Go to the Globe and Mail homepage

Jump to main navigationJump to main content

(LUKE MACGREGOR)
(LUKE MACGREGOR)

The Globe's stars and dogs for this week: Turbulence for Air Canada investors Add to ...

A humorous look at the companies that caught our eye, for better or worse, this week.

Bombardier


BBD.B (TSX)

  Feb. 14, 2014 close: $3.60
  down 58¢ or 13.9% over week

Business quiz! If you’d invested $10,000 in Bombardier 10 years ago and reinvested every dividend, today you would have roughly:

a) $21,300;
b) $14,900;
c) $6,500.

Answer: c.

In the latest setback for its delayed C Series planes, Bombardier hiked its cost estimate by $1-billion, sending the shares down and prompting Moody’s and S&P to chop the company’s credit ratings. Bombs away!

Air Canada


AC.B (TSX)

  Feb. 14, 2014 close: $5.74
  down $2.04 or 26.2% over week

“Ladies and gentlemen, please pay no attention to the baggage flying across the cabin or the screams of other passengers. This sort of sudden drop is normal for a stock that soared 323 per cent last year, what with the lower Canadian dollar and severe winter weather expected to take a bite out of Air Canada’s first-quarter results. Now sit back, grab a vomit bag and enjoy the rest of the flight.”

Goodyear Tire & Rubber


GT (Nasdaq)

  Feb. 14, 2014 close: $26.76 (U.S.)
  up $3.23 or 13.7% over week

Putting a good set of tires on your car can make a big difference. But if you want a real boost in performance, put some tires in your investment portfolio: Shares of Goodyear pulled into the passing lane after the company posted sharply higher fourth-quarter profit, driven by strength in North America and Europe. With the stock doubling in the past nine months, investors’ portfolios are burning rubber.

Home Capital


HCG (TSX)

  Feb. 14, 2014 close: $88
  up $11.33 or 14.8% over week

Housing headlines over the years:

Market set to cool (2005);
Housing poised for slowdown (2007);
Housing boom ‘over this time, for sure’ (2011);
Housing bust ‘any second now’ (2013).


Well, the folks at Home Capital are still waiting: The alternative mortgage lender announced higher fourth-quarter profit, hiked its dividend by 14 per cent and split its stock two-for-one. No way this will last.

Canada Bread


CBY (TSX)

  Feb. 14, 2014 close: $72.30
  up $4.02 or 5.9% over week

Bread n. 1. A food commonly made with flour and yeast. 2. A 1970s soft-rock band that produced such hits as Make It With You and Baby I’m A Want You. 3. Slang. Money.

Shareholders of Canada Bread pocketed more than a few crumbs this week after Maple Leaf Foods agreed to sell the company to Mexico’s Grupo Bimbo for $1.83-billion or $72 a share, causing the stock to rise.

Follow on Twitter: @johnheinzl

In the know

Most popular videos »

Highlights

More from The Globe and Mail

Most popular