Two rebounding stocks for the long run
While many investors are fond of bowing down to market fluctuations as gospel, the mostly unspoken truth is that rebounding stocks, as well as those in precipitous downfalls, require supporting facts for these fluctuations to qualify as rational.
In other words, a stock's spike up or down speaks to its underlying company's valuation only if there's evidence for it.
In its absence, the market's bipolar tendencies might be offering you a discount to build a position, or overvaluation to make a profitable exit.
In its presence, you're the beneficiary of a data-driven investment thesis and can begin to hash out expectations in terms of time horizon and expected return.
In the newest edition of Stockhouse's Weekly Market Movers, I'll analyze a pair of rebounding mining stocks supported by operations that seem to have what it takes to ramp up momentum moving forward. Atlas Salt
Our first rebounding stock, Atlas Salt, market capitalization C$47.67 million, is developing the Great Atlantic salt project in Newfoundland, which is positioned to be Canada's next salt mine.
The feasibility-stage project holds an estimated post-tax net present value of C$553 million, offering the potential for a 34-year operating life extracting about 84.5 million tons of salt in probable reserves, in addition to resources of 368 million tons indicated and 827 million tons inferred.
According to Atlas Salt's investor presentation for June 2025, the price of U.S. rock salt imports has more than doubled since 2000 to over US$65 per ton, with North America importing about a quarter of its salt annually, granting the company plenty of room to capitalize on the ongoing trend of onshoring critical material supply chains.
At total capital costs of C$1.1 billion, with a payback period of only 5 years, Great Atlantic is rapidly advancing towards production through permitting and an updated feasibility study to further validate project economics for investors and offtake partners. An initial non-binding memorandum of understanding with Scotwood Industries targets distribution of 1.25 to 1.50 million tons of salt products per year.
Atlas Salt stock (TSXV:SALT), in turn, has bounced back by 36.11 per cent from its year-to-date low, largely driven by the upcoming feasibility study and the hiring of a new CEO and CFO that bring ample experience with major miners and financial institutions.
I think a handful of priorities in 2025 are likely to keep pushing the stock up and to the right, including advancing regulatory compliance, geotechnical and hydrological site evaluation, potential production expansion, as well as the conversion of a pipeline of strategic partnerships into initial revenue.
Nolan Peterson, Atlas Salt's CEO, spoke with Stockhouse's Lyndsay Malchuk about the new feasibility study, which is expected in Q3 2025. Watch the interview here. Kootenay Silver
Our second rebounding stock, Kootenay Silver, market capitalization C$74.89 million, is a mineral explorer that controls one of the largest junior silver portfolios in Mexico, which Visual Capitalist ranks as the world's top silver-producing country. The company's portfolio is highlighted by: Its flagship Columba project, housing a maiden resource estimated at 54.1 million ounces in silver resources inferred.
The Promontorio-La Negra and La Cigarra properties, representing a collective 214.2 million ounces of silver equivalent measured and indicated and 54.9 million ounces of silver equivalent inferred.
At prices as of June 20, these properties are sitting on more than US$11.6 billion in silver in the ground combined, a sum on a completely different plane of existence versus the company's micro market capitalization.
And with Kootenay stock up by only 2.56 per cent year-over-year, heavily trailing silver's 20 per cent gain, you wouldn't exactly intuit the company's multi-billion-dollar potential, or the fact that its operations are well-equipped to close this valuation-resource gap in a significant way. Key drivers behind this thesis include: A leadership team with success developing early-stage mining projects into acquisition-worthy targets.
A C$17.4 million bought-deal offering with Research Capital expected to close on June 25 to further advance Columba, with funds going towards an ongoing 50,000-metre drilling program that has yielded numerous intercepts in the thousands of grams of silver per ton (g/t) with numerous high-grade targets still to be explored.
An abundance of targets on its secondary properties waiting in the wings to add fuel to a bid for a stock price re-rating.
An approximately 5 per cent investment from Canadian Mining Hall of Fame member Eric Sprott doesn't hurt either, in terms of differentiating the company from competitors when it comes to future capital raises.
Over the past month-and-a-half, the market has been showing early signs of recognizing the value proposition we're laying out, with Kootenay stock (TSXV:KTN) adding more than 30 per cent over the period propelled by Columba's maiden resource, as well as a highlight intercept of 7,360 g/t silver and 30.57 per cent lead-zinc announced in early May.
With exploration capital nearly in hand, look for positive news flow over the summer to continue fostering this upward trend and building awareness of Kootenay's major status among junior silver miners.
