Investing
The Market's Biggest Selling Fallout Victims (ALU, BAC, LNG, CRU, DHI, F, GM, FFSL, GERN, STEM, IPSU, IRDM, JWN, S, SIRI, VHC, RMBS)
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When you have a credit rating downgrade of the U.S. followed by a 300+ point drop in the DJIA and another near-100 point drop in the NASDAQ, it is no shock at all that you are seeing some big losers. We have looked through the biggest market losers out there and given why the moves are so exaggerated today. On the flip-side, there are at least seven defensive stocks which should hold up much better from earlier this morning. What is funny about many of the names that are off the most today is that they are down due to credit fallout rather than due to the exact news on their own issues.
Alcatel-Lucent (NYSE: ALU) was up the most of all networking stocks this year, so it can’t be too shocking to see it whacked yet again. Shares are down over 12% at $3.11.
Bank of America Corporation (NYSE: BAC) is no surprise and the news is AIG and the bank’s risks to future suits etc… Shares are down 9.3% at $7.42.
Cheniere Energy, Inc. (AMEX: LNG) is one of the still very speculative players and the precipitous drop in nat-gas is not helping a leveraged player today. Shares are down a whopping 18% at $6.40.
Crude Carriers Corp. (NYSE: CRU) is following is big leg down from Friday and shares are down 15% at $7.01.
DR Horton Inc. (NYSE: DHI) is down 5.1% at $9.87 and the 52-week low is $9.73. When credit gets tighter, how great is it for homebuilders in an already-weak market? Ditto for all of its peers.
Ford Motor Company (NYSE: F) is down for the risk to U.S. auto sales as the buyers who rely upon credit can easily put off car buying. Ford is down 6.5% at $10.13… risk of double-digits again? That was a 52-week low today. General Motors Company (NYSE: GM) is now down 5.5% at $24.86 and shares came within two cents of the post-IPO lows of $24.49 already today.
Freescale Semiconductor Inc. (NYSE: FSL) may be highly diversified, but that is not helping. It was not exactly on the most solid footing when the IPO came about and shares are down another 9.5% at $10.73 after having hit a new 52-week low of $9.57.
Geron Corporation (NASDAQ: GERN) has no news as the leader in stem cell research, but StemCells Inc. (NASDAQ: STEM) is down almost 17% at $2.16. Geron shares are down 9.5% at $2.68 today.
Imperial Sugar Co. (NASDAQ: IPSU) lost over half its value on Friday after management just lost all credibility with its discussion about a loss. The company had just been out pitching its new “alternative sweetener model” rather than just sugar but the damage is extreme now. Shares are down another 14% at $8.09.
Iridium Communications Inc. (NASDAQ: IRDM) is suffering with the international growth scene now. How many people need satellite phones if the purses get tightened too much? Shares are down almost 7% at $7.38.
Nordstrom Inc. (NYSE: JWN) is probably seeing a few less up-sales this week and shares are trading down 5.5% at $41.87 on the day. That is still well above $the $28.44 low of the last year.
Sirius XM Radio Inc. (NASDAQ: SIRI) is getting unusually punished due to the risks to auto sales being the first economic spot hit. Who cares if Howard Stern is there or not on a day like today? Shares are down 7% at $1.68.
Sprint Nextel Corporation (NYSE: S) is down yet again and down another 7.8% at $3.43 in active trading. We said the worst was not over there just last week and stick by that statement. It will take a bull market to save Sprint.
VirnetX Holding Corporation (AMEX: VHC) is the patent player that sues companies for royalties. How relevant it is when its “patent partners” are getting whacked so hard is up to. The market vote is that the model is not relevant as shares are down 15% at $18.71 this morning. Keep in mind that the 52-week range is $5.65 to $41.77. Rambus Inc. (NASDAQ: RMBS) is another “patent licensing operation” that is suffering, with shares down 8% at $10.64 and the stock hit a 52-week high of $10.15 today.
Another day of selling as the great flush continues… The good news is only that the bad news is bad enough and it has been bad enough that at some point you have to expect bargain buyers to surface.
JON C. OGG
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