A humorous look at the companies that caught our eye, for better or worse, this week
CANADIAN DOLLAR - DOG
New nicknames for the Canadian dollar:
1) The Poloz peso;
2) The 77-cent (U.S.) piece;
3) The North American ruble.
With the Bank of Canada cutting its key interest rate for a second time this year just as the U.S. Fed is poised to begin raising rates, currency traders drove the loonie to its lowest level since 2009 – just in time for that U.S. road trip you were planning.
Dollar, 77¢ (U.S.), down 1.87¢ or 2.4% over week
NAVIENT - DOG
Providing student loans is a great business – if the students actually get a job and pay the money back, that is. Student loan manager Navient, which was split off from Sallie Mae last year, plunged after the company forecast second -quarter earnings well below analyst estimates as it increased provisions for loan losses. Time to sell the futon and the lava lamp, kids – the Man wants his money.
NAVI (Nasdaq), $16.86 (U.S.), down $1.51 or 8.2% over week
CORUS ENTERTAINMENT - DOG
Corus Entertainment’s third-quarter results sparked a chorus of boos from investors. Hit by a 10-per-cent drop in advertising revenue, the owner of TV channels such as YTV, Teletoon and W Network and radio stations including Toronto’s Q107 and Vancouver’s 99.3 The Fox posted adjusted earnings of 36 cents a share, down from 49 cents a year earlier. Investors are changing the channel.
CJR.B (TSX), $14.11, down $2.88 or 16.9% over week
ALIMENTATION COUCHE-TARD - STAR
In English, Alimentation Couche-Tard means “Food for night owls.” Coincidentally, shares of the convenience-store operator haven’t been getting much sleep, either: Already up more than 150 per cent in the past two years, the stock jumped after the owner of Couche-Tard, Mac’s and other chains posted solid same-store sales growth in Canada, the U.S. and Europe and said more acquisitions are on the way. Investors are staying up late just to count all their profits.
ATD.B (TSX), $58, up $5.27 or 10% over week
HOME CAPITAL GROUP - DOG
For years, Home Capital’s shares defied the housing bears. Lately, however, the stock’s been getting mauled: The alternative lender sank after disclosing that single-family traditional mortgage originations fell 16 per cent in the second quarter while insured mortgages plunged 55 per cent, hit by an internal review that “led to the company terminating relationships with certain mortgage brokers.” With analysts downgrading the stock, investors are running for their lives.
HCG (TSX), $31.86, down $10.15 or 24.2% over week