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Morning Need to Know

Getting you ready for your investing day

January 25, 2019

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

CANADIAN ANALYSTS' CALLSPeople Corp. (TSXV:PEO). Canaccord Genuitystarts coverage with a "buy" and and a target of$10 (Canadian), calling the software company a"compelling growth story" The stock closedyesterday at $7.88.

Peter Hodson of 5i Research recommendedPEO for us in August of 2016. The shares arehigher by 163% in the last three years.

Richelieu Hardware (TSX:RCH). NationalBank starts coverage with an "outperform"rating citing the company's growth in the U.S.due to acquisitions.

The analyst clearly sees an opportunity in thestock which sits at 2016 levels after spendinglast year consolidating big gains from 2009 tolate 2017, which saw RCH shares surge by aboutseven times over that span.

Cobalt 27 Capital (TSXV:KBLT). RBCbegins coverage off this buyer of physicalcobalt with an "outperform" and a price targetof $8. The stock closed Thursday at $4.10.

KBLT, between the spring of 2017 and spring of2018, went from penny stock status to morethan $13 a share as investors piled into theshares amid booming cobalt prices andenthusiasm over metals used in electric vehiclebatteries.

RBC calls KBLT a "developing battery mineralsplay" with an "attractive' valuation.

Troilus Gold (TSX:TLG). Canaccord Genuitystarts coverage with a "speculative buy" and atarget of $1.60.

**

Canopy Growth (TSX:WEED;NYSE:CGC). PiperJaffray hikes the target to $60 (U.S.) from $40and maintains an "overweight" rating, sayingthe company is well-positioned in theemerging and growing cannabis sector. Thestock is trading currently at $46.50 (U.S.).

Acadian Timber (TSX:ADN). Credit Suisseraises to "outperform", saying the companyhas an "attractive risk/reward" profile.

U.S. ANALYSTS' CALLS

Avaya (NYSE:AVYA). Barclays upgrades to"overweight" saying the company trades at alarge discount to peers.

Starbucks (NASDAQ:SBUX). Cowen & Co. raisesthe target to $63 from $61. See below.

STOCKS THAT MAY MOVEHexo (TSX:HEXO;NYSE:HEXO) has priced itsoffering of common shares at $6.50 (Canadian)per share, whereby the underwriters willbuy 7.7 million shares from the company forabout $50 million.

Premier Gold Mines (TSX:PG) has arrangeda secured revolving term credit facility withInvestec Bank worth $50 million (U.S.),and financing deals with OMF Fund II andOrion Mine Finance Fund II LP for about $18.2million.

Starbucks (NASDAQ:SBUX) beat Q4 estimateswith its earnings as revenue rose more than 9%versus last year, and same-store sales jumped4% against the 2.8% forecast, partly onstrength in its holiday-themed drinks.

General Electric (NYSE:GE) has amended theterms of its merger between its transportationunit and Wabtec, which now gives Wabtecnearly 51% control instead of the previous49%. GE will get about $2.9 billion in cash out

of the deal.

Ericsson (NASDAQ:ERIC) increased itsoperating margins for a fourth straight quarter,this time to 8.7%.

Intel (NASDAQ:INTC) shares are lower in pre-market trading after the semiconductor makerbeat Q4 estimates with it earnings, missed onrevenue and gave a forecast for the currentquarter below Wall Street projections.

MasterCard (NYSE:MA) and (NYSE:VISA) areembroiled in a takeover battle as MasterCardhas trumped Visa's offer for U.K. companyEarthport with a 233 million pound bid, 10%above Visa's initial offer.

Colgate-Palmolive (NYSE:CL) beatanalysts estimates with quarterly revenue andearnings although both fell slightlyfrom last year, and the toothpaste maker isprojecting a mid-single decline in earnings in2019.

General Electric (NYSE:GE)is urging customers of its power turbines toswitch the blades sooner than expectedand saying that one blade broke in 2015.

MARKETSTSX and U.S. equity futures are indicating asolid open with Chinese deputy

ministers expected to arrive Monday inWashington for trade talks, and some signsthat progress is being made in ending the U.S.government shutdown.

The major European indices are mostly higherwith Germany's DAX up 1.5%.

Overnight in Asia, the major indices werehigher with the Shanghai Composite up 0.4%,the Hang Seng in Hong Kong rose by 1.6% andJapan's Nikkei up 1%.

CURRENCIESThe Canadian dollar is up by 0.5%at $0.7525 (U.S).

COMMODITIES Daily UpdateWest Texas Intermediate is upslightly to $53.19 a barrel.

Gold is higher by 0.6% at $1,287.70 an ounce.

Daily Update

Capital Ideas contributor Fabrice Taylor ownsshares in Eyecarrot Innovations (TSXV:EYE).

Find out why he likes what you might call atruly visionary company.

See our new interview with Eyecarrot's CEOAdam Cegielski, where he explains what makesthe company's technology innovative, and whyEyecarrot's growth is accelerating.

We've posted a Best of Podcast Episode.

Have a listen to our conversation with CronosGroup CEO, Michael Gorenstein.

The new Digest contains researchfrom KeyStone's Cannabis Sector SpecialReport on two companies looking to be global

leaders.

Access, ideas and insight.

Mark BuntingPublisher,Capital Ideas Media

www.capitalideasmedia.com

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