The Globe’s stars and dogs for the week
MICHAELS COS. (DOG)
Instead of reading a novel at the cottage this summer, why not curl up with a set of pencil crayons and an adult colouring book? Or think of the fun you’ll have taking up a new hobby such as quilting or soap-making. The folks at Michaels could use your business: The arts and crafts retailer reported a 21-per-cent drop in first-quarter earnings as same-store sales fell 1.2 per cent. With a dearth of popular crafts to drive sales, investors are colouring their portfolios with red ink.
MIK (Nasdaq), $18.51 (U.S.), down $1.05 or 5.4% over week
PROSHARES ULTRAPRO 3X CRUDE OIL ETF (DOG)
What’s worse than investing in crude oil? Investing in an exchange-traded fund that returns three times the daily price change of the commodity. Hit by an unexpected increase in U.S. crude inventories that stoked concerns about a global supply glut, the price of oil skidded nearly 5 per cent on Wednesday, sending the ProShares UltraPro 3x Crude Oil ETF down about 15 per cent. Better luck next time.
OILU (NYSE), $19.90 (U.S.), down $2.77 or 12.2% over week
HUDSON’S BAY (DOG)
Things that never made a comeback: 1) the horse and buggy; 2) the typewriter; 3) the VCR. Judging by the ongoing struggles of Hudson’s Bay (not to mention Macy’s, J.C. Penney and Sears), we might one day be adding department stores to the extinct-species list. The already battered shares of Hudson’s Bay tumbled after the retailer posted a first-quarter loss of $221-million and said it will cut about 2,000 jobs. It’s your fault for buying so much stuff on Amazon.com.
HBC (TSX), $8.61, down $1.64 or 16% over week
AT HOME GROUP (STAR)
You might say investors feel right At Home with this stock. Shares of At Home Group, which operates home-decor superstores, jumped after the U.S. retailer reported a 37-per-cent increase in first-quarter earnings and a 5.8-per-cent rise in same-store sales, prompting the company to raise its outlook. “It is still early in the year, but we feel very good about our first-quarter performance,” chief executive Lee Bird said. Investors feel very good about all the money they’re making.
HOME (NYSE), $22.75 (U.S.), up $3.85 or 20.4% over week
HOME CAPITAL GROUP (STAR)
Home Capital a star? You bet your 2.5-per-cent, one-year GIC at Home Trust it’s a star. Helped by generous interest rates that have slowed the outflow of deposits, the alternative mortgage lender has stabilized its business and is reported to be in discussions with the Ontario Securities Commission about settling allegations it failed to properly disclose fraudulent broker practices. With the stock rising, the shorts are getting squeezed.