Intel (DOG)
INTC - Nasdaq
After Intel’s ghastly fourth-quarter results last month – which included a US$664-million net loss and a 32-per-cent drop in revenue – investors wondered what other nasty surprises the troubled chip maker might have in store. This week, they found out. Aiming to give itself more financial flexibility as it cuts costs and struggles to turn around its fortunes amid slumping PC sales, Intel slashed its dividend by 65 per cent – the first reduction to its payout since 2000. With Intel’s stock down more than 40 per cent in the past year, the company badly needs a reboot.
Brink’s (STAR)
BCO - NYSE
Robbing an armoured car is one way to make money. But you have to balance the potential rewards against the risk of eating prison food for the next 20 years. Better to just invest in an armoured car company. Shareholders of Brink’s made a few bags of loot this week after the company, which specializes in cash and valuables management, topped analysts’ estimates for revenue and earnings in the fourth quarter, helped by growth in digital retail offerings and ATM services. No masks, weapons or getaway car required.
Nvidia (STAR)
NVDA - Nasdaq
“Why was the computer cold? Because it left its Windows open!” I don’t know whether any Nvidia chips were used in the generation of that joke from ChatGPT, the AI-powered chatbot. But there’s no doubt Nvidia sees artificial intelligence as central to its future. Shares of the chip maker jumped after fourth-quarter revenue and earnings topped Wall Street’s estimates, helped by growth in its data centre business, which includes chips for applications such as Open AI’s ChatGPT and Microsoft’s Bing AI. Here’s another one: “Why did the artificial intelligence break up with its girlfriend? She kept calling him a ‘neural net.’ ” Okay, so the humour needs a little work.
Home Depot (DOG)
HD - NYSE
Remember when people were stuck at home during the pandemic, and they went crazy renovating their kitchens and bathrooms and building backyard decks? Well, now that interest rates and inflation have soared and folks are spending more money on travel, the reno boom has gone bust. Shares of Home Depot tumbled after the world’s biggest home improvement retailer said sales will be “approximately flat” in fiscal 2023. Adding to Home Depot’s woes, profit margins will be crimped by an additional US$1-billion of spending on wages to attract and retain employees in a tight labour market. Orange you glad you don’t own Home Depot shares?
Stantec (STAR)
STN - TSX
There once was a business named Stantec
Now, I don’t want to get too romantic
But its outstanding earnings
Fulfilled Bay Street’s yearnings
And the stock’s rise, well, it was gigantic
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.
John Heinzl