First Quantum Minerals (DOG)
FM - TSX
Panama is a nice place to visit, but I wouldn’t want to operate a copper mine there. Shares of First Quantum Minerals collapsed after Panamanian president Laurentino Cortizo, facing protests from environmentalists, labour activists and Indigenous groups, called a referendum on a recently approved 20-year contract for the Canadian company’s Cobre Panama mine. The about-face shocked investors and prompted brokerages to slash their ratings and price targets for First Quantum, which had expected to derive nearly half of its 2024 revenue from the mine. In the immortal words of Van Halen: “Pana-ma. Pana-ma-a oh oh oh oh.”
Canada Goose (DOG)
GOOS - TSX
Can I interest you in some goose liver pâté? Already down by more than half over the past eight months, shares of Canada Goose were crushed again this week after the luxury parka maker slashed its full-year sales and earnings guidance. “Our outlook for the second half of fiscal 2024 has come under pressure due to the increasingly challenging global macroeconomic and geopolitical environments that have impacted consumer decision-making and prioritization of spend,” the company said. Translation: When interest rates are soaring and living expenses are going through the roof, the last thing people need is a $2,000 winter coat.
Shopify (STAR)
SHOP - TSX
Business quiz! Shares of Shopify jumped after the e-commerce software company: a) was named the official online shopping partner of the U.S. Department of Defence, allowing governments around the world to conveniently order missiles, cluster bombs and other deadly weapons with the click of a mouse; b) was acquired by Amazon.com in a $100-billion deal that “will bring two great e-commerce brands together, enhancing the online shopping experience for consumers while allowing us to put the screws to retailers and suppliers”; c) announced third-quarter results that topped expectations and gave an upbeat forecast for the rest of the year, as the total value of merchandise sold on the platform jumped 22 per cent to US$56.2-billion during the quarter. Answer: c.
Brookfield Infrastructure Partners LP (STAR)
BIP.UN - TSX
With short selling, it’s important to get the timing right. On Oct. 23, Dalrymple Finance published a critical report on Brookfield Infrastructure, alleging the limited partnership “has an unsustainable business model,” employs “aggressive accounting” and publishes “inflated cashflows and asset values” that don’t cover its distribution. Anyone who piggybacked on Dalrymple’s short trade, however, would likely be regretting it. Since the report was released, BIP’s units have gained about 16 per cent, as its solid third-quarter results and reassuring comments from management appear to have put a floor under the units. That’s why you don’t fool around with short selling, boys and girls.
DraftKings (STAR)
DKNG - Nasdaq
Not sure you can scrape together rent this month? Here’s an idea: Head over to DraftKings and place a three-game parlay on the Seahawks, Bears and Cardinals all to win this Sunday, and turn $1,000 into $52,000! On second thought, you might be better off investing in DraftKings’ stock. Shares of the largest U.S. online sportsbook rallied after third-quarter revenue jumped 57 per cent to US$790-million, topping Wall Street’s expectations, as the company expanded into new jurisdictions and existing customers spent more money on the site. Apparently, those wall-to-wall betting ads during NFL, NBA and NHL games are working.
John Heinzl