A humorous look at the companies that caught our eye, for better or worse, this week
FITBIT (DOG)
Fitbit’s fitness-tracking devices are supposed to help people stay active. But the stock can’t even get off the couch: Even as the company posted fourth-quarter revenue and profit above expectations thanks to a strong holiday season, its first-quarter guidance came in well below estimates, prompting analysts to slash their price targets. With Fitbit losing market share to competitors including the Apple Watch, investors are having a fit.
FIT (NYSE), $12.15 (U.S.) down $3.45 or 22.1% over week
CCL INDUSTRIES (STAR)
Things that keep going up:
1) The federal deficit;
2) The Leafs’ chances of finishing last;
3) CCL Industries’ stock price.
The company – which makes labels, containers and bottles for consumer products companies around the globe – posted a 25.6-per-cent gain in fourth-quarter sales and a 43-per-cent jump in adjusted earnings per share as a string of six acquisitions last year boosted results. What, only six?
CCL.B (TSX), $202.60 up $3.68 or 1.8% over week
WEIGHT WATCHERS (DOG)
Oprah has lost a few pounds (26 to be exact) since joining Weight Watchers and taking a 10-per-cent stake in October. But this week, she also lost something else: A chunk of money. On Friday alone the media mogul suffered a paper loss of about $28-million (U.S.) on her Weight Watchers shares after the diet company posted a 21-per-cent drop in revenue and swung to a loss, hit by a drop in the number of subscribers. Even the stock’s on a crash diet.
WTW (NYSE), $11.01 (U.S.) down $3.91 or 26.2% over week
ENCANA (STAR)
Business quiz!
When a company slashes its dividend by nearly 80 per cent, announces a 20-per-cent reduction in its work force and cuts its capital spending budget by more than 50 per cent, it is considered:
a) terrible news for investors;
b) a strong reason to sell the stock;
c) a signal that it’s time to buy.
Answer: c.
Judging by the rally in Encana this week, some investors are betting that the oil and gas producer may have finally hit bottom.
ECA (TSX), $5.32 up $1.00 or 23.1% over week
MAGNA INTERNATIONAL (STAR)
Vroom vroom, screeeeech! That’s the sound of Magna’s share price taking off this week. Helped by low gasoline prices and strong demand for vehicles in North America and Europe, the auto-parts maker reported fourth-quarter adjusted profit that was well ahead of analyst estimates, even as sales fell because of a strong U.S. dollar. With Magna hiking its dividend by 14 per cent – its sixth consecutive annual increase – the stock’s burning rubber.
MG (TSX), $51.62 up $4.51 or 9.6% over week