A humorous look at the companies that caught our eye, for better or worse, this week
The best thing about the movies is:
a) Paying $13 for a ticket;
b) Shelling out another $12 for popcorn and a drink, which you polish off before the trailers end;
c) Investing in Cineplex.
Boosted by blockbusters such as The Avengers, The Dark Knight Rises and The Hunger Games, 2012 revenue at the movie theatre chain soared 9.4 per cent to a record $1.09-billion as concession sales jumped by double-digits. Or you could wait for the DVD and make some Jiffy Pop.
LinkedIn isn’t just a tool that allows strangers to spam your in-box with annoying requests to join their network. It’s also a great money-making tool for investors – well, for now, anyway. Shares of the business networking site soared to a record after fourth-quarter revenue leaped 81 per cent to $303.6-million and profit jumped 66 per cent to $11.5-million or 10 cents a share. With numbers like that, why would you worry about a little thing like a price-to-earning multiple of 300?
Research In Motion
Understanding stock markets, a beginner’s guide:
When a company is preparing to launch a new product such as the BlackBerry Z10, shares will often rise. When the product is introduced, however, shares will fall because people who were buying on anticipation are now selling. At some point the sellers take a break – they may need to have lunch or use the restroom – and then buyers step in, particularly when the new device is flying off the shelves, causing the sellers to kick themselves.
Most businesses have moved on from the financial crisis, but Standard & Poor’s Ratings Services is being forced to relive the nightmare. Marking the first time U.S. authorities have gone after a credit rating agency over its alleged role in the housing bust, the Justice Department sued the McGraw-Hill unit, alleging S&P knowingly played down the credit risks of mortgage bonds that later imploded. The only thing imploding this week was McGraw-Hill’s stock.
Good news: Apple has surged about 9 per cent since bottoming out at $435 after first-quarter earnings disappointed.
Bad news: The stock would have to soar 48 per cent to reclaim its previous high of $705. You can bet billionaire hedge fund manager David Einhorn, who owns 1.3 million shares, will do his darndest to get it there. Pointing to Apple’s $137-billion “cash problem,” he’s agitating for the iPhone maker to give out preferred shares as a way to unlock value. Nice “problem” to have.