A humorous look at the companies that caught our eye, for better or worse, this week.
SHANGHAI COMPOSITE
Popular fortune cookie messages in China:
1) “Get the hell out of stocks now!”
2) “You will die penniless unless you SELL EVERYTHING IMMEDIATELY!”
3) “You will have a prosperous future – but only if you liquidate your investment portfolio in the next 10 minutes!”
With China’s economy slowing and the yuan in a tailspin, panicky retail investors stampeded for the exits, triggering market circuit breakers twice and sparking a global sell-off.
Shanghai composite, 3,186.41, down 352.77 or 10% over week.
CANADIAN PACIFIC RAILWAY
There was a time in this fair land when the railway did not run – and when nobody lost money on railway stocks, either. Already hammered by the commodities slump, Canadian Pacific sank after two senior Democrats in Congress urged the U.S. federal rail regulator to block CP’s attempted takeover of Norfolk Southern on the grounds it would lead to higher prices. With Norfolk Southern customers also opposing a merger, investors are jumping off this train.
CP (TSX), $159.55, down $17.18 or 9.7% over week
MAGNA INTERNATIONAL
Screeeeeeeech! After motoring higher for years as auto sales surged, Magna’s stock has suddenly slammed on the brakes. Even as U.S. car sales hit a record in 2015, spurred by cheap gasoline and low interest rates, worries that the auto industry may be peaking sent North America’s largest car parts supplier down for eight consecutive sessions before Friday’s small rebound. Too bad the stock doesn’t come with airbags.
MG (TSX), $50.11, down $6.01 or 10.7% over week
APPLE
Flimsy excuses to buy a new iPhone:
1) Your current iPhone is six months old;
2) Your friend just got a new iPhone;
3) Your current iPhone has a few smudges on it.
Apparently, consumers aren’t coming up with compelling reasons to upgrade, judging by reports of softening demand for Apple’s flagship product: With RBC analyst Amit Daryanani cutting his sales estimate for the current quarter to 45 million units from 54 million, Apple’s stock is getting bruised.
AAPL (Nasdaq), $96.96 (U.S.), down $8.30 or 7.9% over week
CRUDE OIL
Will crude oil rebound in 2016? Yes, and Donald Trump will suddenly offer a heartfelt apology to everyone he has offended and $100 bills will start raining from the sky. With OPEC abandoning production limits, China’s growth slowing and U.S. crude stockpiles more than 120 million barrels above their five-year average, oil started the year by plunging to nearly a 12-year low – with no end in sight to the selling.
Crude (WTI), $33.16 (U.S.) per barrel, down $3.88 or 10.5% over week