A humorous look at the companies that caught our eye, for better or worse, this week
Smith & Wesson Brands (STAR)
“When the looting starts, the shooting starts.” – U.S. President Donald Trump, on Twitter.
“Better get me another gun, then.” – Americans.
With protests and riots erupting across the United States, shares of Smith & Wesson and other gun manufacturers have been surging on expectations that the violence will prompt more Americans to buy firearms – because they clearly don’t have enough guns already.
Zoom Video Communications (STAR)
Reasons to love Zoom Video Communications: 1) Can attend meetings without having to drive or take public transit; 2) No need to wear pants when speaking to colleagues or clients; 3) Owning the stock has made a lot of investors rich. As millions of people flock to the video-conferencing service to work, visit with family or attend classes during the pandemic, Zoom’s revenue for its first quarter ended April 30 shot up 169 per cent to US$328.2-million. With the stock roughly tripling this year, Zoom investors are doing virtual high-fives.
Tiffany & Co. (DOG)
With protesters filling U.S. streets and social engagements cancelled because of the coronavirus, shopping for expensive jewellery probably isn’t a priority for most people right now. That explains why French luxury goods giant LVMH, which in November agreed to acquire Tiffany & Co. for US$16.2-billion or US$135 a share, this week was exploring whether it could press Tiffany to accept a lower price – news that caused Tiffany’s stock to crater. The shares rebounded on a report that LVMH later decided not to renegotiate the deal, but Tiffany’s shares are still well short of the takeover price, indicating that investors still have their doubts.
Genius Brands International (STAR)
Investors in Genius Brands must be feeling like, well, geniuses. Shares of the media company that produces children’s entertainment and merchandise have rocketed more than 1,000 per cent since May 6 – the day Genius announced plans to merge its two existing digital platforms to create The Kartoon Channel. The new network, which makes its debut on June 15 and will be available through services including Comcast, Amazon Prime and Apple TV, features programs such as Baby Genius, Dino the Dinosaur and – this one is sure to be a hit with Genius investors – Warren Buffett’s Secret Millionaires Club.
Luby’s (STAR)
In its 73-year history, U.S. restaurant operator Luby’s survived recessions, inflation, the oil embargo, the dot-com meltdown and the financial crisis. But Luby’s may have finally met its match with the coronavirus pandemic. With scores of its restaurants closed since March, the Houston-based company – which operates Luby’s Cafeteria, Fuddruckers and a food-service business that operates in hospitals and other settings – said it will immediately pursue the sale of its operating divisions, real estate and other assets. The jump in Luby’s stock price on the announcement is about the only piece of good news shareholders have received recently.
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John Heinzl