Canadian Deals Heat Up, Berkshire Starts Buying, and Gold Stocks Surge

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The Canadian Investor 49 min 3 speakers 8 chapters transcribed 1 month ago
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What is the Jamieson Wellness takeover offer from Kirin and why does it matter for Canadian small‑cap valuations?

Simon Belanger 0:01
Investing is simple,
Brayden Dennis 0:03
but don't confuse that with thinking it's easy. A stock is not just a ticker. At the end of the day you have to remember that it's a business.
Dan Kent 0:12
Just my reminder to people who own cyclicals. Don't be surprised when there's a cycle.
Brayden Dennis 0:17
If there's uncertainty in the markets, there's going to be some great opportunities for investors.
Simon Belanger 0:23
This has to be one of the biggest quarters I've seen from this company in quite some time.
Brayden Dennis 0:32
Welcome back to the Canadian Investor Podcast. I'm back with Dan Kent. We have a fun episode. Earnings season is in full force right now. We'll go over some acquisitions, news, and earnings. So we'll start off with Jameson, which you've been saying will probably get acquired. And news came out that it did indeed get an offer that should go through. We're going to talk also. About Air Canada selling 25% stake in AeroPlan to pay down some debt. And then we'll talk about another deal. So HR Reet and Go Residential deal. We'll go into detail about that. We'll also talk about earnings from Wheaton Precious Metal. Spoiler, spoiler alert, it was a good quarter for the precious metal streamer. Go Easy also had a quarter that was not that good.
Brayden Dennis 1:22
But kind of expected from investors. We'll also have a quick look at Canadian natural resources. So another oil and gas play. Of course, these companies are performing really well with the first full quarter since the start of the war in Iran and of course higher oil prices. And then you'll go over the earnings from Berkshire Hathaway and we'll finish off with QSR or restaurant brand international and if we have time, Datadog, a US company we haven't talked much about on the podcast, but just some good insights and just learnings from their most recent quarter, if we have time to get to it. So Dan, let's get started. So Jameson Wellness getting acquired. So Jameson Wellness getting it.
Simon Belanger 2:06
Yeah, so this was if you listen to it was last Monday, I think we put out the four stocks to watch episode. This was one of them, one of mine on the stocks to watch. They mentioned a while back that there was a company that wanted to acquire it. No details were given outside of the fact that they had hired advisors to kind of judge whether whether or not they were getting a good deal. And it it kind of seems like, you know, the conclusion was yes, because they were announced that they were being purchased by a Japanese based beverage and health company Kirin Holdings for around forty five seventy five per share. So it came in around two billion. dollars total value made in terms of market cap. The deal was around a 15% premium to the price it was trading at when I mentioned it on the Monday.
Simon Belanger 2:50
They mentioned you'll see actually in the article we show here that they say it's a 27% premium, but that's to the like 20-day average price. I I don't really know why they do this, but they do. A lot of companies do this. As of the closing price when it was announced, it was about a 15% premium. So I
Brayden Dennis 3:08
I mean I think they just do it so it's more of a fair price, just because if you take a one day price, right, it can move quite a bit. So if as long as you take a larger sample, you get a better yeah overview of the price. It's still not a huge sample, but I can see why they would do that.
Simon Belanger 3:26
Well, and I think the reasoning for this that makes a bit more sense is because when the potential acquisition was announced, Jameson was in the high thirties. So I can see it to a certain degree, but uh it was still a bit confusing right off the bat because I thought it was a twenty seven percent premium to the last close, but it wasn't. It was fifteen. Not bad for a a week's worth of work if you had bought it on the the last Monday when we talked about it, but it did come in In lower than I expected. I had mentioned the risk of buying the stock would be that the premium comes in a bit too low and you aren't really compensated well enough for the risk because. If there's no acquisition, this one probably drops back down to the high thirties, but
Simon Belanger 4:06
It's a good deal for those who bought and those who did own.

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