A humorous look at the companies that caught our eye, for better or worse, this week
With a harmonious coming together, the country’s political leadership fixed the United States’ fiscal problems; stocks zoomed to reflect the elimination of political risk in the U.S. Surely they’ve learned their lesson, and won’t screw things up again over the debt ceiling two months from now, right?
Dole Food Co.
Yes, $170-million is a lot of bananas. But not enough, apparently, as Dole Foods disappointed markets with that figure as its 2013 profit forecast. The company has sold its packaged-foods business, leaving it even more dependent on the yellow fruit this year. Which, for now, is leaving the stock all brown and squishy.
Family Dollar Stores
Family Dollar is keeping less of every family’s dollar, as it sold a bunch of less-profitable merchandise in its most recent quarter. Worse, the chain expects its customers to have less money to spend in 2013 as the U.S. payroll tax break expires. Perhaps the company should change its ticker from FDO to the more-doggy “FIDO.”
Every dog has its day. Herbalife, which was on the canine side of things in this space two weeks ago, is bouncing back strongly from short-seller Bill Ackman’s charge that it’s a pyramid scheme. The company promises a “comprehensive response” to the allegations on Jan. 10.
Warning: Owning this maker of nutritional supplements may require some gastrointestinal macrobiotic support.
Normally, we’d say there’s something fishy about a stock that’s up so much on no news. But investor support for Clearwater Seafoods has been somewhat shallow in the past. Perhaps only now are people taking a deep dive into the company’s recent numbers, which featured double-digit profit growth. That’s a lot of clams.