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New analyst coverage of a renewable energy company with steadygrowth and more than a 6% dividend yield. That's what we have foryou in this week's Capital Ideas Digest which will be posted at 7 pm ETtoday.

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See the Daily Update at the end of this note for more details on the newDigest, Capital Ideas TV and Capital Ideas Radio.

Morning Need to Know by Capital Ideas ResearchGetting you ready for your investing day

May 8, 2018

Written & compiled by Mark Bunting, Publisher, Capital Ideas Media

MARKETS

TSX equity futures and U.S. futures are pointing higher ahead ofan expected 2 pm ET announcement from U.S. President DonaldTrump that the U.S. is pulling out of the Iran nuclear agreement,which Trump has called "the worst deal ever".

CURRENCIES

The Canadian dollar is down 0.7% to $0.7710 U.S.

Bitcoin is lower by 2.3% at $9,148, according to CoinDesk.

COMMODITIES

West Texas Intermediate is down 1% at $70.08 U.S. a barrel.

Gold is off 0.3% at $1,309.90.

STOCKS THAT MAY MOVE

Sleep Country Canada (TSX:ZZZ) We had analyst research in lastweek's Digest giving the bed retailer 35% upside. The companyhas reported Q1 revenue of a little more than $135 million (Canadian),slightly below estimates. Same-store sales growth was solid at 5.1%from last year. Net income was $10.3 million, essentially unchangedfrom last year. Adjusted EPS was 30 cents, inline with estimates. ZZZ

also increased its quarterly dividend by 12% to 18.5 cents per share.

Valeant Pharma (TSX:VRX; NYSE:VRX) After being content to wallowin the taint of their various scandals using the same company name,Valeant has finally got around to changing its moniker. It'll now beknown as Bausch Health and change its ticker to BHC. The companyalso raised its revenue forecast and took a loss in the quarter.Whatever. That hedge fund manager in that Netflix documentary onthe company is probably still short and has Valeant, sorry, Bauschgoing to zero when its debt pile catches up to it.

Canadian Natural Resources (TSX:CNQ). Royal Dutch Shell(NYSE:RDS.A) is selling its entire 8% stake for $4.3 billion in a boughtdeal led by investment banks.

Quebecor (TSX:QBR.B) is buying the remaining stake in QuebecorMedia from the Caisse pension fund for $1.69 billion.

Organigram Holdings (TSXV:OGI) is buying 25% of Germany'sAlpha-Cannabis Germany for up to $2.5 million in cash and$1.3 million worth of Organigram common shares, based on certainmilestones being met. Organigram will provide ACG with driedcannabis flower and sweet leaf for conversion into extracts forthe German medical cannabis market.

Lundin Mining (TSX:LUN) and Euro Sun Mining (TSX:ESM) madea $1.5 billion cash and stock offer to buy Nevsun Resources(TSX:NSU) which was rejected.

Aim (TSX:AIM) has appointed Jeremy Rabe as the new president andCEO effective today.

Westjet (TSX:WJA) Q1 earnings dropped compared to lastyear, missing estimates, as fuel costs jumped more than 19% year-over-year.

NorthWest Healthcare Properties REIT (TSX:NWH.UN) has acquired a10% stake in Healthscope Limited, an Australian private hospitaloperator. The price tag is $312 million or $2.39 per share

and was acquired in a derivative deal with Deutsche Bank.

Slate Office REIT (TSX: SOT.UN) With the Kentucky Derby just passedand the Queen's Plate coming up, this one caught my eye. Slate isselling 135 Queens Plate Drive in Etobicoke, Ont. for $16.7 million.

JD.com (NYSE:JD) The e-commerce company had a better-than-expected 33% rise in Q1 revenue. Sales are expected to pick up in theJune quarter around JD's flagship "618" sale event, China's second-largest online shopping event after Singles' Day.

Snap (NYSE:SNAP) The Snapchat owner has hired Amazon.com's V.P.of finance, Tim Stone, to be its new CFO.

With files from The Globe and Mail, Reuters and Bloomberg News.

