A humorous look at the companies that caught our eye, for better or worse, this week
Dollar-Slama! After going virtually straight up for years, shares of discount chain Dollarama were abruptly brought back to reality this week when the retailer’s second-quarter results came up short of expectations. With same-store sales rising a modest 2.6 per cent – a marked slowdown from a gain of 6.1 per cent a year earlier – and the company lowering its full-year forecast for same-store growth, investors are pulling their dollars out as fast as they can.
DOL - TSX
Investors are putting the boots to Roots. The quintessentially Canadian retailer founded by two American guys posted a second-quarter net loss of $4.1-million, compared with a loss of $3.2-million a year earlier, as same-store sales rose a disappointing 1.1 per cent. Last year’s results benefited from sales tied to Canada’s 150th birthday, but with the company citing “negative store traffic trends” in the third quarter, investors have run out of true patriot love for the shares.
ROOT - TSX
North American Construction Group (STAR)
You might say shareholders of North American Construction Group are having a blast. Shares of the company – which provides drilling, blasting, construction and other services to the energy and mining industries – have soared about 45 per cent in the past two months, propelled by better-than-expected earnings, new contracts and rising estimates from analysts. Now those are some explosive returns.
NOA - TSX
There once was a business called Transcontinental
Whose shareholders were often quite temperamental
When results came up short
They all said: “Abort!”
And the stock took a dive that was not very gentle
TCL.B - TSX
Yum China Holdings (DOG)
On second thought, we’re not hungry. A Chinese consortium that had been trying to swallow Yum China Holding – the local purveyor of KFC, Pizza Hut and Taco Bell spun out by fast-food giant Yum Brands two years ago – has reportedly backed away, citing deterioration in the company’s business, a slowing economy and the prospect of an all-out trade war with the United States. With a deal now unlikely, investors have lost their appetites for the shares.
YUMC - NYSE