8 Companies That Destroyed Shareholders Last Week
This past week is being touted as the best week of the S&P 500 for 2015. Still, the stock market is actually a market of stocks, and that love was not universally shared among all of them.
24/7 Wall St. has tracked eight companies in which shareholders were absolutely punished last week. Many of these companies have seen their markets caps drop sharply, and some have even drifted into a small-cap market cap range now. The micro-cap and very thin volume stocks were avoided in this review. After all, those companies have more variables than most investors are willing to (nor should they) accept.
Included is a brief bit of the news and how the stock’s reaction was compared to prior days and longer-term trading. Some of these companies may recover in time, but the news sounds dire for some of them. Here are eight stocks in which shareholders felt gutted this past week.
Clovis Oncology Inc. (NASDAQ: CLVS) lost more than two-thirds of its value from peak to trough last week. The biotech player therefore lost $2 billion or so, for a market cap that was down to $1 billion by the end of the week. Clovis’ shares ran into an FDA hurdle after its lung cancer drug review was delayed. More than six law firms are investigating the company in various stages of a class action potential. Clovis closed trading at $26.41 on Friday, down from over $100 the prior week.
Mentor Graphics Corp. (NASDAQ: MENT) was gutted on Friday, with its shares having lost as much as a third of their value in the afternoon. Mentor Graphics missed earnings expectations and guided revenues sharply below consensus estimates. It said that consolidation and delays in emulator decisions are hampering its ability to close business. Any industry in change! Mentor’s volume was more than 15 million shares, even with two hours before the close (20 times normal volume), and the stock was down over 32% at $18.65. Its new 52-week trading range is $18.00 to $28.09.