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Investor.Coffee (10.03.2023): Canadian futures mirror global sentiment

Canadian futures are mirroring global sentiments, dipping lower due to hawkish comments from Federal Reserve officials which spurred U.S. bond yields and sent global stocks on a downward trend. Gold too, followed this trend with losses, while the U.S. dollar solidified its position, even as oil prices slipped amid mixed supply signals.

In company-specific news from Canada, Chesapeake Gold Corp. (TSXV: CKG | OTCQX: CHPGF) made waves with an announcement about a gold discovery at their Lucy Project in Mexico. Emphasizing the significance, CEO Alan Pangbourne highlighted the potential of the first phase of the drill results and shared excitement about the prospects of the discovery. The Lucy project, near a major highway, was staked by Chesapeake in 2017, and initial exploration discovered zinc-bearing skarns. Recent drills revealed a northeast trending zone of skarn with significant gold mineralization.

Further north, Imperial Mining Group Ltd. (TSXV: IPG | OTCQB: IMPNF) is sponsoring a three-year research initiative at McGill University. This endeavor will delve into understanding the unique formation of the scandium/Rare Earths deposit at their Crater Lake Project. The research, steered by internationally recognized Dr. Anthony Williams-Jones, aims to aid in efficient identification of higher-grade zones, improving profitability.

West Red Lake Gold Mines Ltd. (TSXV: WRLG) has charted out an ambitious plan for its projects in the Red Lake Gold District of Northwestern Ontario. They’re planning a 35,000-metre drill program for the Rowan Property, among other notable projects, aiming to put the Madsen Mine back into production by 2025. CEO Shane Williams praised the team’s efforts and expressed enthusiasm about the future.

On the U.S. front, the Russell 2000 index, reflecting the health of smaller U.S. firms, turned negative for the first time this year, spotlighting the concentrated gains in mega-caps. The U.S. Federal Reserve continues its discussions about a potential rate hike, with officials underlining the necessity of restrictive monetary policies to achieve the desired 2% inflation target.

From Europe and Asia, a possible rate hike by the U.S. Federal Reserve sparked debates. The European Commission is preparing to assess the weaponization risks posed by certain critical technologies. Meanwhile, in Britain, store chain prices rose at the slowest pace in a year this September. German footwear brand Birkenstock eyes a valuation of about $10 billion in its upcoming U.S. IPO. India’s meteorological updates hint at the driest August in over a century, and the Adani Group envisions expanding its integrated solar manufacturing capacity.

Investor.Coffee Daily Updates are intended to offer a brief summary of some business news highlights for today. Enjoy your morning coffee notes.




Investor.Coffee (9.26.2023): Ford Pauses $3.5Bn Michigan EV Battery Project and Global Banks Join Forces to Standardize Stock Position Disclosures

In the ever-evolving financial market, staying updated with the latest trends and developments is crucial. This week has brought a blend of intriguing shifts across different global sectors. Let’s take a quick preview of prominent events that are shaping today’s InvestorNews for Tuesday, September 26, 2023.

Canada’s Commodities and Contract Talks

The Canadian market has been experiencing some turbulence. A significant fall in commodity prices, notably oil and gold, led to a downturn in Canadian futures. This decline was primarily influenced by the strengthening of the U.S. dollar and concerns surrounding China’s waning demand.

The ripple effect wasn’t contained within Canadian boundaries. The U.S. stock index futures, European equities, and Japan’s Nikkei all recorded a slump. While the former was bogged down by uncertainties revolving around the Federal Reserve’s monetary policy, European stocks and Nikkei felt the pinch from technology sectors and chip-related shares, respectively.

In labor-related news, the Canadian union, Unifor, has zeroed in on General Motors Co. (NYSE: GM) for its upcoming contract negotiations. This decision follows closely on the heels of a successful ratification of a three-year contract with Ford Motor Company (NYSE: F). In infrastructure advancements, the Trans Mountain oil pipeline expansion witnessed a positive turn as the Canada Energy Regulator approved a route change, staving off potential delays.

