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The Corner Stone of Canadian Economy – Oil

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Canadian Oil

It is safe to say that Canada has enough of oil and gas resources to be self-sufficient. But what is less known is that during 2019, Canada-based energy firms have quietly outperformed their U.S. counterparts. Moreover, the positive outlook is here to stay as U.S. political risks and production concerns due to trade wars are only an additional reason for a potential shift of funds towards Canadian energy stocks…

Energy Industry is the Winner in Canada

It was in first quarter of 2019 that Canada’s energy sector saw a big rise in profits due to increased oil prices. But more interestingly, despite global oil prices facing volatility with US-China tensions, Canadian prices have skyrocketed. And they jumped so much that the energy sector outpaced Canada’s major industries when it comes to operating profit, manufacturing included. But even manufacturing operating profit for petroleum and coal product manufacturers rose due to increased oil prices. The mixed picture for Canadian businesses varies by sector, but image is more than clear when it comes to oil and gas. And for that reason, Canada’s oil companies should be on any investor’s radar.

AOC targets Canada’s ‘golden mine’

A just rebranded Advantagewon Oil Corporation (OTC:ANTGF) is a company focused on building consistent cash flow from low cost, low risk oil wells. And it has just expanded its Canada-based operations. By entering into this agreement, it acquired working rights to a former operating well. However, this is by no means an ordinary well but rather one with a historic production record between 20 to 30 barrels of oil per day (BOPD). Additionally, the company committed to funding and implementing a workover program with the purpose of recommissioning the well that is acquiring. The total commitment amounting to $80,000 CDN includes the purchase price and anticipated costs to implement the above described incentive. And once completed, the well will be both reconditioned and put back online, but more importantly, the company’s interest on the well be 100 percent. Moreover, AOC anticipates that the work which will be commenced immediately will take only three weeks. So, AOC isn’t taking it slowly but rather capitalizing on this positive trend rather quickly. Afterall, one should ‘strike while the iron is hot’!

US Runners

Meanwhile, EOG Resources Inc (NYSE: EOG), a Houston-based company engaged in hydrocarbon exploration, just saw its shares up p 16.80% from its 52-week low and is poised to grow.

Also from Houston, Texas, (NYSE: PSX), The Phillips 66 Company is an American multinational energy company with a market cap of $42.97 billion. Several analysts expressed their opinions, Morgan Stanley reduced their price objective on
Barclays assumed coverage with an ‘overweight rating’ and Zacks Investment Research switched from a “buy” rating to a “hold” rating and set a $125.00 price objective on the stock. The image will be far clearer once earnings are released on Friday, January 31st, just before markets open.

Another Texas comrade, but from San Antonio, Valero Energy Corporation (NYSE: VLO) a Fortune 500 international manufacturer and marketer of transportation fuels, other petrochemical products, and power just topped earnings and revenue estimates with its fourth quarter. Income of $2.13 per share has significantly topped the Zacks Consensus Estimate of $1.60 but comparing to last year’s figure of $2.19 per share, earnings have decreased. In fact, the better than expected results might as well be attributed to processing of a record number of Canadian low-cost heavy crude, along with lower cost of sales. So, Canada definitely seems to hold the key…

Canadian oil – to golden egg

All current trends are contributing to shifting funds away from the US towards Canada. Surely, there’s absolutely no reason to worry about Canadian oil companies- they are doing just fine, in fact, better than fine. Just ask Canadian oil investors and Advantagewon Oil Corporation that clearly holds one of the best seats in the house.

This article is contributed by IAMNewswire.com. It was written by an independently verified journalist and is not a press release. It should not be construed as investment advice.

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FbMagazine

The Chinese EV Appetite Is To Benefit Both Domestic and Foreign Players

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On Monday, Nio (NYSE: NIO), known as the Tesla (NASDAQ: TSLA) of China delivered its fourth quarter earnings. Although the results were good, they were weaker than expected and for a stock that’s been as strong, the quarter had to be robust. But NIO The stock took a tumble after earnings, as the automaker warned that the global chip shortage will slow production. While revenue scorched higher by 133%, it slightly missed consensus expectations, as did the bottom-line results, with the company reporting a wider loss than analysts had expected.

Q4

Revenue of $1.02 billion resulted in a per-share loss of 14 cents. Gross margin improved to 17.2% in the quarter, from  negative 8.9% a year ago and previous quarter’s 12.9%. Vehicle margin improved 0 17.2% from negative 6% a year ago and Q3’s 14.5%. Cash and cash equivalents climbed to $6.5 billion at the end of the quarter versus the $3.3 billion in the prior quarter. Nio had already disclosed that Q4 2020 deliveries jumped 111% to 17,353 vehicles. As most businesses in China closed for a week during the Lunar New Year holiday, sales dropped to 5,578 vehicles in February from 7,225 vehicles in January but both months were up by triple digits compared to 2019 figures. In February, the ES6 sales led with 2,216 deliveries, followed by 2,035 for the EC6 and 1,327 for the ES8.

