TC Energy (DOG)
TC Energy transports a lot of gas on its pipelines. Lately, however, it’s been giving investors a bad case of gas. Shares of the company – hurt by high interest rates, onerous debt and massive cost overruns on its Coastal GasLink project – tumbled to their lowest level in more than three years after TC sold a 40-per-cent stake in its Columbia Pipeline Group for US$3.9-billion – at a multiple of earnings far lower than TC paid in 2016. TC’s plan to split itself into two companies only sent the stock down further. With credit rating agencies downgrading the company and saying it will need to sell more assets to get its balance sheet in shape, investors are definitely not having a gas.
Packaging Corp. of America (STAR)
People love to complain about packaging. For example: “Why did the smartphone I ordered online come in a box the size of a refrigerator?” Or, “What are all these white, peanut-shaped things? They taste terrible.” But you won’t hear any complaints from investors in Packaging Corp. of America. Even as second-quarter sales fell from a year earlier, shares of the company – which makes a wide range of corrugated packaging products – rose after earnings topped Wall Street’s estimates, helped by cost controls. With the stock up about 20 per cent year to date, investors could use a big box to hold all the money they are making.
Spotify Technology (DOG)
Whether you prefer the cringey satanic stylings of crooner Sam Smith, the autotuned mumbling of rapper Lil Yachty or the dog whistle lyrics of country singer Jason Aldean, Spotify has an endless supply of high-quality music to satisfy even the most discriminating tastes. But getting access to all of this superb content will soon cost you more: Shares of the music streaming service fell after Spotify announced it is raising the monthly price of its premium subscription plans by as much as $2. The price hike came a day before the Stockholm-based company reported second-quarter revenue and full-year guidance that were both below expectations, stoking fears that Spotify’s growth is slowing. Given the music industry’s steady output of first-class talent, this is truly surprising.
Acorn: A nut that falls from an oak tree. Aecon: A stock that has fallen by nearly half from its 2021 high. Shares of the construction and infrastructure development company sank after it posted second-quarter earnings well below analysts’ expectations, including an operating loss of $81.3-million on four large legacy projects that have been hit by supply chain disruptions, COVID-19 impacts and inflationary cost increases in labour and materials. With Aecon’s EBITDA tumbling 57 per cent year-over-year to $17-million – roughly one-third of what analysts expected – investors are feeling pretty nutty for holding on to the stock.
Test your business knowledge! Shares of Tupperware Brands, which warned in April of “substantial doubt about its ability to continue as a going concern,” more than tripled in the first four trading days this week after the company: A) announced a new line of food storage containers that use artificial intelligence and machine learning “to determine when the level of blue fuzz on leftovers makes them unsafe to eat”; B) announced a special dividend consisting of a lunch box, eight-piece party set and four spill-resistant sippy cups; C) the stock was likely caught in a “short squeeze” orchestrated by meme stock investors, who buy shares of troubled companies with the goal of forcing bearish investors to cover their short positions, which drives up the price. Answer: C.