U.S. Market Dynamics

September, historically a challenging month for stocks, seems to be living up to its reputation. Despite a small respite this Monday, the overall outlook remains cautious. Investors, with bated breath, are awaiting the impending earnings season and crucial data releases on new home sales and consumer confidence. To add to the complexities, the specter of a governmental shutdown is looming large due to political discord.

Apple Inc. (NASDAQ: AAPL) is currently in the spotlight, with EU industry chief Thierry Breton urging the tech giant to democratize its ecosystem. On a similar note, Ford Motor’s decision to pause its Michigan EV battery plant project, valued at $3.5 billion, raises eyebrows and sparks debates on broader contractual disputes.

Global Corporate Movements

Internationally, the banking sector witnesses a potential revolution. Renowned banks like Goldman Sachs and HSBC, among others, are joining forces to unveil a tool aimed at standardizing stock position disclosures. This move is anticipated to magnify transparency and reduce associated risks.

Private equity firm KKR & Co Inc. has shown a keen intent on resurgence. Their latest appointment, Kimberly Ross (former WeWork finance chief), is seen as a positive step in this direction.

On the defense frontier, Romania’s decision to procure 32 F-35 fighter planes from Lockheed Martin showcases its commitment to bolster its defense capabilities.

In the tech realm, Meta Platforms, Inc.’s (NASDAQ: META) decision to relinquish one of its London building leases highlights the growing apprehension towards traditional office spaces, possibly fueled by macroeconomic uncertainties.

Lastly, a shift in consumer behavior emerges from France. As prices surge, there’s a discernible reduction in the purchase of personal and household products from stalwarts like P&G and Unilever.

InvestorNews Updates are intended to offer a rapid bird’s eye view of the business world today and allow you to enjoy your coffee room breaks.




Social Media 101 for the Capital Markets

Members of the professional and capital markets ask me every day #whatworks in social media towards achieving effective market valuation with their publicly-listed companies. Few to none want to do the work. They want to hire someone, and they often extend this role to the junior part-time member of the company with no experience in writing, capital markets, or even – social media.

As with everything in life, you must do social media right from the onset or the damage can be irreparable. And equally as important (of course) is to ensure that when you market a public company via social media you’re erring on the side of compliance at every turn.

I remember when social media started. Firms out of Texas would charge US$10k a month, but here’s what we had right in the early days, an understanding that a great social media professional must be a great writer. But how many great writers have legal training and experience in the public market? Throw in tech-savvy, and well, over the years, many just gave up.

Today, believe it or not, social media for public markets is quite easy if you follow some simple rules:

  1. Only publish News Releases.
  2. Do not comment on share price or retweet anything at any time as a company unless you’re a partner with the company, and again – it’s a news release.

This morning, when I was meeting with a capital markets client, I decided, if I am going to write this down for him, why not share it with everyone? So here is my professional advice on how to deploy the minimum social media standards for your company online because you cannot be a public company and not have social media.

Why you ask? The real reason why social media is an absolute must is for emergencies. Social media is the only way to distribute news instantaneously and I have seen over the years, some extraordinary cases whereby the social media account may have saved the company. Misinformation is spread in real-time, and to counter these issues, one must be prepared.

The 1st thing you must have in the capital markets is a Twitter and LinkedIn account for your company. You must also make sure that the CEO has a LinkedIn profile. This is the absolute minimum as most shareholders when doing due diligence on a company, take the time to review the background of the CEO.

And where do investors go to review a CEO’s background or the management team’s background? Yes, LinkedIn.

Here are the minimum requirements you need to have a social media presence in the capital markets. You must have:

  1. Twitter for Company
  2. LinkedIn for Company
  3. LinkedIn for Company CEO

Then the strategy is simple.

