A humorous look at the companies that caught our eye, for better or worse, this week
Business quiz! “Yeezy” refers to: a) The fifth and often forgotten member of the Teletubbies; b) What you say to someone who is threatening you, as in: “Whoa, take it Yeezy!” c) The fashion brand created by Kanye West, who is helping to develop the Yeezy Gap apparel line that, according to the retailer, will “deliver modern, elevated basics for men, women and kids at accessible price points.” This has all the makings of a hit song: Yo, my price points are accessible, my elevated basics are dependable, so don’t throw them in the receptacle, that ain’t acceptable.
Indigo Books & Music (DOG)
For Indigo Books & Music, the past few months have read like a Stephen King novel. After the book and gift retailer closed all 196 of its stores in March because of the coronavirus pandemic, Indigo this week reported a 10.6-per-cent drop in revenue and a loss of $171.3-million or $6.22 a share for the fourth quarter ended March 28. “This pandemic is, to be sure, a seismic, once-in-a-lifetime event,” CEO Heather Reisman told analysts on a conference call. Want to see something really scary? Look at Indigo’s long-term stock chart.
GNC Holdings (DOG)
GNC’s nutritional supplements may help people lose fat and build muscle. But its stock is looking like a 98-pound weakling. Shares of the retailer dropped after the company filed for Chapter 11 bankruptcy protection, with a dual-track plan to close up to 1,200 stores and continue as a going concern or sell its assets under court supervision. With the shares down about 99 per cent over the past five years, investors have been getting a lot of sand kicked in their face by the big stock market bully.
Nabors Industries (DOG)
“Would you be mine, could you be mine, won’t you be my Nabors?” Drilling contractor Nabors Industries has been one of the worst-performing stocks in the investing neighbourhood, as the coronavirus pandemic and tumbling energy prices have caused oil and gas companies to slash production. With new coronavirus cases continuing to surge in the United States, Nabors’ already depressed shares took another dive this week as hopes for an economic recovery faded. “Can you say ‘Cut your losses’? Sure you can.”
Luckin Coffee (DOG)
Luckin Coffee investors aren’t having any luck at all. Shares of the China-based coffee chain – already down sharply this year amid allegations that employees fabricated sales transactions – took another hit after the company said it will be delisted from the Nasdaq Stock Market at the opening of trading on Monday. The delisting comes after Luckin said its annual report has been delayed by an internal investigation into the fraud allegations, which led to the termination of its chief executive officer and chief operating officer. Better Luckin next time.
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