A humorous look at the companies that caught our eye, for better or worse, this week
Dollarama (DOG)
If this keeps up, we’ll have to start calling it “Dog-o-rama.” Already down sharply following the retailer’s disappointing second-quarter sales growth, Dollarama’s shares took another dive this week after U.S. short-seller Spruce Point Capital Management called the stock a “strong sell,” citing rising competition, higher labour and transportation costs, lapsing currency hedges and the negative impact of higher selling prices on store traffic. Nothing like kicking a company when it’s down.
DOL - TSX
Altagas (DOG)
What? Altagas’s 14-per-cent yield might not be sustainable? In the latest case of a dividend that’s too good to be true, shares of Altagas plunged after the energy infrastructure company reported third-quarter results below expectations, announced that it plans to sell up to an additional $2-billion of assets and said it will review its dividend to find an “appropriate” payout level. Some analysts see a cut of as much as 50 per cent. What’s next? Santa Claus doesn’t exist?
ALA - TSX
The New York Times (STAR)
“Failing New York Times?” Hmmm, let’s see. The stock is at a 12-year high. Revenue rose more than 8 per cent in the latest quarter. Adjusted earnings topped expectations. Digital-only subscription revenue soared 18 per cent. Turns out The New York Times isn’t “failing” at all. It’s succeeding. It’s “the succeeding New York Times.” Expect a correction from the White House any day now, of course.
NYT - NYSE
Guyana Goldfields (DOG)
What miners shout when they discover gold: “Eureka!” What shareholders of Guyana Goldfields shouted when they saw the company’s third-quarter results: “Noooooooo!” Citing lower-than-anticipated grades of ore at its Aurora gold mine in Guyana, the company cut its production guidance to between 150,000 and 155,000 ounces of gold for 2018, down from a previous range of 175,000 to 185,000 ounces. Investors are packing up their picks and shovels and going home.
GUY - TSX
Maxar Technologies (DOG)
Satellite maker Maxar Technologies’ third-quarter loss was so big, you could almost see it from space. The company – formerly known as MacDonald Dettwiler & Associates Inc. – posted a loss of US$432.5-million, including US$383.6-million in impairment and inventory charges in its communications satellite business, which has struggled as orders dried up. Earth’s gravitational pull promptly overwhelmed the share price, sending it to a one-day loss of 45 per cent.
MAXR - TSX
John Heinzl