03:07:59 EDT Tue 19 Mar 2024
Enter Symbol
or Name
USA
CA



Canaccord Genuity Group Inc
Symbol CF
Shares Issued 101,336,730
Close 2014-04-10 C$ 8.21
Market Cap C$ 831,974,553
Recent Sedar Documents

FP says Canaccord sees opportunity in software stocks

2014-04-11 07:59 ET - In the News

The Financial Post reports in its Friday edition that the recent correction in American software stocks has created an opportunity, says Canaccord Genuity Group analyst Richard Davis. The Post's Jonathan Ratner writes that Mr. Davis is telling clients to inch their way back into the sector. The analyst believes it is very unlikely that the "March Meltdown" signals a repeat of 1973, 2001 or 2008, since those episodes were accompanied by meaningful economic weakness. Mr. Davis says, "Investors are letting stock prices tell them what the fundamentals of companies are rather than vice versa." He notes fundamentals in the cloud software business are quite strong. He says, "The fact is that everyone, this analyst included, got sloppy." Mr. Davis says the reasons for the meltdown include the doubling of cloud stocks available to buy, insider distributions, buyer exhaustion at the flood of IPOs, and the volatility that comes with companies that do not produce profits. But earnings season at the end of April, says Mr. Davis, should help turn things back in the sector's favour. He believes the recent rush to classic safety names such as Microsoft, Oracle and other low price/earnings stocks will be temporary.

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