A humorous look at the companies that caught our eye, for better or worse, this week
AMC Entertainment (STAR)
Will dirt-cheap seats lure virus-wary customers back to movie theatres? AMC Entertainment is about to find out. In a move that drove up AMC’s share price, the largest U.S. cinema chain said it plans to begin reopening theatres on Aug. 20 and will mark its 100th anniversary by offering a limited number of 15-cent movie tickets – a throwback promotion it’s calling “Movies in 2020 at 1920 prices.” There is no truth to the rumour that all 15-cent movies will be presented without sound.
Tesla’s five-for-one stock split announced this week doesn’t, in and of itself, create any value. But Tesla investors will use any excuse to drive up the stock. Having already more than tripled this year, the electric car maker’s shares surged after Tesla announced the split “to make stock ownership more accessible to employees and investors.” Unfortunately, with sticker prices ranging from $52,990 for the entry-level Model 3 to $137,990 for a top-of-the-line Model X SUV, Tesla’s vehicles aren’t exactly accessible to most car buyers.
Horizon North Logistics (STAR)
Business quiz! Horizon North Logistics is: a) a distributor of road salters, snowplows and other winter maintenance vehicles; b) a trucking company based in northern Ontario that delivers Amazon.com parcels to isolated villages; c) a company that provides housing and support services to remote work forces and which reinstated its dividend this week after announcing strong gains in second-quarter revenue and earnings following a recent merger. Answer: c.
Cisco Systems (DOG)
You win some, you lose some. Just ask a Cisco Systems shareholder. The networking equipment giant posted fiscal fourth-quarter revenue and adjusted earnings that were down from a year earlier but still topped analysts’ expectations. Unfortunately, with the coronavirus pandemic continuing to hurt its business and the company soon facing tough comparisons with strong year-earlier results, Cisco’s first-quarter fiscal 2021 forecast came up short of expectations, causing the stock to short-circuit.
Stein Mart (DOG)
Stein Mart? Is that, like, a store that sells beer mugs? No, but its shareholders could probably use a drink. Hammered by the coronavirus pandemic and a shift to online shopping, the U.S. department store chain that sells off-price fashions filed for Chapter 11 bankruptcy protection and expects to close “a significant portion, if not all, of its brick-and-mortar stores,” the Florida-based company said. With at least two dozen other major U.S. retailers also filing for Chapter 11 this year, Stein Mart investors have plenty of company down at the local watering hole.
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