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WHAT'S ON TAP
Build Canada Homes gets $13B
Permits miss, residential recovers
Capacity utilization slows in Q2
GURU jumps 50% on earnings
HOT OFF THE PRESS
Build Canada Homes gets $13B
Yesterday Mark Carney announced the launch of Build Canada Homes (BCH), seeding the entity with $13B to kickstart the march towards 500K starts per year.
We’ve broken down BCH in the past, so in the spirit of keeping this tight - let’s focus on what’s new. The government’s land portfolio which includes 88 federal properties will be moved under the BCH umbrella…
… providing plenty of off-market runway beyond the initial six-site, 4,000 home commitment. So could a $1.5B fund within BCH aiming to preserve affordability by acquiring “at-risk” properties (old units that could be upgraded and repriced).
While it isn’t marketed this way… I imagine the fund could be a good asset recycling vehicle for REITs looking to free up capital for development initiatives. Let’s see.
Building permits miss, residential recovers
Building permits for July inched down to $11.9B, losing 0.1% M/M and coming in well short of expectations for a 4% gain…
… on the back of softer non-residential activity - with industrial permitting falling $250M and institutional permitting losing $200M due to the non-repeat of a hospital project in Alberta last month.
Residential activity was a bright spot in the print, gaining $270M led by both single and multi-unit construction intentions in Ontario - the first positive M/M reading this year.
Capacity utilization slows in Q2
Q2 capacity utilization came in at 79.3%, beating estimates of 78.8% but down from 79.9% in Q1 - as production efficiency fell in power generation (weaker hydro production), resource extraction (forest fires)…
… and manufacturing - which continues to lag the headline utilization number by an increasing margin.
In Q2, non-durable goods were the driver - with petroleum product, textile, and food manufacturing weighing on results…
… while manufacturing efficiency in durable goods was mixed.
FUNNY BUSINESS
The Ontario Securities Commision is going after Purpose Investments for greenwashing… guess they’ll have to go after the entire street… and all of tech.
ON OUR RADAR
GAINERS & LOSERS
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GURU Organic Energy (GURU) ran >50% in the past two days after turning a profit in Q3 - its first since going public in 2020. The organic energy drink maker is growing fast…
… thanks to its expanding distribution network, which it regained control of earlier this year after the company’s exclusive partnership with PepsiCo ran its course.
We’ve built a robust network of over 25 distributors and brokers to reach retailers across the country… We are very confident in the long-term value this transition in sales and distribution will unlock for GURU.
With no debt and a string of successful product launches recently, investors are likely hoping for a sustained re-rate closer to large energy drink peers.
INSIDER TRANSACTIONS
| Insider | Company | Value |
|---|---|---|
| Joseph Lasardi | Curaleaf (CURA) | $546K |
| Tavis Carlson | Peyto (PEY) | $323K |
| Matthew Andrews | Pan American (PAAS) | $451K |
| Gonzalo Mercado | First Majestic (FR) | $1.9M |
| Ashley Baker | Aris (ARIS) | $902K |
| Andrew Thorne | Cameco (CCO) | $1.4M |
| Mathieu Peloquin | Stingray (RAY) | $202K |
| J.P. Trahan | Stingray (RAY) | $232K |
| Richard Fortin | Couche-Tard (ATD) | $15.6M |
| Erin Wallace | FirstService (FSV) | $1.2M |
| Archibald Collins | Emera (EMA) | $2.0M |
| Judy Steele | Emera (EMA) | $1.2M |
| Alan Tanenbaum | BMO (BMO) | $1.7M |
| Adam Albeldawi | Suncor (SU) | $877K |
| Shelley Powell | Suncor (SU) | $1.7M |
| Ryan Berrett | ARC Resources (ARX) | $119K |
| Kristen Bibby | ARC Resources (ARX) | $245K |
| Terry Anderson | ARC Resources (ARX) | $121K |
| Gina Cody | CAPREIT (CAR-U) | $1.0M |
| Rene Tremblay | CAPREIT (CAR-U) | $992K |
ECONOMIC DATA
FRIDAY’S ECONOMIC RELEASES
| Release | Actual | Consensus |
|---|---|---|
| 🇨🇦 Building Permits M/M | -0.1% | 4.0% |
| 🇨🇦 Capacity Utilization | 79.3% | 78.8% |
| 🇺🇸 Consumer Sentiment Prel. | 55 | 58 |
TODAY’S ECONOMIC RELEASES
| Release | Time | Consensus |
|---|---|---|
| 🇨🇦 Mftg. Sales M/M | 8:30AM | 1.8% |
| 🇨🇦 Wholesale Sales M/M | 8:30AM | 1.3% |
| 🇨🇦 New Vehicle Sales | 8:30AM | - |
| 🇺🇸 Ny Mftg. Index | 8:30AM | 3 |
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