Samsung Electronics (DOG)
Alternative uses for a Samsung Galaxy Note 7 smartphone: 1) A cigarette lighter; 2) A portable hot plate; 3) A flamethrower. Shares of Samsung Electronics plunged after the South Korean tech giant pulled the plug on the fire-prone device – launched just two months ago – and slashed its quarterly earnings guidance by a third. With Samsung’s reputation taking a hit as it recalls about 2.5 million Note 7s, investors are watching their money go up in smoke.
SSNLF (KRX), 1,577,000 won down 129,000 or 7.6% over week
ALCOA (DOG)
Maybe it’s time for a different company to kick off quarterly earnings season, because Alcoa just botched it big time. In what one analyst described as a “disaster,” the aluminum giant’s third-quarter earnings rose less than expected as revenue fell in its automotive and aerospace unit – soon to be split off from the mining and smelting operations. With Alcoa’s stock taking its biggest one-day plunge in five years, investors are bent out of shape.
AA (NYSE), $26.44 (U.S.) down $4.93 or 15.7% over week
THE CONTAINER STORE (DOG)
How to ruin a first date: Suggest that you spend a few hours at The Container Store. How to ruin a portfolio: Invest in The Container Store’s stock. Citing “guarded” comments from the company and a weak retail environment for home furnishings stores, Goldman Sachs analysts cut their price target on the shares and said they expect same-store sales to fall by 3.3 per cent in fiscal 2016 – crushing the stock like a cardboard packing box.
TCS (NYSE), $4.66 (U.S.) down 57¢ or 10.9% over week
RENT-A-CENTER (DOG)
For years, rent-to-own stores have been accused of preying upon poor people by charging exorbitant prices for TVs, furniture and appliances. Now, Rent-A-Center shareholders are the ones who are feeling poor: Citing problems with a new point-of-sale system, the retailer said same-store sales plunged about 12 per cent in the third quarter and warned that earnings will fall well short of estimates, causing the stock to crater.
RCII (Nasdaq), $8.93 (U.S.) down $3.79 or 29.8% over week
APPLE (STAR)
We at Apple are sorry – so very, very sorry – to hear about the problems experienced by our good friends at Samsung Electronics. The Galaxy Note 7 was an excellent product – apart from the smoke and flames – and a fine competitor to our own iPhone. As much as we hate to profit from the misfortunes of others, if you’ve been considering the purchase of an iPhone and would rather not burn your house down, come on by the Apple Store.
AAPL (Nasdaq), $117.63 (U.S.) up $3.57 or 3.1% over week