The big boost to equities following Friday morning’s announcement of additional quantitative easing by the Bank of Japan has been spread widely across most sectors. Still there are several laggards that are defying the buying spree.
Clean Diesel Technologies Inc. (NASDAQ: CDTI) has dropped more than 15% from its boost on Thursday following the company’s announcement that it had been granted two patents on the company’s catalytic converter technology. We wondered whether the two patents were worth the 70% jump in Clean Diesel’s share price, and the answer seems to be “not quite.” The stock has already traded more than 10-times its daily average volume of about 664,000 shares.
Kinross Gold Corp. (NYSE: KGC) traded down more than 10% after posting a new 52-week low of $2.21 earlier in the day. Gold miners’ stocks have been massacred as investors shy away from gold (and silver) in favor of equities. In just the first hour of trading, nearly 80% of the stock’s daily volume of more than 10 million shares had already changed hands. Kinross is just one among a number of gold mining stocks taking more lumps now.
Aegerion Pharmaceuticals Inc. (NASDAQ: AEGR) traded down more than 38% Friday morning after posting a new 52-week low of $20.90. The stock was downgraded from Buy to Hold at Jefferies and the price target was cut from $61 to $24. Deutsche Bank also downgraded the stock from Buy to Hold after the drug company posted a huge earnings miss and offered weak guidance. More than seven times the average daily volume of around 1 million shares had already changed hands.
Coeur Mining Inc. (NYSE: CDE) traded down about 5.5% after posting a new 52-week low of $3.65 earlier Friday morning. The silver miner faces the same headwinds that are blowing down gold mining stocks. More than half of the stock’s average daily volume of about 2.2 million shares traded hands in the first 90 minutes of Friday’s session.
Tempur Sealy International Inc. (NYSE: TPX) dropped more than 13% Friday morning to trade at around $51.00, in a 52-week range of $37.93 to $62.00. More than three times the daily volume of around 700,000 shares had changed hands. The mattress maker reported results on Thursday night that missed profit estimates and then lowered its profit outlook for the year.
The Dow traded up nearly 1% at around 17,370, the S&P 500 was up by the same amount to around 2,013 and the Nasdaq Composite surged 1.29% and traded at around 4,625.