J.Jill Inc. (Dog)
True or false: When a company's stock plunges roughly 50 per cent in a day, it's usually nothing to be concerned about. Answer: False. In the latest sign of turmoil in the retailing industry, U.S. women's clothing chain J.Jill said it expects same-store sales to fall by 3 per cent to 5 per cent in the third quarter – badly missing analyst estimates for a gain of 7.4 per cent – while earnings per share will be about half of previous expectations. Investors want a refund.
JILL (NYSE), $5.11 (U.S.), down $5.51 or 51.9% over week.
Village Farms International (Star)
You say tomato, I say … marijuana. In a win for stoners but a loss for people who enjoy vegetables, Village Farms is converting a 1.1-million-square-foot greenhouse in Delta, B.C., from tomato production to marijuana – which brings in about 10 times the revenue. The joint (get it?) venture with Emerald Health Therapeutics appears to have started a trend: Fellow pot producer Canopy Growth announced a JV to convert greenhouses from cucumbers to cannabis. Who needs to eat, anyway?
VFF (TSX), $3.75, up 94¢ or 33.5% over week.
Wal-Mart Stores (Star)
Business quiz! Shares of Wal-Mart soared after the retailer: a) agreed to acquire Sears Canada and convert its stores into giant Wal-Mart Shop 'n Bowl Centres; b) reported brisk sales of Mattel's new Kim Jong-un versus Donald Trump Rock 'em Sock 'em Radioactive Robots; c) announced a $20-billion share buyback and said it will slow store openings in the U.S. market to focus on its e-commerce business, which is expected to grow by about 40 per cent next year. Answer: c.
WMT (NYSE), $86.62 (U.S.), up $7.62 or 9.6% over week.
Johnson & Johnson (Star)
Just say yes to drugs. That's the advice of two analysts who upgraded their ratings and price targets on Johnson & Johnson this week, citing the pharmaceutical, medical devices and consumer products giant's robust drug pipeline. Jefferies analyst Jeffrey Holford called J&J "an EPS growth and dividend machine" while Wells Fargo's Larry Biegelsen predicted J&J's third-quarter results next week will mark a "turning point" in sales growth. J&J investors are Jumping for Joy.
JNJ (NYSE), $136.43 (U.S.), up $3.21 or 2.4% over week.
General Electric (Dog)
General Electric's stock has been generally awful this year, losing more than one-quarter of its value even as the S&P 500 has surged to one record high after another. And there was more pain this week when GE announced the unexpected departure of CFO Jeffrey Bornstein as part of a senior-level shakeup under new CEO John Flannery. With the stock at a four-year low, GE's free cash flow falling for six consecutive years and the dividend in question, Mr. Flannery might be working a few late nights.
GE (NYSE), $22.98 (U.S.), down $1.41 or 5.8% over week.