WINNERS AND LOSERS
Stock surges and setbacks for the week ending June 11
WINNERS Transat A.T. Inc. (TRZ.TO) +17.9%
Picture this: You’re on the beach in a tropical country, the sun warms your skin while you sip a rum and coke. Come late July, this dream can become a reality as that’s when Air Transat will initiate flights to some of its destinations. Last Thursday, Air Transat announced that July 30 is the date it plans to gradually resume operations. This is much needed good news for the company that saw revenue drop 99 per cent in the second quarter of 2021 compared with 2020.
Gamehost Inc. (GH.TO) +12.5%
Air Transat isn’t the only company benefiting from loosening restrictions. In a news release last Thursday, Gamehost announced that its Great Northern Casino opened to a sizable crowd as part of Alberta’s Open for Summer Plan. In its first quarter 2021 results, Gamehost reported a drop in revenues to $1.1 million compared to $13.8 million during the same period in 2020. The company reported a net loss of $1.1 million for the first quarter of 2021 compared to a $2.3 million profit in 2020. Despite this, investors pushed up the share price of Gamehost last week.
Aritzia Inc. (ATZ.TO) +10.3%
After reading about Air Transat and Gamehost, it shouldn’t come as a surprise that as Ontario enters the first phase of its reopening, investors are hoping that increased shopping options will positively impact women’s fashion brand Aritzia. Although retail stores in malls remain closed, the increase in Aritzia’s share price suggests investors are confident that spending on other things will lead to spending on clothing, albeit online. In its 2021 fiscal year-end report, Aritzia reported a dip in revenue from $981 million in 2020 to $857 million in 2021.
LOSERS Jamieson Wellness Inc. (JWEL.TO) -5.6%
BMO Capital downgraded Jamieson on Wednesday from “outperform” to “market perform” with a $37 target, down from $42. The company develops, manufactures, distributes and sells natural health products. Jamieson released its first quarter 2021 results on May 5. Looking at the financials, revenue increased to $98 million from $85 million in 2020. Despite this, the company reported a drop in net income to $6 million from $8 million the prior year.
Enthusiast Gaming Holdings Inc. (EGLX.TO) -4.7%
Enthusiastic Gaming announced last Wednesday that it would offer 8,000,000 common shares in Canada and the U.S. The company is engaged in the media, content, entertainment and esports businesses. It operates approximately 100 gaming related websites and it works with professional gamers on YouTube and Twitch. The company states it will use the funds to bankroll future acquisitions, improve working capital and repay debt. The share dilution negatively impacted the stock with investors sending the share price down 13 per cent by end of day Thursday.
Mdf Commerce Inc. (MDF.TO) -0.4%
MDF released its fiscal 2021 results on Wednesday and revenues were up to $85 million compared with $75 million in 2020. The company provides software for e-commerce, strategic sourcing, supply chain collaboration and e-marketplaces. Despite the company’s growth in revenue year over year, it reported a decrease in net income from $559,000 in 2020 to a net loss of $7 million in 2021. The share price closed more than five per cent lower on Thursday, which suggests that investors were not pleased with the impact on its bottom line.
Chen Liu is a freelance contributor to the Star’s Business section. Reach him via email: chenliu1998@gmail.com