There's never a shortage of losers in the stock market. Let's take a closer look at five of this past week's biggest sinkers.
Whiting USA Trust I
Key Energy Services
Let's start with Dyax. The small drugmaker shed more than a third of its value after posting disappointing quarterly results. Dyax's revenue of $12 million fell well short of the $16 million Wall Street was expecting, and it didn't help that its deficit was twice as large as projected. However, this is ultimately a problematic snapshot for how its flagship drug, Kalbitor, is faring in the market.
Whiting USA Trust I slipped after a Seeking Alpha article suggested that the oil and gas royalty trust could lose half of its value. The article pegged a fair value of $3.50 on the trust units. Whiting issued a press release the next day, pointing out that the New York Stock Exchange contacted the trust given the unusual market activity, but Whiting's policy is to not comment on the activity.
Mellanox Technologies slipped after Needham & Co. downgraded it following results that actually beat Wall Street estimates. Needham, in marking down the shares from "buy" to "hold," is concerned about Mellanox's lumpy business model and the lack of clarity. Mizuho Securities also downgraded Mellanox.
Safeway investors hit the register after the supermarket chain posted disappointing quarterly results. There wasn't much of a bottom-line miss, and comps were at least positive, but the stock hit a four-year high ahead of the results. Expectations ran too high, and the grocer still trades nearly 30% higher in 2013.
Finally we have Key Energy Services moving lower. The country's largest onshore, rig-based well servicing contractor fell short of Wall Street's profit targets in its latest quarter. Key Energy had beaten analysts' bottom-line estimates with ease in previous quarters, but it proved mortal this time, as demand weakened despite record oil production.
Ready for a bounce
If you owned some of these losers, how about following the smart money into winners?
With so much of the financial industry getting bad press these days, is it time to be greedy when others are fearful? Not surprisingly, some of Warren Buffett's biggest investments are in the space. In The Motley Fool's free report, "The Stocks Only the Smartest Investors Are Buying," you can learn about a small, under-the-radar bank that's too tiny for Buffett's billions. That's too bad, because it has better operating metrics than his favorites -- but you can still benefit. Just click here to keep reading.
The article 5 of Last Week's Biggest Losers originally appeared on Fool.com.
Longtime Fool contributor Rick Munarriz and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.