A humorous look at the companies that caught our eye, for better or worse, this week.
Six Flags
SIX (NYSE)
Oct. 24, 2014 close: $39.41 (U.S.)
up $5.56 or 16.4% over week
Theme park dos and don’ts:
1) Don’t take LSD before visiting the haunted house;
2) Don’t eat the deep-fried doughnut burger before getting on the roller-coaster;
3) Do invest in shares of Six Flags.
Buoyed by higher spending per visitor, the amusement park operator reported a 7.4-per-cent increase in third-quarter revenue, giving investors a pleasant ride indeed.
iRobot
IRBT (Nasdaq)
Oct. 24, 2014 close: $34.39 (U.S.)
up $2.54 or 8% over week
I used one of iRobot’s Roomba automatic vacuums to clean my house the other day. My floors look great, but now my Chihuahua is missing.
Plenty of homeowners are happy with the robotic devices, though, judging by the 15-per-cent jump in the company’s third-quarter sales. With earnings beating expectations and the stock surging, investors are cleaning up.
S&P/TSX composite
TSX
Oct. 24, 2014 close: 14,543.82
up 316.14 points or 2.2% over week
Correction? What correction?
Fuelled by rebounding energy and financial shares, Canada’s benchmark index posted its second consecutive weekly advance. The S&P/TSX composite is now down about 7 per cent from its September high, having been down as much as 11 per cent. Investors may not be making money but at least they’re losing less.
Yelp
YELP (NYSE)
Oct. 24, 2014 close: $59.42 (U.S.)
down $7.67 or 11.4% over week
Yelp? Investors were yelping alright after the company, which lets users post online reviews of restaurants and other local businesses, reported third-quarter results. Even as Yelp’s earnings topped analyst estimates, the company’s fourth-quarter sales forecast fell short of Wall Street expectations, sending the shares down sharply. The stock’s reviews couldn’t be worse.
IBM
IBM (NYSE)
Oct. 24, 2014 close: $162.08 (U.S.)
down $19.97 or 11% over week
Losing money on stocks? Don’t feel too badly: Even Warren Buffett gets it wrong sometimes. IBM, one of Berkshire Hathaway’s biggest holdings, skidded to a three-year low after the computer giant posted a sharp drop in third-quarter earnings and failed to increase sales for the 10th consecutive quarter. Shares of Coca-Cola also got slammed on weak results. Oracle, schmoracle.