A humorous look at the companies that caught our eye, for better or worse, this week
Maplebear Inc. (DOG)
Test your business knowledge! Maplebear refers to a) a rare species of black bear that feeds exclusively on the sap of sugar maple trees in Ontario and Quebec; b) a secret menu item at Tim Hortons; c) the formal corporate name of Instacart – a grocery-delivery company founded by Canadian-American billionaire Apoorva Mehta – whose shares tumbled after Amazon.com launched same-day delivery of meat, produce and other perishable items in 1,000 U.S. cities. Answer: c.
Gildan Activewear Inc. (STAR)
It makes perfect sense that the Inuit would have dozens of words for snow and ice. But why does the English language have so many different words for underwear – gotchies, undergarments, briefs, underpants, boxers, panties, undies, drawers, skivvies, long johns, underthings, lingerie and knickers, for example? Whatever you call the clothing next to your skin, it’s poised to make a lot of money for Gildan Activewear, whose shares jumped after the Montreal-based company agreed to acquire U.S. underwear giant HanesBrands for US$2.2-billion. According to a news release, the deal “will create a global basic apparel leader, with access to iconic innerwear brands.” Innerwear? Is that what we’re calling it now?
Boston Pizza Royalties Income Fund (STAR)
Connor McDavid and the Edmonton Oilers may have fallen short of a Stanley Cup championship again this year, but the playoffs were still a huge win for Boston Pizza Royalties investors. Boosted by the presence of five Canadian teams – including the Oilers, who made it to the finals for a second straight year – the sports bar chain’s same-store sales surged 6.4 per cent for the quarter ended June 30. With the strong results prompting Boston Pizza to hike its distribution by 4.3 per cent, the stock is lighting the lamp.
Newegg Commerce Inc. (STAR)
True or false: When a money-losing company with declining sales and a shrinking customer base sees its stock rocket 2,500 per cent in just three months, it’s a sure sign the business is turning around. Answer: false. Newegg Commerce, an online retailer of PC hardware and consumer electronics, has become the latest target of meme stock investors, who buy up shares of struggling, thinly traded companies in the hope of driving the price higher and triggering a short squeeze. In Newegg’s case, the frenzy can be traced to Vladimir and Angelica Galkin, a Florida couple who previously cashed in on the GameStop meme craze and have recently been pouring tens of millions of dollars into Newegg. You might even say they’re egging people on.
Webtoon Entertainment Inc. (STAR)
Webtoon Entertainment bills itself as the “No. 1 global storytech company.” Translation: It’s a website where people can upload or read primarily anime-style comics. Now for the plot twist: Webtoon’s shares soared after the company posted second-quarter earnings above expectations and announced a deal with the Walt Disney Company that will add a selection of comics from Disney, Marvel, Star Wars and 20th Century Studios to the Webtoon platform. The stock’s true powers have been awakened! There’s no stopping it now! Or is there?!