Morningcoffee

Monday, February 7, 2022
STOCKS
Source: FactSet (5pm EDT)
BEFORE THE OPEN

Source: Thomson Reuters
Futures for Canada's main stock index fell as crude prices weakened and strong
U.S. jobs data raised the chances of policy tightening by the Federal Reserve. U.S.
stock index futures fell after a week of volatile trading spurred on by mixed
quarterly results from Big Tech, while Peloton jumped on reports of interest from
potential buyers including e-commerce giant Amazon. European shares were
mixed as fears over geopolitical tensions capped gains. Japanese shares ended
in the red following disappointing earnings. Inflationary concerns boosted gold COMMODITIES & CURRENCIES
prices. The U.S. dollar was little changed.
STOCKS IN THE NEWS

Source: Thomson Reuters
Ford Motor Co. (F):
The Detroit automaker plans to suspend or cut production at eight of its factories
in the United States, Mexico and Canada throughout next week because of chip
supply constraints, a spokeswoman told Reuters on Friday. The changes come a
day after the Detroit automaker warned a chip shortage would lead to a decline
to vehicle volume in the current quarter. Production at factories in Michigan,
Chicago and in Cuautitlan, Mexico will be suspended.
Tesla Inc. (TSLA):
The company said the fair market value of the electric-vehicle maker's bitcoin GLOBAL INDICES
holdings as of Dec. 31 was $1.99 billion. In its annual filing with the U.S. Securities
and Exchange Commission, Tesla, which had invested $1.50 billion in bitcoin last
year, said it registered about $101 million in impairment losses last year due to
the value of bitcoin. A drop in the value of bitcoin resulted in the company
recording losses, as the value of its holdings fell.
Uber Technologies Inc. (UBER):
Uber's Middle East business Careem said it was looking to fill more than 200 roles
in the company, according to a LinkedIn post by the company. Careem said it was TSX SECTORS
looking to fill jobs that spanned across the ride-hailing firm, "from engineers to
data analysts, operations managers to platform designers, and everything in
between." Bought by Uber Technologies Inc in 2019 for $3.1 billion, Careem has
been working on a further roll out of its Super App, which offers services outside
its core ride-hailing business such as food delivery, digital payments and courier
services.
THINGS TO KNOW
Source: Bloomberg Finance L.P.
A bad week for bonds, driven by surprisingly hawkish central banks, strong U.S.
data and continuing inflation fears, is showing little sign of turning around
Monday. French President Emmanuel Macron is heading to Moscow today for
talks with Vladimir Putin in a bid to defuse tensions over Ukraine. After posting
its strongest gain in four months on Friday, Bitcoin is now around 30% above
the late-January lows.
NOT FOR DISTRIBUTION TO THE UNITED STATES. This publication is a general market commentary and is provided for informational purposes only. The author(s) is not a Research Analyst and this
communication is not the product of Canaccord Genuity Corp.’s Research Department. It should not be construed as a research report or investment advice.
For important information, please see the Important Disclosures beginning on page 9 of this document.
CANADIAN EQUITIES OF INTEREST
Listed Alphabetically by Symbol
Altus Group Limited.* (AIF: $52.20), Net Change: -$4.84, Change: -8.49%
Announces Surprise CEO Transition
• Altus announced that Jim Hannon will be succeeding Mike Gordon as CEO effective April 1, 2022
• Mr. Gordon is leaving the Altus CEO post to become CEO of ArisGlobal, a private life science software company where he has
been Chair of the Board for two years and Mr. Gordon will remain on Altus' board
• Mr. Hannon, who has acted as President of Altus Analytics (AA) since December 2020, has over 30 years of global operating
experience, and held senior management roles at Callcredit Information Group, FICO and Avaya prior to joining Altus
• Mr. Hannon was one of Mr. Gordon's first hires when he joined Altus as the two worked together at Callcredit and FICO
• Q4/2021 revenue of $162.9 million increased 17% y/y (20% on a constant currency basis)
Propel Holdings, Inc.* (PRL: $9.80), Net Change: $0.05, Change: 0.51%
Q4 operational update; record originations announced
• Propel is a U.S. fintech online lender committed to helping nonprime consumers by providing fair, fast and transparent access
to credit
• Propel expects to report Q4/21 ending combined loan and advance balances growth of >110%
• PRL continues to track towards its short-term volume growth target of 100% CAGR. In terms of originations, the company
expects to fund between US$88M and US$90M (vs. US$55.8M in Q3/21) representing 93%-98% YoY growth
• The robust growth in loans and originations are supported by (1) successful launch of variable pricing and graduation
capabilities; (2) greater geographic coverage; (3) seasonality; and (4) rising overall consumer demand
US EQUITIES OF INTERST
Listed Alphabetically by Symbol
Amazon.com * (AMZN: $3152.79), Net Change: $375.88, Change: 13.54%

