A humorous look at the companies that caught our eye, for better or worse, this week
Innergex Renewable Energy (STAR)
The answer, my friend, is blowin’ in the wind. So is the money, apparently. Shares of Innergex Renewable Energy surged after the company purchased the class B shares of Mountain Air – which owns six wind farms in Idaho – for US$56.8-million. The acquisition – the second funded by a private placement of Innergex shares with Hydro-Québec that was announced in February – “should provide Innergex with additional cash immediately available for distribution,” the company said. The stock’s got the wind at its back.
Cogeco Communications (STAR)
Benefits of the work-from-home trend: 1) Short commutes; 2) No need to shower, shave or perform other basic grooming; 3) A financial boost for investors who own telecommunications stocks. Shares of Cogeco Communications jumped after the company – which offers broadband internet, TV and phone services in Canada and the United States – announced better-than-expected earnings and strong broadband subscriber growth as more people work from home during the pandemic – or play Grand Theft Auto. Strictly on coffee breaks, of course.
Sleep Number (DOG)
Putting money under your mattress may be safe. But putting money into a mattress stock can be risky. Hammered by store closings and weak consumer demand during the coronavirus pandemic, Sleep Number – which makes adjustable and “smart” beds – said sales plunged 20 per cent in the second quarter as it swung to a loss of US$12.6-million. With the stock sinking on the results and still well below its precoronavirus high, the only number investors are concerned about is the amount of money they are losing.
Moderna (STAR)
Bad news: Coronavirus infections are soaring in the United States, where reluctance to embrace common-sense safety measures such as physical distancing and wearing masks is contributing to the rampant spread of the disease. Good news: U.S. drug maker Moderna announced encouraging results from a Phase 1 trial of its experimental COVID-19 vaccine, which induced a “robust” immune response in all 45 test participants. Too bad there isn’t a vaccine for stupidity.
Norwegian Cruise Line Holdings (DOG)
Going on a cruise is probably the last thing on most people’s minds – right after investing in a cruise operator. Shares of Norwegian Cruise Line Holdings took on more water after the company – which has suspended most voyages through at least the end of September – announced an offering of US$250-million of shares and US$925-million of notes as it seeks to stay afloat during the pandemic. Judging by the stock’s performance, some investors are already jumping for the lifeboats.
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.