Outlook

Nio sees Q1 deliveries in the range between 20,000 and 20,500 vehicles, up 421%-434% from a year ago and up 15% to 18% from fourth quarter. Revenue is expected in the range between $1.13 billion to $1.16 billion, up about 438% to 451% from a year ago and up 11% to 14% from Q4. CEO William Li revealed production capacity had climbed from 7,500 to 10,000 vehicles a month in February, but also warned a shortage in chips and batteries is imposing a slowdown back to 7,500 a month in the second quarter.

Rivals

The results are impacting Tesla too, which was down about 2.5% on the news. Among other EV stocks, Li Auto (NASDAQ: LI) fell 8.2% Tuesday whereas last week it reported a surprise profit. Xpeng Motors (NYSE: XPEV), which reports on March 8th, dropped 11.3%. Tesla slipped 4.45% on Tuesday. Subsidy cuts and rising competition from tech and legacy auto giants in China are weighing on EV players. Tesla was forced to make its made-in-China Model Y more affordable to compete with Nio’s new EC6 electric crossover. Two versions of the much-cheaper Volkswagen (OTC: VWAGY) ID.4 will start getting delivered in China by the end of March. Meanwhile, Nio in January announced the ET7 electric sedan which will compete with Tesla Model 3 due next year.

But, new entrants are coming and there also many less obvious players which can fuel them up for success. One of them is Worksport Ltd (OTC: WKSP), an innovative manufacturer of tonneau covers for pickups. With its TerraVis™ solar tonneau cover system and TerraVis COR™ mobile energy storage system, it aims to become a Tier 1 OEM manufacturer of solar-panel tonneaus for electric vehicle maker as it already partnered to configure its groundbreaking technology for two upcoming pickups. The Canadian-based company announced on Wednesday that following the success of its oversubscribed Regulation-A public offering, the company has received over $2.3 million from investors who have exercised their warrants.  This additional influx of capital will support Worksport’s strategic North American and Chinese manufacturing investments as well as in the development of its revolutionary Terra Vis system.

Nio’s positioning

Edison Yu with Deutsche Bank highlighted Nio’s “impressive” first-quarter guidance which according to him, outline “a very real path to more than 100,000 deliveries this year. The analysts finds that the outlook reflects growing awareness and appreciation of its aspirational brand and ecosystem, putting the company on track to be a market leader in the China premium segment. Dan Ives at Wedbush finds Nio’s “robust” fourth-quarter results describe a transformational EV opportunity playing out in China with all EV players having “massive tailwinds into 2021 as the golden age of EVs takes hold. All the above companies are well-positioned to lead the way forward in this Chinese market opportunity as analysts expect Chinese EV market is set to go from 4.5% penetration to 10% in the next two years based. The jaw-dropping consumer appetite for EVs can benefit well positioned domestic vendors as well as foreign players.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

News From The Vaccine World

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Less than a year before the COVID-19 started its relentless march across the globe Novavax (NASDAQ: NVAX) was facing delisting from the Nasdaq. The 33-year-old Maryland-based pharmaceutical company didn’t have a single approved shot after hundreds of millions of dollars invested in its R&D efforts. Wall Street likes to take bets on unproven biotech such as Moderna Inc (NASDAQ: MRNA), but it can be unforgiving of failure.  Fortunately, Novavax is now on the verge of getting approval in the UK, which will probably be followed by the US. Interim data have shown that its vaccine has an efficacy rate up there with the shots developed by Moderna, BioNTech (NASDAQ: BNTX) and Pfizer (NYSE: PFE), all of which are based on revolutionary mRNA technology. However, Novavax’ candidate s is cheaper and easier to transport and can be stored at room temperature for at least 24 hours. Additionally, the one-shot candidate by Johnson & Johnson (NYSE: JMJ) that can be kept at normal temperatures was granted an emergency use authorization during the weekend.

Merck and Johnson will join forces

Merck & Co Inc (NYSE: MRK) will manufacture the vaccine made by Johnson & Johnson (NYSE: JMJ) under an unusual deal that the Biden administration engineered to boost production of the single-shot ja which has been hampered by manufacturing delays.

The Biden administration helped to engineer the deal between the competitors after J&J, which was, experienced production hold-ups. J&J is the world’s largest healthcare company, but when it comes to vaccines, Merck has the expertise as it is one of the world’s largest vaccine makers with many approved shots.

Sanofi (NASDAQ: SNY) is another large vaccine maker that has fallen behind in the COVID-19 vaccine race and has agreed to help boost supplies of the J&J vaccine in Europe. Last month, it stated it would use its capacity to fill vials.