Q4 Results
• Amazon reported solid Q4 results, with revenue coming in roughly in line with expectations, operating income ahead of
consensus despite supply chain disruptions & cost inflation, and a huge EPS beat driven by an $11.8B gain on the company’s
investment in Rivian following its November IPO
• Total revenue grew 9.4% y/y to $137B in Q4 (+10% FXn, vs. 15% in Q3), slightly below consensus but above the midpoint of
the company’s outlook
• The company is raising the price of its Prime membership in the US from $119 to $139 annually (or $13 to $15 monthly), citing
a continuously improving value proposition that includes a growing product selection, faster shipping, and high-quality
entertainment such as the upcoming The Lord of the Rings series and Thursday Night Football
Snap, Inc.* (SNAP: $38.91), Net Change: $14.41, Change: 58.82%

Strong advertising recovery
• Snap reported strong Q4 results, with user growth coming in ahead of expectations thanks to continued international
momentum and strong content engagement, while revenue was above the upper end of guidance
• Q4 revenue grew 42% y/y to $1.3B, ~9% above the upper end of guidance with the beat primarily related to a recovery in the
Direct Response business as advertisers gained increasing comfort with new measurement solutions and made progress
towards more normalized levels of spend
• Management caveated it would be a few quarters before advertisers achieve full confidence in these new features

Unless otherwise noted, the above commentary is derived from research published by Canaccord Genuity Corp and/or Canaccord Genuity LLC. For more information, please contact your investment
advisor. For current disclosures, please visit our Online Disclosure Database at http://disclosures.canaccordgenuity.com/EN/Pages/default.aspx.
2
INDUSTRY UPDATE
Oil
Market – CNBC/Platts
• WTI (March) is down 0.9% to $91.44 and Brent (April) is down 0.4% to $92.84 and WTI is lower this morning after gaining
5.4% last week for a seventh-straight weekly gain
• However, oil continues to sit near the highest levels since Oct-14
• There isn't much new in the space this morning, as geopolitics remain the biggest focus amid reports that a Russian invasion
of Ukraine may be imminent
• There are also more concerns around global demand outpacing supply, which could lead to higher prices for longer than
expected
• OPEC+ spare capacity concerns also remain an overhang, while some reports last week noted that US shale may not rebound
as much as previously thought
• Data this week include the EIA Short Term Energy Outlook and API weekly, followed by the DOE weekly on Wednesday
• The OPEC monthly is set for Thursday
• The updated rig count is out Friday, which last week rose by two to 497, and now sits at the highest level since the week of
9-Apr-20 (504). However, the rig count remains well below the 20-Mar-20 level of 664
Geopolitics – Platts/Reuters
• Refiners across Asia are broadly unfazed by the Russia tensions, and companies don't expect any severe disruption to Russian
crude trades in the region
• However, Russia oil also makes up only a small portion of many Asian countries import baskets with many alternatives
available
• Russian light and medium sweet crude cargo trades are expected to continue as normal as it would be difficult for the Biden
administration to impose full-scale sanctions
• However, South Korean and Japanese refiners are drawing up contingency plans, with several US and Malaysian crude grades
set to be included in potential replacements
• South Korea imported 147K bpd from Russia in 2021, or 5.6% of its overall imports, while Japan imported 89K bpd, or 3.6%
of its total crude imports
• The Biden administration is considering a proposal by Chevron to allow the US company to accept and trade Venezuelan oil
cargoes to recoup unpaid debt
• No decision has been reached, and the timetable on a further review remains unclear
• However, the move would reinstate trading privileges it had for a time during the Trump administration, which allowed
Chevron to trade 1-2M barrels per month, but was suspended under Trump's "maximum pressure" campaign
OPEC+ – Bloomberg/Reuters
• Saudi Arabia raised oil prices for customers in Asia, the US, and Europe by 60 cents from February to $2.80 above the
benchmark
• The move was expected, and comes as Brent has risen above $93 a barrel, driven by strong global consumption, plummeting
stockpiles, and challenges from some producers to pump more
• The decision came after OPEC+ increased its daily production by 400K bpd last month, in line with estimates, but also comes
amid rising fears around spare capacity across members
• Iran said it will become an net importer over the next two or three years due to strong domestic consumption
• Domestic refiner capacity is set to increase by 200K bpd within two or three years
• Iran is capable of exporting 2.5M bpd with capacity of around 4M bpd, though officials from the National Iranian Oil Co said
that if US sanctions are removed, the country can raise output back to 2018 levels
• Iranian negotiators have said it still needs guarantees from Washington to revive the nuclear deal, and that the limited US
sanctions waivers aimed at easing diplomacy have been good but not enough
Source: FactSet

