A humorous look at the companies that caught our eye, for better or worse, this week.
iShares S&P/TSX Energy ETF
XEG (TSX)
Dec. 12, 2014 close: $12.25
down $1.71 or 12.2% over week
Upset that your stocks are getting clobbered? Just be grateful your entire portfolio isn’t in this clunker. Comprising 60 oil and gas producers and energy service companies, XEG’s extensive exposure to the oil patch allows investors to lose money in a variety of ways when the price of crude collapses. With the ETF down more than 40 per cent from its 2014 high, it’s almost as much fun as a ride on the Exxon Valdez.
Manchester United
MANU (NYSE)
Dec. 12, 2014 close: $15.24 (U.S.)
down $1.14 or 7% over week
Soccer mistakes:
1) Scoring an own goal;
2) Forgetting to cover your private parts in a free kick;
3) Investing in Manchester United.
Already down sharply after the storied club missed the Champions League, the stock skidded when shareholder Edward Glazer – one of six children who inherited ownership when their father died in May – announced plans to sell three million shares for about $45-million. Investors quickly crumpled to the ground in agony.
AGF Management
AGF.B (TSX)
Dec. 12, 2014 close: $8.05
down $1.79 or 18.2% over week
Given that AGF’s battered stock was yielding 11 per cent and trading for less than one-quarter of its 2007 high, you’d think investors might have had a teeny weeny clue that its fat dividend was in jeopardy. Apparently not. After the redemption-plagued fund company finally accepted reality and slashed its payment by 70 per cent, the stock took its biggest one-day tumble on record – a sign that many investors were actually surprised by the move. Wakey, wakey, people!
McDonald's
MCD (NYSE)
Dec. 12, 2014 close: $90.62 (U.S.)
down $5.69 or 5.9% over week
“Today’s consumers increasingly demand more choice, convenience and value in their dining-out experience,” McDonald’s CEO Don Thompson said. Unfortunately, they aren’t getting it from the Golden Arches: The burger giant’s same-store sales sank in every geographic region during November, led by a 4.6-per-cent plunge in the United States. With McDonald’s warning that fourth-quarter results will be hit by a rising U.S. dollar and a supplier issue in China, investors have lost their appetite for the stock.
Conn's
CONN (Nasdaq)
Dec. 12, 2014 close: $17.44 (U.S.)
down $17.81 or 50.5% over week
Selling furniture and appliances to customers who can’t afford them – now there’s a winning business model. Shares of U.S. retailer Conn’s, which sells merchandise on credit to low-income consumers, plunged after its chief financial officer stepped down and the company swung to an unexpected third-quarter loss, citing a big jump in provisions for bad debts. With 10 per cent of customer balances more than 60 days overdue, the collection agencies will be busier than Santa during the holidays.