A humorous look at the companies that caught our eye, for better or worse, this week
Baytex Energy (STAR)
BTE - TSX
You don’t need to win the lottery to become a millionaire. All you had to do was invest $100,000 in Baytex Energy when the shares had sunk to 50 cents during the pandemic-induced oil price collapse of 2020. Today, you’d be sitting on more than $1.2-million. Simple. Baytex continued its remarkable rebound this week as National Bank analyst Dan Payne upgraded the stock to “outperform” from “sector perform” and raised his price target to $8.75 from $6.50. Next time, don’t listen to that little voice in your head that says you should “play it safe” or that the company “might go bankrupt.”
Twitter (DOG)
TWTR - NYSE
Elon Musk: “I made an offer.” Stock market: “LOL!” Even as the Tesla CEO tweeted that he had made a bid – supposedly worth US$54.20 a share or about US$43-billion – to take Twitter private, investors clearly weren’t taking him seriously. After a brief rally fizzled, the shares finished the week nearly US$9 below the offer price. Maybe it was because the proposal is non-binding and subject to several conditions, including the completion of financing. Or perhaps it was because Mr. Musk – who owns 9.2 per cent of the social-media platform – has a history of making self-serving tweets that attract the attention of securities regulators.
Vertical Aerospace (STAR)
EVTL - NYSE
Electric cars are so 2021. Now, all the cool people are ordering electric airplanes. Shares of Vertical Aerospace took flight after the British startup – which is developing an all-electric winged aircraft capable of vertical takeoffs and landings – was added to Deutsche Bank’s analyst coverage list. Even though the stock was initiated with a lukewarm “hold” rating, investors took it as a sign that the company – which has “conditional pre-orders” for 1,350 aircraft – is gaining credibility. Let’s hope Vertical doesn’t meet the same fate as all those shady electric-vehicle stocks that have crashed and burned.
CarMax (DOG)
KMX - NYSE
Buying a used car is a great way to save money. Well, it used to be. With used vehicle prices soaring because of inflation and tight inventories, shares of online vehicle seller CarMax dropped after retail unit sales of used cars fell 5.2 per cent in the fourth quarter ended Feb. 28, hit by declining consumer confidence, higher prices and a surge in COVID-19 cases. Now that analysts have cut their earnings estimates and price targets on the shares, investors are trading down to a used kick scooter they found on Kijiji.
Delta Air Lines (STAR)
DAL - NYSE
Getting on a giant steel tube in the sky? With hundreds of other people? Some of whom might have COVID? Most folks seem to be good with it. Citing higher fares and growing demand for business and international travel, Delta Air Lines said it expects revenues in the quarter ending June 30 will recover to between 93 per cent and 97 per cent of levels in the same quarter of 2019, before the pandemic hammered the airline industry. With Delta returning to profitability in March despite high fuel prices – thanks in part to a strong spring break – investors are getting over their fear of flying.
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.
John Heinzl