Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
Data centre, electrical power development in Alberta
BMO analyst Ben Pham highlighted the potential for Alberta to host data centres as a new growth driver in the province,
“We recently hosted meetings with Alberta’s Minister of Affordability and Utilities, Nathan Neudorf, and the CEO of the Alberta Electricity System Operator (AESO), Aaron Engen. The meetings improved our confidence in an Alberta data center buildout and gradual tightening of power supply/demand fundamentals, where we continue to believe TA [TransAlta Corp.] (OP, $21 target, Top 3 Best Idea) is the best positioned to benefit in our broader Cdn. Energy Infrastructure coverage universe with a potential DC contract. Other entities in our coverage that could benefit include CPX [Capital Power Corp] (OP, $70 target/Phase 2 large load and potential higher AB power prices), PPL [Pembina Pipeline Corp.] (OP, $59 target/Greenlight JV), and CU [Canadian Utilities Ltd.] (Mkt, $42 target/potential infrastructure requirements to connect DCs). In the meantime, the recent completion of the final design of modernizing Alberta’s power market provides visibility for the industry and should encourage new investment”
Satellite launch costs down 100 times in past 20 years
BofA Securities head of global research Candace Browning highlighted a novel growth idea, low earth orbit (LEO) satellites,
“The low-earth orbit (LEO) satellite industry is entering a new phase, with disruptive potential across wireless, wireline, defense, and many other markets. While 2015 marked peak founding activity, many of the 374 announced constellations are now dormant. Costs to launch capacity have fallen 100 times in two decades, and Mike Funk cites committed capital, rapid tech evolution, a $200-bilion TAM [total addressable market], and regulatory support as key drivers of growth. US initiatives like the broadband equity access and deployment program (BEAD) further reinforce adoption. LEO complements wireless carriers by covering dead zones and enabling new subscription models, while spectrum-hosting deals (e.g. Starlink) create added opportunities. The technology poses threats to residential broadband, especially digital subscriber line (DSL), small fiber builds, and even cable in rural areas, though towers remain insulated given their adaptability. Notably, the addition of AWS-4 spectrum should boost Starlink’s competitiveness, and government contracts strengthen the business case. AI is an unknown potentially positive catalyst”
If it’s a bubble, it likely has a long way to go
I don’t know a lot about Evercore ISI as a firm but I’m enjoying reading strategist Julian Emanuel,
“Navigation – Bubble? Still a Long Way to Go: Discussion of “Bubbles” has officially entered the market dialogue – if SPX is in one, how far to go – and intensified with Sept. rally bucking seasonal volatility. 67 per cent of respondents to an EVR ISI Flash Survey believe that a Bubble has begun to inflate. EVR ISI Strategy sees 25-per-cent odds of SPX overshooting our 2026 PT at 7,750 and hitting a Bubble scenario of 9,000 at YE26. But a Bubble has a long way to go. Greenspan’s ‘Irrational Exuberance’ speech in 1996 was followed by a 500-per-cent gain in NDX before the Y2K peak. With only a 25-per-cent adoption rate in corporate America, AI is more analogous to the early Internet in 1996. Sentiment is far from the Bubble extremes – not only would we expect to see a Bullish surge, but the mountain of cash be deployed and margin used extensively. Dotcom era leader gains like CSCO were magnitudes above AI leaders rallies year-to-date. ‘Further to run’, though, does not preclude volatility – NDX saw numerous 10-per-cent-plus pullbacks throughout the Dotcom Bull”
Bluesky post of the day
Retail traders’ favorite stocks are on a record winning streak sherwood.news/markets/reta…
— Luke Kawa (@ljkawa.bsky.social) September 19, 2025 at 2:08 PMDiversion
“The 14 Movies to Watch Out for This Fall” – The Atlantic