A humorous look at the companies that caught our eye, for better or worse, this week.
Nasdaq Composite Index (STAR)
The coronavirus pandemic may be spinning out of control in the United States, but it doesn’t seem to have fazed the Nasdaq Composite Index. Even as other U.S. benchmarks including the Dow and S&P 500 remain below prepandemic levels, the tech-heavy Nasdaq has been powering to fresh record highs thanks to surging stocks such as Microsoft, Apple, Amazon.com, Facebook and Netflix. With the virus showing no signs of slowing down, it’s no coincidence that all of these companies make products or services people can use without wearing a mask – or leaving their homes.
Bed Bath & Beyond (DOG)
Bed Bath & Beyond investors are taking a bath alright. Shares of the home-products retailer plunged after the company said revenue fell 49 per cent in its first quarter ended May 30, as temporary store closings caused by the coronavirus-related lockdowns hammered sales. With Bed Bath & Beyond now expecting to shut about 200 stores permanently – about one fifth of its namesake chain – investors are scrubbing themselves to get rid of the nasty smell from owning this pooch.
A&W Revenue Royalties Income Fund (STAR)
“I’ll have three Teen Burgers, two orders of onion rings, one fries and a root beer float, please.” If you’ve been hankering for some A&W grub, now’s your chance to make up for lost time. With coronavirus-related restrictions easing in many parts of Canada, the burger chain has reopened most of the more than 200 restaurants it had temporarily closed. And this week A&W resumed its distribution at 10 cents a month – down from 15.9 cents before the payout was suspended in March. Given the stock’s surge this week, some investors are apparently ordering a side of shares with their burgers.
Goodfood Market (STAR)
Finally, some good news for Goodfood. After posting a string of losses since going public in 2017, the grocery and meal-kit delivery company swung to a profit of $2.8-million or 5 cents a share for the third quarter ended May 31 – its first-ever quarter in the black. With revenues soaring 74 per cent as the coronavirus pandemic gave online grocery shopping a big boost, Goodfood is providing some excellent nourishment for investors’ portfolios.
Mohawk Industries (DOG)
It’s fitting that Mohawk Industries makes flooring products, because that’s exactly where investors were this week – writhing in pain on the floor. The stock sank on allegations – contained in a lawsuit filed by the Public Employees’ Retirement System of Mississippi – that the company engaged in a “fraudulent scheme to fabricate revenues through fictitious sales of products that were not delivered to customers and to conceal from investors the true reasons for the company’s ballooning inventory.” Investors aren’t waiting around to see how the lawsuit turns out.
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