New home prices fell short of estimates in August, declining 0.3% M/M versus expectations for a flat reading - the fifth straight sequential drop.

On a provincial basis, the picture was uglier than last month - with continued struggles in Ontario and pricing deterioration in Western Canada…

… that’s likely to remain under pressure in the near-term, as housing starts out west continue to ramp up.

Industrial product prices rose 0.5% in August, missing estimates for a 0.9% gain but rising for the third straight month - thanks to chemicals, precious metals, and meat…

… which posted a 2% M/M increase - the ninth straight which has been topical in the recent inflation and retail sales prints.

While the same factors contributed on the input cost side, a ~4% drop in crude products and a ~2% decline in crop products (China’s canola tariffs) drove a 0.6% drawdown - well short of expectations for a 1.2% gain.

Black Diamond Group (BDI) is up 12% on the back of its $165M acquisition of Royal Camp Services, pricing the target at under 5x EBITDA without synergies…

… which looks great on paper, with management indicating the purchase price is roughly in-line with Royal’s net tangible asset value. Once closed, it should add ~30% to EBITDA…

… and bring more scale/density in BDI’s core markets. With Canada looking to execute on its nation-building agenda, the deal timing couldn’t be better.

A short report published on goeasy (GSY) has sent the stock down roughly 15%, resulting in a narrative tug of war between the sell-side and short seller. It’s long, but the crux of the thesis is simple: GSY is using accounting games to lower charge-offs…

… in what’s been a really challenging credit backdrop - even more unusual given GSY is a subprime lender. The company also changed its 180-day rule for charging off secured loans last year, resulting in a jump in its >150 days past due bucket.

The pushback to the report has largely been centered around GSY’s secured loan book, which has grown rapidly in recent years…

… on strong auto originations that in theory, reduce the risk of loss to the extent the asset beneath the loan can be recovered.

With GSY back below it’s long-term average book value multiple, it’s an interesting time to pick a side.

Intermap (IMP) shed 14% on its announced $25M bought deal led by Stifel - one I’ve been hinting could come since they initiated coverage in July. I realize that for some, it’s not obvious why one precedes the other - if you’d like me to break down the mechanics of how it works behind the scenes, shoot me an email.

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