Watch List: Companies Taking a Beating
by Paul Springer
While equity markets were looking up Wednesday, continuing volatility makes the current environment a dangerous place in which to release bad news.
For those looking for distressed buys or short selling opportunities, the companies bear watching:
Netflix (NFLX) affronted users again, only days after announcing that it parted ways with Starz Entertainment. Now the company has limited online streaming, which was recently repriced in a way that also aggravated users and investors alike.
The limitation of streaming was announced along with the repricing, but Stop the Cap! reported that over the Labor Day weekend a glitch caused Netflix users to suffer streaming limitations more restrictive than what was indicated in the new pricing plan. Inaccurate reports about the extent of the limitations continue to inflame subscribers.
Shares were down 2.5% mid-day Wednesday, after dropping 9% in one day the previous week when the breakup with Starz was announced.
BofA has plenty of problems already, FOX Business Network’s Charlie Gasparino questions the company’s efforts to heal itself. Listen to a report here, and read Gasparino’s contribution at The Huffington Post here. See also Ft.com/alphaville’s report on BofA’s “de-layering bloodbath.
This list of down-in-the-dumps stocks from Minyanville ranges from HP (HPQ) to Netapp (NTAP) and First Solar (FSLR).
Enterprise software company Deltek faces dismal prospects due to government cost cuts and other factors, a Seeking Alpha blogger says. “My only recommendation to investors holding this company is to make sure they are checking the news on a daily basis,” the post says.
VASCO Data Security International also faces a murky future after receiving a one-two punch combination in the form of a security breach and an analyst downgrade. The company said in a regulatory filing at the end of August said the “intrusion” did not affect its core technology. On Wednesday, Wunderlich Securities downgraded the company and chopped its target price by more than half.
Zack’s says VanceInfo Technologies (VIT) is in a downtrend, which today involved a downswing while the S&P 500 was heading up.
Some stocks in the hardy utilities sector have taken a whupping too, according to Wall St. Cheat Sheet. Among that minority of utility issuers is
In other asset class news, gold got pushed down by a stronger dollar Wednesday. “Just when everyone had left the U.S. dollar for dead, abandoning the world’s reserve currency for alternatives like the Swiss franc and gold bullion, it has risen from the dead,” msn.money reports.
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