A humorous look at the companies that caught our eye, for better or worse, this week
Oct. 19 close: $1,011.41 (U.S.),
up $139.42 or 16% over week
Things you could buy today if you’d invested $10,000 in Google when it went public at $85 in 2004:
1) A brand new Porsche 911;
2) A dozen around-the-world airline tickets;
3) One quarter of an average-priced home in Toronto.
Or you could hang on to your shares: With Google’s third-quarter earnings soaring 36 per cent and the stock topping $1,000 for the first time, the search giant may just be warming up.
Oct. 19 close: $11.63,
up 69 cents or 6.3% over week
For the past few years, owning shares of vacation tour operator Transat was about as much fun as contracting a norovirus at the all-you-can-eat buffet. But investors are feeling much better now, thanks. The shares have nearly doubled this year, fuelled by cost cuts, and the newly profitable company says that by the end of 2014 it may be able to reinstate the dividend or buy back shares. What? No free tickets?
S&P/TSX Composite Index
Oct. 19 close: 13,136.09,
up 243.98 or 1.9% over week
Good news: Canada’s benchmark stock index surged 244 points or 1.9 per cent – its best weekly gain since July – thanks to a deal to avert a U.S. government default, falling bond yields and signs of strength in China.
Bad news: The S&P/TSX has to climb another 1,937 points or about 15 per cent to get back to its 2008 high. That’s okay. We’re not going anywhere for the next five years or so.
Oct. 19 close: $21.81 (U.S.),
down $5.35 or 19.7% over week
True or false: Travelzoo’s board of directors includes a giraffe, zebra and orangutan.
It is true, however, that investors are feeling like goats. After the online travel and deals company reported disappointing third-quarter results, the shares fell so hard that they triggered Nasdaq’s circuit breakers, which impose restrictions on short sales. “We’re really, really maaaahhd,” one Travelzoo shareholder said.
Oct. 19 close: $173.78 (U.S.),
down $12.38 or 6.7% over week
Making money on stocks is easy! Just follow what Warren Buffett does. Actually, don’t. Investors in IBM – one of Berkshire Hathaway’s biggest holdings – got their hard drives handed to them after sales sank for the sixth consecutive quarter, hurt by slumping demand for hardware. With analysts predicting Big Blue’s woes will continue, the Oracle of Omaha isn’t looking so prescient.