STARS AND DOGS

The Globe and Mail (BC Edition) - - REPORT ON BUSINESS | GLOBE INVESTOR - JOHN HEINZL

APHRIA

PAST FIVE DAYS

DOG Busi­ness quiz! Shares of cannabis pro­ducer Aphria plunged af­ter: a) McDon­ald’s shot down a ru­mour that it was join­ing with Aphria to launch a “McMar­i­juana Burger”; b) One of Aphria’s pro­duc­tion fa­cil­i­ties was de­stroyed in what the com­pany de­scribed as a case of “care­less smok­ing”; c) Short-seller Quin­tes­sen­tial Cap­i­tal al­leged that Aphria is a “shell game” and that its ac­qui­si­tions in Ja­maica, Ar­gentina and Colom­bia con­sist of busi­nesses “with lit­tle or no sales” and whose val­ues are “vastly in­flated or out­right fab­ri­ca­tions” – claims Aphria re­jected. An­swer: c.

DOW JONES I NDUSTRIAL AVG.

PAST FIVE DAYS

DOG In­vest­ing in a low-cost in­dex fund is one of the surest ways to make money – ex­cept when the in­dex it­self gets crushed, of course. Hit by con­cerns about trade, fears of a slow­ing global econ­omy and wor­ries about a flat­ten­ing yield curve, the Dow Jones In­dus­trial Av­er­age skid­ded about 1,150 points or 4.5 per cent this week and is now down more than 9 per cent since hit­ting a record high on Oct. 3. Look for a mea culpa from Don­ald J. Trump any day now.

DOL­LARAMA

PAST FIVE DAYS

DOG Fool me once, shame on you. Fool me twice – I must be a Dol­larama in­vestor. Share­hold­ers who stuck with the dis­count chain even af­ter its sec­ond-quar­ter re­sults sent the stock into a nasty tail­spin in Septem­ber got an­other dose of bad news this week when the re­tailer’s thirdquar­ter re­sults also missed es­ti­mates. Even as Dol­larama’s same­store sales rose 3.1 per cent, the num­ber of trans­ac­tions fell by 0.9 per cent and its gross mar­gin also slipped. Surely the next quar­ter will be bet­ter, right? Right?

ROOTS

PAST FIVE DAYS

DOG True or false: When a com­pany’s re­sults miss ex­pec­ta­tions, in­vestors are usu­ally pretty un­der­stand­ing and will gen­er­ally look the other way. An­swer: false. Cit­ing un­sea­son­ably warm fall weather, the lack of a ma­jor mar­ket­ing cam­paign and tough com­par­isons with last year when Canada cel­e­brated its 150th birth­day, cloth­ing re­tailer Roots posted a hefty 13.4-per-cent drop in same­store sales for the third quar­ter as earn­ings fell well short of es­ti­mates. With Roots cut­ting its fis­cal 2019 outlook, the stock’s been marked down to clear.

BIT­COIN

PAST FIVE DAYS

DOG Don’t say you weren’t warned, bit­coin in­vestors. A year ago, with bit­coin fetch­ing nearly US$20,000, gullible spec­u­la­tors were mort­gag­ing their homes and liq­ui­dat­ing their kids’ col­lege funds to load up on the cryp­tocur­rency, ig­nor­ing saner voices that said it was a clas­sic bub­ble. Now that bit­coin has plunged more than 80 per cent from its peak, the cryp­tocur­rency crowd should con­sider mov­ing on to some­thing less volatile. May we sug­gest putting your en­tire port­fo­lio into mar­i­juana stocks?

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