The Globe's stars and dogs for the week
A humorous look at the companies that caught our eye, for better or worse, this week
GREAT CANADIAN GAMING (STAR)
The house always wins. The only problem for the house: not enough houses. Which is why securing the contract to redevelop and manage the Greater Toronto Area's three gambling facilities is such a big deal for Great Canadian Gaming, and its partner, Brookfield Business Partners. The deal could also eventually allow for a fourth casino at a new site for more people to be separated from their money.
GC (TSX), $32.30, up $6.87 or 27% over week
CBOE VOLATILITY INDEX (STAR)
It's been some time since markets were anything but blissed out with stocks steadily and gently rising to new record highs. But fear made a splashy reappearance this week in the form of nuclear brinkmanship between the United States and North Korea, jolting markets from their summer stupor. As a result, it was a good week for those betting on volatility and gold stocks. The losers were volatility shorts, index investors and, perhaps, all of us.
VIX, 15.49, up 5.46 or 54.4% over week
CANADIAN TIRE (STAR)
Things one can typically count on heavy rains for: making dogs stink, making Gene Kelly sing and making Canadian Tire's second quarter a rotten one. But the retailer broke its bad-weather hex with strong earnings despite an unusually wet, cold spring. Advances in data analytics have made for more effective promotions, helping the company veer around the rain clouds.
CTC.A (TSX), $151.96, up $9.89 or 7% over week
VALEANT PHARMA. INTL. (DOG)
Analyst commentary on Valeant reads like a troubled third grader's gently worded report card. "We believe VRX had a respectable quarter given all its challenges," BMO analyst Gary Nachman wrote. But bright spots in certain drug sales were not enough to offset concerns over the company's future. In other words, little Johnny is eating slightly less glue, but he's still setting fire to the school.
VRX (TSX), $17.59, down $1.56 or 8.1% over week
When you're priced for perfection, anything less than perfect is terrible. So while Nvidia's earnings and its guidance both beat the Street, the chipmaker's stock – by far the best-performing U.S. large-cap of the past year – tanked on flat sales growth in its data centre segment. When a stock is trading at almost 50 times earnings, the word "flat" best never be uttered.
NVDA (Nasdaq), $155.95 (U.S.), down $11.26 or 6.7% over week