A humorous look at the companies that caught our eye, for better or worse, this week
J. Jill (DOG)
There isn’t a Jill running J. Jill and there never was a Jack, but the company fell down and broke its crown this week. The failure to properly fetch a pail of water was not the culprit, however. Instead, it was a buggy website that crushed the company’s e-commerce efforts, the company said when announcing earnings on Tuesday. Jill came tumbling after.
JILL-N (NYSE), US$5.95, down US$2.34 or 28.2% over week
Hormel Foods (DOG)
We recommend the deeply obscure album Too Much Pork For Just One Fork by the band Southern Culture on the Skids – unless, of course, you are a shareholder of Hormel Foods, which reported disappointing earnings this week because pork prices are falling because of oversupplies. Worse, the company is having turkey problems, underscoring how Arthur Carlson was incorrect when he thought they could fly. As for Hormel’s delicious Spam, we wisely leave the jokes to Monty Python.
HRL-N (NYSE), US$37.97, down US$0.67 or 1.73% over week
Air Canada (STAR)
Points, for effort. Air Canada’s hardball tactics to acquire the Aeroplan business from Aimia Inc. – more than a decade after it divested it – paid off this week. Aimia said it would accept $450-million from a consortium that also includes Aeroplan partners Canadian Imperial Bank of Commerce, Toronto-Dominion Bank and Visa Canada Corp. Investors rewarded both Aimia and Air Canada for the deal, but shareholders in Aimia are left without its best asset. They must wonder, with friends like this, what “loyalty plan” truly means.
AC-T (TSX), $26.82, up $2.81 or 11.7% over week
Badger Daylighting (DOG)
Calgary-based Badger Daylighting, the hydro excavation services company, wanted notorious short-seller Marc Cohodes to stop talking about it, so it helped the staff of the Alberta Securities Commission prepare an enforcement order about it. Ultimately, the commission itself declined to issue the dictum. Mr. Cohodes kept accusing the company of dumping toxic waste illegally (which it denies). And the drama yielded national coverage, including three stories in The Globe and Mail. This may not have been what Badger hoped for.
BAD-T (TSX), $29.01, down $2.72 or 8.57% over week
Horizons Marijuana Life Sciences ETF (STAR)
Pick a pot stock, any pot stock. The whole sector went loco this week, as investors continued to view Constellation Brands Inc.’s big investment in Canopy Growth Corp. as the tipping point for the industry. Canopy is now worth more than Canadian Tire, but nearly every cannabis equity lit up the leaderboards this week. So when we say “pick any pot stock,” that describes the indiscriminate euphoria driving cannabis investing these days.
HMMJ-T (TSX), $20.25, up $3.70 or 22.36% over week