A humorous look at the companies that caught our eye, for better or worse, this week
Russian ruble (DOG)
CADRUB
Alternate uses for the Russian ruble: 1) birdcage liner; 2) toilet paper; 3) fireplace kindling. With Western countries tightening sanctions on Russia – including kicking some Russian banks out of the SWIFT global payments system and blocking transactions with Russia’s central bank – the ruble crashed to a record low of less than 1 US cent, extending its steep decline since Russia invaded Ukraine. If you think groceries are getting more expensive in Canada, be grateful you don’t live in Moscow or St. Petersburg.
Sberbank of Russia ADR (DOG)
SBRCY - US OTC
Why did Sberbank’s stock collapse? Because people were Russian to withdraw their money. The American depositary receipts of Russia’s largest bank sank to penny-stock status after Sberbank said it is pulling out of the European market. “The group’s subsidiary banks have faced an exceptional outflow of funds and a number of safety concerns regarding its employees and offices,” Sberbank explained. Nothing compared to the safety concerns of Ukrainian civilians, mind you.
SmileDirectClub (DOG)
SDC - Nasdaq
SmileDirectClub investors haven’t had much to smile about lately. In January, the maker of teeth-alignment kits suspended operations in eight countries including Mexico, Germany, Spain and Hong Kong and halted international expansion as it struggles to become profitable. This week, the company announced that fourth-quarter revenue dropped 31.6 per cent to US$126-million as its loss nearly tripled to US$95-million. With the stock down more than 80 per cent in the past year and inflation making it harder for consumers to afford discretionary purchases, SmileDirectClub investors could be frowning for a while.
Freshpet (STAR)
FRPT - Nasdaq
Business quiz! Freshpet is a company that: a) sells a range of fragrances designed for pets, including “Labradoodle Lavender Mist” and “Smells Like Shih Tzu”; b) markets a wide variety of cat litter and gerbil cage deodorizers; c) sells refrigerated pet food made with fresh poultry, beef, fish and vegetables and whose stock rallied after the company projected sales will grow about 35 per cent to US$575-million in 2022, thanks to wider pet adoption and increasing demand for healthier foods. Answer: c.
Aritzia (DOG)
ATZ-TSX
You know when an outfit looks great at the store, but when you get it home you change your mind? Well, now Aritzia investors are having buyer’s remorse. After more than doubling last year on the strength of soaring sales and earnings, shares of the Vancouver-based women’s clothing retailer have skidded about 28 per cent from their record high in mid-January. It’s possible that Aritzia’s lofty multiple of more than 40 times earnings scared some investors away. Or maybe they had made enough money and just wanted to clothes out their positions.
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John Heinzl