A humorous look at the companies that caught our eye, for better or worse, this week
Easy: Taking candy from a baby (done it lots of times).
Really easy: Getting dividend increases from Enbridge.
Extending the pipeline operator’s long track record of dividend hikes, the company announced an 11.5-per-cent increase to its quarterly payment and reiterated that earnings will likely grow by more than 10 per cent for the next several years. With Enbridge’s dividend and share price moving higher, investors are enjoying some sweet returns.
Ever listen to Internet radio and wonder “How do they make money?”
Answer: They don’t. Well, at least Pandora doesn’t. Having posted red ink in each of the past three fiscal years, the company had more bad news when it said the loss for year ending Jan. 31 will be wider than expected because advertisers are skittish amid uncertainty about the U.S. “fiscal cliff.” If the plunging share price is any indication, some investors can’t switch the station fast enough.
Names rumoured to be in the running for Loblaw’s new real estate investment trust:
1) The PC Decadent Chocolate Chip REIT;
2) Blue Menu Low-Sodium REIT;
3) The Too Good to be True Monthly Income REIT.
Whatever they call it, it’s already making Loblaw’s long-starving investors salivate: The shares spiked the most in 25 years on the grocer’s plan to unlock value by contributing about $7-billion of real estate to the REIT that will go public next year.
Primaris Retail REIT
The media described it as a “surprise attack” and said Primaris CEO John Morrison was “blindsided.” What was the terrible surprise, you ask? Well, a group led by KingSett Capital wants to pay $4.4-billion to buy the shopping mall owner. The $26-a-share offered by the consortium was a 13-per-cent premium to where the stock had been trading, but you don’t just sneak up on someone and callously wave billions of dollars in his face.
Canadian Pacific Railway
Amazing what a few thousand layoffs will do to put investors in a cheerful mood. Aiming to slash costs under new CEO Hunter Harrison, CP Rail plans to cut about one-quarter of its workforce – about 1,700 jobs by year’s end and another 2,800 by 2016 – as part of a sweeping restructuring. Judging by the increase in the stock price, at least some people will have a happy holiday.