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stars and dogs

A humorous look at the companies that caught our eye, for better or worse, this week

Horizons Marijuana Life Sciences ETF (DOG)

Stoners across Canada celebrated the legalization of recreational cannabis by lighting up joints, pipes and bongs (No, Grandma, the other end!). But investors have had their fill of weed already, thanks. With valuations in the sector having gotten disconnected from reality in anticipation of Oct. 17, marijuana stocks quickly lost their high. Now that the excitement of legalization is fading, investors are taking their profits and moving on.

HMMJ - TSX

Netflix (DOG)

Things you haven’t done for weeks because you’ve been too busy binge-watching Netflix: 1) Taken out the garbage; 2) Had a shower; 3) Shown up at work. You’re not alone: Netflix added a net 6.96 million subscribers in the third quarter – crushing the company’s own forecast of five million. But the shares, which initially rallied on the results, gave back all of their gains as investors focused on the company’s projected negative free cash flow of US$3-billion for fiscal 2018. Hey, making all those shows is expensive.

NFLX - Nasdaq

International Business Machines (DOG)

If you liked IBM at $200 five years ago, you’ll love it at about $129 today, right? Er, maybe not. Shares of the computing giant continued their long and painful descent after third-quarter revenue fell 2 per cent and missed Wall Street estimates, hurt by a slowdown in software sales and fading gains from the launch of new server products. With all of IBM’s investments in artificial intelligence, you’d think one of its computers could figure out how to fix the company. Waiting …

IBM - NYSE

Alcoa (STAR)

Aluminum – it’s in the bikes we ride, the cans we drink from and the deodorant we use (if we used deodorant). It’s also one of the main products of Alcoa, whose shares rallied after the company posted third-quarter adjusted earnings that were twice as big as analysts expected and announced a US$200-million stock repurchase program. The stock’s been a stinker all year but the bad smell is starting to fade.

AA - N

Corus Entertainment (STAR)

After the hefty losses they’ve suffered this year, Corus shareholders deserve a little good news, don’t ya think? Shares of the television, radio and content company jumped after it posted better-than-expected earnings for the fourth quarter, helped by lower costs and revenue that fell only slightly from a year earlier. With Corus also posting record free cash flow of $349-million for fiscal 2018, now it’s the short sellers’ turn to feel the pain.

CJR.B - TSX

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