A humorous look at the companies that caught our eye, for better or worse, this week
Build-A-Bear Workshop (STAR)
“Aww, isn’t that cute – little Johnny made a bear with a nose ring and a skull-and-bones tattoo on its face.” Not only is Build-A-Bear Workshop a great place for children to express their creativity, but owning the stock is a good way for their parents to make money. Shares of the retailer surged after third-quarter revenue jumped 27.4 per cent from a year earlier, thanks to enhanced marketing, growing e-commerce sales and the lifting of pandemic restrictions. With Build-A-Bear posting record third-quarter earnings and declaring a special dividend of US$1.25 a share, Johnny’s parents can afford to send him to therapy.
Canada Goose Holdings (DOG)
This is going to sound crazy, but it almost seems like China is singling out Canada Goose for political reasons. Not that China would ever dream of doing such a thing. Months after Chinese regulators fined the company for supposedly misleading advertising regarding the quality of down in its jackets, state-run media this week slammed the luxury parka maker for allegedly not allowing customer returns. With China making life increasingly difficult for foreign brands in a bid to give local companies an edge, according to analysts, Canada Goose’s stock is looking more like goose pâté.
National Bank (DOG)
Dear Valued National Bank Investors: What kind of spoiled, entitled ingrates are you? Not only did our fourth-quarter earnings rise by 58 per cent, but we announced a share buyback and hiked our dividend by 23 per cent – the second-biggest increase of any Canadian bank. And you show your gratitude by pounding our stock into the ground because we missed earnings per share estimates by, what, a lousy three cents? Oh, what a HUGE disappointment! Well, if you’re going to get upset about a few pennies, we don’t want you as shareholders anyway. Good riddance! Sincerely, National Bank of Canada.
Lion Electric (DOG)
Lion: A carnivorous mammal that devours zebras, antelopes and other animals. Lion Electric: A stock that devours investors’ money. Shares of the Quebec-based electric bus and truck maker were on a roll earlier this year after its merger with a special purpose acquisition corporation. But the wheels have since fallen off as investors become wary of electric-vehicle startups, which have struggled with losses, supply-chain issues and – in the case of Lordstown Motors and Nikola – allegations of fraud. Even though Lion has more than 450 vehicles on the road and orders for thousands more, investors are getting off this bus.
Ollie’s Bargain Outlet (DOG)
Ollie’s Bargain Outlet sells “good stuff cheap,” according to its slogan. But after this week’s nasty plunge in the share price, investors probably don’t think the stock was such a screaming deal. Hammered by supply-chain disruptions, the U.S. retailer of closeout merchandise and excess inventory said same-store sales in the third quarter sank 15.5 per cent from a year earlier as earnings missed Wall Street estimates. Adding to shareholders’ anxiety, the company’s full-year sales and earnings guidance were below expectations, reflecting supply-chain headwinds that “have continued to impact our business in the fourth quarter.” Looks like investors got more than they bargained for.
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