Our last week’s pick, Precipio, Inc. (NASDAQ: PRPO) went up from $4.95 on last Monday’s closing, to $9.18 the next day (up 85%). Check out our latest pick in this report.
Weakness in the US$ drove mainstream metal prices higher. Once again, copper was the best weekly performer, as inventory levels fell sharply on the LME, and manufacturing activities picked up in China last month. We recently uploaded a video on attractive copper targets on our Youtube channel. See link below:
Top Picks – Attractive Targets for Acquisition in Today’s Hot Copper Market: https://www.youtube.com/watch?v=OuQLbvGp9Fo
We note that the vaccination rate has declined steeply in countries that have over 40% of its population vaccinated (at least one dose). For example, the U.S.’ weekly vaccination has declined from 4% of its population in April 2021, to 1.5%. This has been the case with the other five countries that have surpassed 40%. We believe the primary reason for this is vaccine hesitancy among a high percentage of the population.
As of May 7, 2021, the Canadian big four LPs were trading at a 94% premium (down from 106% in previous week) over their U.S. peers. The valuation gap between the two sectors decreased WoW as the Canadian sector underperformed, per our anticipation. Two factors contributed to this – declining Canadian cannabis sales data and increased short position in Canadian cannabis stocks (discussed in the previous AIW).
On May 5, 2021, Sundial Growers (NASDAQ: SNDL) announced its plans to acquire Inner Spirit Holdings (CSE: ISH). The implied EV/R acquisition multiple of this C$131M deal is 5x vs the sector average of 16x. The acquisition price is 72% of our last fair value estimate (March 30, 2021).
