The TSX index was down 5.2 % in the month of December and down 8.5% for the full year 2022, slightly better than the DJ Index (-8.9%), S&P Index (-19.2%), and Nasdaq Index (-33.6%). For the month ended January 9, 2023, the TSX index was down 0.45%. The Healthcare, Technology, and Real Estate sectors were the principal drags on the index with Energy, Materials, and Consumer Staples providing the lift. While Canadian inflation eased somewhat, to 6.8% annually, in December, the BOC continued to increase rates by 50 bps, bringing the rate to 4.25%. China continued to wrestle with Covid 19 and is starting to unlock its economy which eases supply constraints but will bring increasing demand for commodities. The war in Ukraine continued to destabilize the world. The Canadian economy is predicted to grow in the 4^th quarter, albeit at a slowing pace, as interest rates impact the housing and other sectors. Labor participation and wage earnings remain surprisingly strong. A further increase in interest rates by the BOC seems likely. With this background, the following Table sets out the winners and losers in the stock market for the period ended Jan 9^th, 2023.

Dye & Durham

The top performer in December was Dye & Durham Limited (DND) whose stock was up 33% for the month ended January 9^th, 2023, including 8% in early January, although still down 57% over one year. This stock has bounced around this year, being among the bottom performers in July and August and the top performer in September. DND is a leading provider of cloud-based software and technology solutions designed to improve efficiency and increase productivity for legal and business professionals. Results for the quarter that ended September 30^th, 2022, were not great: Revenues were up 7%, and Adjusted EBITDA was relatively flat, but a substantial net loss was recorded. What seems to have galvanized investors is the announcement in mid-December of the completion of the purchase and cancellation of some 19% of the outstanding stock for $196 million. With $229.5 million cash on September 30^th and additional borrowing capacity, this maneuver appears to be digestible. DND is continuing its strategy of building the company to a billion-dollar Adjusted EBITDA business.

NFI Group

The second top performer is NFI Group Inc whose stock was up 32% for the month ended January 9^th, 2023, including 22% in early January 2023, although down 39% for the past 52 weeks. This is another stock that has moved around quite a bit: a winner in June, a loser in April, and October.  NFI is primarily a bus manufacturer with an offering that includes zero-emission vehicles (ZMB), charging infrastructure installations, telematics, and full parts and service aftermarket support. All of the growth in December took place at the end of the month on the announcement that non-binding agreements had been reached with the Province of Manitoba and the Export Development Corp for a $50 million debt facility each. Additionally, the EDC would guarantee up to $100 million for NFI surety bonding. As well the existing revolver facility would be reduced to $1 billion from $1.25 billion and the dividend suspended. New orders for some 77 new buses were recently received, including 16 from Winnipeg transit.

Magellan Aerospace

The third best performer was Magellan Aerospace Corp (MAL) whose stock was up some 27% for the month ended January 9^th, 2023, notwithstanding being down 9.2% in early January and down 7.8% over the last 52 weeks. No material financial announcements spurred the stock price growth in the last half of December and the spurt appears to be related to the F-35 airplane and the fact that Canada was proposing to buy some of them. MAL has for some time been producing horizontal tails for this plane under agreement with BAE, with whom agreement to continue such work was announced on December 9^th. The early reaction to this was muted in early January as the stock price fell back.

Capital Power

The third worst performer was Capital Power (CPX), an independent power producer with a strategic focus on sustainable energy, whose stock was down 6.9% for the month ended January 9^th, of which minus 2% occurred in January. For the year that ended January 9^th, it was up 22%. The stock price rose to a year high of $49.59 on December 13^th and then faded. On December 1^st CPX announced its targets for 2022: Adjusted EBITDA of between $1300 and $1340 million and AFFO between $770 and $805 million; for 2023: Adjusted EBITDA of between $1455 and $1515 million and AFFO between $805 and $865 million. Annual Dividend growth of 6% was projected for 2025 and continued progress on a number of growth projects was expected, including Genesee Carbon Capture and Storage. A reasonably steady, if unspectacular, horizon.

Acuity Ad Holdings

The second worst performer was Acuity Ads Holdings Inc (AT) whose stock was down 8.3% on the month ended January 9^th, 2023, despite being up 5.7% in January and down 48% for the previous 52 weeks. Its stock price rose precipitously to more than $32 in February 2021 and has fallen since reaching $2.04 on November 4^th,2022. It was the 2^nd best performer in November and there have been no announcements in the meantime. AT is a technology company that enables marketers to connect intelligently, via a one-stop solution, with audiences across video, mobile, social, and online display advertising campaigns. Its journey automation platform, illumin™, offers planning, buying, and omnichannel intelligence from a single platform, allowing advertisers to map their consumer journey playbooks across screens and execute in real time. Results to September 30, 2022, showed a small profit which appears to have halted the long stock price slide. At that time, it had cash of $88.2 million. Management is enthusiastic about the future noting that the number of clients grew 81% YOY in 3^rd quarter while “illumin” self-serve revenue rose 20% from just the second quarter.

Enthusiastic Gaming Holdings

The worst performer for the period was Enthusiast Gaming Holdings Inc (EGLX) (an integrated gaming entertainment company) whose stock was down 11% for the month ended January 9^th, 2023, notwithstanding that it was up almost 7% in January; for 52 weeks it was down 76%. EGLX has had a checkered stock price movement: It was a top performer in May, the bottom performer in August, the second bottom in September and October, and the Top in November. It peaked on February 15, 2022, at $4.67 and has fallen gradually to $0.79 on January 9^th, 2023. EGLX is building the largest media platform for video game and esports fans to connect and engage with its approximately 300 million gaming enthusiasts worldwide. The results for the quarter that ended September 30, 2022, appear to have given the stock price a nudge, buttressed by the announcement on December 1^st that EGLX had entered into a content partnership with Google, boosting the stock to a near-term high of $1.13 on December 2^nd,  but interest in the stock waned as the month unfolded and there were no significant announcements.

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Disclosure: The analyst(s) responsible for this report do not have a financial or other interest in the securities mentioned.