A humorous look at the companies that caught our eye, for better or worse, this week
Voyager Digital (DOG)
VOYG - TSX
Alleged impropriety in the cryptocurrency market? This is shocking! Shares of Voyager Digital sank after the company – whose smartphone app lets people trade more than 100 digital coins – was targeted by securities regulators in eight U.S. states over its interest-earning cryptocurrency accounts. Regulators consider the accounts “unregistered securities” – a claim the company disputes – and several issued cease and desist orders for the products, which have attracted more than US$5-billion in deposits. The crypto market is “not the Wild West, and investor-protection laws absolutely apply,” New Jersey’s acting attorney-general said. Aw, party poopers.
Cargojet (STAR)
CJT - TSX
In ancient times, if you needed a few yards of silk from the Far East or a lump of frankincense from the Arabian Peninsula, you had to wait months while your goods were transported across vast distances on camels and crude boats. Now, thanks to companies like Cargojet, delivery times are a fraction of what our ancestors had to put up with. Shares of the cargo airline jumped after it signed a deal to provide global air-transportation services to courier company DHL for a minimum of five years and awarded DHL warrants to acquire up to 9.5 per cent of Cargojet’s voting shares. “Honey, I think your spices from Indonesia just arrived!”
Dollarama (STAR)
DOL - TSX
Dollarama is raising prices up to $5 “to maintain and enhance its broad product assortment and compelling value” for consumers. How thoughtful. Well, you won’t hear any complaints from investors. Even as Canada’s largest dollar-store chain is battling inflation and supply chain disruptions, the company managed to post results above expectations for its fourth quarter ended Jan. 30, including a 5.7-per-cent increase in same-store sales and a 32-per-cent jump in earnings per share. The strong results sent the shares higher and prompted Dollarama to announce a 10-per-cent dividend hike, which will help investors pay for those new $5 items.
Enthusiast Gaming Holdings (DOG)
EGLX - TSX
Investors aren’t showing much enthusiasm for Enthusiast Gaming Holdings. Even as the video gaming and e-sports company posted a 34-per-cent increase in fourth-quarter revenue, its net loss widened to $12.9-million or 10 cents a share, up from $6.9-million or 6 cents a share a year earlier, amid higher costs for labour, technology support and other operating expenses. With the stock down by about two-thirds in the past year and analysts cutting their 2022 estimates, the only enthusiasm investors have is for selling the shares.
UiPath (DOG)
PATH - NYSE
Robots aren’t just taking our jobs. Now, they’re taking our money. Shares of UiPath – whose “software robots” help companies automate repetitive processes such as data entry and invoice processing – cost investors a bundle this week when the stock plunged after a disappointing outlook. Citing the departure of its chief revenue officer and the impact of the war in Ukraine on its Russian and Eastern European operations, UiPath projected full-year revenue of between US$1.075-billion to US$1.085-billion – less than the US$1.26-billion analysts had been expecting. Clearly, this is all part of the robots’ plan to take over the world.
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