Biggest Losers of Today’s Stock Market Panic

Thursday, July 26th, 2007 | Financial News with 10 Comments

I’m one of those strange people who gets excited by big one day market declines.  To me, it’s a stock clearance sale. 

I have been busy today buying stocks.  I added Mothers Work (MWRK) and I accumulated shares of an actual Graham net-net for the Fat Pitch Financials Port.  I also picked up shares of an odd lot tender offer and earlier this week I sold my very profitable KBR position in the Special Situations Real Money Port.  More details will follow shortly on some of my purchases.

I wish I had a bit more energy left this evening. With a greater than 2.3% decline in the S&P 500 today, Mr. Market switched into panic mode.  The good, bad, and the ugly stocks all when down  in price.  Sale prices were slashed by 10% to 25% for some of the market’s biggest losers. Often you can find a few good companies that end up in the bargain bin.  I just started going through today’s biggest losers, so I thought I would share the list.  Let’s take a look at these stocks together:

  1. FLORIDA EAST COAST (FLA) -25.5%
  2. ADA-ES INC (ADES) -23.3%
  3. COVENANT TRANS INC (CVTI) -22.%
  4. MICREL INC (MCRL) -21.7%
  5. RIMAGE CP (RIMG) -20.2%
  6. AKAMAI TECH INC (AKAM) -18.9%
  7. ADVANCED ENERGY (AEIS) -16.7%
  8. JAMES RIVER COAL NEW (JRCC) -16.7%
  9. SONUS NETWORKS INC (SONS) -16.6%
  10. EASTERN CO (EML) -16.1%
  11. TARRAGON CORPORATION (TARR) -16.1%
  12. TRANSACTION SYS ARC (ACIW) -16.%
  13. POPE TALBOT INC (POP) -15.7%
  14. SCHWEITZER MAUDIT (SWM) -15.7%
  15. WAVECOM SA ADR (WVCM) -15.7%
  16. RIGHTNOW TECHNOLOGIE (RNOW) -15.2%
  17. PROTALIX BIOTHERAPEU (PLX) -15.1%
  18. PALOMAR MED TECH (PMTI) -15.1%
  19. IMMUNOMEDICS INC (IMMU) -14.5%
  20. MATRIA HEALTHCARE (MATR) -14.3%
  21. CHARLOTTE RUSSE HL (CHIC) -13.5%
  22. REDIFF.COM INDIA ADS (REDF) -13.4%
  23. SECURITY BANK CORP (SBKC) -13.4%
  24. CARPENTER TECH (CRS) -13.2%
  25. D & E COMMUNICATIO (DECC) -13.2%
  26. LIFE PARTNERS HLDGS (LPHI) -13.1%
  27. CABOT CP (CBT) -13.%
  28. HEARST ARGYLE TV (HTV) -12.8%
  29. WCI COMMUNITIES INC (WCI) -12.8%
  30. THOMSON ADS (TMS) -12.7%
  31. ADVANCE AMERICA INC. (AEA) -12.6%
  32. FREEDOM ACQ WTS (FRH.W) -12.5%
  33. NEWPORT CP (NEWP) -12.4%
  34. LJ INTL INC (JADE) -12.3%
  35. SUNCOM WIRELESS HOLD (TPC) -12.3%
  36. CONCEPTUS INC (CPTS) -12.3%
  37. WELLMAN INC (WLM) -12.2%
  38. ASIAINFO HLDGS INC (ASIA) -12.1%
  39. LEVEL 3 COMM INC (LVLT) -12.1%
  40. CELL THERAPEUTIC NEW (CTIC) -11.9%
  41. PARK OHIO HLDG CP (PKOH) -11.8%
  42. DOVER DOWNS GAMING (DDE) -11.8%
  43. MEXICO EQUITY INC (MXE) -11.6%
  44. URANERZ ENERGY CORP (URZ) -11.4%
  45. NIS GROUP CO LTD ADR (NIS) -11.4%
  46. WESTELL TECH CL A (WSTL) -11.3%
  47. PERINI CP (PCR) -11.3%
  48. THESTREET.COM (TSCM) -11.2%
  49. KEITHLEY INSTRUMENTS (KEI) -11.%
  50. INPHONIC INC. (INPC) -11.%
  51. SOTHEBYS (BID) -11.%
  52. SMTC CORP (SMTX) -10.9%
  53. CROSSHAIR EXPLORATIO (CXZ) -10.9%
  54. MAN SANG HLD INC NEW (MHJ) -10.8%
  55. HOUSTON AMERICN ENGY (HUSA) -10.8%
  56. JAMBA INC WARRANTS (JMBAW) -10.7%
  57. BRADLEY PHARMACTCL (BDY) -10.6%
  58. GRAPHIC PKG INTL NEW (GPK) -10.5%
  59. PRE PAID LEGAL SVCS (PPD) -10.4%
  60. MKS INSTRUMENTS IN (MKSI) -10.4%
  61. SYMYX TECHNOLOGIES (SMMX) -10.3%
  62. NATIONAL LAMPOON INC (NLN) -10.3%
  63. ALASKA AIR GROUP INC (ALK) -10.3%
  64. NAVIGANT CONSULT INC (NCI) -10.2%
  65. TELEFONICA ARG NEW (TAR) -10.1%
  66. UNITED PANAM FIN (UPFC) -10.1%

