A humorous look at the companies that caught our eye, for better or worse, this week.
CRUDE OIL (STAR)
Crude oil is plunging? That’s so three days ago. After sinking to a 12-year low on fears of slowing growth and excess supplies, oil rallied more than 13 per cent on Thursday and Friday – its biggest two-day advance since 2009 – as investors anticipated further central bank easing in Europe and Japan. With bearish traders having amassed the largest-ever short position in oil, a lot of those investors are now scrambling to cover their bets, giving crude another boost.
WTI crude, $32.19 (U.S.)/barrel, up $2.77 or 9.4% over week
INTERNATIONAL BUSINESS MACHINES (DOG)
Harvard MBA admission test question No. 12: When a company’s revenue falls for 15 consecutive quarters, it is usually a sign that:
a) Everything is just hunky-dory; b)
There might be a problem, but let’s not jump to conclusions;
c) It’s probably time to start worrying.
Answer: c.
With IBM’s fourth-quarter revenue down 9 per cent even as the company tries to expand in areas such as security, data analytics, mobile and cloud computing, investors are losing patience.
IBM (NYSE), $122.50 (U.S.), down $7.53 or 5.8% over week
PROGRESSIVE WASTE SOLUTIONS (STAR)
Garbage in … money out. In a brutal week for most stocks, trash hauler Progressive Waste Solutions was a rare exception: The shares jumped after Texas-based Waste Connections tabled an all-stock offer worth about $2.67-billion (U.S.) for the Canadian company, aiming to create the third-largest waste management outfit in North America. That foul smell when the garbage truck goes by? That’s the smell of money.
BIN (TSX), $39.34, up $5.17 or 15.1% over week
TIFFANY (DOG)
Oh no. Rich people can’t afford as many overpriced, sparkly objects. Hurt by weak tourist spending and a strong U.S. dollar, high-end jewellery retailer Tiffany said holiday sales in the final two months of 2015 skidded 6 per cent, reflecting “challenging and uncertain global economic conditions.” With Tiffany expecting earnings for the year ended Jan. 31 to drop 10 per cent, investors are pawning their gold and silver for some quick cash.
TIF (NYSE), $61.65 (U.S.), down $6.00 or 8.9% over week
NAUTILUS (STAR)
That Nautilus exercise machine gathering dust in your basement may not be doing your body any good. But at least you’ve helped Nautilus investors build some impressive financial muscles: The maker of treadmills, stationary bikes and other fitness products under such brands as Nautilus, Bowflex and Octane said sales jumped 15 per cent in the fourth quarter, lifted by strong direct-to-consumer sales of its Max Trainer line. The stock is looking ripped.
NLS (NYSE), $19.86 (U.S.), up $2.23 or 12.6% over week