NEW EPISODE: In a market obsessed with momentum and AI hype, Ryan Bushell is betting on something far less flashy — patience, discipline, and dividends. On this episode of In the Money with Amber Kanwar, the Newhaven Asset Management CEO proves that being a younger investor with an old-school mindset can still do well. His focus: companies that can compound for decades, not just quarters. Listen now on Apple, Spotify, or YouTube!
My mom came over to help me with bedtime after reading my missive about my son waking me in the middle of the night. Proof you are never too old to need your mom.
Here are five things to know today:
Crude awakening: US markets fell yesterday while Canadian markets rallied despite the continued sell-off in gold. Energy stocks were universally higher on the Canadian markets and that could continue with crude oil rallying this morning. The US announced new sanctions on Russia’s largest oil producers causing West Texas Intermediate prices to jump 5%. Quantum stocks are popping off (Rigetti +8%, Quantum Computing +11%, D-Wave +12%) on unconfirmed reports that they are all in talks about granting shares to the US government in exchange for minimum funding awards. Mercantilism > capitalism once again. The day ahead features 28 companies reporting on the S&P 500 including Intel after the bell. Two companies report on the TSX including Rogers (more on that below).
Stuck: Tesla is falling 3.5% despite record EV sales as rising costs took a huge bite out of the bottom line. Operating profit fell 40% in the quarter. The usual promises of robots and self-driving cars were not enough to offset the disappointment. Musk used the end of the conference call to urge shareholders to vote for his $1 trillion pay package that has been denounced by proxy advisory firms like ISS and Glass Lewis. The package only triggers once very ambitious measures are met including valuation metrics. “We note that the company will vote (we believe will be approved by a wide margin despite some opposition) on Musk’s pay package at the November 6th shareholder meeting which will be incremental to keeping Musk as a war-time CEO as the company enters a critical inflection point,” wrote Wedbush’s Dan Ives.
Big blues: IBM is falling 6% after disappointing sales growth in their software unit. In particular, the unit that houses Red Hat showed slower growth than the previous quarter and grew less than analysts were expecting. IBM purchased Red Hat in 2018 for nearly $32 billion and the open-source software company has been a key engine of growth for the company. Those soggy results are colouring an otherwise strong quarter with overall sales and profit exceeding expectations. Their forecast for growth was increased for the year and the free cash flow estimates were also higher than street expectations. “Stock +18% last seven weeks creating difficult set-up (23-24x EPS); not surprising stock re-rating down,” wrote Stifel’s David Grossman, “Fundamentally, business remains solid and we reiterate our Buy; however, defensive-minded investors may experience some short-term softness.
Let’s play ball: Rogers Communications beat profit and sales expectations and is raising its cash flow outlook after reducing its capital spending plans by $100 million. The telecom giant has made major bets in sports, acquiring a bigger stake in MLSE and, as the owner of the Blue Jays, is benefitting from their pending trip to the World Series. The company also added more mobile wireless subscribers than expected (62,000 vs 57,000 expected) and saw lower customer churn, however, this was less than the 101,000 subscribers they added in the same quarter last year. This shows that as immigration wanes there is a smaller pool of people available to sign up for new phones. However, there are signs that competition between carriers is abating and price pressures are easing. I am listening to the conference call right now and they hinted that the worst may be over in terms pressure on average revenue per user. They are getting lots of questions on the sports business and said they have plans to unlock the value of the sports franchise. They said they expect a transaction in the next year to unlock that value, including potentially purchasing the remaining 25% stake in the MLSE. They were just asked on the call if the Blue Jays is helping to lift subscriber growth across Rogers, which they didn’t really answer but said it does help with brand awareness.
Profit warning: EQB will cut 8% of its workforce and take a $67 million restructuring charge that will impact its upcoming quarter. Part of the charge will be related to the layoff, but the company is also taking an impairment charge tied to their equipment financing business. It’s the first major announcement from new CEO Chadwick Westlake who was put in the role in August after the sudden passing of CEO Andrew Moor. The stock is trading at a 16-month low and is a notable underperformer relative to the Canadian bank index which is trading near a record high. EQB could trade higher on the back of the restructuring announcement, says TD’s Graham Ryding. “This restructuring program is intended to sharpen EQB‘s capital allocation on core growth areas and indicates a lower expense run-rate,” he wrote in a note to clients. He is increasing his 2026 profit estimates by 5%.
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