A humorous look at the companies that caught our eye, for better or worse, this week
Investing rule No. 1: Never buy airline stocks.
Investing rule No. 2: See rule No. 1.
Shareholders of Chorus, whose Jazz subsidiary operates regional flights for Air Canada, were reaching for the vomit bags after the company recently chopped its dividend in half, sending the stock in for an emergency landing. With Chorus locked in a potentially costly arbitration over how much Air Canada pays it, investors might want to take the train instead.
Which of the following services was NOT unveiled by Google this week?
a) A photo editing tool on Google Plus that can automatically remove red eye and reject pics in which people aren’t smiling;
b) A $10-a-month unlimited music streaming service called All Access;
c) A handy smartphone app that identifies all the crack dens in your Toronto neighbourhood.
Answer: c. As Google rolls out more services, the stock is hitting record, um, highs.
Sony has a long list of hit electronics products under its belt. There’s the Walkman, the Discman, the PlayStation, the … the … okay, so it’s been a while. But Daniel Loeb is determined to change that: The head of hedge fund Third Point is urging Sony to take its music and movie units public and invest part of the proceeds in its struggling consumer electronics division. The prospect of a breakup is giving the stock a lift, but Sony thinks it’s baloney.
Bad: Staying at a hotel with bed bugs, no hot water and a touring bagpipe troupe in the unit directly above you.
Good: Avoiding said hotel by reading the reviews on TripAdvisor. With more consumers making travel plans online, websites such as TripAdvisor are benefiting from a shift in advertising dollars to the Internet.
The reviews for TripAdvisor’s stock are in: five stars.
Aruba: A Caribbean island where people go to relax, swim and enjoy the sunshine.
Aruba Networks: A stock that, if you have the misfortune of owning it, means you probably can’t afford a trip to Aruba any time soon. The shares suffered their biggest one-day drop in more than five years after the company, which makes wireless-network equipment, projected quarterly profit well below analyst estimates.
Well, there’s always Niagara Falls.