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Summary
- Cyber stocks such as BlackBerry Limited have been in demand since over 48,000 accounts were hit by credential stuffing at the Canada Revenue Agency (CRA)
- Cineplex stocks suffered a great deal as major films either got delayed till 2021 or were released directly on streaming platforms.
- Both these shares are currently trending on the TSX and are valued under C$ 7.
Investors have always shown interest in discounted stocks. In the wake of the coronavirus pandemic, stocks of BlackBerry (TSX:BB) and Cineplex (TSX:CGX) have become available at cheaper rates. These shares are also currently trending high on the Toronto Stock Exchange (TSX) due to heavy trading volume activities this week.
Cyber stocks such as BlackBerry Limited saw a spike in their demand recently after the Canadian government faced major cybersecurity issues. Cineplex shares, on the other hand, slid 29 per cent on October 5 after the new James Bond movie was pushed to 2021.
Let us take a closer look at these trending stocks trading for under C$ 7:
BlackBerry Limited (TSX:BB)
Current BB Stock Price: C$ 6.43
Once a leader in the smartphone industry, BlackBerry Limited lost its reign to the rising demand of Apple and Android phones among global users around mid-2000s. As it bowed out of its phone-manufacturing business in 2016, BlackBerry turned its focus to the key feature its phones were appreciated for – security.
Over time, BlackBerry earned its name in the cybersecurity ecosystem, taking on clients such as the US Airforce, the Royal Canadian Mint, Intel, Saudi Financial Company, Vodafone and Amazon.
Cyber stocks have been drawing attention in Canada after the federal government suffered major cybersecurity attacks around July and August this year. As many as over 48,000 accounts were hit by credential stuffing at the Canada Revenue Agency (CRA). Meanwhile, the Treasury Board of Canada also uncovered suspicious activities in partner portal GCKey.
BB STOCK PERFOMANCE
Shares of Blackberry Limited were among the most actives on the TSX on Wednesday, October 13, with an average trading volume of over two million in the last 10 days.
BlackBerry's stock price reached its all-time high of C$ 149.9 on June 19, 2008. But as Apple Inc’s then-recently launched touchscreen-enabled iPhone began to turn into a huge hit, it marked the beginning of BlackBerry’s end in the smartphone business.
Since its highest point in June 2008, BlackBerry scrips fell nearly 90 per cent in a decade’s time. With the onset of the coronavirus in 2020, it tumbled to a low of C$ 4.12 on March 17 amid the pandemic-led market crash.
Blackberry shares lost 19 per cent in value this year. However, the stock price rebounded 26 per cent in the last six months and nearly nine per cent in three months.
BB FINANCIAL RESULTS
BlackBerry Limited reported a total revenue of US$ 259 million in its second quarter of fiscal 2021 ending 31 August 2020, up from US$ 244 million in Q2 FY20. Its operating expenses stood at US$ 221 million while its operating loss was US$ 22 million in Q2 FY21. BlackBerry’s total cash, cash equivalents, short-term and long-term investments were US$ 977 million in the latest quarter.
The company’s net cash from operating activities was US$ 31 million in Q2 FY21. It also managed to reduce its level of debt by US$ 240 million in the latest fiscal quarter.
Cineplex Inc (TSX:CGX)
Current Stock Price: C$ 4.61
Canada's largest movie theatre chain, Cineplex Inc’s business was hit hard by the coronavirus pandemic this year, forcing it to temporarily close cinema halls. On top of it, Cineworld Group Plc terminated its C$ 2.15 billion deal to acquire Cineplex back in June.
As it picks itself up and adapts to the new COVID-way of doing things, Cineplex Inc CEO Ellis Jacob said in an annual meeting on Tuesday, October 13, that the company is ready to be "agile and nimble". Cineplex began a phased reopening throughout Canada with coronavirus-related protocols in place in the last week of August. However, lockdown was reimposed in certain pockets of the country, leading to uncertainty around the opening of cinema halls.
CGX STOCK PERFORMANCE
Shares of Cineplex Inc tumbled nearly 74 percent in a month’s time between February 18 and March 18 as the markets nearly bottomed out amid the coronavirus pandemic.
Cineplex scrips lost over 86 per cent in value this year. It slid nearly 62 per cent in the last six months and about 42 per cent in three months.
In October, Cineplex stock slumped again almost 37 per cent as major theatrical releases either got delayed till 2021 (such as James Bond flick No Time to Die) or landed straight on to streaming services platform (such as Mulan, Soul, etc).
CGX FINANCIAL RESULTS
The impact of the COVID-19 pandemic on Cineplex’s business reflected profoundly in its second quarter ending 30 June 2020.
The company’s total revenue of C$ 22 million was down a whopping 95 per cent year-over-year in Q2 2020. It bore a net loss of C$ 98 million from its continuing operations in the latest quarter, as against the net income of C$ 22 million in Q2 2019.
The total number of people who watched shows at Cineplex in Q2 2020 was down to a paltry 6,000. This number in Q2 2019 was 17 million.