James McDonald, Kootenay Silver's president and CEO, joined Coreena Robertson to comment on Columba's maiden resource estimate. Watch the interview here.
Thanks for reading! I'll see you next week for a new edition of Stockhouse's Weekly Market Movers. Here's the most recent article, in case you missed it.
Join the discussion: Find out what everybody's saying about these rebounding stocks on the Atlas Salt Inc. and Kootenay Silver Inc. Bullboards and check out Stockhouse's stock forums and message boards.
This is sponsored content issued on behalf of Atlas Salt Inc. and Kootenay Silver Inc., please see full disclaimer here.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
6 hours ago
- Globe and Mail
CanadaBis Capital With its wholly owned Sub. (STIGMA GROW) Announces Record Revenue Q1 F2025 Resulting in $9.6M Gross with $321,569 in NET Earnings and an Adjusted EBITDA of $675,892
CALGARY, AB , Dec. 31, 2024 /CNW/ - CanadaBis Capital (the "Company" or "CanadaBis Capital") (TSXV: CANB.V) a premium cannabis and concentrates producer, is pleased to announce its First Quarter Fiscal 2025 financial results for the three month period ending October 31, 2024 . "Our Brands continue to deliver products that are in demand, and our dedication towards our quality continue to prove our strength in the market.", said Travis McIntyre , CEO of CanadaBis. "While we continue to focus on profitability, we are delighted to be able to post yet another record quarter of revenue. Our product launch momentum also continues to accelerate with Multiple new products launched this quarter. We exit Q1 F2025 with our most aggressive and innovate pipeline of new products in the Company's history. Financial Highlights The Company realized its Record gross revenue of $9.6 million for October 31, 2024 , and 7% higher than the same corresponding period of 2023. The Company achieved positive net income of $321,569 for the three months ended October 31, 2024 . The Company continues to market its Resin Infused Pre-rolls, Shatter Infused Pre-rolls, Resin Infused Flower, along with Moonrocks (Moonrocks are whole flower, coated in resin and rolled in kief). The Company was able to maintain sales of its newest product line, Super Slim Cigarette Style Pre-Rolls, the Electric Dartz. These new products were packaged in 10 packs 0.4 grams per roll both infused and non infused. Adjusted EBITDA also showed positive earnings with $675,892 for the three months Stigma Grow's deep innovation sales pipeline is showcased by the consistent launch of new SKU's and new products driven by customer demand. The Company sold over 570,000 units of combined concentrate and dry flower for the three months ended October 31, 2024 , a 4% increase compared to the 550,000 units sold over the corresponding period in 2024. The Company continues to manage its input expenses through negotiation with multiple suppliers to save costs while increasing concentrate yields. The Company is in the process of shipping its first international sales to Europe . The expectation is that this would be the next significant phase of the Company's mission in growth and new geographic area of existing revenue stream for Cultivation and Wholesale. Stigma Grow also continues to re-formulate its concentrate lines to meet current clients' demands to maintain larger terpene and cannabinoid profiles across the lineup. Negotiations with other Cannabis Cultivators are ongoing by the Company which has allowed significant reduction in costs, a trend that is expected to continue through 2025 as more Cultivators reposition themselves in the industry The Company announced the launch of the latest addition to the Dab Bods brand lineup – a groundbreaking 60%+ double-infused pre-roll. This new offering sets a new benchmark for THC potency in the Canadian market. Dab bods Brand continues to grow with the demand across Cananda and is will be launching 2 new exciting products in the DAB N DIPS and the CANADAS 1st DAB N GO both products will revolutionize the way cannabis is consumed by offering discreet usage. QUARTERLY HIGHLIGHTS • Adjusted EBITDA is a Non-GAAP performance measure. Refer to "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" for further details. Presenting Adjusted EBITDA only for the three and six months ended October 31, 2024. EBITDA calculation shown by entity to present the breakdown of each entity. General Overall gross revenues for the period ended October 31, 2024 increased to $9.6 million from $9.0 million in the corresponding period of 2024. This increase was due to continued growth and demand from new and existing SKUs launched under the Dab Bod Brands and the industry's demand for new innovative products such as the +60s Pre-rolls and our famous milled flower and Dartz . Net revenue of $5.1 million compared to $5.7 million for the corresponding period of 2024 or 11.74% decrease. Net Revenue for Q1 2025 of $5.1 million increased over Q4 2024 of $3.9 million by $1.2 million or 31%. The Company has experienced growth in the existing Provinces due to both new launches and the performance of existing products. The Company has released several versions of the new cigarette style pre-roll in infused and non-infused as well as the new " Dap N Go" that has been well received in the concentrate space. The Province of Manitoba has seen higher increases from our new and existing products. See Segmented Reporting section to this MD&A, for a more detailed discussion. The Company was