Why TMAC Resources, SunOpta and Premium Brands Raced Ahead on the TSX Wednesday

The global markets took a major tumble Wednesday on fears a recession was iminent. The TSX lost 1.86% on the day. However, these three stocks managed to race ahead despite the doom and gloom.   

| More on:

The markets were crushed Wednesday as the TSX lost 1.86%, the S&P 500 was down 2.93%, and the Dow Jones Industrial Average lost 3.05%.

Investors panicked Wednesday as the bond market sent a strong signal that we’re headed for a global recession. For a brief time on Wednesday, the 30-year U.S. Treasury bond yielded less than the two-year bond. When this happens, history suggests a recession is imminent. 

Despite the total lack of confidence from investors, these three stocks raced ahead on the TSX Wednesday.

TMAC Resources

TMAC Resources Inc. (TSX:TMR) jumped 13% Wednesday on double the average daily volume.  

Maverix Metals announced that it acquired an additional 1.5% net smelter return (NSR) royalty from TMAC’s Hope Bay gold mine in Nunavut. Maverix paid US$40 million for the additional NSR royalty. It now has a 2.5% NSR royalty on the gold mine operated by TMAC. 

Also, TMAC reported Q2 2019 results Wednesday, with 38,520 ounces of gold produced during the quarter generating $66.1 million in gross revenue at an average gold price of US$1,751 an ounce.

In 2019, TMAC expects to produce as much as 170,000 ounces of gold at an all-in-sustaining-cost (AISC) of US$950-1,050.  

SunOpta

The natural organic food company has had a new CEO for just four months, but Joseph Ennen is already making progress on Sun Opta’s (TSX:SOY)(NASDAQ:STKL) latest corporate priorities. 

“We’re taking a more focused approach toward evaluating what businesses we want to be in and what businesses we don’t want to be in,” Ennen said during an August 7 conference call with analysts. “We are developing clear, long-term points of difference for how we’re going to win in each of our businesses.”

The company has not been performing well as of late. In the second quarter, it lost US$11.1 million, more than double its loss a year earlier. 

However, in a show of confidence, Ennen recently bought US$100,000 worth of SunOpta stock on the open market for prices between US$2.29 and US$2.21 a share. He now holds a total of 319,000 shares.   

Premium Brands

Premium Brands Holdings (TSX:PBH) raced ahead 2.9% Wednesday on news that Industrial Alliance Securities analyst Neil Linsdell raised his target price on the food company’s stock by $3 to $98 on better than expected second-quarter results. Linsdell has a “buy” rating on PBH. 

Premium Brands delivered revenues of $945.5 million in the quarter, up 24%, on adjusted earnings per share of $1.03, 13 cents higher than the consensus estimate. 

“As PBH continues to execute on its growth strategy, its share price should deliver some tasty returns for investors seeking long-term capital and dividend growth,” Linsdell said in a note to clients. “We continue to see considerable organic growth and acquisition opportunities for PBH and reiterate our Buy rating.”

After losing some of its momentum in 2018, Premium Brands stock appears to have gotten back on its feet and should be a strong performer through the end of 2019 and into 2020.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Will Ashworth has no position in any stocks mentioned.  

More on Investing

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is CNR Stock a Buy, Sell, or Hold for 2025?

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »

engineer at wind farm
Energy Stocks

Invest $20,000 in This Dividend Stock for $100 in Monthly Passive Income

This dividend stock has it all – a strong outlook, monthly income, and even more to consider buying today.

Read more »

Hourglass and stock price chart
Stock Market

It’s Not Too Late: Invest in These TSX Growth Stocks Now

Solid fundamentals of these top TSX growth stocks could help them maintain strong upward momentum in the years to come.

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

These top dividend stocks both offer attractive yields and trade off their highs, making them two of the best to…

Read more »

stocks climbing green bull market
Stocks for Beginners

3 TSX Stocks Soaring Higher With No Signs of Slowing

Don't ignore stocks just because they look like they're at a high price. Instead, see exactly why they've driven so…

Read more »

dividends can compound over time
Bank Stocks

Is TD Bank Stock a Buy for Its 5.2% Dividend Yield?

TD Bank stock offers a rare 5.2% dividend yield—can it rebound from challenges and reward contrarian investors? Here's what to…

Read more »

chart reflected in eyeglass lenses
Investing

How Should a Beginner Invest in Stocks? Start With This Index Fund

This Vanguard index fund is the perfect way to start a Canadian investment portfolio.

Read more »

analyze data
Bank Stocks

Is BMO Stock a Buy for its 4.7% Dividend Yield?

Bank of Montreal is up 20% since late August. Are more gains on the way?

Read more »