CANADIAN ANALYSTS' CALLS

This is an overview of some of today's analyst research. We'll havemore details on many of these reports in the next Capital Ideas Digestand on Capital Ideas TV.

INITIATIONS

MedReleaf (TSX:LEAF) Beacon Securities starts coverage with a"buy" rating and a price target of $29, giving the shares22% upside based on the company's revenue growth and takeoverpotential.

Choice Properties REIT (TSX:CHP.UN) Canaccord Genuity beginscoverage with a "buy" and a price target of $12.75, after Choice boughtCREIT for $6.4 billion. Canaccord says the combined company nowowns a "high-quality, bond-like portfolio".

Titan Mining (TSX:TI) National Bank begins coverage with an"outperform" and a target of $2.

McEwen Mining (TSX:MUX;NYSE:MUX) Euro Pacific starts coveragewith a "buy" and a target of $2.85 (U.S.)

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Agellan Commercial REIT (TSX:ACR.UN) RBC upgrades to"outperform" and boosts the target to $13.50 (Canadian) from $12.50.

Baytex (TSX:BTE) GMP FirstEnergy raises the price target to $7 andmaintains "buy" after the company's earnings report, and after BTE'sstock blew through GMP's previous target of $4.50. The shares closedMonday at $5.66.

Algoma Central (TSX:ALC) GMP lifts the price target to $19 from $18and maintains a "buy" rating. The stock closed Monday at $15.10.

U.S. ANALYSTS' CALLS

Alibaba Group (NYSE:BABA) Barclays raises target price to $230 (U.S.)from $220 saying the company has strong full year guidance for 2019,implying big monetization opportunities.

Firstcash (NYSE:FCFS) Jefferies raises target price to $103 from $95citing several factors like attractive cash flow dynamics, defensivepositioning, strong balance sheet and Latin American growth withstrong cash flows.

Zillow Group (NYSE:ZG) Jefferies raises target price to $52 from $50saying the company is taking its "biggest swings" yet in 2018, withdeeper funnel investment being the theme.

Daily Update

Other ideas in the new Digest later today include a unique cannabisbusiness model, a gold stock and a turnaround - each with upside ofbetween 35% and 150%.

The latest episode of Capital Ideas TV talks to the CEO of RavenQuestBioMedical (CSE:RQB), a company that, for five years, has been guidingcannabis companies through the process of becoming alicensed producer.

RavenQuest has added a growing production capacity to its arsenal,has a proprietary growing technology that reduces costs, is planning aflagship retail store, and has a research partnership with McGillUniversity.

Watch our interview with RavenQuest BioMed CEO George Robinson.

The new episode also features three investment ideas fromStoneCastle's Bruce Campbell, a conversation with the CEO ofSpeakeasy Cannabis Club (CSE:EASY), and Aphria CEO Vic Neufeld onhis wild youth, leadership and legacy.

Investors are discovering Capital Ideas Radio as we've seen a jump indownloads of our new podcast. Just head to our website and click oneof the podcast platforms pictured below and start listening. It'sthat simple and it's all free!

You can listen through our podcast page on our website, or oniTunes, Stitcher, Google Play or TuneIn.

Capital Ideas Radio: Listen whenever you want and wherever you are.

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A reminder you can always watch the newest episode of Capital IdeasTV on BNN Bloomberg, Sunday's at 9 pm ET.

Join more than 100,000 people who watch Capital Ideas TV every weekon YouTube, BNN Bloomberg, through our partnersat SmallCapPower, and on social media. Get access toinnovative, growth company investment ideas.

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Be a part of live webinars and ask questions of investment experts bysigning up as a premium member for just $25 a month.

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Capital Ideas TV - Thursdays on YouTube at 7 pm ET, 4 pm PT.Sundays on BNN Bloomberg at 9 pm ET, 6 pm PT.

Capital Ideas Digest - Tuesday's at 7 pm ET, 4 pm PT.

Capital Ideas Radio - Anytime, anywhere.

Access, insight and ideas!

Have a great day!

Mark Bunting | Publisher Capital Ideas Media

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