3
MORNING INK REPORT
Could this tiny agriculture stock grow into something bigger? (WWT)
Source: INK Research
As of: Friday, February 4, 2022
Company Highlight: Water Ways Technologies (WWT)
• We stick with our water theme moving from the high seas and mid-cap Methanex (MX) to the farmer's field and micro-cap
Water Ways Technologies (WWT)
• Agriculture is a theme that is often viewed as a way to help diversify a portfolio but there are not a lot of ways to play it via
the Canadian stock market
• For those with the risk tolerance for micro-cap stocks, WWT may be worth a look based on our signals
• Water Ways Technologies specializes in providing micro and precision irrigation technology solutions to agricultural and
cannabis producers
• The Toronto-based company has subsidiaries in Israel, China, and Uruguay
• It has its roots in Israel where WWT believes technology has been a key success factor in allowing the country to produce 95%
of its food despite only 20% of the land being arable
• The company's focus is in the area of micro and precision irrigation applications and a key growth target for the firm is the
cannabis industry where it has developed a controlled irrigation and fertilization system for cannabis cultivators and growers,
developed in Israel by WWT's R&D team
• It believes its system allows for higher yields and consistency for cannabis growing while reducing energy, water, and
fertilization costs
• Cronos Group (Mixed; CRON) in Israel was an early adopter of WWT technology
• While Water Ways Technologies did not turn a profit when it reported Q3 results for the period ended September 30, 2021,
sales were up strongly
• In the first nine months of 2021, sales were $15.77 million compared to $9.55 million the year before
• As of Q3, about 39% of 2021 sales were from Asia and 27% from Canada
• While insider accumulation has been small recently, there has been no selling even as the stock trades near 52-week highs
• On January 25, Water Ways Technologies (WWT) Director James Lanthier (MSET, NIS) exercised 200,000 options at $0.06 but
has not subsequently reported selling any shares
• It can be a bullish sign when an insider exercises options and does not sell the newly acquired securities
• The stock closed on Thursday, February 3 at $0.42
• Water Ways Technologies has above median ownership (direct & indirect holdings) by Officers and Directors compared to
other small-cap stocks in the Industrials sector according to SEDI filings as of February 3, 2022
Water Ways Technologies (WWT)
Source: INK Research

4
MARKET MOVERS
Source: FactSet

5
ASSET CLASS PERFORMANCE
Source: FactSet
*All numbers presented on the table below are based on total return

6
MACRO-EVENT SCHEDULE
EARNINGS
Source: Yahoo Finance

7
MOST READ NEWS
1) U.S. Futures Rise; Treasuries and Dollar Steady: Markets Wrap

2) Goldman Commodity Veteran Says He’s Never Seen a Market Like It
3) Peloton Soars After Company Said to Draw Takeover Interest
4) JPMorgan Strategists Say Buy Stocks as Rate Hikes Now Priced In
5) Spotify’s CEO Is ‘Deeply Sorry’ But Won’t Drop Joe Rogan
6) Credit Suisse, a Coke-Smuggling Wrestler and Stashes of Cash
7) Global Bond Rout Deepens as Traders Weigh Super-Sized Rate Hikes
8) Hong Kong Braces for Curbs as Cases Double Every Three Days
9) Ottawa Declares Emergency as Protests Spin ‘Out of Control’
10) Huge London Docks Development on Brink of Collapse, Times Says
THE LAST DROP: “Be patient with yourself. Self-growth is tender; it's holy ground. There's no greater investment.”
- Stephen Covey

