Shaw Communications (STAR)
SJR.B - TSX
Having some doubts, are we? Shares of Shaw Communications Inc. surged after it agreed to a $20.4-billion takeover by Rogers Communications Inc. But even as the stock hit a record high, it still traded substantially below Rogers’s takeout price of $40.50 a share, indicating that investors are worried that regulators could block the deal or require Rogers to divest all or part of Shaw’s wireless assets. What if Rogers just gave a verbal promise not to raise prices? Would that satisfy regulators?
AirBoss of America (STAR)
BOS - TSX
Fun fact about AirBoss of America Corp.: It’s based in Canada. Here’s another fun fact: The company just won a contract worth up to US$288-million from the U.S. Department of Health and Human Services to supply protective rubber gloves for use in hospitals and other health care settings. Newmarket, Ont.-based AirBoss – which also supplies personal protective equipment to law enforcement, first responders and the military – could see its contract with HHS double if the agency exercises an option for an additional US$288-million worth of gloves later in 2021. No wonder investors have been buying the stock with both, er, gloves.
Restaurant Brands International (STAR)
QSR - TSX
How will we know when the pandemic is officially over? Waiting in the drive-through lineup at Tims will once again take most of your morning. With vaccinations ramping up and lockdown restrictions easing, shares of “pandemic recovery stocks” such as Restaurant Brands International Inc.– owner of Tim Hortons, Burger King and Popeyes – have been climbing as investors anticipate that life will soon return normal. What’s that? A third wave caused by more contagious variants of COVID-19? Don’t be ridiculous!
AMC Entertainment Holdings (STAR)
AMC - NYSE
This would make a great movie: The world’s largest theatre chain, faced with a global pandemic, abruptly shuts all of its U.S. locations. With its revenues plummeting, the company posts losses in 2020 totalling US$4.6-billion and is pushed to the brink of insolvency. Just when bankruptcy seems inevitable, pharmaceutical companies come to the rescue by developing vaccines in record time. That starts to bring the pandemic under control, allowing the company to reopen 98 per cent of its locations as of March 19 – with physical-distancing, mandatory mask-wearing and upgraded air filtration. Can you say, “Best-Picture Oscar?”
Lennar (STAR)
LEN - NYSE
With people hunkering down, businesses closing and a lot of folks barely scraping by over the past year, you might think home builders would be struggling. Nope. They’ve rarely had it so good. Shares of Lennar Corp., the largest U.S. home builder, rose after the company reported first-quarter net earnings of US$1-billion or US$3.20 a share, up from US$398.5-million or US$1.27 a year earlier. With Lennar handily beating analysts’ estimates, driven by low mortgage rates and strong housing demand, investors are trading up to a McMansion with a swimming pool.
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John Heinzl