A humorous look at the companies that caught our eye, for better or worse, this week
Sure, Coke is loaded with sugar and contributes to tooth decay, diabetes and obesity. But aren’t those a small price to pay for the delicious, refreshing taste?
Plenty of people seem to think so: Driven by double-digit gains in Asia and Africa, Coca-Cola’s global sales volume rose 4 per cent in the first quarter as profit – excluding one-time items – beat expectations.
Investors will drink to that.
Crumbs Bake Shop
Crumbs Bake Shop is a fitting name, considering that’s all investors have been left with: crumbs.
As the gourmet cupcake craze fades, the New York-based chain recently posted a wider fourth-quarter loss and slashed its 2013 revenue guidance to $57-million from $73-million, causing the stock to plunge to about one-tenth of its 2011 IPO price.
Shareholders have a massive tummy ache.
It’s hard to go wrong investing in companies that Warren Buffett owns. Look at IBM – actually don’t look at IBM. The computer giant’s stock suffered its biggest one-day tumble in eight years, hammered by a slump in hardware sales and a failure to close some major deals. With Big Blue missing earnings estimates for the first time since 2005, there’s only one solution: Sell assets and fire a bunch of people.
What’s worse than investing in gold?
Answer: Investing in the world’s largest gold producer.
With gold prices plunging, mining costs soaring and Chile’s government filing an injunction blocking Barrick’s Pascua-Lama project for environmental reasons, the shares sank to a 20-year low.
Now, about that $11.9-million signing bonus paid to Barrick co-chairman John Thornton …
Investing analysts, circa 2003: “Commodity boom … China … insatiable demand for raw materials … 30-year supercycle … blah blah blah.”
Investing analysts, 2013: “Party’s over, folks, time to go home.”
Now that China’s growth is slowing and investors are suddenly fleeing everything commodity-related, the resource-heavy TSX is getting clobbered. Oh well, it was fun while it lasted.