A humorous look at the companies that caught our eye, for better or worse, this week
Dec. 20 close: $7.74,
up $1.32 or 20.6% over week
True or false: If a company announces a $4.4-billion (U.S.) loss, posts a 56-per-cent drop in revenue and says its newest products are selling poorly, its stock will fall.
In BlackBerry’s case, the shares soared. Even as the red ink poured in, investors were soothed by a five-year deal with electronics maker Foxconn and by CEO John Chen’s pledge that “we’re ready to fight back.”
Skeptical? Why would you be skeptical?
Dow Jones Industrial Average
Dec. 20 close: 16,221.14,
up 465.78 or 3% over week
In addition to being able to pilot a flying sleigh, squeeze down chimneys and deliver gifts to billions of children, Santa has another special talent: He can make the stock market go up. The Santa Claus rally arrived right on schedule, helped by better-than-expected U.S. GDP growth and the Fed’s decision to taper its bond-buying program. With the Dow at a record, investors are in a jolly mood.
Dec. 20 settle: $1,203.70 (U.S.),
down $30.90 or 2.5% over week
(most-active futures contract)
There once was a metal called gold
“It will go to the moon!” we were told
But with tapering on
And momentum now gone
Investors are getting steamrolled.
Dec. 20 close: $42.70 (U.S.),
up $1.95 or 4.8% over week
On a cold winter day, who can resist a hearty bowl of soup poured from a vacuum-sealed can and heated with microwave electromagnetic radiation? I know I can’t. Investors are also developing a taste for soup amid speculation Campbell could become a takeover target following the acquisition of Heinz by Berkshire Hathaway and 3G Capital earlier this year. With Campbell options contracts surging, the stock is piping hot.
Dec. 20 close: $15.42 (U.S.),
down $1.17 or 7.1% over week
Somebody call a tow truck. Shares of Ford had been motoring higher for much of the past year but ended up in the ditch after the company released disappointing guidance this week. The problem? With Ford launching about twice as many new and refreshed models in 2014 as it did in 2013, new product costs will drag next year’s profits below expectations. Investors are flagging down a taxi.