JMRD Market Observer for March 17, 2017

In This Week’s JMRD Market Observer



  • Fed Policy Monitor – Fed: One done, on track for two more in 2017

  • National Bank Estate Planning Series Part 3 of 5

  • JMRD Basket Corner

  • Retirement Corner

  • Reads of the week

  • Economic Calendar

  • Earnings Reports



Fed Policy Monitor – Fed: One done, on track for two more in 2017


Bottom line: The market will take solace from the fact that the median projection for the Fed funds target range was left unchanged from December. Mrs. Yellen reiterated the current pace of economic growth was consistent with further normalization of monetary policy that would remain gradual, rejecting the idea of sequential rate hikes. Developments in labour markets remain key in dictating the future path of the Fed funds rate. We were pleased to see Mrs. Yellen acknowledge the recent rise in the labour participation rate in her press conference as a factor that could limit wage inflation. This is consistent with our current view that the Fed need not hike more than a total of three times in 2017. Recall that a 0.5 percentage point increase in the participation rate would add 1.2 million peopled to the labour force.


See the full article.



National Bank Estate Planning Series Part 3 of 5


The JMRD Team recently met with one of our partners, National Bank Trust. With a primary focus on Estate Planning, we feel National Bank Trust will play a larger role as part of our business in the coming years. As an introduction, we felt it would be beneficial to provide some basic, but often misunderstood, estate planning information. Over the next five weeks we will attach an article we feel will be of interest to you.


Part 3: The Mysteries and Misconceptions of Joint Ownership


See the full article.



JMRD Basket Corner


DIG Basket


BCE Inc (BCE) – BCE closes $3.1-billion MTS deal, launches new services in Manitoba


Veresen (VSN) – Alliance offers natural gas producers more access to the east as West Coast LNG prospects fade


All-Cap Growth Basket


CargoJet (CJT) – Q4 results show continued growth. Revenue of $94.1 million was ahead of our $89.4 million forecast (Street at $90.1 million). Adjusted EBITDA of $27.9 million was lower than our $30.1 million forecast and the Street at $28.2 million. EPS was a loss of $0.09 versus NBF at $0.95 and the Street at $0.79. During the quarter CargoJet incurred $8.7 million in non-cash pension benefits costs for defined benefit plan for its CEO. The plan is unfunded and the $8.7 million is the determined actuarial valuation.


See the full article.


Enercare (ECI) – Enercare CEO: We are in good shape to grow the business John MacDonald, chief executive officer at Enercare joins BNN to discuss their profitable fourth-quarter earnings results and how they are positioned to deal with a possible downturn in Canada’s housing market.


Premium Brands (PBH) – Premium Brands traded higher by 5% following Q4 2016. PBH reported sales of $532.6 million (NBF: $518.9 mln), up ~33% y/y driven by organic growth (+6.9%), M&A (+20.5%) and an extra week in Q4/16 adding $29.2 million to the top line. EBITDA of $45.6 million (NBF: $44.7 mln; Street $43.3 mln). As a result, EPS increased to $0.67 (NBF: $0.62; Street $0.67). Dividend was also raised by 10.5%.


See the full article.


Shopify (SHOP) – From the ­unlikely setting of Ottawa, Shopify has ­quietly been powering an e-commerce revolution. Shopify: The Invisible Selling Machine


U.S. Growth Basket


Arista Networks (ANET) – Arista Networks still a good bet


MSCI (MSCI) – Shares of MSCI were up 1.3% on Wednesday to a new year-high after the financial index provider denied a report that it had rebuffed a takeover bid from S&P Global. MSCI surged more than 12% when markets opened, following an anonymously-sourced report in London’s Evening Standard that S&P Global had unsuccessfully sought to buy the company for $120 per share, a deal that would have valued MSCI at about $11B. “We are not in discussions with any third party, and we have not received any offer or indication of interest,” MSCI says.


Steel Dynamics (STLD) – Shares of Steel Dynamics were rising Friday after the company delivered much improved earnings guidance and raised its dividend by 11%. The stock was up 3% to $36.47 in early afternoon trading. It has climbed 67% in the past year during the commodity price recovery.  The company declared a quarterly cash dividend of 15.5 cents a share over the prior rate of 14 cents a quarter.



Retirement Corner




Reads of the Week











Economic Calendar


Monday March 20th – none

Tuesday March 21st – none

Wednesday March 22nd – Existing home sales

Thursday March 23rd – Initial jobless claims

Friday March 24th – PMI manufacturing flash



Earnings Reports


Monday March 20th – none

Tuesday March 21st – NKE-US

Wednesday March 22nd – BYD.UN,

Thursday March 23rd – none

Friday March 24th – none



Have a good weekend!


By | 2017-03-20T14:18:47+00:00 March 17th, 2017|JMRD Updates|0 Comments

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