8
Appendix: Important Disclosures
While this product is drawn from sources believed to be reliable, the accuracy and completeness of the information contained herein is not guaranteed. Any reference
to a research report or a recommendation is not a solicitation to purchase or sell any security and it does not consider the individual investment objectives, financial
situation, suitability or risk tolerance of any person or corporation. Accordingly, investors should obtain advice based on their own specific circumstances before making
any investment decision. Canaccord Genuity Wealth Management is a division of Canaccord Genuity Corp. Member – Canadian Investor Protection Fund (CIPF) and the
Investment Industry Regulatory Organization of Canada (IIROC).
Quest®: Canaccord Genuity’s proprietary online valuation and analytical tool which combines consensus market figures with the Quest® Discounted Cash Flow (DCF)
Valuation Model.
Quest® triAngle is Canaccord Genuity’s proprietary 15-factor, stock-picking tool, which systematically measures Value, Quality and Momentum and presents the results
in a simple, easy to understand score. It takes a multi-pronged approach to Value, Quality and Momentum using five factors for each component, which adds more
consistency of performance unlike a reliance on one single measure. It uses a mix of historic and forecast data, and combines absolute valuation data with comparisons
relative to history. The triAngle is designed to generate stock ideas and provide a consistent framework for analysis of portfolio holdings.
Quest® Methodology
Quest® is an analytical tool that involves use of a set of proprietary quantitative algorithms and value calculations to derive a number of corporate performance and
valuation metrics, including assigning a Default Quest® value per share and generating a triAngle Score, which is a relative ranking based on a number of operational
and valuation metrics. These algorithms and value calculations are consistently applied to all the companies included in the Quest® database. Third-party data (including
consensus earnings estimates) are systematically translated into a number of default variables and incorporated into the algorithms. The source financial statement,
pricing, and earnings data provided by outside data vendors are subject to quality control and may also be adjusted to more closely measure the underlying economics
of firm performance. These adjustments provide consistency when analyzing a single company across time, or analyzing multiple companies across industries or national
borders. As the third-party data are updated, the triAngle Score generated by Quest®, and the Default Quest® value per share may change. The default variables may
also be adjusted by the user to produce alternative values, any of which could occur. Additional information about the Quest® methodology is available on request.
Canaccord Genuity Quest® Disclosures

Quest® is at this stage registered in the UK and in the USA, and common law trade mark rights are asserted in other jurisdictions. Quest® is non-independent research
and is a marketing communication under the FCA Conduct of Business rules. All rights reserved. Quest®, CITN®, Companies in the News™, CFROC®, and triAngle™ are
all trademarks of Canaccord Genuity Limited. E&OE. © Canaccord Genuity Limited. For important information and company-specific Quest® disclosures please see
Important Disclosures at the following website (provided as a hyperlink if this report is being read electronically): https://disclosuresquest.canaccordgenuity.com/.
Please note that analyst data and Quest® data may differ due to different sources and calculation methods. The Quest® platform may be found at the following website
www.canaccordquest.com
* Canaccord Genuity and its affiliated companies may have a Corporate Finance or other relationship with the company and may trade in any of the Designated
Investments mentioned herein either for their own account or the accounts of their customers, in good faith and in the normal course of market making. The authors
have not received, and will not receive, compensation that is directly based upon or linked to one or more specific Corporate Finance activities, or to coverage contained
in the Morning Coffee.
Canaccord Genuity is the global capital markets group of Canaccord Genuity Group Inc. (CF : TSX)
The recommendations and opinions expressed in this research report accurately reflect the Investment Analyst’s personal, independent and objective views about any
and all the Designated Investments and Relevant Issuers discussed herein.
Canaccord Genuity (Australia) Limited is the Australian affiliate of global capital markets group Canaccord Genuity Group Inc. (CF : TSX). The recommendations and
opinions expressed in this research report accurately reflect the Analyst’s personal, independent and objective views about any and all the designated investments and
relevant issuers discussed herein.


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Monday, February 7, 2022

BEFORE THE OPEN

STOCKS IN THE NEWS

Amazon.com * (AMZN: $3152.79), Net Change: $375.88, Change: 13.54%

Snap, Inc.* (SNAP: $38.91), Net Change: $14.41, Change: 58.82%

Monday, February 7, 2022

Monday, February 7, 2022

Company Highlight: Water Ways Technologies (WWT)

Water Ways Technologies (WWT)

Source: INK Research

Monday, February 7, 2022

Monday, February 7, 2022

Monday, February 7, 2022

Monday, February 7, 2022

1) U.S. Futures Rise; Treasuries and Dollar Steady: Markets Wrap

Monday, February 7, 2022

Canaccord Genuity Quest® Disclosures

Monday, February 7, 2022

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