4 Companies That Destroyed Shareholders This Past Week

Investing

Published: December 19, 2015 10:25 am

Last Updated: March 13, 2020 2:58 pm

This past week was a rough one for the broad markets, both the Dow Jones Industrial Average and S&P 500 had less than spectacular weeks. Much of this can be attributed to the strengthening dollar, dropping oil prices and the Federal Reserve rate hike — although there was a brief rally Wednesday. As a result, many shareholders have taken punishment in some form, but some have been absolutely obliterated.

24/7 Wall St. has tracked four companies in which shareholders were destroyed last week. Many of these companies have seen their markets caps drop sharply.

KaloBios Pharmaceuticals

KaloBios Pharmaceuticals Inc. (NASDAQ: KBIO) dropped on perhaps the biggest news story of the week, the arrest of Martin Shkreli. This hedge fund manager and CEO of both Turing Pharmaceuticals and KaloBios has faced incredible social outrage since earlier this fall when he jacked up the price of an AIDS drug by over 5,000%. However, his arrest had nothing to do with that. Shkreli was under investigation by the FBI and U.S. Securities and Exchange Commission (SEC) for securities fraud.

It never looks good when your CEO is arrested and under investigation for these things. Turing already had replaced him with Chairman Ron Tilles.

Shares of KaloBios were trading at $23.59 on Friday’s close, with a consensus analyst price target of just $5.00 and a 52-week trading range of $0.44 to $45.82. Over the course of the week, shares dropped about 15%.