Bank of Montreal (DOG)
BMO - TSX
That guy sitting behind a desk in those ubiquitous Bank of Montreal commercials? As a gesture of solidarity with BMO shareholders, he should consider going bare-chested the next time he’s on TV. Investors have been losing their shirts on BMO’s stock after Canada’s fourth-largest lender set aside $906-million in its latest quarter to cover potential loan losses – up from $492-million a year earlier – and reported disappointing results from its U.S. banking division. With BMO’s earnings missing estimates for a sixth consecutive quarter and analysts downgrading their ratings on the stock, investors wish they didn’t have any skin in this game.
Super Micro Computer Inc. (DOG)
SMCI - Nasdaq
Former AI darling Super Micro Computer Inc. is suddenly making investors super upset. Since the shares quadrupled earlier this year, the AI server company has seen most of those gains unravel, and the nightmare continued this week after short seller Hindenburg Research said it found “glaring accounting red flags” and “evidence of undisclosed related party transactions” at the company. Adding to investors’ pain, Super Micro announced the next day that it will miss the deadline for filing its annual report because management needs more time “to complete its assessment of the design and operating effectiveness of its internal controls over financial reporting.” Well, that’s just super.
Best Buy Co. Inc. (STAR)
BBY - NYSE
Is that 70-inch TV you bought last year starting to look small? With the NFL season almost here, it’s time to upgrade to a 98-inch model to experience all the bone-crushing action in its full glory. With consumers buying big-screen TVs, AI-powered computers and other electronic gadgets, retailer Best Buy Co. Inc. topped second-quarter earnings expectations and raised its full-year profit forecast. “We see a consumer who is seeking value and … who is also willing to spend on high-price-point products when they need to or when there is new compelling technology,” said Corie Barry, Best Buy’s CEO. Investors are doing a touchdown dance.
Parex Resources Inc. (DOG)
PXT - TSX
True or false? When a resource company slashes its production guidance, and its chief financial officer resigns, it’s usually nothing to get worked up about. Answer: false. Shares of Calgary-based Parex Resources Inc. shed roughly one-quarter of their value after the Colombia-focused energy producer cut the midpoint of its 2024 production outlook to 49,000 barrels of oil equivalent per day from 57,000 barrels, citing “rapid productivity decline” at its Arauca site. With CFO Sanjay Bishnoi also leaving “to pursue another opportunity,” investors have a lot of crude things to say about this oil producer.
Canadian Imperial Bank of Commerce (STAR)
CM - TSX
Canadian Imperial Bank of Commerce used to be known as “the bank most likely to walk into a sharp object.” Now, it’s becoming known as “the bank most likely to kick some butt.” CIBC’s shares surged to their highest level since March, 2022, after Canada’s fifth-largest bank posted a sharp rise in third-quarter profit, driven by double-digit revenue growth and lower provisions for bad loans compared with a year earlier. With the stock gaining about 42 per cent over the past 12 months – tops among the Big Five – and the bank announcing a buyback of up to 20 million shares, CIBC should consider changing its name to Canadian Imperial Bank of Cha-Ching.