able to initiate more cost savings initiatives during Q1 2025, through cost savings by renegotiating input material pricing while also implementing new procedures in its production lines to cut and manage operational costs. Management is of the expectation that these new initiatives will be realized throughout 2025. Given the Company's position as a vertically integrated Cannabis company/producer, management will continue to adjust internal strategy based on external factors causing fluctuations in either selling prices of products/services and input cost of products and services to ensure capacity allocation is being optimized on products/services in highest demand, while ensuring mandated gross profit margins are being achieved. Management notes that the current climate of Cannabis industry is extremely competitive and saturated with multiple products across the Nation. The Company has several competitive advantages to ensure long-term success within the industry. In the short-term, this relates primarily with respect to our butane hydrocarbon (BHO) extraction process. Management continues to explore various concentrate products to diversify it offer to the market by formulating new products to meet demand. About CanadaBis Capital Inc. CanadaBis Capital Inc. ( TSXV:CANB ) is a vertically integrated Canadian cannabis company focused on achieving large-scale growth in the global cannabis market – with specific attention paid to supplying the fast-emerging concentrates category through their Stigma Grow cultivation and BHO extraction facility. Subsidiaries: Stigma Pharmaceuticals Inc. – 100% held; 1998643 Alberta Ltd. (operating as "Stigma Grow") - 100% held; include cultivation and wholesale, extraction and tolling Full Spectrum Labs Ltd. (operating as "Stigma Roots") - 100% held; 2103157 Alberta Ltd. (operating as "INDICAtive Collection") -100% held; the retail operation, and Goldstream Cannabis Inc. - 95% held. Acting as the cornerstone for everything they offer, Stigma Grow continuously strives to address the market demands and lingering stigmas within the legal cannabis industry head-on, with products designed to disturb the status quo and dramatically shift the conversation surrounding Canada's legal cannabis industry. For more information on CanadaBis Capital or Stigma Grow visit: CAUTIONARY STATEMENT Non-GAAP Measures This news release contains the financial performance metric of Adjusted EBITDA, a measure that is not recognized or defined under IFRS (a "Non-GAAP Measure"). As a result, this data may not be comparable to data presented by other cannabis companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the MD&A for the three and six months ended Oct 31, 2024. The Company believes that Adjusted EBITDA is a useful indicator of operational performance and is specifically used by management to assess the financial and operational performance of the Company. Adjusted EBITDA is a measure of the Company's financial performance. It is intended to provide a proxy for the Company's operating cash flow and is widely used by industry analysts to compare CanadaBis to its competitors and derive expectations of future financial performance of the Company. Adjusted EBITDA increases comparability between comparative companies by eliminating variability resulting from differences in capital structures, management decisions related to resource allocation, and the impact of fair value adjustments on biological assets, inventory, and financial instruments, which may be volatile on a period-to-period basis. Adjusted EBTIDA is not a recognized, defined, or standardized measure under IFRS. The Company calculates Adjusted EBITDA as net income (loss) and comprehensive income (loss) excluding changes in fair value of biological assets, change in fair value of biological assets realized through inventory sold, depreciation and amortization expense, share-based payments, and finance costs. REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include but are not limited to statements with respect to our business and operations; timing of the Sundial products coming to market; the demand and market for live-resin vape cartridges, and our general business plans. Forward-looking statements are necessarily based upon a number of assumptions including: the ability of the Company's products to compete with the pricing and product availability on the black-market; the market demand for the Company's products; and assumptions concerning the Company's competitive advantages. These assumptions, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: compliance with extensive government regulation, the general business, economic, competitive, political and social uncertainties; ability to sustain or create a demand for a product; requirement for further capital; delay or failure to receive board, shareholder or regulatory approvals; the results of operations and such other matters as set out in the Company's continuous disclosure on SEDAR at There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Investors are cautioned that forward-looking information is not based on historical facts but instead reflects management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although we believe that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have a material adverse effect on our future results, performance or achievements. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
Winnipeg Free Press
16 hours ago
