A small Nova Scotia-based company is upset about losing a provincial government contract to deliver high-speed internet, saying the loss could force it out of business.
Acadian Communications of Chéticamp lost to Bell Aliant in the second round of bidding for qualified suppliers to provide high-speed internet service.
It missed the first round of bidding due to a change in company ownership. Bell Aliant was among the successful bidders in that round and is working on providing service in the Chéticamp area.
Andrew LeBlanc, owner of Acadian Communications, said his company is already preparing to lose customers.
“As Bell comes in and steals away customers, there’s a point in the not too far future where I think we could go under,” he said.
Acadian Communications provides internet for around 800 customers and employs four people, including LeBlanc. He said if business drops to just 200 or 300 customers, the company won’t be profitable anymore.
Smaller companies losing out
LeBlanc said they offered a lower bid and asked for a 40 per cent subsidy from the province, while Bell Aliant asked for a 50 per cent subsidy.
“They’re going to cover the maximum amount of houses which is great for themselves and great for Nova Scotia residents, but for myself and several other companies across the province it’s not good at all,” said LeBlanc.
The second round of bidding went entirely to Bell Aliant. The company will provide high-speed internet for another 32,000 homes and businesses. The provincial government is providing $59 million for the project.
“In effect, the provincial government is funding the biggest telecommunication company to bankrupt our company,” said LeBlanc. “Something with that just doesn’t sit right.”
November 3 is just around the corner, and Wall Street’s gaze has locked in on the race to the White House. Biden currently leads in the polls, but it’s still anyone’s race.
Now, with President Trump’s COVID-19-related hospitalization rocking the last leg of the 2020 presidential election campaign, and Senate control also up for grabs, fears regarding a divided government are circling the Street.
That said, this might not be such a bad thing, if you ask Goldman Sachs. “A divided government scenario would lead to a smaller change in interest rates and a reduction in political uncertainty,” the firm’s chief equity strategist David Kostin wrote. The strategist argues that such an outcome could push the S&P 500 to 3,700, which would reflect an 11% gain, with the index reaching 4,000 by mid-2021.
But what will happen if Biden comes out on top? Kostin believes a blue wave wouldn’t be as bad for the market as some might think, with it actually having a “modestly positive net impact.” He explained, “A large increase in fiscal spending, funded in part by increased tax revenue, would boost economic growth and help offset the earnings headwind from higher tax rates.”
Taking Kostin’s outlook into consideration, we wanted to take a closer look at two stocks getting a round of applause from Goldman Sachs. As the firm’s analysts think each has more room to run, we used TipRanks’ database to find out even more about both tickers.
Hoping to overcome challenges and unlock the potential of innovation and sustainability, Avient works to create specialized and sustainable materials that enhance performance and protect the environment. Based on the strength of its core business, Goldman Sachs is pounding the table.
Representing the firm, five-star analyst Robert Koort acknowledges that shares have been