5 of Last Week's Biggest Losers
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.
Let's start with Sequenom. The genetic-diagnostic specialist shed nearly a third of its value after moving to slash expenses and nix profitless services over what it considers to be a temporary Medicare reimbursement issue.
Wall Street wasn't sold on the temporary nature of the iffy prospects, though. At least three analysts lowered either their stock ratings or price targets on Sequenom.
Walter Energy tumbled after dramatically slashing its dividend. The metallurgical coal producer's quarterly rate is going from $0.125 a share to just $0.01. The move probably isn't much of a surprise. Walter Energy has posted three consecutive quarterly losses as demand and pricing for coal remain under pressure. The company needs to amend its credit facility to raise more money, and that restricts its once-healthy payout level.
Seagate skipped over some bad sectors after reporting mixed quarterly results. Craig-Hallum downgraded shares of the hard-drive maker from "hold" to "sell," even though Seagate beefed up its share-buyback efforts. Seagate's outlook for the current quarter wasn't very impressive, but at least it points to sequential growth.
Zynga fell after announcing that it's giving up on pursuing stateside opportunities for real-money wagering. The social- and casual-gaming leader has been a disappointment since going public at $10 two years ago, but one of the few positive potential catalysts was its prospects in online gambling. Zynga has bigger fish to fry at the moment, as bookings remains soft.
Finally we have RadioShack slipping after a terrible quarter. The consumer-electronics retailer stumbled after posting a quarterly loss that was substantially larger than what Wall Street was expecting.
Investors also weren't encouraged by seeing the chain's CFO take off. Dorvin Lively left to be CFO at gym operator Planet Fitness, and he bolted even though it meant forfeiting a $1.5 million retention bonus that would've been payable in October. That's a scary sight on many different levels.
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The article 5 of Last Week's Biggest Losers originally appeared on Fool.com.
Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool owns shares of RadioShack. 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.
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