Customer Note:  5i Research Membership prices will be rising on December 1; however, we are allowing existing Members to 'lock in' the old price with a one or two-year renewal. Renewing your Membership before December 1, 2017 will add one or two full years onto your existing expiry date. We appreciate your business and want to give everyone a chance to renew at the current lower price before they are increased. You can renew here.

NEW WEBSITE LAUNCHING SOON:

We are excited that our new website is almost ready for launch. The new site has some added features such as:

• Market data - Charts and pricing on markets
• 52 week high/low lists for various markets
• Stock data - Pricing for individual stocks including various fundamental metrics
• Refreshed look and functionality
• Improved navigation

We think these changes will greatly enhance the user experience while also putting more data and analysis at your fingertips and we are excited to roll this out. While we do not foresee any issues, bugs can occur and we appreciate your patience. We are targeting the first week of November to launch the new site, barring any hiccups.


5i Research Updated Reports: 

We have updated reports on Absolute Software (ABT) and Equity Financial (EQI). Both companies are progressing with their strategy but have risks investors need to be aware of. Sign in to read the full reports.

Company updates: 

If you do not see a company update below, we likely have commentary in our Q&A section:

Shopify, (SHOP, NR)

A prominent US short seller has questioned Shopify's business model, effectively calling it a multi-level marketing company. As a very expensive stock and with a company losing money, it is an easy target for the shorts, especially since the stock has doubled this year. We think the short seller is largely barking up the wrong tree, but the stock took a $30 hit on the news. This makes the company's upcoming earnings release a bit more crucial. SHOP has never missed estimates. Were it to miss now, the stock would surely take another very big hit.

A&W Revenue Royalties (AW.UN, Rated B+) 

A&W reported results that look like operations are getting back on track with same store sales growth up 3.7% and 22 new stores being added. The distribution was raised by 2.3% as well. 

Alimentation Couche-Tard (ATD.B, NR)

ATD made what we view as a prudent move recently by purchasing and cancelling the shares Metro was required to sell. Metro needed cash to fund the purchase of Jean Coutu and looked to their holding of ATD shares. ATD Will be repurchasing 4.4 million shares (roughly 1% of shares outstanding) at a 3% discount.

MacDonald Detwiler/Maxar Technologies, (MDA/MAXR, Rated B+)

MDA has now closed the acquisition of DigitalGlobe and has renamed the company 'Maxar Technologies', trading under the ticker 'MAXR'. Now that the transaction is closed, it appears that markets are starting to pay more attention to the company, with shares up 18% over the last three months.

MTY Food Group (MTY, Rated B-)

MTY posted revenue of $73.6 million, missing estimates of $75.5 million. Same store sales were essentially flat as the company continues on its acquisition strategy. 

Market Update:

Markets continue to surge higher. This earnings season will dictate whether the rally will fade, or continue into the New Year. Earnings season is starting now, so we expect to be very busy for the next month.  Keep in mind that, unless you are a trader or have a portfolio filled with 'momentum' stocks, quarterly earnings releases are simply a continuous flow of information from companies. You do not need to 'react' to every quarter.  Initial market reactions are often wrong, as short-term traders trade, but long-term fundamentals do not change that quickly.  Sometimes doing nothing is the best course of action.  You will not hear this from the investment industry, though, as it does not make them money if you do nothing.

Refer a Friend, Get Two Months of 5i Research FREE!

We wanted to remind members that you can get up to 2 years of 5i Research for free if you refer your friends. Each friend referral that subscribes to 5i Research gets you an extra two months automatically added to your subscription (up to two years). All you have to do is send them the link found here (or by clicking 'Refer a Friend' in the members section) and get them to sign up!