Why Nu Skin Enterprises, Qiwi, and ExOne Tumbled Today

Updated
Why Nu Skin Enterprises, Qiwi, and ExOne Tumbled Today

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

Optimism about a positive start to earnings season took over the stock market today, with the Dow posting its second straight day of triple-digit gains. But even with the S&P 500 hitting a new record high, Nu Skin Enterprises , Qiwi , and ExOne all posted severe declines after company-specific news hit their respective stocks hard.

Nu Skin fell 16% as investors responded to allegations from a state-owned Chinese newspaper about the company that many interpreted as accusing the company of running an illegal pyramid scheme. Nu Skin responded to the allegations, arguing that the article contained "inaccuracies and exaggerations that are not representative of Nu Skin's business in China" and expressing its commitment to work with regulators to resolve any concerns that the article might raise. Given the perception that many investors have regarding apparent similarities between Nu Skin's business and Herbalife's , however, it's easy to understand why shareholders would be quick to pull the trigger on even the hint of trouble plaguing Nu Skin.


Qiwi plunged 17% after concerns arose about possible Russian regulations that could limit the payment-systems company's ability to grow its business. With anti-terrorism laws possibly imposing a ban on payments across international borders, the usefulness of Qiwi's payment-services network could be greatly lessened. Even after the drop, Qiwi shares have still almost tripled from levels set right after its May IPO.

ExOne fell 9%, reversing recent optimism about its growth prospects after the 3-D printing company dramatically downgraded its guidance for full-year 2013 revenue. ExOne believes that the shortfall of 12% to 17% is more a matter of timing than actual lost sales, investors weren't willing to give the company the benefit of the doubt that it can produce revenue growth of 40% to 50% in 2014. Investors in 3-D printing stocks need to understand the huge expectations built into share prices at current levels and be prepared for turbulence at the slightest sign of possible negative news.

Learn more about how 3-D printing could change the world
For the first time since the early days of this country, we're in a position to dominate the global manufacturing landscape thanks to a single, revolutionary technology: 3-D printing. Although this sounds like something out of a science fiction novel, the success of 3-D printing is already a foregone conclusion to many manufacturers around the world. The trick now is to identify the companies -- and thereby the stocks -- that will prevail in the battle for market share. To see the three companies that are currently positioned to do so, simply download our invaluable free report on the topic by clicking here now.

The article Why Nu Skin Enterprises, Qiwi, and ExOne Tumbled Today originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends and owns shares of ExOne and also has options on Herbalife. 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Originally published