A humorous look at the companies that caught our eye, for better or worse, this week
S&P/TSX composite index
Reasons to be proud of Canada:
1) Federal government never has more than five scandals on the go at any one time;
2) Mayor of largest city is a worldwide celebrity;
3) Country’s main stock index is remarkably consistent. Unfortunately, it’s been consistently going downhill for six days in a row – the longest losing streak in a year – amid rising bond yields and weak metals prices.
With consumers racking up ever-rising smartphone bills, what could be safer than a telecom stock? A lot of things, apparently. Telus skidded after the company got a double-dose of bad news this week. First, the CRTC’s new wireless rules effectively banned three-year contracts and capped roaming fees. Then Ottawa blocked Telus’s purchase of Mobilicity. Some investors are roaming very far away indeed.
S&P/TSX Capped REIT Index
You’ve heard of this thing called a REIT
Which investors once thought really neat
‘Til bond yields began rising
And folks started despising
The REITs that had once seemed so sweet
Great discoveries always start with a question. In SodaStream’s case, that question was: “How can we get people to drink more pop?” The company, whose home machines use tap water to make carbonated beverages, saw its shares jump on rumours that PepsiCo is preparing a $2-billion bid. Pepsi dismissed the speculation as “completely and totally untrue,” but investors were apparently too busy drinking pop to notice.
Sad: Spending all day playing FarmVille and CityVille on Facebook. Sadder: Owning shares of Zynga, inventor of these and other time-wasting distractions. The shares cratered after the company said it will cut 520 jobs, or 18 per cent of its work force, as it struggles to come up with new titles that catch on with mobile users. With Zynga expecting a second-quarter loss, investors are de-friending the company.