Moderate and Mellow Market Methods

Sector Spotlight

TMX Group’s First of Many M&As

Canadian financial services company TMX Group (TSX:TMX), the company that operates the Toronto Stock Exchange (TSX), TSX Venture Exchange, and the Montreal Exchange, recently signed a deal to buy a 21% stake in VettaFi Holdings LLC for CAD $234 million. U.S.-based VettaFi is a privately owned data, analytics, indexing and digital distribution company. TMX chief operating officer Jay Rajarathinam says the investment includes an agreement that will accelerate TMX’s global index strategy and increase the depth and value of data-driven insights the company provides to clients.

​
​

It sounds like TMX’s investment in VettaFi is only just the beginningfor the company’s merger and acquisition plans as TMX COO Jay Rajarathinam said “We hope to be doing more of these acquisitions, partnerships as well as organically building out some of the capabilities, because we have some really unique datasets, really knowledgeable folks and connectivity to our clients… so we hope to be doing more of these and getting more global, more information businesses.” Who do you think will be next on TMX’s radar?

​

​
​

Meme Stock Stalkers

Back at it

Last week it was reported that the popular meme stock Bed Bath and Beyond had begun preparations for a bankruptcy filing that would likely come during its first operating quarter of the year. Bed Bath & Beyond added in a filing that it’s taking steps to improve its cash position, but that recurring losses and negative cash flow in the nine months ended Nov. 26 leave “substantial doubt” that it can stay in business. The company said it’s pursuing options including restructuring debt, selling assets or filing for bankruptcy, but added “these measures may not be successful.” Shares of Bed Bath sank as much as 25% last Friday following the news.

​
​

Now, if you can’t guess what happened next, you must be new here, because in the most typical meme stock fashion, Bed Bath and Beyond surged nearly 60% over the course of Monday and Tuesdays trading sessions. Rumblings of a possible merger and acquisition deal (M&A) ignited the rally that was largely fueled by speculations from the infamous Wallstreetbets crowd on reddit. In conclusion, this isn’t to say the stock is saved as we know meme stock hype is not sustainable, nor is it the formula for a successful company…

​
​
​

ESG

Gas cars Be Gone

The government of Canada finished off 2022 with an ESG bombshell as Steven Guilbeault, the Minister of Environment and Climate Change, announced that all new passenger cars, SUVs and pick-up trucks sold in Canada will be required to be zero emission vehicles (ZEV) by 2035. The announcement follows the release earlier this year by the Government of Canada of its 2030 Emissions Reduction Plan, outlining its strategy to achieve its interim climate goals to cut GHG emissions by 40% – 45% by 2030.

​
​

On top of the 2035 target, Canada also introduced several interim ZEV sales mandates, requiring ZEVs to make up 20% of new vehicle sales by 2026, and 60% by 2030. According to a government statement, the targets are aimed at helping increase ZEV supply for consumers. According to a government estimate, the new mandate will result in cumulative greenhouse gas emissions reductions of 430 million tonnes between 2026 and 2050.

​
​
​
​
​
​
​

Financial Jargon Word of the Week: The January Effect is a perceived increase in stock prices during the first month of the year. Analysts generally chalk this rally up to an increase in buying, which follows the drop in price that the stock market sometimes sees in December as investors engage in tax-loss harvesting to offset realized capital gains. ​ ​ ​ In a sentence, please! If only the January Effect were real, I’d be cashing in big time at the end of every January! ​ ​ ​ ​ ​ ​ ​ ​ ​ Discover your Investor Profile and get customized free, action items specific to the way you invest! Every week, we will be talking about the latest market news and strategies, aligned to keep you sharp and armed for opportunity and volatility. This newsletter is geared to YOU, based on your own Finliti Investor Profile! We believe that every investor is unique and therefore, should be aware of their actual risk tolerance. If you’d like to know yours, please find out here: Finliti Investor Profile. Get actionable insights into your personalized faction once you discover your inner wealth warrior! Understanding your personal risk tolerance is one of the key first steps before embarking on an investment or trading strategy. It tells you your location on the GPS tracker to your financial destiny! Thank you for joining the Finliti Community! Finliti Disclaimer 1. Finliti’s newsletter is published as an information service to our subscribers and may contain references to stocks, bonds, mutual funds, ETFs, cryptoassets, etc., but this should not be construed as direct or indirect advice or recommendation to any reader to buy or sell these assets. 2. Finliti believes the sources it quotes to be reliable, but does not guarantee their accuracy or completeness. 3. Finliti is not paid by any company to recommend its stocks. 4. Employees or publishers of Finliti’s newsletter may own the assets discussed in the publication for their own investment purposes. 5. Past results are not necessarily indicative of future performance. 6. The information provided is for general information services to our readers as a convenience the materials are not a substitute for obtaining professional advice vis-a-vis your personal situation. 7. Given the time critical nature of the market, the information in this article may become outdated and Finliti has no obligation to change the article. 8. Finliti Corporation is not a registered Investment Advisor or Broker Dealer. This newsletter relies on the “publisher’s exclusion” from the definition of Investment Advisor under Section 202(a)(11)(D) of the Investment Advisors Act of 1940and its corresponding state securities laws and on the exemption from registration under Section 34 (1) (1) of the Securities Act (Ontario) and its equivalents in Canada. Tell your friends about us! Unsubscribe | Update your profile