A humorous look at the companies that caught our eye, for better or worse, this week.
MacDonald Dettwiler
MDA (TSX)
Feb. 28, 2014 close: $81.21
up 1.96 or 2.5% over week
MacDonald Dettwiler makes satellites and other equipment used in space, so it’s fitting that the stock has been defying gravity for the past couple of years. Lifted by strong satellite orders and the acquisition of Space Systems/Loral in 2012, the maker of the Canadarm robotic arm posted fourth-quarter earnings that doubled from a year earlier, sending the stock deeper into outer space.
Cameco
CCO (TSX)
Feb. 28, 2014 close: $26.81
up $3.28 or 13.9% over week
Three years after the meltdown at the Fukushima power plant prompted Japan to shut down all of its nuclear facilities and vow to go nuke-free, the government did an about-face: A draft energy plan signalled its intention to restart the plants once they meet tougher safety standards. With uranium prices expected to surge, shareholders of Cameco – a major producer – are glowing with delight.
BlackBerry
BB (TSX)
Feb. 28, 2014 close: $11.05
up 88 cents or 8.6% over week
Things you thought weren’t possible:
1) Rob Ford still being mayor of Toronto;
2) Canada’s women’s hockey team coming back from 2-0 to win gold;
3) Investors actually making money on BlackBerry.
The smartphone maker’s shares have been rising under new CEO John Chen, and they got another lift when Facebook snapped up WhatsApp for $19-billion. At that sort of valuation, BlackBerry’s BBM service must be worth a few hundred bucks at least.
Catamaran
CCT (TSX)
Feb. 28, 2014 close: $49.86
down $6.99 or 12.3% over week
Abandon ship!
Shares of Catamaran – a pharmacy benefits manager that named itself after a sailboat to reflect its “nimble, flexible approach” – hit a rock after its full-year profit forecast fell well short of Wall Street’s expectations. With Catamaran’s profit margins falling and analysts slashing their target prices on the shares, investors are piling into the lifeboats.
Tesla Motors
TSLA (Nasdaq)
Feb. 28, 2014 close: $244.81 (U.S.)
up $35.21 or 16.8% over week
Multiple choice quiz: Shares of Tesla surged this week because:
a) Consumer Reports named the Model S as its best overall car, calling it a “technological tour de force”;
b) Morgan Stanley issued a bullish report in which it more than doubled its target price on the stock;
c) Momentum investors can’t get enough of the shares.
Answer: all of the above.