A humorous look at the companies that caught our eye, for better or worse, this week
Let’s make this absolutely transparent: We’re not going to crack any more cheap jokes about Lululemon’s see-through yoga pants. That matter is behind us, frankly, and we’re tired of the company being the butt of sophomoric comments. We do, however, understand that investors are bummed out by the unsettling news that CEO Christine Day plans to leave the company and we can understand why they’re refusing to turn the other cheek.
June 14 close: $67.29, down $15.66 or 18.9% over week
Money-saving tip: Instead of using your air conditioning this summer, attach bags of frozen broccoli to your body as camouflage and spend the afternoon in your grocer’s freezer.
Money-making tip: Invest in grocery retailer Empire Co. The parent of Sobeys is shelling out $5.8-billion to gobble up the Canadian division of Safeway, giving Empire more scale and cost efficiencies as it battles Loblaw, Metro and others. Investors think the deal is pretty cool.
June 14 close: $75.45, up $6.67 or 9.7% over week
There’s suddenly drama at Dollarama – and it’s not the kind that investors appreciate. After beating analysts’ expectations for 14 consecutive quarters since it went public in 2009, Canada’s biggest dollar-store chain posted adjusted first-quarter earnings that missed estimates by a nickel a share, sending the stock to its biggest one-day loss in nearly two years. The company cited costs to open new stores, but some investors have decided to shop elsewhere.
June 14 close: $67.95, down $6.47 or 8.7% over week
Downsides of riding a bicycle: saddle sores; potholes; texting drivers. Downsides of investing in bicycle maker Dorel: financial losses; anxiety; depression. Citing unfavourable spring weather in North America and Europe that has led to widespread discounting, the marketer of brands including Schwinn and Cannondale said full-year earnings in its bicycle segment won’t exceed 2012 levels. The stock has suddenly put on the brakes.
June 14 close: $35.10, down $5.34 or 13.2% over week
Contrary to popular belief, cans of pineapple and mandarin oranges do not grow on trees. But if you’re a Dole investor, it sure seemed like money was growing on trees this week. Shares of the world’s largest marketer of fruits and vegetables surged after 90-year-old CEO David Murdock made an unsolicited buyout offer that values the company at more than $1-billion. Shareholders are going bananas.
June 14 close: $12.79 (U.S.), up $2.92 or 29.6% over week