Investing

Pigs of the Pageant: Huge Losers on a Great Day (MDR, ORRF, TQNT, HGR, AXTI, AVP, NIHD, BRY)

The market may be up huge today (DJIA now up over 300 points and over 12,000) on a Eurozone bailout fund agreement and on a positive GDP report, but there are some serious stinkers out there today.  Today’s biggest losers are as follows: McDermott International, Inc (NYSE: MDR); Orrstown Financial Services Inc. (NASDAQ: ORRF); TriQuint Semiconductor, Inc. (NASDAQ: TQNT); Hanger Orthopedic Group, Inc. (NYSE: HGR); AXT Inc. (NASDAQ: AXTI); Avon Products, Inc. (NYSE: AVP); NII Holdings Inc. (NASDAQ: NIHD); and Berry Petroleum Company (NYSE: BRY).

We have compiled news summaries, added in color, and shown the price moves as needed.  When the DJIA is up 300 points, you have to ask yourself how bad the reactions here would have been if the market was down on the day.  These are today’s pigs in the beauty pageant.

The biggest and worst offender is McDermott International, Inc (NYSE: MDR). Shares are down 31% at $10.09 on the day on exponential trading volume after the company lowered guidance and gave an outlook to 2012.  The engineering and construction company sees only $0.03 to $0.05 EPS rather than $0.29 EPS. Ouch!  The only good news is the quote “it should be made clear that this quarter’s expected results are not indicative of our outlook for the future.”

Some company called Orrstown Financial Services Inc. (NASDAQ: ORRF) is the next to worst performer and Orrstown is full of a bunch of ‘Orffing Orrfers’ today as a result. The company runs Orrstown Bank, with 21 banking offices and 2 remote service facilities located in Cumberland, Franklin and Perry Counties, Pennsylvania and Washington County, Maryland.  This is after earnings and no dividend. Shares are down 31% at $9.10 and the new 52-week range is $8.80 to $29.50.

TriQuint Semiconductor, Inc. (NASDAQ: TQNT) is supposed to be a winner from the iPhone 4S, isn’t it?  This chip-maker is getting battered and bruised after beating earnings expectation but giving a weak forecast.  This one is down almost 27% at $5.25 and the 52-week range is $4.66 to $15.20.

Hanger Orthopedic Group, Inc. (NYSE: HGR) is taking it in the chin after earnings last night.  The orthotic and prosthetic patient care center operator is down 19.6% at $17.01 and the 52-week range is $16.33 to $28.47.

AXT Inc. (NASDAQ: AXTI) is often overlooked in the field of compound and single element semiconductor substrates for use in wireless communications, lighting display applications, and fiber optic systems.  Short sellers are not overlooking it.  The company’s earnings report from last night has shares down 22.2% at $4.60 and the new 52-week range is $4.31 to $12.23.

Avon Products, Inc. (NYSE: AVP) is still in need of a new Chief Executive Avon Lady. The company posted a 1% drop in earnings but disclosed an SEC probe.  Volume is already approaching 300% above normal and the stock’s drop is down over 18% at $18.79.  The 52-week range has not yet been breached but is $18.17 to $34.87.

NII Holdings Inc. (NASDAQ: NIHD) is the Nextel of Latin America, and this morning it is being called “Nextel Pinche” by its shareholders after what appears to be an awful earnings report with a net loss.  Shares are down a whopping 16.4% at $25.48 and the new 52-week trading range is $25.03 to $46.32. 

Berry Petroleum Company (NYSE: BRY) looked like good earnings on the surface with at $134 million, or $2.42 EPS.  Those earnings were boosted by a non-cash “gain on hedges and a non-cash loss on extinguishment of debt” that boosted the report by $90 million or by $1.63 EPS.  Shares are down 13.7% at $37.25 and the 52-week range is $30.59 to $61.17.

JON C. OGG