  1. Sell Line. Make sure the sell line you use to describe your public company is the same in your Twitter account as it is in your LinkedIn account. A sell line should be 5-7 words and quickly alert the viewer to what your company does or offers. A sell line should never be more than 7 words. While Nike is most famous for “Just Do It”, I recommend you select a sell line that integrates your SEO words. For instance, if you’re a gold company, you should include gold. If you’re a nanotech company, you should use nanotech.
  2. Add Trading Symbols: It amazes me how irregularly I see trading symbols on a capital markets’ Twitter or LinkedIn account. Publish exactly like you do on a news release, so if your Jane Doe Corp. (NASDAQ: DOE | TSX: DOE), then publish it the way I just did and/or you may use the “$” prior to the symbol, but I urge you not to unless you get it right. For instance, a CSE-listed company would be $DOE.C.
  3. Logo. Use the same logo on both Twitter and LinkedIn. You would be surprised how few people do this.
  4. Banner Ads. Make sure that your Company Sell Line and Trading Symbol are displayed prominently on your banner ads. For Twitter, the banner ads are 1500×500 pixels and for LinkedIn, they are 1128×191 pixels.
  5. Trading Symbols. Make sure that your trading symbols are prominently displayed on the banner ads on both Twitter and LinkedIn.
  6. About Lines. The ‘About’ section in Twitter and LinkedIn are both approximately 12-15 words. Make sure that they are the same.
  7. Add Twitter and LinkedIn logos to your website. There, you’re set up.

Now what do you post? This is where a lot of public companies get into trouble. If you’re short-staffed, create a social media protocol that reflects your schedule and need to stay active without driving your legal bills north.

What do you do?

Keep it simple and only publish your news releases within 1-hour of releasing your news through an authorized distributor. Publish the title and add a hashtag (#) before the keywords. So, if you’re an EV company, you would simply add a hashtag before EV, so you would write #EV.

Please ensure that you publish your news release within an hour of release and publish it the same way on both Twitter and LinkedIn.

I am certain you’re saying: is that it?

Almost, but you’re not quite there. To secure interest in your story, this is where someone must do some work. And allow me to explain what this means, 1 hour in front of the television with a glass of wine. Ask yourself, who do I want to read my news? If you’re a biotech company, make sure you’re following your favorite biotech journalists. You’re in the capital markets so follow the media you want following you. You cannot expect people to find you if you’re hiding.

And do not forget the fin-fluencers! You’re a public company, which means you need to follow the movers and shakers online who can draw attention to your news. After all, this is the point of this practice. You’re public, which means – you need an audience.

Stepping sideways for a moment, I was reviewing a company’s social media the other day, and thought – “what is going on here?” It took me 5-minutes to discover that they had hired a social media company that handles restaurants doing their social media. There is nothing wrong with this if the professional offering the services has experience in the public markets, but in this case, it was clear by their website and work, they did not.

When you’re interviewing someone, ask them “What time does the stock market open?” You will be quite displeased by how few can answer this question. Frankly, I think all companies should be able to easily do this themselves because once you have the infrastructure set up, it takes less than 5 minutes to distribute. This said this process can help you ascertain if you can trust the service provider as there is nothing wrong with the answer: “I do not know.” At least this professional, you can work with.

Now, don’t get me wrong – you can go to town on social media, and do everything from a metaverse account to a YouTube channel; but today, I am sharing with you the minimum that you need. And to help you see that it is important to have, easy to set up, and relatively easy to do when set up right.

As always, we wish everyone the best in the public markets.




InvestorIntel.com Launches Newly Designed Site for Investors in the Capital Markets

November 30, 2022 – Celebrating 21 years in business, InvestorIntel Corp. is pleased to announce that its new website at InvestorIntel.com is now live as ‘the stock source’ for investors in the capital markets.

“Our website has been completely redesigned from the ground up,” said InvestorIntel Founder Tracy Weslosky. “The fresh, new design has made our independent coverage of the capital markets easier to access for investors and other readers, putting the daily stories from our award-winning and industry expert writers front and center. We also do not hide important stories behind a paywall or require sign-up or subscription fees from our readers.”

