July 26, 2017

On Wednesday, the S&P 500 was about unchanged (even though the Dow Jones was up 0.45%) and Toronto was down 0.2%.

Ceapro was down 4.8% to 78 cents. This is a very speculative stock. I expect a poor earnings report in Q2. Unless they can announce big progress on their research efforts the share price may have no reason to recover. But the balance sheet is reasonably strong and so the company will be able to get through a year or so of low earnings or losses if that occurs. I own some but am not particularly inclined to add to my position. We will know more after the next earnings release.

CRH Medical was down 6.0% giving back most of the recent minor bounce.

CN Rail was down 2.4% to $99 after releasing Q2 earnings and its outlook. For some time it has looked expensive. But it remains a high quality investment for the long term. I will update the report for tis Q2 results within a few days.

AutoCanada was up 3.2%. I expect that its sales were reasonably good in Q2 especially the later part of Q2 as auto sales in general have been strong. It reports on August 11.

The cancellation of a $36 billion proposed LNG project  was much in the news yesterday. While the owner, Petronas explained that it was due to changes in world natural gas prices, many people were quick to blame regulations and a poor investment climate in Canada. I have been highly skeptical of the two largest LNG projects since the first one $40 billion in Kitimat, was announced. The idea of a $40 billion dollar project immediately struck me as WAY to large to make sense. I never thought these projects would proceed at $36 or $40 billion. However there has been confusion because the LNG terminal itself was apparently $11 billion which at least seemed (maybe) within the realm of possibility. I mentioned it here on September 28, 2016.   In any case world natural gas prices have declined and THAT primarily is the reason for the cancellation. We can’t expect projects to go ahead if they are uneconomic. If there is a way to build a smaller LNG terminal and one that does not require a massive new pipeline, then maybe that can go ahead.