Corus Entertainment (DOG)
CJR.B - TSX
“Aaayyy! Fonzie here. You remember me, the guy from Happy Days who would say ‘aaayyy’ all the time. Aaayyy! Now, listen up. There’s a new streaming service called Pluto TV where you can watch TV shows and movies for free. They got Happy Days, Mork & Mindy, Taxi, The Love Boat, plus newer stuff like CSI and Hell’s Kitchen. Did I mention it’s free? You just have to sit through some commercials. Now go and try it out, because Corus Entertainment – which launched Pluto TV in partnership with Paramount Global – could use some help after its net income fell 59 per cent in its first quarter, sending its stock to a new low. Do it now, or I’ll break your face. Aaayyy!”
Walt Disney (STAR)
DIS - NYSE
The intrigue swirling around Buckingham Palace is nothing compared to the drama at the Magic Kingdom. After a tumultuous year that culminated with the firing of Bob Chapek as chief executive and the rehiring of Bob Iger, Disney learned this week that activist investor Nelson Peltz is pushing for a board seat at the entertainment conglomerate. In a slide presentation, Mr. Peltz’s hedge fund, Trian Partners, called Disney “a company in crisis” and highlighted its sagging share price and deteriorating financial performance. Hoping that Mr. Peltz might work the same magic at Disney as he did at companies such as Procter & Gamble, investors drove Disney’s stock higher. I can already hear Disney’s new theme song: When you wish upon a Peltz …
Algonquin Power & Utilities (DOG)
AQN - TSX
It may have been one of the most widely anticipated dividend cuts in the history of dividend cuts, yet it still managed to rattle Algonquin Power & Utilities investors. Shares of the utility and renewable power company sank after it slashed its payout by 40 per cent and pledged to sell assets and curtail capital spending to strengthen its balance sheet. Apparently, some investors were also upset that the company pledged to move forward with its proposed US$2.6-billion deal for Kentucky Power, which will load more debt onto Algonquin’s balance sheet. Another possibility is that some investors sold because they needed to pay for a $37 family pack of chicken breasts at Loblaws. We may never know for sure.
Aritzia (DOG)
ATZ - TSX
There once was a store called Aritzia
That sells lots of clothing that fits-ya
But investors were downcast
‘Cause the chain’s margin forecast
Was a bit of a swing and a miss-ya
Logitech International (DOG)
LOGI - Nasdaq
Ever take a close look at the dirt and dead skin that have accumulated on your computer mouse and keyboard? Gross, right? Well, now is the perfect time to toss them in the garbage and order new ones from Logitech International. The company could use the business. Its shares plunged after the maker of computer mice, keyboards and webcams posted preliminary results indicating that sales tumbled as much as 23 per cent and operating income slumped up to 35 per cent in the latest quarter, hit by challenging economic conditions and a slowdown in sales to enterprise customers. With Logitech slashing its full-year outlook, the stock’s been a bit of a mouse trap.
John Heinzl