A humorous look at the companies that caught our eye, for better or worse, this week
Oct. 11 close: $29.00,
down $3.51 or 10.8% over week
Inside the top-secret federal cabinet decision to block the sale of MTS Allstream to Egypt’s Accelero Capital.
“Let’s do eeny, meeny, miny, mo.”
“No, we did that with Potash Corp.”
“Okay, how about rock, paper, scissors then?”
“But that’s how we decided Nexen.”
“All right, anybody got a coin? Steve, call it in the air.”
Oct. 11 close: $67.00 (U.S.),
down $4.53 or 6.3% over week
Where’s Colonel Sanders when you need him? Oh right, he’s dead. Yum Brands’ stock got fried after same-store sales at its KFC chain in China skidded 13 per cent in September, hit by a bird flu outbreak and consumer backlash after one of its chicken suppliers was caught exceeding antibiotic limits. With China’s economy slowing and Yum generating about half of its revenues in that country, investors have suddenly lost their appetite.
Oct. 11 close: $4.96,
up 54 cents or 12.2% over week
Shares of Air Canada are soaring because:
a) It never loses your luggage – just your dog;
b) Passengers always get bumped with a smile;
c) Traffic is rising, costs are falling and the company is adding several European destinations through its Air Canada Rouge discount carrier.
Answer: c. Given the airline industry’s track record for wealth creation, nothing could possibly go wrong here.
Oct. 11 close: $50.50 (U.S.),
up $3.78 or 8.1% over week
Bad: Getting tossed into a pot of boiling water and torn limb from limb.
Good: Investing in Red Lobster owner Darden.
The shares surged on reports that hedge fund Barington Capital has amassed a 2.8-per-cent stake and wants to break the restaurant operator into two companies – one holding Red Lobster and Olive Garden, and the other with faster-growing chains such as Capital Grille. The lobsters aren’t thrilled either way.
High Liner Foods
Oct. 11 close: $40.75,
up $3.05 or 8.1% over week
Working in a fish-processing plant would be awesome because you could always sneak a bite when the boss wasn’t looking. Or you could invest in High Liner and never have to steal again. Shares of the Lunenburg, N.S., fish processor have soared on a string of acquisitions – the latest a $34.5-million (U.S.) deal for American Pride Seafoods – that have driven sales and earnings sharply higher. Nothing fishy about that.