A humorous look at the companies that caught our eye, for better or worse, this week.
Canadian Tire
CTC.A (TSX)
Feb. 27, 2015 close: $131.72
up $11.96 or 10% over week
Now we know why you can never find a salesperson at Canadian Tire when you need one: They’re too busy restocking all the shelves. Boosted by strong demand for winter tires, sporting goods and other seasonal items, the retailer reported higher same-store sales in its Canadian Tire, FGL Sports and Mark’s divisions. With fourth-quarter earnings topping analyst estimates, the Tire’s on fire!
First Solar
FSLR (Nasdaq)
Feb. 27, 2015 close: $59.75 (U.S.)
up $10.73 or 21.9% over week
The sun will come out tomorrow, bet your bottom dollar that tomorrow … actually, the sun is already shining brightly for investors in First Solar. Shares of the company that makes solar modules and power plants surged after it announced a partnership with its main competitor, SunPower, to form a “yieldco” that will hold power-generating assets and pay regular dividends. Pass the sunscreen.
Hudson's Bay
HBC (TSX)
Feb. 27, 2015 close: $28.10
up $5.17 or 22.5% over week
Business quiz! Shares of Hudson’s Bay soared this week because:
1) The company is converting its stores into a chain of “state-of-the-art bowling and laser tag birthday party centres”;
2) Warren Buffett announced plans to take the company private;
3) The retailer is forming partnerships with Canada’s RioCan REIT and U.S.-based Simon Property Group in a move to unlock the value of its extensive real estate.
Answer: c.
Hewlett-Packard
HPQ (NYSE)
Feb. 27, 2015 close: $34.84 (U.S.)
down $3.55 or 9.2% over week
Upside of a strong U.S. dollar: Americans travelling abroad can buy things more cheaply.
Downside of a strong U.S. dollar: U.S. companies that do business abroad make less money.
Citing a bigger-than-expected hit from the surging greenback, computing giant HP posted lower revenue and earnings in its first quarter and cut its full-year forecast, causing a nasty malware attack on the stock.
Valeant Pharma
VRX (TSX)
Feb. 27, 2015 close: $246.27 (U.S.)
up $28.86 or 13.3% over week
Not fun: Coming down with a case of traveller’s diarrhea.
Fun: investing in a company that makes diarrhea medicine.
Valeant’s stock jumped after it agreed to pay about $10-billion (U.S.) to acquire Salix Pharmaceuticals, which makes drugs and devices to treat gastrointestinal disorders. With the U.S. market for stomach-disorder treatments worth about $5-billion and growing, investors are enjoying some soothing relief.