A humorous look at the companies that caught our eye, for better or worse, this week.
American Apparel
APP (Amex)
June 20, 2014 close: 69¢ (U.S.)
up 7¢ or 11.3% over week
American Apparel is famous for posing its young models in uncomfortable-looking and suggestive positions. Now its founder, Dov Charney, finds himself in an uncomfortable position of his own. Citing an “ongoing investigation into alleged misconduct,” the retailer’s board ousted Mr. Charney – who has faced multiple sexual harassment allegations over the years – as chairman and gave notice that it will fire him as CEO as well. Judging by the stock’s rise, investors aren’t at all uncomfortable with the decision.
La-Z-Boy
LZB (NYSE)
June 20, 2014 close: $23.38 (U.S.)
down 69¢ or 2.9% over week
Enjoyable: Sitting in your La-Z-Boy recliner and watching the World Cup.
Depressing: Owning shares of La-Z-Boy.
The furniture retailer and manufacturer’s stock has skidded about 25 per cent in 2014, and this week there was more bad news for investors: Citing severe winter weather, the company said same-store sales fell 0.9 per cent in the quarter ended April 26 – the first drop in more than three years. With the company expecting more softness this summer, the stock could have trouble getting off the couch any time soon.
BlackBerry
BB (TSX)
June 20, 2014 close: $10.51
up $1.94 or 22.6% over week
Things we didn’t see coming:
1) Defending champion Spain getting eliminated from the World Cup;
2) The Liberals winning a majority in Ontario;
3) BlackBerry actually turning a profit.
Helped by cost cuts, the smartphone maker posted net income of $23-million (U.S.) in its fiscal first quarter, sending the shares up sharply. BlackBerry still lost money on an adjusted basis and its revenue plunged, but at this rate shareholders will take any good news they can get.
S&P/TSX composite index
TSX-I
June 20, 2014 close: 15,108.97
up 107.36 points or 0.7% over week
With glowing hearts, we see thee rise … to a record.
It took six years, but this week Canada’s benchmark stock index finally eclipsed its previous closing high of 15,073.13 reached on June 18, 2008, right before the financial crisis. Powered by resource and financial companies, Canadian stocks have recouped about $1.5-trillion in value from the lows of March, 2009, and with turmoil in Iraq and Ukraine lifting energy prices, investors are standing on guard for more gains.
Coach
COH (NYSE)
June 20, 2014 close: $34.73 (U.S.)
down $4.64 or 11.8% over week
Money-saving tip: Instead of spending $500 on a designer leather handbag from Coach, carry all of your things in a plastic grocery bag from No Frills. No one will even notice. Judging by the upscale retailer’s gloomy forecast, more women are giving Coach’s expensive handbags a pass: The company said it expects same-store sales in North America to plunge in the “high teens” in percentage terms this year and announced plans to close about 70 locations, sending the stock to the discount bin