A humorous look at the companies that caught our eye, for better or worse, this week
Hello, Elon Musk? You're not helping. With Tesla's stock already down sharply amid growing unease about the company's future and its chief executive's increasingly erratic behaviour, Mr. Musk couldn't have picked a worse time to go on YouTube and smoke what appeared to be a joint. Of course, it didn't help that Tesla's chief accounting officer abruptly quit this week after a month on the job – one of nearly a dozen executives who have left the company this year. Well, at least the short-sellers are happy.
TSLA-Q - Nasdaq
Business quiz! Shares of Loblaw rose after the company: a) announced plans to sell marijuana in its grocery stores – right beside the PC Decadent Chocolate Chip Cookies; b) unveiled a drone delivery service to compete with Amazon.com; c) said it will spin out its 61.6-per-cent interest in Choice Properties REIT in a complex transaction with parent George Weston Ltd. that will make Loblaw a pure-play retailer and effectively increase its dividend by 24 per cent. Answer: c.
L-T - TSX
Canada Goose Holdings (DOG)
Is the Goose running out of gas? After roughly doubling through the first six months of 2018, shares of trendy parka maker Canada Goose have dropped nearly 20 per cent from their recent high. Maybe it was the sell rating that Veritas Investment Research reiterated in August; or the fact that insiders have sold millions of dollars of shares; or the stock’s lofty multiple of more than 60 times estimated earnings for the current fiscal year. Whatever the cause, investors are getting the flock out of here.
GOOS-T - TSX
Alimentation Couche-Tard (STAR)
Normally, retailers love to blame the weather for everything. In a shocking departure, Alimentation Couche-Tard says the weather actually helped sales during its latest quarter. Citing favourable spring and summer conditions, the convenience-store operator posted same-store sales growth of 4.2 per cent in the United States, 6.6 per cent in Canada and 7.3 per cent in Europe, helping it top earnings estimates. With the stock rising, investors are enjoying the sunshine, too.
ATD.B - TSX
“Nike is getting absolutely killed with anger and boycotts,” Donald Trump tweeted. Well, that might be overstating things, Mr. President. Shares of the world’s biggest athletic shoe company did initially stumble amid a backlash over its decision to feature ex-NFLer Colin Kaepernick in its latest ad campaign. But even as some angry Nike customers burned their sneakers on Youtube, the stock promptly rebounded – suggesting any negative sales impact will be short-lived.
NKE-N - NYSE