A humorous look at the companies that caught our eye, for better or worse, this week
Amaya (DOG)
If you look around the poker table and can’t tell who the sucker is, you’re the sucker. Hear that, Amaya investors? Already down sharply in the past year, shares of the online gambling company plunged after Quebec’s securities regulator slapped Amaya CEO David Baazov with insider trading charges relating to the company’s $4.9-billion (U.S.) acquisition of PokerStars in 2014. Mr. Baazov denies wrongdoing, but investors are folding anyway.
AYA (TSX), $15.45; down $3.22 or 17.2% over week
Dean Foods (DOG)
Don’t have a cow, man. Shareholders of Dean Foods, the largest U.S. milk processor, are udderly upset now that Wal-Mart – Dean’s biggest customer – is getting into the dairy business by building a large milk processing plant in Indiana. With Wal-Mart aiming to supply private-label Great Value milk to its own stores in five Midwestern U.S. states – taking business away from Dean – the stock mooooved down in a hurry.
DF (NYSE), $17.15 (U.S.), down $2.43 or 12.4% over week
SunEdison (DOG)
The sun is the giver of life. Unless you’re an ant under a magnifying glass – or an investor in SunEdison. After gorging on more than $11-billion of debt to finance an acquisition spree, the cash-strapped developer of solar and wind projects has twice delayed filing its annual report and is now reported to be seeking debtor-in-possession financing as a prelude to a possible Chapter 11 bankruptcy filing. The stock is falling faster than Icarus.
SUNE (NYSE), $1.21 (U.S.), down 92¢ or 43.2% over week
Krispy Kreme Doughnuts (DOG)
Talk about a sugar crash. Krispy Kreme Doughnuts – famed for its highly nutritious, deep-fried snacks – reported weaker-than-expected revenue growth for the fourth quarter and issued a current-year profit forecast that fell short of Wall Street expectations. With international franchise same-store sales sinking 7.1 per cent in the quarter and the stock off about 30 per cent in the past year, investors are getting Kremed alright.
KKD (NYSE), $14.61 (U.S.), down $1.23 or 7.8% over week
Boyd Group Income Fund (STAR)
Vehicle full of dents? Some modelling clay and a roll of duct tape is all you need to bring that baby back to showroom condition. Or, for better results, maybe try one of Boyd Group’s body shops: The Winnipeg-based company, whose collision repair and auto glass stores span five provinces and 19 U.S. states, posted a 39-per-cent jump in sales to $1.2-billion in 2015, fueled by organic growth and acquisitions. The stock’s rise is no accident.
BYD.UN (TSX), $71.05, up $7.20 or 11.2% over week