- Winnipeg Free Press
Rejecting Trump's rhetoric, Maine's governor heads to Maritimes to build ties
HALIFAX – Maine's governor is heading to the Maritimes next week with hopes a charm offensive will slow the rapid drop in Canadian tourist visits to her state. In a release issued Friday, Janet Mills says she's aware the historically close relationship between New England and its northern neighbours has been challenged by U.S. president Donald Trump's tariffs and his rhetoric about Canada becoming the 51st state. According to U.S. federal border crossing data released Friday, 85,000 fewer Canadians entered Maine in May than in the same month a year ago, a drop of about 27 per cent. The governor says she will spend three days meeting with premiers, appearing in local media and visiting businesses in hope of sending a message that Maritimers remain 'welcome in Maine' despite Trump's trade policies. On Monday, the governor will stop in Saint John, N.B., where she intends to visit businesses with links to Maine and she then will travel to Fredericton to hold talks with New Brunswick Premier Susan Holt. On Wednesday, Mills will meet with Nova Scotia Premier Tim Houston in Halifax and tour a marine technology centre. Last month, the governor unveiled new, bilingual signs welcoming Canadian visitors, which are being placed in windows around the state. On June 13, in her weekly radio address, Mills said she wants to ensure the 'historic friendship and deeply intertwined economies last for generations to come.' 'It's not just our economies – we are connected so deeply by mutual economic advantages and on centuries-old familial, cuisine, language, and cultural bonds that far supersede politics,' she told her listeners, reminding them that Canada is the United States' closest and most important trading partner. The Democratic Party member said Trump's 'roller coaster tariffs' are unsettling business in her state and 'making our Canadian neighbors feel unwelcome in the United States.' In 2024, nearly 800,000 Canadian visitors spent approximately US$498 million in Maine, according to the state's Office of Tourism. Overall, the data showed Maine welcomed 14.8 million visitors, who spent more than US$9.2 billion, supporting 115,900 jobs and generating US$5.4 billion in wages. This report by The Canadian Press was first published June 21, 2025.
Canada News.Net
20 hours ago
- Canada News.Net
May sees sharp retail decline in US following pre-tariff buying spree
WASHINGTON, D.C.: Retail sales dropped sharply in May as consumer spending slowed after a strong start to the year, primarily due to concerns over President Donald Trump's looming tariffs on nearly all imports. The Commerce Department reported a 0.9 percent decline in overall retail sales—including stores and restaurants—marking a deeper drop than April's 0.1 percent dip and reversing March's substantial 1.5 percent gain. A major factor in the decline was a significant pullback in auto sales. In March, many consumers rushed to purchase vehicles ahead of the expected 25 percent tariff on imported cars. As a result, auto sales plunged by 3.5 percent in May. Even excluding autos, retail sales still fell by 0.3 percent. Despite the downturn, some underlying economic indicators remain stable. Inflation is easing, unemployment is low, and a narrower sales measure—excluding cars, gas, and restaurants—actually increased by 0.4 percent, suggesting consumers are still spending selectively on discretionary items. Economists caution against reading the May dip as a sign of broad weakness. Retail sales make up about a third of consumer spending, while the rest comes from services like healthcare, education, and housing. Many analysts still expect modest growth in consumer spending during the April-to-June quarter. Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management, said that while consumers are showing more caution, they haven't stopped spending altogether. She noted that, even amid uncertainty about tariffs, underlying demand remains resilient. Still, some sectors were hit hard. Home and garden store sales dropped 2.7 percent, while grocery, electronics, and appliance store revenues also declined. Restaurant and bar sales—a barometer of consumer confidence—fell 0.9 percent in May after rising in April. In contrast, online retailers saw a 0.9 percent increase in sales, clothing stores rose 0.8 percent, and furniture outlets gained 1.2 percent. Falling gas prices contributed to a 2 percent revenue drop at gas stations, offering some relief at the pump but also reflecting lower fuel demand. Businesses reliant on imported goods are increasingly impacted. Paul Cosaro, CEO of Picnic Time, said retail orders are down 40 percent compared to last summer, as tariff-related price uncertainty causes retailers to hold back. His company sources 80 percent of its products from China and has seen tariff costs triple—from about US$330,000 last year to $1 million this year—forcing a hiring freeze. Rising prices are reshaping consumers' shopping habits. Pennsylvania mother of three Liza Gresko said she now buys in bulk, chooses generic brands, and relies more on thrift stores to stretch her budget. Retailers are also adjusting, launching back-to-school promotions earlier to encourage spending before potential price hikes hit harder. While inflation remains manageable for now, companies like Walmart and Lululemon are already raising prices, signaling more challenging times may lie ahead.
