The Globe's stars and dogs for the week
A humorous look at the companies that caught our eye, for better or worse, this week
Downer, man. Just when shareholders of medical marijuana grower Aphria were enjoying a pleasant high, reality set in: First, the TSX warned that pot producers who do business in the United States – where marijuana is still illegal under federal law – could be violating the exchange's listing requirements. Then, Aphria announced an $80-million bought deal at $7.25 a share – an 8-per-cent discount to the market price – sending the stock down sharply. Investors want a new drug.
APH (TSX), $6.94, down 84¢ or 10.8% over week
CONCORDIA INTERNATIONAL (DOG)
Test your business knowledge! Shares of Concordia International plummeted after the pharmaceutical company: a) pulled one of its drugs amid reports that it was causing people to hum Rick Astley songs; b) had to restate its results because "when our CFO was adding up a column of numbers, he forgot to 'carry the one'"; c) said it wants to cut $2-billion of debt in a recapitalization under the Canada Business Corporations Act that may cause a "sizable" dilution of its shares. Answer: c.
CXR (TSX), 72¢, down 72¢ or 50% over week
SKECHERS USA (STAR)
Whether you prefer sneakers that light up when you walk (I get so many compliments on mine!) or just a basic pair of comfy slip-ons, Skechers has a shoe for you. Investors seem to love the fit, too: The stock soared about 40 per cent on Friday after the footwear maker posted third-quarter earnings that stomped analysts' estimates, lifted by sales growth in its international wholesale and retail businesses. Nothing sketchy about that.
SKX (NYSE), $33.99 (U.S.), up 9.64 or 39.6% over week
COLABOR GROUP (DOG)
Overindulging in food can give you indigestion. Just ask Colabor Group: The Quebec-based food distributor went on an acquisition binge a few years back that saddled its balance sheet with debt, hammered its profits and led to its dividend being eliminated. This week brought more pain as the company reported a third-quarter loss of $18.8-million and said its CEO is retiring, causing the already battered stock to sink some more. Pass the Tums.
GCL (TSX), 71¢, down 18¢ or 20.2% over week
Things we never thought we'd see: 1) The Leafs sitting near the top of the NHL standings; 2) Summer weather … in late October; 3) A massive rally in shares of IBM. The technology giant's long-struggling stock rocketed nearly 9 per cent on Wednesday – its biggest one-day jump since 2009 – after the company posted third-quarter results above Wall Street expectations. Nobody's happier than the poor and destitute Warren Buffett, whose Berkshire Hathaway just made nearly $900-million (U.S.).
IBM (NYSE), $162.07 (U.S.), up $14.97 or 10.2% over week