A humorous look at the companies that caught our eye, for better or worse, this week.
Crude oil
Crude (WTI fut.)
Jan. 9, 2015 settle: $48.36 (U.S.)
down $4.33 or 8.2% over week
How to tell when the price of oil has really hit bottom:
1) Those massive trucks in the oil sands start showing up on used-car lots;
2) Gas stations start offering “Buy one, get one” fill-ups;
3) Office buildings in Calgary are converted into homeless shelters.
Apparently, we aren’t there yet: Crude fell for a seventh consecutive week, and there’s no end in sight to the selling.
Constellation Brands
STZ (NYSE)
Jan. 9, 2015 close: $107.34 (U.S.)
up $9.84 or 10.1% over week
With oil prices plunging and the global economy slowing, there are a number of effective coping strategies that people can employ: drinking heavily, for example. Shares of alcoholic beverage maker Constellation surged after the company posted better-than-expected quarterly results, lifted by strong sales of Corona beer. With Constellation raising its fiscal 2015 outlook, investors are feeling giddy.
Five Below
FIVE (Nasdaq)
Jan. 9, 2015 close: $35.18 (U.S.)
down $4.74 or 11.9% over week
Five Below? More like 19 below. That’s how much shares of the teen-oriented U.S. discount retailer – which sells clothing, accessories and other items for $5 (U.S.) and under – fell in percentage terms on Friday after it forecast fourth-quarter revenue and earnings short of expectations. The company briefly considered bringing in more expensive items to shore up its profits, but realized it would have to change all of its signs.
iShares S&P/TSX REIT Index ETF
XRE (TSX)
Jan. 9, 2015 close: $17.12
up 97¢ or 6% over week
Interest rates are definitely, for sure, without question going to rise this year. Er, maybe not. Defying predictions yet again, government bond yields have actually fallen sharply so far in 2015 – which is great news for interest-sensitive stocks as real estate investment trusts. With REITs at their highest levels since mid-2013, investors might want to sell before rates rise again. Gonna happen any day now. Mark my words.
Ruby Tuesday
RT (NYSE)
Jan. 9, 2015 close: $6.27 (U.S.)
down 58¢ or 8.5% over week
Money-saving tip No. 435: Instead of dining out, try this easy homemade pizza recipe: Take one piece of white bread and top with a tablespoon of ketchup and slice of processed cheese. Delicious! Judging by Ruby Tuesday’s latest results, more people are eating at home: The casual restaurant chain posted a wider-than-expected quarterly loss and cut its full-year outlook, giving investors indigestion.