Novavax has finally stopped gasping for air

The CEO of Novavax, Stanley Erck, stated their candidate is more than 90% effective against the original strain, 86% effective against the U.K. strain and considerably less effective against the South African strain. According to forecasts, Novavax will generate more than $5 billion in revenue this year. As it is applying for approval for it flu shot, it will start studies on combining the Covid-19 and flu vaccine into a single shot later this year.

A story with a happy ending for everyone?

Novavax’s story resembles a Cinderella story as a little company that was on the verge of potentially closing has really been able to play with the big boys in the race for the Covid vaccine. The bottom line is that the US will have enough coronavirus vaccine doses for every adult by the end of May, which is sooner than anticipated, thanks in part to an unusual type of collaboration we didn’t see since World War II between two of the country’s largest drugmakers.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Workhorse and Worksport Both Delivered Good News This Week

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EV Update

This week began with good news in the EV world. On Monday, electric truck maker Workhorse Group (NASDAQ: WKHS) reported before market open. Its shares bounced 4.7% in midday trading Monday after the electric vehicle maker reported a surprise fourth-quarter net profit despite falling short on sales. A piece of good news were more then welcome after last week’s selloff that plunged as low as 47.5% plunge last Tuesday, after the U.S. Postal Service awarded a contract for delivery trucks exclusively to Oshkosh Corporation (NYSE: OSK), while Workhorse was widely expected to win at least a part of the contract. On Tuesday morning, tonneau-cover manufacturer Worksport (OTC: WKSP) announced it is expanding its capacity to meet increased demand. Worksport announced this morning that it received over US$2.3 Million to date from Exercised Warrants from the recent oversubscribed Regulation A offering.

Workhorse Q4 results

The company reported its net income rose to $280.5 million from $655,000 a year ago, thanks largely to income derived from its investment in Lordstown Motors (NASDAQ: RIDE), an electric pickup startup founded by Workhorse’s former chief executive. The FactSet expected a net loss of $15.1 million. Revenues increased from $3,000 to $652,000, due to a higher volume of produced and delivered trucks, but still came short of FactSet consensus of $1.2 million. According to its Chief Executive, the company is entering the new year in its strongest-ever position, both financially and operationally. With over $200 million of cash on its balance sheet and over 8,000 vehicles in its backlog, it can reliably continue building its multi-year growth plan.

The EV maker is not taking a recent high-profile defeat lying down

The company also revealed it will meet with U.S. Postal Service (USPS) management on Wednesday to discuss the latter’s recent awarding of a 10-year contract that would place Workhorse among top EV manufacturers. With at least 50,000 trucks to be manufactured within a decade, this will be the most dramatic modernization of the USPS fleet in three decades. While the USPS is one of the more financially strapped government entities, cy it’s considered to be an extremely reliable business partner. Following the USPS’s awarding of the contract to Oshkosh, Workhorse issued a press release in which it clearly stated it intends to explore all avenues that are available to non-awarded finalists in a government bidding process. Its odds of getting a second shot could depend on whether President Biden is able to force out the postmaster general who was installed last year by board members appointed by former President Donald Trump.

Worksport is expanding due to increased demand

Innovative pickup truck tonneau cover manufacturer Worksport partnered with Atlis Motor Vehicles and Hercules Electric Vehicles to configure its revolutionary TerraVis solar system for their upcoming electric pickup trucks is expanding further. The company announced on Tuesday morning it is in the final phase of a strategic manufacturing expansion discussions with a few Tier-1 and Tier-2 OEM manufacturing power houses in Canada. The company aims to expand its manufacturing into North American state-of-the-art facilities with 20,000 to 50,000 square feet of operating space to meet its recent U.S.-based Private Label customer growth.  Considering the company was awarded its first trademark in China, this is only the beginning of Worksport’s growth story, not to mention the company is also expanding outside the pickup truck market to the consumer market by extending its solar fusion line with mobile TerraVis COR™ system that can be used independently and recharged via solar or A/C power. These discussions involve logistics to ensure scalability in the manufacturing processes. The expansion will give the company control over capital expenses, greatly reducing risks of overextending its financials during periods of intense demand while building its major Automotive, Freight & Transport, Marine, and Rail ecosystems. With its CEO Steven Rossi at the helm, Workhorse is going all in to exceed customer expectations in terms of quality, innovation, convenience and last but not least, affordability.

Outlook

Workhorse aims to increase production to three trucks a day by the end of this month and reach a daily output of 10 trucks by the end of June. Worksport is aiming to become a Tier 1 OEM manufacturer of solar-powered tonneau covers for electric makers and by the looks of it, it’s well on track, especially as it successfully closed its $4 million Regulation A offering at the beginning February well ahead of the scheduled closing due in November 2021. Demand that is fueling Worksport to rapid growth is key, which is why Workhorse isn’t willing to take USPS’ no for answer.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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