A humorous look at the companies that caught our eye, for better or worse, this week
New slogans rumoured to be under consideration following the merger of Leon’s Furniture and The Brick:
1) Leon’s – where everyone’s a Brick;
2) Now with salespeople TWICE as aggressive;
3) New company. Same shiny sofas.
Although the two retailers have no immediate plans to consolidate their store banners, the combined company can cut costs on sourcing, distribution and marketing, allowing it to ho ho hold on to more money as profit.
Iamgold? More like Iambroke. In the latest piece of disappointing news to hit the gold mining industry, the stock suffered its biggest drop on record after the company cut its 2013 output forecast, citing “poor” performance at the Sadiola mine in Mali and a slower ramp-up at the Westwood project in Quebec. With third-quarter earnings down sharply and missing expectations, investors are selling their gold jewellery just to put food on the table.
With Microsoft’s new Windows 8 operating system and Surface tablet garnering positive reviews, you might expect the stock to be rising. And it was – until Microsoft announced the sudden departure of Steve Sinofsky, the powerful head of its Windows division. Seems Mr. Sinofksy didn’t play well with others, including Microsoft boss Steve Ballmer. But investors appear to be taking it as a sign that something more serious is brewing at the software giant.
Good news: The S&P/TSX composite index rose on Friday.
Bad news: It still skidded 319 points on the week and is down 622 points, or 5 per cent, since Nov. 1.
With markets getting hammered by escalating conflict in the Middle East, U.S. fiscal cliff worries and concerns about Europe and China, investors are selling first and asking questions later. Questions such as: Why do I invest in stocks when I could put my money into something safe, like a jar?
The Poseidon Adventure: A 1972 film in which a luxury liner sank.
Poseidon Concepts: An energy services company whose stock, co-incidentally, also sank. Once considered a “slam dunk” for yield investors – to quote one analyst – Poseidon posted quarterly results well below expectations after getting clobbered by a slowdown in drilling activity and well completions. With the stock yielding about 23 per cent, you’ve got to wonder how long the dividend can stay afloat.