Tupperware Brands (DOG)
TUP – NYSE
Tupperware containers may keep foods fresh. But the stock is giving off a nasty odour. The shares plunged after the company warned of “substantial doubt about its ability to continue as a going concern,” citing higher interest costs, dwindling cash resources and a “probable” violation of its credit covenants. The company – which posted strong sales early in the pandemic but has since seen demand fall sharply – has hired advisers to look for additional financing and is also reviewing its real-estate holdings for potential dispositions. But judging by the stock’s 95-per-cent drop since the start of 2021, 77-year-old Tupperware is long past its best-before date.
Riot Platforms (STAR)
RIOT – Nasdaq
Business quiz! Riot Platforms is: a) a Donald Trump-funded social-media site where his remaining 300 supporters discuss plans for violent protests should the former U.S. president be convicted of fraud charges; b) a website operated by fans of the American heavy metal band Quiet Riot; c) a Bitcoin miner whose shares surged as the price of the cryptocurrency rose above US$30,000 for the first time since June, 2022, propelled by banking instability, hopes that interest rates have peaked, momentum trading – or some other explanation, depending on whom you ask. Answer: c.
Triton International (STAR)
TRTN – NYSE
How to save money: Instead of taking out a $1-million mortgage to buy a home, find an empty shipping container, move it to a vacant lot and decorate it to your taste. How to make money: Invest in a shipping container company. Shares of Triton International jumped after the world’s largest owner and lessor of intermodal shipping containers agreed to be acquired by Brookfield Infrastructure Partners LP for US$85 a share in cash and stock, or US$13.3-billion including debt. Triton’s global fleet includes more than seven million containers; it’s not going to miss the one you choose to call home.
Peloton Interactive (DOG)
PTON – Nasdaq
Alternate uses for a Peloton bicycle: 1) Clothes drying rack; 2) Extra dining-room chair; 3) Heavy-duty paper weight. Shares of the interactive bike and treadmill maker took their biggest tumble in six months after Morgan Stanley said the company’s website traffic slumped by 27 per cent in the most recent quarter from a year earlier, putting future growth in doubt. With sales of Peloton’s fitness equipment down sharply from the early days of the pandemic and the stock trading about 94-per-cent below its 2021 peak, there’s never been a better time to find a great bargain on a used bike.
Reitmans (DOG)
RET.A – TSX Venture
Well, the goodwill toward Reitmans sure didn’t last. Having emerged from a restructuring under the Companies’ Creditors Arrangement Act in January, 2022, the clothing retailer posted a string of sales and earnings gains that drove its stock sharply higher. But the party ended abruptly this week when Reitmans reported that earnings for the fourth quarter ended Jan. 28 tumbled nearly 72 per cent to $27.5-million, even as net sales rose more than 11 per cent to $211.9-million. The company attributed the drop in earnings to several factors, such as higher overall operating costs, including management incentive awards, and a large one-time gain in the previous year. My analysis indicates that this is either a good buying opportunity, or a sign of worse things to come.
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.