The InvestorIntel.com website has over 5 million visitors monthly, with the majority coming from the USA (40%), followed by Canada (20%), Australia (18%), UK (15%), and rest of the world (6%). InvestorIntel.com news and original content consistently ranks at or near the top of Google News as a trusted source of independent market and company reporting and analysis.

“Award winning business journalists and financial analysts is where we stand out in the field,” said Tracy Weslosky. “We are also a source for compelling video interviews conducted by hosts with extensive market experience, including Jack Lifton, Byron W King, Peter Clausi, myself and many more. We have found that when a business story is covered properly, everyone wins, and investors have the tools they need to make informed decisions.”

The new InvestorIntel.com website offers easy access to news and original articles organized by important market sectors, such as Critical Minerals and Rare Earths; Biotech & MedTech; Gold, Silver and Base metals; ESG & Cleantech; Energy, Oil & Gas and Uranium; Esports & Gaming; and Market Opinion. Company pages provide instant access to press releases, CEO interviews, and other information, and the new Trending Section shows what stories and companies are being followed by readers.

“As an online source of market news it is important that our website offer investors breaking news and easy-to-navigate information they need to inform their investment decisions in fast-changing markets,” Tracy Weslosky said. “Our new website will continue to be an important source for companies and investors and the millions of visitors who visit us every month.”

About InvestorIntel Corp.
Celebrating over 20 years in business, InvestorIntel Corp. is the publisher of InvestorIntel.com, the source for investors in the capital markets. A leading online source of investor information written by top-ranked analysts and business journalists, InvestorIntel.com offers the ii8 System for public companies seeking to increase brand awareness. Featuring video interviews with well-known market hosts, additional benefits of the ii8 System include hosting a Q&A driven InvestorTalk.com event and daily data-driven market feeds through InvestorChannel.com. InvestorIntel Corp. is also the founder of the Critical Minerals Institute, which brings together companies, government agencies, experts and investors in the vital critical minerals sector. For more information, contact Tracy Weslosky @TracyWeslosky, +1 416 792 8228 or [email protected]




Is Elon Musk turning Twitter’s eagle into a turkey?

With his takeover of Twitter, Musk has proven himself to be more of an agent of chaos than a disrupter. Disrupters have been celebrated as the innovators and drivers of the new economy, blazing new trails and finding new markets, but as Twitter users, employees and advertisers have discovered in the last few weeks there is a big difference between disruption and wholesale carnage.

Since his takeover of Twitter for $44 billion Musk has forgotten the cardinal rule of takeovers and senior management changes – don’t do anything for a few months. Unless there is an absolute crisis, the best thing new management can do is nothing at all. In a buy-out, this is the time to learn about your new toy and reassure your clients and employees that all is well. From this base of stability and knowledge, changes and innovations can be slowly introduced without destroying the company.

This is not, however, Elon Musk’s way. On day one he posted a tweet of himself walking into Twitter HQ carrying a kitchen sink, saying: “Entering Twitter HQ – let that sink in!” He immediately began making untested changes to the platform, making major policy announcements in real time via tweet and then immediately reversing himself, firing and rehiring key staff, and generally trolling Twitter users and the world from his new platform. He fired CEO Parag Agrawal, CFO Ned Segal, and policy chief Vijaya Gadde in the first couple of weeks.

The result has been a rush for the door, both in long-time users and advertisers. Twitter has (or had) roughly 450 million monthly active users. In FY 2021 advertising services generated USD $4.5 billion for Twitter, or about 89% of its revenue. As a result of the chaos and criticism of Twitter’s rudderlessness, advertisers have canceled or “put on pause” their ad buys. To date these include General Mills, the Volkswagen Group, General Motors, Pfizer, United Airlines, Audi, Farvel, and Carlsberg. Their concerns are not just about a drop in Twitter users, but also “concerns about a rise in misinformation, hate speech, and other distasteful content under his watch.”

