• CPI holds steady, key categories moderate

• Age demographics favour senior living

• Buyback activity ramps up

• CFA executive embezzled $5M

• Oil completes the round trip

CPI holds steady, key categories moderate

May’s CPI print shaped up largely as expected, with headline inflation of 1.7% tracking in-line with expectations thanks to continued weakness in energy prices.

While energy costs were the primary driver, inflation across the main buckets (food, shelter, transportation) moderated…

… shelter in particular, falling from 4.5% in January to 3% in May as growth in servicing costs (rent/mortgage) continues to slow down.

For a breakdown of the main categories: https://www.bullpen.finance/content/174

Small deal for Sienna, big tailwinds for LTC

Sienna Senior Living (SIA) expanded its presence in the GTA this week with the $60M purchase of Credit River Retirement Residence, a 133-suite complex (+1.5%) that SIA expects it can increase to 95% occupancy (from 90%) in the first year of operations.

The deal looks accretive but the stock was up small, because that’s not really what’s driving the sector. Age demographics are finally in the sweet spot where demand growth is here and has years of runway…

… justifying a big acquisition pipeline and creating a window for what has historically been a dead money trade to handily outperform markets.

Buybacks ramp up, do valuations justify it?

Canadian companies are ramping up buyback activity again, as evidenced by an aggregate ~$17B spent by ~350 of the largest TSX names last quarter - the most since 2022.

If you’ve kept an eye on market news lately that shouldn’t come as a surprise, but in the context of valuation it’s a bit of a head-scratcher - as the trough multiples that fueled the last buyback cycle are a distant memory.

Combined with the fact that insider activity has been far from bullish this year it should make you wonder, is this the right use of capital right now?

The CFA’s former Chief Marketing Officer was charged with embezzling ~$5M to fund his lavish lifestyle… how ironic.

Turns out ethics don’t matter at the top of the organization, only when you’re on your 8th ZYN and 300th hour of studying ahead of the exam.

Flagging the Propel (PRL) sale, as insiders have been steadily shedding stock since 2024.

• iA Financial Group completes offering of $400M of preferred shares

• Spin Master announces leadership change, Christina Miller to be CEO

• StorageVault completes purchase of 8 assets for $72M

• MDA Space awarded $60M for next phase of river-class destroyer

• EQB announces passing of CEO Andrew Moor

YESTERDAY’S EARNINGS

TODAY’S EARNINGS

YESTERDAY’S ECONOMIC RELEASES

TODAY’S ECONOMIC RELEASES

As alluded to on Monday those >$100 oil calls will have to wait, with the Iran narrative dying down after a ceasefire was reached.

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