Velan Inc. (STAR)
VLN - TSX
I don’t know about you, but I can go an entire day without thinking about valves. That’s a shame, because if I had been thinking about valves more, I might have invested in a Canadian company called Velan Inc., whose stock has tripled in the past year. Shares of Montreal-based Velan – one of the world’s largest makers of industrial valves, with 1,600 employees and manufacturing plants in nine countries – were surging again this week on news that the company is selling its French subsidiaries for US$175.2-million and using a portion of the proceeds to take asbestos-related liabilities off its books at a cost of US$143-million. My New Year’s resolutions: exercise regularly, eat well, and think more about valves.
Signet Jewelers Ltd. (DOG)
SIG - NYSE
Diamonds may be a girl’s best friend, but they can be an investor’s worst nightmare. Just ask shareholders of Signet Jewelers Ltd. Shares of the world’s largest diamond retailer plunged as much as 26 per cent on Tuesday – their biggest drop in four years – after the owner of chains including Zales, Kay and Peoples said same-store sales dropped 2 per cent in the 10 weeks ended Jan. 11. With holiday receipts missing expectations as customers gravitated to promotions and lower-priced items, Signet also cut its sales and earnings guidance for the fourth quarter. Apparently, people would rather spend three months’ salary on things like rent and groceries instead of buying an engagement ring that will plunge in value as soon as it leaves the store.
FTAI Aviation Ltd. (DOG)
FTAI - Nasdaq
Business quiz! Shares of FTAI Aviation Ltd. came in for a hard landing after the aircraft and jet engine leasing and maintenance company: a) announced a US$250-million writedown after dozens of engines were sabotaged by a disgruntled employee who poured maple syrup into the fuel lines; b) said it plans to put its entire cash balance into Dogecoin “because the chart keeps going up and we don’t want to miss out”; c) was targeted by short seller Muddy Waters, which alleged FTAI has been artificially inflating its recurring revenue by recording one-time engine sales under maintenance and repairs, a claim the company denied. Answer: c.
Flexible Solutions International Inc. (STAR)
FSI - NYSE American
Flexible Solutions International Inc. produces biodegradable chemicals used in water treatment, agriculture and other applications. But what got investors really amped up this week was the Canadian company’s announcement of a contract, potentially worth US$15-million to US$30-million annually, from a U.S. company. What company, you ask? It didn’t say. And what, exactly, will Flexible Solutions be supplying to the mystery company? It didn’t disclose that, either, except to say it involves the “manufacture [of] food grade products” and that “revenue is expected to begin in approximately six months after allowing for FSI to expand its clean room space and install equipment necessary to manufacture the product for the U.S.-based company.” Sounds incredibly promising – whatever it is.
Bitcoin (STAR)
When a mysterious figure (or figures) going by the name Satoshi Nakamoto introduced bitcoin in 2008, he described it as a “purely peer-to-peer version of electronic cash [that] would allow online payments to be sent directly from one party to another without going through a financial institution.” Well, 17 years later, hardly anyone uses bitcoin to pay for anything (ask El Salvador how its bitcoin experiment is going), and those who do can face high transaction costs or long delays. But no biggie! Now that bitcoin has largely failed as a currency, crypto bros have invented another justification for it: a surefire way to get yourself a brand new Lambo. Maybe it’s time for Satoshi to rewrite the crypto white paper: “A purely greed-driven and intrinsically worthless speculative asset that will go up in price forever – until it doesn’t.”