A humorous look at the companies that caught our eye, for better or worse, this week.
DRYSHIPS (DOG)
Talk about getting seasick. DryShips and other long-struggling ocean shippers exploded higher on massive volume following Donald Trump's election victory, spurred by short-covering and expectations of higher infrastructure spending. But the stocks – some of which were halted because of excessive volatility – promptly plunged when trading reopened and investors took profits. Folks who bought at the top are retching over the side of the boat.
DRYS (Nasdaq), $11.81 (U.S.) down $1.79 or 13.2% over week
BEST BUY (STAR)
Is your 65-inch TV starting to feel small? Wish you could get more clarity and detail when you're viewing a Civil War-era quilt on Antiques Roadshow? Well, maybe it's time to move up to the 88-inch model. Lifted by solid demand for TVs, smartphones and wearable devices, Best Buy's same-store sales rose a better-than-expected 1.8 per cent in the third quarter as profit topped estimates. With the stock hitting a six-year high, investors can afford the 110-inch screen.
BBY (NYSE), $44.79 (U.S.) up $6.43 or 16.8% over week
GILDAN ACTIVEWEAR (STAR)
Does this mean we'll be seeing racy ads featuring middle-aged men in sport socks and briefs? Let's hope not. Gildan Activewear – which built its fortune selling T-shirts, sweats, socks and underwear – paid $66-million (U.S.) for the rights to the American Apparel brand after the company – known for its sexually suggestive advertising – sought bankruptcy protection for the second time. Judging by Gildan's rising stock price, investors think it's a good fit.
GIL (TSX), $35.55 up $1.43 or 4.2% over week
GREAT CANADIAN GAMING (DOG)
Want to lose a lot of money quickly? You could visit one of Great Canadian Gaming's 15 casinos. Or you could have just bought its stock this week: Shares of the company – which has operations in British Columbia, Ontario, Nova Scotia, New Brunswick and Washington State – took their biggest one-day tumble in more than four years after board member Neil Baker agreed to sell up to eight million shares at $23.25 each. Better luck next time.
GC (TSX), $23.72 down $1.74 or 6.8% over week
AMERICAN AIRLINES (STAR)
Warren Buffett once described airlines – with their never-ending price wars and bankruptcy filings – as "a death trap for investors." Well, he's lost his fear of flying: With mergers reducing industry competition and lower fuel costs boosting bottom lines, the Oracle of Omaha bought stakes in four airlines during the third quarter – American, Delta, United Continental and Southwest. Now that Mr. Buffett's on board, the stocks are gaining altitude fast.
AAL (Nasdaq), $46.26 (U.S.) up $3.33 or 7.8% over week