With inflation dropping from 8.1 per cent last June to 4.3 per cent in March, the appeal of long-tail opportunities is gaining steam.
Investors are warming to the idea of short-term pain, in the form of volatility, for the promise of long-term gains, thanks to a growing expectation that prices will continue their soft landing without tipping Canada into a recession.
Gasoline prices, a major input across Canadian exchanges, are spearheading this sentiment with a 13.8 per cent decrease YoY in March, with global benchmarks for copper, steel, lithium and iron ore all down double-digit percentages over the past year. While grocery prices are still up around 10 per cent YoY, frustrating Canadian consumers, downward trends in these industrial indicators, plus the notion that borrowing costs will normalize further if inflation continues to drop, are creating excitement in the markets once again.
Over the past week, this thesis has piqued the interest of Market Herald readers in the form of potential long-term outsized returns in oil, psychedelics and the topic on everyone’s tongues as of late, artificial intelligence. Readers gravitated to three stories in particular in these areas, each of which feature companies positioned to create value through differentiated specialization:
Source Rock Royalties (TSXV:SRR) reports record Q4 and 2022 results
Source Rock Royalties announced standout results for Q4 and 2022.
Annual highlights include record royalty revenue of $6,490,519, an increase of 52 per cent YoY, as well as record adjusted EBITDA, funds from operations, and royalty production.
Management believes the company is well-positioned to keep costs low and maximize insulation from macro and industry-specific inflation, while benefitting from continued strength in oil prices.
Founder, President and CEO, Brad Docherty, spoke with Shoran Devi about the news.
Source Rock Royalties (SRR) is up by over 16 per cent year-to-date thanks to promising financial results and its transition to a monthly dividend, which competes with attractive GIC and short-term bond rates by offering regular income with the promise of share appreciation.
Silo Wellness (CSE:SILO) partners with psilocybin producer, Satya
Silo Wellness is partnering with Oregon-based psilocybin producer, Satya, to develop a robust ecosystem to support the well-being of Oregonian psilocybin patients and entrepreneurs alike.
Their two-year agreement will see Satya grant Silo a right of first refusal to any of its psilocybin biomass.
Founder and CEO, Mike Arnold, spoke with Shoran Devi about the news.
Silo Wellness (SILO) shares have taken a beating following dilution to minimize its debt load and a failure to file annual financial documents, which has since been resolved. Value investors take note: to say the stock is out-of-favour would be an understatement.
SuperBuzz (TSXV:SPZ) launches its first domain centric language model
SuperBuzz has launched its first domain centric language model.
The model allows businesses to produce personalized and relevant marketing tailored to their target audiences using AI-based automation.
The solution has generated over one million marketing creatives since its official launch.
CEO Liran Brenner spoke with Shoran Devi about the news.
SuperBuzz (SPZ) has produced a stable 10-per-cent return since inception, despite monetary policy headwinds, demonstrating the strength of its status as the first AI company to specialize in marketing technology.
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