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Market movers: Stocks see action on Thursday – and why

A summary of some of the North American shares moving in both directions today

On the rise

Shares of Air Canada (AC-T) increased 1.4 percent at the beginning of trading on Thursday after saying it has an agreement to buy a Montreal-based airline and tour operator Transat AT (TRZ-T) for $ 13 a share in a transaction worth $ 520 million.

Air Canada, the country's largest airline, said the deal offers a "made-in-Quebec" route to better work safety for employees in both companies and offers travelers a wider range of routes and vacation packages.

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In a research paper, AltaCorp Capital analyst Chris Murray said: "We believe the integration should be relatively seamless, with the majority of the Transat fleet, consisting of 737NG and A321 narrow bodies, added to Air Canada's Rouge fleet and Transat's A330 aircraft that Moving to either Rouge or Mainline, we expect companies to realize a number of synergies from the transaction and see that Air Canada has a strong team of pilots and other employees. "

"We see the transaction positively on its benefits and note that it strategically prevents another bidder, including Onex (ONEX-T, Not rated), Sunwing (Private, not rated) or other private equity player, from being disruptive to the market. "

The shares in Transat jumped 15.6 percent on the news. Inc. (AMZN-Q) shares were 2 percent higher after Warren Buffett's Berkshire Hathaway Inc. (BRK-A-N, BRK-B-N) revealed in a regulation that it owned $ 860.6 million of online reseller shares at the end of March.

Earlier this month, Buffett said he had been "an idiot" for not investing in Amazon himself.

Turquoise Hill Resources Ltd. (TRQ-T) was 4.1 percent higher after releasing better than expected quarterly results on Wednesday after closing the market.

RBC Dominion Securities analyst Sam Crittenden: "We were able to see a positive response from TRQ shares to the first quarter, which was better than our forecast for higher production and sales, and it was not possible to change 2019 guidance. the mining plan and TRQ pointed out that the final review of estimates made by Rio Tinto is expected to be completed by the end of 2019. TRQ also noted that it is committed to mining manager Rio Tinto to incorporate new geotechnical data into the mining design and expects to provide an update with half-year results . "

ATS Automation Tooling Systems Inc.. (ATA-T) jumped 6.7 percent after reporting better results than the first quarter before the market opened on Thursday.

Cambridge, Ont. -Based companies said revenue grew 17 percent to $ 348.6 million in the quarter from $ 298.4 million a year ago. Net income was $ 18.2 million or 20 cents per share, against net income of $ 15 million or 16 cents per share during the same period in 2018.

Analysts expected profits to come in at 18 cents per share and sales at $ 308 million over the last quarter.

National Bank Financials Maxim Sytchev said: "While we continue to enjoy the automation space in general and we welcome the company's cautious repositioning towards less cyclical health care vertically, we see the stocks as appropriately valued. High multiple M&A is also a risk that should not be underestimated. Also believe that backlog growth will face harder compositions on a forward-looking basis compared to this year's stake performance. "

Walmart Inc. (WMT-N) increased by 3.8 percent after reporting an increase in US comparable sales in the first quarter, while total sales growth and online sales declined.

Sales in US stores open at least one year increased by 3.4 percent, excluding fuel, in the quarter, which exceeded the consensus analysis forecast of 3.1 percent.

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Adjusted earnings per share increased to $ 1.13 per share, which also hit expectations of $ 1.02 per share.

Chief Financial Officer Brett Biggs told Reuters that higher prices will lead to increased prices for consumers. He said the company will try to alleviate the pain, partly by trying to get products from different countries and by working with the suppliers' "cost structures to handle higher fees."

Nutrien Ltd. (NTR-T) increased 0.2 percent after CEO Chuck Magro, who spoke at BMO's Farm to Market conference in New York, said African swine fever is likely to damage the demand for cereals and oilseeds over the next few years.

Mr Magro said that the agricultural markets will eventually correct themselves from the consequences of the disease, which has killed much of China's swine herd.

Cisco Systems Inc. (CSCO-Q) share jumped 5.1 percent after reporting better than expected quarterly earnings on Wednesday after the clock and providing a positive sales forecast for the current period.

The California-based Tech Giant ad increased to US $ 3.04 billion, or 69 US cents per share, for the third quarter, from US $ 2.69 billion or US $ 56 per share over the same period a year ago .

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Adjusted, the company received 78 US cents per share, which exceeded the forecast on Street by a penny.

RBC Dominion Securities analyst Mitch Steves: "Cisco reported a solid quarter across the board and guidance was also better than expected after a downturn in spending. We were most impressed by the following: 1) 5% growth in infrastructure platforms and data centers increased the year before, 2) gross margins increased 50 points quarter over quarter, 3) security growth came in at 21 percent suggesting stock gains, 4) Catalyst series continues to grow (we estimate double figures) and 5) WiFi-6 seems to get one To put these things together, together with a limited inorganic revenue contribution to growth (only 0.4 per cent), we believe that organic trends are solid and pay the bears' beliefs that surround a decrease in revenue in the short term. considered a negative service provider side that looks to see a remarkable spending break. "

Supreme Cannabis Company Inc. (FIRE-T) increased 1.6 percent after announcing it bought Blissco Cannabis Corp. (BLIS-C) shares it does not already own in a stock trading transaction valued at approximately $ 48 million.

Under the agreement, each Blissco share will be replaced by 0.24 of a common portion of the Supreme Cannabis.

"The two company's shareholders will benefit from the combined product range, infrastructure and consumer reach of the combined companies," the companies say. "Through the acquisition, Blissco will join the Supreme Cannabi's exclusive premium brand portfolio and serve as the Supreme Cannabis Health and Wellness Industry."

At the fall

A & W Revenue Royalties Income Fund (AW.UN-T) dropped 5.5 percent after announcing on Thursday morning, there has been a secondary offer announced after the Wednesday Wednesday "due to high demand".

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The offer is now 1,125,000 trust units at a price of $ 44.55 for a profit of just over $ 65 million.

The fund said it will not receive any revenue from the offer and Food Services will allocate the net samples in the offer to its "long-term shareholders".

With files from Brenda Bouw, staff and management

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