Diamonds and Dogs
Thank you Oprah! Oprah is expanding her power and reach to Wall Street. Today's diamond is Weight Watchers (WTW) up 105% on news Oprah Winfrey took a 10% stake in the firm which comes with a seat on the board of directors. Oprah, who has been frank about her struggles with weight loss, bought newly issued shares representing 10 per cent of the group's outstanding stock at $6.79 apiece, for $43.2 million. With the stock closing at $13.92 a share, Oprah netted a cool $43 million one day profit. A pretty good one day return even for a billionaire.
The force is not with Hasbro (HAS). The stock fell 7% today after its third-quarter sales narrowly missed analysts' forecasts, despite strong revenues from boys' toys ahead of the launch of the latest Star Wars film. Hasbro, which has outperformed its larger rival Mattel this year, reported a 24 per cent increase in revenues from its boys segment to $593m, thanks to a strong start to sales of toys linked to Star Wars: Episode VII The Force Awakens, the Walt Disney film which premieres in mid-December and has a new trailer tonight. Let's hope for a better fourth quarter.