This is also a major concern for thousands of marketing specialists, investor relations professionals, journalists, media and others who support and report on the small to medium cap public markets. In a few years Twitter has become a cornerstone for companies getting their stories out to a wider audience through press releases, corporate updates, CEO interviews and presentations. Facebook and LinkedIn are also part of the social media ecosystem, but reach and serve different markets.

It is also not just about audience size. According to its public filings, Twitter:

“…creates tailored advertising opportunities by using an algorithm to make sure promoted products make it into the right users’ timelines, search results, profile pages, and Tweet conversations. Advertisers have the ability to target an audience based on multiple criteria. Twitter provides ways for advertisers to build and grow an audience interested in the products or services they are offering. Advertisers also have the option to pay for ads that will appear at the top of the trending-topics list or timeline.”

If Twitter crashes and burns companies and investor relations professionals will be faced with a fragmentation of their social media buys. Facebook has far more users than Twitter (with roughly 2.96 billion monthly active users as of Q3 2022) and uses its own ad targeting algorithms, but reaches a different audience than Twitter. For business, Twitter’s value in the space is as an aggregator of users, particularly journalists and media outlets, and no other similar platform comes close to its audience. Mastodon and CounterSocial are popular destinations for people fleeing Twitter, but they are both small, ad-free, appeal to different demographics, and it will be a long while before they accumulate an audience or for companies to re-create their hard-won audience of Twitter followers.

It may well be, in the phrase often attributed to Mark Twain, that reports of Twitter’s death are greatly exaggerated. The brand, the technology and the market are all valuable properties. Maybe not worth $44 billion by the time Musk is finished with his capricious vanity meddling, but a valuable property nonetheless. Musk may have put up a lot of money from the sale of his Tesla shares, but the financiers who put up the rest of the funding for the buyout will have something to say seeing their investment evaporate. Major banks, including Bank of America, Barclays, BNP Paribas, Mizuho, Morgan Stanley, MUFG, and Societe Generale committed to giving Musk $13 billion for the acquisition. Morgan Stanley alone has contributed nearly $3.5 billion for the acquisition. There will be a point when they demand that Musk stop running with scissors.

Companies and their marketers are holding their collective breath as they watch one of their most useful investment relations tools speed towards the cliff, wondering what they will replace it with.

In the words of Elon Musk in a tweet addressed specifically to his “Dear Twitter Advertisers” on October 27th who were jumping ship:

“Fundamentally, Twitter aspires to be the most respected advertising platform in the world that strengthens your brand and grows your enterprise… Let us build something extraordinary together.”

It may still be possible, if he can restrain himself for five minutes in his reckless campaign to tear it down.




How predatory short selling harms and exploits Canada’s junior markets

In this InvestorIntel interview, host Tracy Weslosky is joined by Terry Lynch, Founder of Save Canadian Mining and CEO of Power Nickel Inc. (TSXV: PNPN | OTCQB: CMETF), and Peter Clausi, President, CEO and Director of CBLT Inc. (TSXV: CBLT) to discuss predatory short selling and how it is hurting investors and the mining industry.

In the interview, which can also be viewed in full on the InvestorIntel YouTube channel (click here), Terry and Peter talk about how the lack of fair and transparent capital markets allows predatory short sellers to go unpunished and play havoc in the markets with the interests of investors and companies alike. Terry goes on to discuss the need for reinstatement of the “tick test” to curb predatory short selling. Touching upon the lack of response from the Canadian regulators, Peter advocates the need for stronger investigative powers by the Canadian Securities Administrators to correct a flawed system that keeps stock values artificially down.

Don’t miss other InvestorIntel interviews. Subscribe to the InvestorIntel YouTube channel by clicking here.

About Save Canadian Mining

Save Canadian Mining is a not-for-profit, issue-based advocacy group representing the interests of Canada’s junior mining industry and the investment community. Founded in September 2019 by Terry Lynch, Save Canadian Mining is committed to working with governments and agencies to amend regulations in capital markets to help generate investment in Canada’s junior mining industry.

To know more about Save Canadian Mining, click here

Disclaimer: This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].