A humorous look at the companies that caught our eye, for better or worse, this week
VALEANT PHARMACEUTICALS (DOG)
Things that are more fun than owning shares of Valeant:
1) Performing surgery on yourself;
2) Taking a P.K. Subban slap shot to the face;
3) Drinking a gallon of Tabasco sauce.
With Valeant’s already battered stock plunging by more than half after the drug maker slashed its earnings forecast and warned of a potential violation of its debt covenants, the only people enjoying this train wreck are short-sellers. And they’re enjoying it a lot.
VRX (TSX), $34.93, down $57.19 or 62.1% over week
PEABODY ENERGY (DOG)
Hard: Being a coal miner’s daughter.
Harder: Being a coal miner’s investor.
Hammered by a slowing global economy and a shift to cleaner forms of energy, Peabody – whose main business is supplying coal to electricity generators – delayed more than $70-million (U.S.) in interest payments and warned that it could file for Chapter 11 bankruptcy protection, joining other coal miners. Shareholders are covered in black soot.
BTU (NYSE), $2.50 (U.S.), down $4.05 or 61.8% over week
STARWOOD HOTELS & RESORTS (STAR)
Money-saving tip: When staying at a hotel, skip dinner and eat ice instead. It’s free. Money-making tip: Invest in Starwood Hotels. Shares of the company – whose brands include Sheraton, Westin and St. Regis – surged after it received a $14-billion (U.S.) takeover bid from a group led by China’s Anbang Insurance Group, prompting Starwood to reject a previous $12.2-billion offer from Marriott International. Investors can afford to order room service.
HOT (NYSE), $80.57 (U.S.), up $10.15 or 14.4% over week
EASTMAN KODAK (STAR)
Kodak still exists? Yup. After filing for Chapter 11 bankruptcy protection in 2012 and losing its NYSE listing, the photography company sold assets, slashed jobs and rejoined the Big Board in 2013 with a focus on commercial customers. The stock’s been pretty much a basket case since then – some things never change – but news that Kodak swung to a fourth-quarter profit and plans to sell its Prosper printer business gave the shares a lift. Smile.
KODK (NYSE), $12.41 (U.S.), up $2.22 or 21.8% over week
BUILD-A-BEAR WORKSHOP (DOG)
Don’t get this bear angry. Shares of Build-A-Bear – which bills itself as “the only global company that offers an interactive make-your-own stuffed animal retail-entertainment experience” (catchy, isn’t it?) – have been struggling since the company announced in February that same-store sales skidded 5.6 per cent in the fourth quarter. With doubts emerging about Build-A-Bear’s ability to attract customers, investors are running for the nearest tree.
BBW (NYSE), $12.99 (U.S.), down 82¢ or 5.9% over week
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