Lululemon Athletica Inc. (DOG)
Business quiz! Shares of Lululemon Athletica tumbled after: a) U.S. health secretary Robert F. Kennedy Jr. testified before a Senate Committee that wearing tight yoga pants is a leading cause of heart disease; b) the North American market was flooded with cheap Chinese knockoffs bearing the label “Lullulemon Ahtletica”; c) the company issued a full-year earnings forecast well below Wall Street estimates, citing the impact of tariffs. Answer: c.
Shoe Carnival Inc. (STAR)
Hilarious prank to pull on your kids: Tell them you’re going to a “carnival,” then watch their faces drop as you pull up to the entrance of Shoe Carnival. The U.S. footwear retailer was at least making investors smile this week after second-quarter earnings topped Wall Street’s estimates. Even as sales fell, the company hiked its full-year earnings forecast, citing its decision to focus more on higher-end footwear and expand its Shoe Station concept aimed at higher-income households. Owning this stock is more fun than riding a Ferris wheel.
Kraft Heinz Co. (DOG)
Was it a case of too many cooks in the kitchen? When food giants Kraft and Heinz merged in 2015, the deal’s architects – including private equity firm 3G Capital and Warren Buffett’s Berkshire Hathaway – said it would create substantial synergies and opportunities for growth. But after a decade of sluggish sales and a 66-per-cent plunge in its share price, Kraft Heinz is once again splitting into two companies – one focused on sauces, spreads and meals, and the other on grocery staples such as Kraft Singles and Oscar Mayer meats. Judging by the market’s cool reception to the announcement, however, breaking up the company won’t necessarily be a recipe for success.
Telus International (Cda) Inc. (STAR)
Well, I didn’t have this on my stock market bingo card. Less than five years after spinning out its Telus International subsidiary, parent Telus Corp. plans to take the software services company – also known as Telus Digital – private for US$539-million or US$4.50 a share. That’s a premium to the stock’s recent trading range, but an 82-per-cent discount to the company’s IPO price of $25 in February, 2021. “The transaction is fully reflective of our belief that closer operational proximity between Telus and Telus Digital will enable enhanced AI capabilities and SaaS [software as a service] transformation across all lines of our business,” Telus chief executive Darren Entwistle said in a statement. Stupid question: Then why did you spin it out in the first place?
Cytokinetics Inc. (STAR)
This is one stock that has investors’ hearts pumping. Shares of Cytokinetics soared after the biopharmaceutical company announced positive data regarding its investigational heart disease drug, aficamten, for obstructive hypertrophic cardiomyopathy. In a presentation at a cardiology conference in Madrid, Cytokinetics said trial data support the drug’s efficacy and safety, claiming it is superior to the beta blocker metoprolol, which is commonly prescribed to heart patients. With the U.S. Food and Drug Administration expected to make a decision on aficamten in December, investors’ pulses are racing with anticipation.