Global X Marijuana Life Sciences Index ETF (STAR)
How many stoners does it take to change a light bulb?
Answer: What was the question again?
Cannabis investors were laughing all the way to the bank on expectations that U.S. President Donald Trump will sign an executive order as early as Monday reclassifying weed as a less regulated Schedule III substance from a Schedule I drug. Such a move would make it easier for cannabis producers to obtain bank financing and mark a step toward more liberal regulations for cannabis, which remains illegal under U.S. federal law, even as dozens of states permit its cultivation and sale. Cannabis advocates say it’s high time.
Empire Co. Ltd. (DOG)
Cleanup in Aisle 7! Shares of grocery retailer Empire Co. made a mess in investors’ portfolios after quarterly earnings fell from a year earlier, hit by higher labour costs and investments in stores and technology. Even as price increases pushed sales higher, the owner of chains including Sobeys, FreshCo and Farm Boy said earnings for the quarter ended Nov. 1 slipped to 69 cents a share from 73 cents a year earlier, slightly missing expectations. With Empire’s stock sinking to an eight-month low, the mops could be out for a while.
AutoZone Inc. (DOG)
Pop quiz! Shares of auto parts retailer AutoZone fell after a) the company recalled aftermarket mufflers that, owing to a manufacturing defect, sounded like someone passing wind after consuming a double-bean burrito at Chipotle; b) government data revealed that more people are abandoning their cars at the side of the road because they can’t afford to repair them; c) citing the impact of tariffs, the company said diluted earnings per share came in at US$31.04 for the latest quarter, down from US$32.52 a year earlier and below Wall Street’s expectations, even as sales rose about 8 per cent. Answer: c.
AeroVironment Inc. (DOG)
Drones are an efficient way to blow up military targets. Unfortunately, they’re also a way to blow up investors’ money. Shares of aerospace and defence company AeroVironment tumbled after the maker of unmanned aerial vehicles posted third-quarter earnings well below analysts’ expectations and cut its full-year forecast. Even as sales soared 151 per cent to a record US$472.5-million, AeroVironment said results were hit by expenses related to its US$4.1-billion deal for space and defence engineering company Blue Halo LLC. I could drone on and on about this, but I’ll stop there.
Oracle Corp. (DOG)
The artificial-intelligence boom sent a lot of tech stocks soaring. Now, it’s bringing some of them back to Earth. Shares of Oracle suffered their biggest drop since January after the company, which is spending heavily on data centres for OpenAI and other customers, said capital expenditures rose to US$12-billion in the latest quarter – far higher than the US$8.25-billion analysts had expected, according to Bloomberg. With investors increasingly concerned about Oracle’s growing debt load and wondering when its massive AI investments will pay off, buying the stock wasn’t such an intelligent move after all.