A humorous look at the companies that caught our eye, for better or worse, this week
Beyond Meat (STAR)
Multiple-choice quiz! Following a hugely successful IPO earlier this month, Beyond Meat extended its gains this week after Tim Hortons said it is testing: a) a Beyond Meat Oreo Iced Capp made with Oreo cookie bits and chunks of simulated ground beef; b) Beyond Meat Timbits with a sweet, glazed outside and a soft, meaty centre; c) three Beyond Meat breakfast sandwiches that will be rolled out across Canada “if market tests prove their potential.” Answer: c.
Boyd Group Income Fund (STAR)
Not fun: Spending thousands of dollars to fix a dent in your car. Fun: owning shares of body-shop operator Boyd Group. Boosted by acquisitions and strong same-store sales growth at its existing collision-repair centres across North America, Winnipeg-based Boyd Group said revenue rose by 23.1 per cent to $557.9-million and adjusted earnings increased 39.7 per cent to $29.2-million in the first quarter, beating estimates. With analysts increasing their price targets on the shares, investors are driving away with big profits.
Dillard’s (DOG)
True or false: U.S. department-store chain Dillard’s uses the advertising tag line “Dillard’s is for dullards." Answer: false. Still, investors probably didn’t feel very smart this week, when the retailer posted first-quarter sales that missed expectations, causing its stock to crater. With hedge fund Greenlight Capital closing out its stake in the company and analysts cutting their price targets on the shares, only a dummy would think this is a good stock to own.
Corus Entertainment (DOG)
Geez, thanks a bunch, Shaw Communications. Just when Corus Entertainment seemed to be getting its financial house in order, propelling its stock to a year-to-date gain of nearly 70 per cent, Shaw spoiled the party by announcing it will divest its 80.6 million Corus class-B shares in a bought deal at $6.80 a share – a 15.6-per-cent discount to the market price before the deal was announced. Investors greeted the news with a Corus of boos.
Transat A.T. (STAR)
Program! Get your program! You can’t follow all the airline deals without a program! Days after private-equity firm Onex Corp. announced a deal to buy Calgary-based WestJet Airlines Ltd. for $3.5-billion, or $31 a share, Air Canada said it has entered into exclusive discussions to buy airline and vacation operator Transat A.T. Inc. for about $520-million, or $13 a share. Here’s an idea: Why don’t we just create one big airline and get it over with?
John Heinzl