I just noticed that Navigant Consulting  (NCI) made the list.  I had that stock in the Special Situations Real Money Port until this past Monday.  I’m glad I dumped it when I did.  The only reason I owned it was for the odd lot tender offer and that came in at the low end of the range, which was below the price condition I provided to my broker when I tendered my shares.  Remind me to never provide a conditional price again.

There are a few wide moat companies on this list worth at least keeping an eye on.  Of the top of my head, those include Akamai, Rediff.com, Sotheby’s, and Pre Paid Legal. Are there a few other stocks on this list with sustainable competitive advantages?  Any bargains jump out at you?

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Comments

  • I’m long Pre Paid Legal and yes unfortunately its on your list. I am however still up 60%. I wish I had more money to make additional purchase. I started buying yesterday instead of today!

    Nick July 26th, 2007 at 11:31 pm
  • I really like the buy in MWRK! Thanks for the idea.

    StockRake July 27th, 2007 at 12:44 am
  • USG has had a big fall as well.

    David July 27th, 2007 at 11:48 am
  • I notice that you have JRCC listed too. Another coal stock, ICO of Wilbur Ross fame, has been pulverized this week. It is also owned by David Einhorn.

    David July 27th, 2007 at 3:49 pm
  • The second quarter earnings release for ICO was published last week. Here’s what CEO Hatfield had to say:

    “Taking into account the charge for Flint Ridge, EBITDA performance in the second quarter was essentially flat in comparison to the first quarter,” said Ben Hatfield, President and CEO of ICG. “However, from a performance standpoint, the second quarter was disappointing on several fronts. Second quarter profits were negatively affected by theFlint Ridge mine reclamation charge, costs arising from new state and federal mine regulations, and by adverse geological conditions encountered at our Knott County,
    Buckhannon, and Vindex operations. Additionally, the expected boost from newly developed mining operations was suppressed by delayed regulatory approvals at
    Philippi’s Sentinel-Clarion operation and adverse mining conditions at the Raven complex.
    Despite substantial cost improvement at several key operations, the weak April and May results eclipsed much of the June momentum.” Hatfield continued, “The delay in new production ramp-up and the other issues largely
    offset strong second quarter operating performances at our Eastern, East Kentucky, Illinois and ADDCAR business units.
    “Just as we were poised to benefit from increased production output in June,” Hatfield added, “several operations were affected by delayed shipments arising from rail service interruptions, which increased our coal inventories by 210,000 tons, or 27%, compared to
    March 31, 2007. However, overall mine cost performance improved significantly during June compared to all prior months in the first half.”

    I don’t think this warrants a 30% drop in stock price.

    David July 27th, 2007 at 3:59 pm
  • BNSIA tender players got blindsided by ‘clever’ management today.

    I never take these unless I’m ‘sure’ of the actual final details.

    Joe Davis July 27th, 2007 at 5:19 pm
  • Nick: Pre Paid Legal has been tempting in the past, but I just don’t like their business model. It makes me nervous.

    StockRake: Glad you like my MWRK idea even before I posted my rationale. I should have my MWRK post done sometime this weekend, so stay tuned.

    David: USG is a favorite of mine and I might even add more shares if it drops below $40.

    David: Those coal stocks sound interesting. What kind of competitive advantages do they have? Is coal is some kind of price slump?

    Joe Davis: I was one of those blindsided investors. I think I might have to create an online memorial dedicated to the ‘clever’ management so others can know who they are dealing with when doing business with them. These managers need to know there are consequences to their actions.

    George July 27th, 2007 at 9:36 pm
  • George,

    1. I own USG and will also be adding more if it goes 10% or so lower.
    2. I also own ICO and added more on Friday. For a good analysis of the situation in coal at the moment, I refer you to this article: http://energy.seekingalpha.com/article/33025

    David July 28th, 2007 at 12:33 pm
  • I should also say that I listened to the recent ICO quarterly conference call. Mr. Hatfield pulled no punches and described that it was a bad quarter earnings and revenue-wise but stressed the operational improvements of his coal mines. He sounded calm and composed and even optimistic about the future unlike those who were selling the stock last week.

    David July 28th, 2007 at 12:36 pm
  • Another one that has been absolutely hammered is RWT. Weitz owns a huge stake in this one. I don’t own it, as I don’t really understand how to value it.

    David July 28th, 2007 at 3:20 pm

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