A humorous look at the companies that caught our eye, for better or worse, this week
True or false:
The falling Canadian dollar also lowers the value of Canadian Tire money.
Canadian Tire money cannot be used to purchase goods in the United States, unless the cashier is drunk. It’s not like folks will be doing a lot of cross-border shopping anyway: With oil prices sliding and the U.S. buck strengthening, the loonie has plunged more than 5 cents (U.S.) from its September peak. Cancel the trip to Buffalo.
Actual headlines from The Globe and Mail:
“$2,200 an ounce gold just around the corner: CIBC” (October, 2012) ;
“Gold’s ‘glorious run’ is over, CIBC says” (February, 2013).
Proving once again that predicting commodity prices is futile, gold slumped to a seven-month low amid a strengthening U.S. dollar and signs the Fed may be poised to withdraw stimulus. One thing is for certain: Gold will continue falling, unless it rises.
Fun: Driving a Tesla Roadster, with a zero-to-60 time of 3.7 seconds.
Not fun: Owning Tesla’s volatile shares. Even as fourth-quarter revenue soared nearly eightfold to more than $306.3-million, the electric car maker’s net loss widened to $89.9-million from $81.5-million, reflecting “significant early-stage cost inefficiencies” related to production of the new Model S. The stock appears to have run out of juice.
In the old days, people used clunky maps to get completely lost while driving in unfamiliar places. Nowadays, they can turn on a GPS and get lost in no time. Garmin investors are feeling a bit lost, too: The maker of personal navigation devices posted a 22-per-cent drop in fourth-quarter profit, hurt by weakness in its automotive segment as more people turn to their smartphones for directions. Honey, pull into the gas station already.
Sealed Air Corp.
What’s more exciting than popping a sheet of Bubble Wrap? Owning shares of the company that makes the Bubble Wrap, that’s what. Sealed Air Corp. – which also makes food packaging, shrink wrap, medical supplies, and cleaning and sanitation products – swung to a profit of $173.6-million or 89 cents a share in the fourth quarter, topping Wall Street expectations and giving the stock a nice, well, pop.