Vivint Smart Home (STAR)
VVNT - NYSE
In the old days, people didn’t have smartphones to turn on their lights, unlock their car doors or control their thermostats. They had to do all of those things manually, and it was exhausting. Nowadays, people can control all of those things and more from the convenience of their mobile devices, thanks to technology from companies such as Vivint Smart Home. Shareholders of Vivint were feeling smart indeed after NRG Energy agreed to acquire the company for US$2.8-billion or US$12 per share in cash, sending the stock to a big gain. “Alexa, check my portfolio balance.”
Signet Jewelers (STAR)
SIG - NYSE
“Honey, I know we’re behind on the mortgage, and inflation is making it hard to put food on the table, so I saved money by getting you this $5,000 diamond necklace for Christmas instead of the $10,000 one.” Even with interest rates soaring and the economy heading for a possible recession, some consumers are still able to scrape together the cash for discretionary purchases. Shares of Signet Jewelers – whose retail banners include Jared, Zales and Peoples – were shining bright after sales rose to US$1.58-billion in the third quarter, up 2.9 per cent from a year earlier, as earnings topped expectations. Hey, what are credit cards for?
MGM China Holdings (STAR)
MCHVY - U.S. OTC
Now that China is easing some COVID-19 restrictions, people can finally get back to the important things in life – like playing blackjack and baccarat. Shares of casino operators in Macau – often referred to as the “Las Vegas of the East” – jumped after China announced new measures including accelerating vaccinations of the elderly and reducing some testing requirements as it slowly lifts its draconian COVID-19 measures. Shareholders of MGM China and other casino operators don’t need to gamble. With MGM’s stock more than doubling in the past six weeks, they’ve already hit the jackpot.
Lululemon Athletica (DOG)
LULU - Nasdaq
Geez, Lululemon investors are a demanding bunch. Even as the company posted scorching same-store sales growth of 22 per cent and earnings per share that surged 39 per cent in the third quarter, shares of the athletic and casual apparel retailer fell flat on their face. Apparently, investors were thoroughly let down by Lululemon’s slightly weaker-than-expected holiday forecast that fourth-quarter net revenue will rise by a completely unacceptable 24 per cent and earnings per share will increase by a paltry 26 per cent. Do better, Lululemon. This performance is embarrassing.
Korn Ferry (DOG)
KFY - NYSE
Business quiz! Korn Ferry refers to: a) an ocean-going vessel that transports canned niblets, corn syrup and popping corn; b) a mythical figure who, according to legend, brings a cob of corn in the middle of the night to children who have lost a tooth; c) a global staffing and consulting firm that announced a 14-per-cent increase in revenue for its fiscal second quarter but posted a 7-per-cent drop in adjusted earnings per share, contributing to Korn’s stock getting creamed. Answer: c
John Heinzl