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stars and dogs

A humorous look at the companies that caught our eye, for better or worse, this week

Bank of Nova Scotia (STAR)

BNS - TSX

Those Bank of Nova Scotia commercials encouraging people to go to the bank for advice? Here’s some free advice: Buy Canadian bank stocks. Shares of Scotiabank jumped after Canada’s third-largest bank reported a 12-per-cent increase in second-quarter earnings to $2.75-billion or $2.16 a share – topping expectations – and hiked its dividend by 3 per cent. With Bank of Montreal, Royal Bank, Canadian Imperial Bank of Commerce and National Bank all boosting their dividends as well, bank shareholders really are richer than they think.


Wendy’s (STAR)

WEN - Nasdaq

Business quiz! Shares of Wendy’s rose after: a) the chain’s new Dave’s Quadruple-stacked Bacon Mushroom ‘n’ Jalapeno Spicy Chipotle Mozzarella ‘n’ Cheddar ‘n’ More Bacon ‘n’ Mushroom Burger generated strong sales in its first week on the menu; b) Wendy’s announced a special dividend of a large Frosty and fries, payable to shareholders of record on June 1; c) Trian Partners, which owns a 19.4-per-cent stake, disclosed in a filing that it is exploring potential deals to “enhance shareholder value” that could include an acquisition or merger. Answer: c.


SNAP (DOG)

SNAP - NYSE

Snap: The sound that tree branches made as a powerful thunderstorm swept across Ontario and Quebec last weekend; Snap Inc.: A company that was caught in a powerful storm of its own making this week. Shares of the parent of social media app Snapchat tumbled 43 per cent on Monday – their worst decline since the company went public in 2017 – after Snap warned it won’t meet its own second-quarter revenue and earnings targets because “the macroeconomic environment has deteriorated further and faster than anticipated.” With other social-media and internet ad stocks also getting clobbered, investors were taking cover as far away from tech as possible.


Smith & Wesson Brands

SWBI - Nasdaq

Predictable responses whenever there is a mass shooting in the United States: 1) People send “thoughts and prayers”; 2) Politicians insist that “now is not the time to talk about gun control. People are still grieving”; 3) Firearms stocks rise. In the wake of the murders of at least 19 students and two teachers at an elementary school in Uvalde, Tex., shares of Smith & Wesson Brands rose as some investors speculated that Americans would purchase more guns to avoid a potential tightening of firearms laws. Apparently, the 400 million guns already in circulation aren’t enough.


Dollar Tree (STAR)

DLTR - Nasdaq

Here’s one way to fight inflation: Do all of your shopping at the dollar store. Here’s an even better way: Invest in a dollar-store company. Shares of Dollar Tree – which operates more than 15,500 stores across 48 U.S. states and five Canadian provinces – surged after it posted first-quarter results above expectations, including a 6.5-per-cent increase in net sales and a 48.1-per-cent jump in earnings per share. With Dollar Tree also boosting its full-year earnings outlook as it offers more items at US$1.25, US$3 and US$5, investors are beating inflation at its own game.


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