A humorous look at the companies that caught our eye, for better or worse, this week
Research In Motion
Reasons to invest in RIM:
1) You’re a masochist;
2) You’re investing money that belongs to someone you hate;
3) There is no other reason.
In a scene that’s become painfully familiar to investors, shares of the BlackBerry maker plunged after first-quarter revenue missed expectations and the company posted a loss, warning that more red ink is coming in the second quarter. Thank you, sir, may I have another?
June 28 close: $11.08, down $3.27 or 22.8% over week
Given the deep and abiding love that Canadians have for their cellphone providers, it was not surprising that a great wave of sadness washed across the nation on reports that U.S. wireless giant Verizon may be heading north. Well, at least investors were upset: Shares of Rogers, BCE and Telus – a.k.a. Robelus – suffered their worst drubbing in years as traders bet that Verizon’s arrival will mean lower cellphone bills – and lower profits for the big three.
June 28 close: $41.20, down $5.25 or 11.3% over week
Barnes & Noble
Barnes & Noble’s book sales plunged in the fourth quarter, but at least it’s got the Nook e-reader to pick up the slack, right? Actually, that’s not helping either: Sales of Nook devices and content skidded 34 per cent, contributing to a loss of $118.6-million, as consumers snapped up Apple, Samsung and Amazon tablets instead. Unless people suddenly rediscover the joys of paper, the story may not have a happy ending for the biggest U.S. bookstore chain.
June 28 close: $15.96 (U.S.), down $3.01 or 15.9% over week
Not fun: Collecting Aeroplan points for years and finding out that all you qualify for is a 2 a.m. flight to Thunder Bay.
Fun: Owning shares of Aimia, the company that runs Aeroplan.
With Aimia potentially ending its two-decade relationship with CIBC and jumping to TD Bank, the loyalty program operator is promising to improve its rewards offerings to spur growth. Now that the stock is rising, investors can afford to buy their own plane tickets.
June 28 close: $15.74, up $2.00 or 14.6% over week
You know when you go to the lab for a blood test, and you’re screaming as the nurse jabs the needle into your arm, but then you calm down when she gives you a sucker? CML investors can relate: The company, which operates more than 200 lab and diagnostic imaging sites, had been hammered by weak results and a dividend cut, but it’s all better now that OMERS-owned LifeLabs has tabled a $1.22-billion takeover offer. That’s a lot of lollipops.
June 28 close: $10.56, up $3.36 or 46.7% over week