Investors eat up Goodfood’s stock, but leave Imperial Oil sinking — here are this week’s corporate winners and losers - Toronto Star

Winners

Goodfood Market Corp. (FOOD.TO) +15.1%

Goodfood released its third-quarter 2021 results on Wednesday with revenues up to $108 million, from $87 million in 2020. Despite the 24-per-cent growth in revenues, the company reported a net loss of $2.0 million, compared to $2.8 million of net income in 2020. The company attributes the net loss to an increase in selling, general and administrative expenses caused by an expansion of the management team, and related administrative functions to support its growth in Canada. Despite this, investors seemed pleased with the results, sending the share price up more than 14 per cent on Wednesday alone.

Parex Resources Inc. (PXT.TO) +5.8%

In a news release on Wednesday, Parex Resources announced an expansion of its strategic partnership with Ecopetrol S.A., a Colombian oil and gas producer. Parex specializes in the exploration, development, production and marketing of oil and natural gas in Colombia. This partnership gives Parex access to proven reserves in the Llanos Basin located in northeastern Colombia. The company also announced the start of a quarterly dividend. Investors seemed pleased with this news, sending the share price up more than five per cent on Thursday.

Richelieu Hardware Ltd. (RCH.TO) +2.6%

Richelieu released its second-quarter 2021 results on Thursday with sales up to $371 million, from $248 million in 2020. Overall net income more than doubled to $38 million, from $18 million in 2020. Of the roughly 50-per-cent increase in sales, the company attributes 47 per cent to organic growth and three per cent to acquisitions. The company closed three acquisitions in the second quarter of 2021. Investors were pleased with the second-quarter results, sending the share price up almost three per cent by end-of-day Thursday.

Losers

Imperial Oil Limited (IMO.TO) -4.8%

Loading...

Loading...Loading...Loading...Loading...Loading...

Shares of Imperial Oil decreased this week in lockstep with oil prices. Imperial Oil explores for, produces and sells crude oil and natural gas in Canada with a market capitalization of $26 billion at end-of-day Thursday. Western Texas Intermediate (WTI) is a well-known benchmark for oil prices. From the market’s opening Monday to its close Thursday, WTI prices dropped 2.9 per cent, while shares of Imperial Oil dropped 6.6 per cent.

The Toronto-Dominion Bank (TD.TO) -2.7%

Concerns about the pace of the recovery in the United States has spurred investors to forego stocks for bonds. The increase in the demand for bonds has pushed down yields, which are correlated to profitability for banks. Investors seemed to be worried about the impact of low bond yields on TD’s future profitability as suggested by its share price dropping almost three per cent on Thursday. This is a notable drop compared to that of Canada’s largest bank by market capitalization, Royal Bank, which experienced a ho-hum decrease of 0.1 per cent in its share price by end-of-day Thursday.

Canadian Pacific Railway Limited (CP.TO) -2.6%

The Biden administration is expected to sign an executive order this week asking the Federal Maritime Commission and the Surface Transportation Board to address the monopolization of the ocean shipping and railroad industries. Given Canadian Pacific’s numerous facilities and extensive railroad network in the Midwestern states, this news brings uncertainty to its U.S. operations. Investors seemed worried, sending the share price down more than five per cent on Thursday.

Adblock test (Why?)

Investors eat up Goodfood’s stock, but leave Imperial Oil sinking — here are this week’s corporate winners and losers - Toronto Star
Read More