Investing

Stocks Not Participating in the Rally (MO, AOL, CVC, DTSI, ENOC, FOSL, GTY, LLNW, MGM, STXS)

Most investors love when the market bounces big after a huge sell-off.  The 600+ point drop in the Dow Jones Industrial Average on Monday actually came to almost 2,000 lost DJIA points just since July 21.  So most articles are of strength and gainers, but what about when you have big up days and there are stocks down on news that are not participating in the rally?  This culminates the stocks on the downside that are not just one-dollar stocks and which are actively traded on news today.

Altria Group, Inc. (NYSE: MO) is a defensive stock that is supposed to hold up well, so investors are rolling into “risk” when the DJIA is up so much.  Shares were down 0.6% at $24.39 this morning.

AOL Inc. (NYSE: AOL) has already bounced almost 10% from its lows this morning but shares are down 11.5% at $13.33 after hitting a 52-week low of $12.11 this morning.  The smaller net loss and ad revenue growth appear to have missed targets, which seems odd considering how much the stock has sold off from its 52-week high of $27.65.  At some point, that news should be priced in.

Cablevision Systems Corporation    (NYSE: CVC) turned in growth on phone and internet additions, but the earnings missed estimates.  The drop was another 9.5% to $17.67 and the stock hit a 52-week low of $17.24 earlier this morning.  That is now down more than 50% from its 52-week high as well.

DTS, Inc. (NASDAQ: DTSI) is supposed to provide state-of-the-art audio technology to hundreds of millions of DTS-licensed consumer electronics products worldwide, but its earnings miss shows it isn’t powering enough of the devices with a lower 2011 guidance.  DTS shares are down over 21% at $23.17 and the stock hit a 52-week low of $20.93 this morning.

EnerNOC, Inc. (NASDAQ: ENOC) is supposed to help companies cut their energy use and cut their energy bills but it is not doing enough of it.  Besides being unable to use a tax benefit, its growth has peaked as its $280 million to $300 million sales projection for 2011 is the sae for 2012.  Many Wall Street analysts downgraded the stock on a huge disappointment.  Shares are down almost 36% at $9.20 after a 52-week low was hit of $9.13 and the high was $34.38.

Fossil, Inc. (NASDAQ: FOSL) was supposed to be a jewelry winner as it is not deep into gold and silver exposure.  It turns out not to be the case in many of its brands and margins took a beating on higher input costs and on a weak outlook ahead.  Fossil shares were down 18.8% at $76.19.  Keep in mind that its 52-week trading range is $42.08 to $134.98.

Getty Realty Corporation (NYSE: GTY) gave an update on its Getty Petroleum Marketing operations: it has not received the monthly rental payment for August from its largest tenant under its Master Lease and other leases.  Shares are down 13.5% at $17.26 and shares hit a 52-week low of $16.60 versus a high of $32.20.

Limelight Networks, Inc. (NASDAQ: LLNW) is getting crushed after missing earnings and missing on revenues and then guiding lower for the third quarter.  Shares are down over 30% at $2.27 and the stock hit a low of $2.229 this morning. Just one more bit of proof that communications equipment and expedited content delivery slowing is persisting.

MGM Resorts International (NYSE: MGM) posted a gain after MGM China but the peak appears to have been called on gains.  MGM shares are down 4.5% at $11.02 versus a 52-week range of $8.92 to $16.94.

Stereotaxis, Inc. (NASDAQ: STXS) is the sole $1+ stock covered today because it is THE LOSER OF THE DAY with a 59% drop to $1.16 with a new 52-week low and an adjusted 52-week trading range now of $1.13 to $4.67.  The company markets cardiology instrument control systems, but apparently doesn’t market them very well.  Volume is 5-times normal at over 300,000 shares and the stock.  The company reported a wider loss, announced cost cuts, and its CFO is leaving the company.  Nice.

JON C. OGG