada’s largest janitorial company, Montreal based GDI Integrated Facility
Service (GDI-T) began trading on Thursday, May 14th and the new issue managed to gain over 15.6% to end the day at $18.50.
The shares’ of Amaya Gaming (AYA-T) rose by almost 6.7% to $32.63 when the parent of online gambling sites Pokerstars and Full Tilt Poker reported much better than expected 1st quarter revenues.
The price of Kohis Corp. (KSS-N) shares’ fell by over 13% to US$9.89 when the American retailer sighted severe winter weather as a reason for reporting poorer than expected 1st quarter financials.
The Canadian markets reacted positively on Friday, May 15th after Statistics Canada reported the country’s manufacturing sector increased sales by a better than expected 2.9% in March to $51-billion.
From there it was an uneventful day ahead of the Victoria Day long weekend.
The world’s largest economic barometer, the S&P 500 Index closed at a new record high of 2,123.
Resource related issues continued to establish new intermediate highs during the week with natural gas setting a new 4-month closing high of US$3.07/mmbtu, with crude oil reaching a new 5-month high of US$61.74/brl. With metals, gold bullion rose to a new 3-month high of US$1,225-an-ounce and copper hit a new 5-month high of US$2.93-a-pound. This was reflected in the CRB Spot Commodities Index that set a 4-month high of 430. All of this helped the Canadian dollar to reach a new 4-month high of US$0.8356.
Kirkland Lake Gold (KGI-T) at $6.88, Manulife Financial (MFC-T) at $23.25 and Ritchie Bros Auctioneers (RBA-T) at $34.40 all set new 52-week trading highs while Canadian Utilities (CU-T) at $36.50, Dejour Energy (DEJ-T) at $0.15 and Resolute Forest Products (RFP-T) at $14.87 all touched new 52-week trading lows.
For the Week – The Dow Industrials rose by 0.45% to 18,273, with the S&P 500 Index ahead by 0.33% to 2,123 and the NASDAQ Exchange up by 0.88% to 5,048. On the Canadian side, the TSX Composite Index fell by 0.41% to 15,108 while the TSX Venture Exchange managed a weekly gain of 0.58% to 695.
Gold bullion gained 3.03% to US$1,225, with copper up by 0.34% to US$2.93, as crude oil rose by 2.14% to US$60.66 and natural gas was up by 4.78% to US$3.07. Overall, the CRB Spot Commodities Index improved by 0.23% to 430.
The Canadian dollar rose by 0.36% against its American cousin to finish the week at US$0.8318.
And the closely watched CBOE Volatility Index or VIX eased by another 0.44-point to end the week at a little calmer level of 12.42.
And Finally – Brazilian telecom company Oi Sa has taken to turning off lights and air conditioning after 7pm in a desperate effort to get employees to go home and not work extended hours in order to collect a federally mandated 50% increase in pay for working beyond 8-hours-a-day.
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