A humorous look at the companies that caught our eye, for better or worse, this week
Money can’t buy happiness. But it can buy something even better: youthful, glowing skin. Which explains why Valeant is shelling out $2.6-billion (U.S.) for Medicis Pharmaceutical, a maker of injectable anti-wrinkle gels, acne medications and other skincare treatments. With the market for dermatological and aesthetic products worth about $12-billion and growing by double-digits, it’s no wonder Valeant shareholders have a big smile on their blemish-free faces.
Jaws? The Exorcist? Friday the 13th? Those movies are a kindergarten singalong compared to the horror show called Netflix. In the latest blow to the company, Amazon’s online streaming service signed a deal to distribute content from Epix, a joint-venture owned by Paramount, MGM and Lionsgate. Now that Netflix no longer has exclusive access to Epix movies such as The Hunger Games and The Avengers, things could get even bloodier for investors.
Things that don’t always work out as planned:
2) Trips to the casino;
3) Mining investments in foreign countries.
Shares of SouthGobi Resources, which operates a coal mine in Mongolia, plunged after Aluminum Corporation of China withdrew its $926-million bid for a controlling stake in the company amid growing opposition from the Mongolian government. Apparently, not every country thinks selling its most valuable assets to China is a wise idea.
Bad: Inhaling the exhaust from a coal-fired power plant. Almost as bad: Investing in TransAlta. The power producer’s stock has been hammered by low electricity prices, costly maintenance outages and worries about the sustainability of its 8.2-per-cent dividend yield. In a rare bit of “good” news, the federal government’s new environmental regulations gave coal plants more breathing room than expected, but investors were apparently in no mood to celebrate.
Smith & Wesson
Whether you enjoy hunting, target shooting or holding up the 7-11 ’cause you’re low on cash, Smith & Wesson has a firearm suited to every need and budget. Shares of the gun maker jumped after it posted strong growth in revenue and profit for the first quarter and raised its full-year outlook, proving that America’s obsession with guns is still going strong even as those weapons continue to fall into the wrong hands.