Woodshed Report: Top Five Stock Price Spankings

by Paul Springer

While it’s possible to generate a list of stocks with the biggest gains and losses, those lists often prove to contain erroneous prices from bad feeds. And they often miss offbeat situations with interesting drivers.

TraderDaily’s rear-window picks are screened for liquidity and stories with compelling features.

MELA Sciences gets an honorable mention for losing about 50% and gaining almost 100% on different days in the same week on Food and Drug Administration news.

Now here are the issues you wish you shorted; the top five beatings of the week:

5. Camelot Entertainment Group (CMGR) posted an 11% loss on Friday. Not a huge drop, but this one’s the liquidity leader: 327 million shares traded the day after Camelot announced it had bought the distribution rights for the teen love story “A Warrior’s Heart,” starring Twilight’s Kellan Lutz and Ashley Greene. According to Camelot’s statement:

The film follows the story of high school lacrosse star Conor Sullivan, who through his passion for the sport and a new love interest finds the strength to overcome his father’s death.

It does sound like it’s time to sell.

4. Aastrom Biosciences (ASTM) hit a high of $4.45 on Thursday only to end the week down about 45%. It was another classic case of good news and bad news from the FDA. Testing indicated an ischemia treatment is safe but not necessarily so effective.

3. Southern Connecticut Bancorp (SSE) lost 30% of the $6.20 of its previous close when it and Naugatuck Valley Financial Corp. (NVSL) announced they had to terminate a proposed merger after being unable to obtain regulatory approval. So-Conn lost about $2.9 million last year, and the merger’s failure is costing it another $350,000 in termination fees this year.

2.  MakeMyTrip (MMYT), India’s travel portal that went public here in August, was down hard on the week. The story is all about earnings and post-initial-public-offering performance. After being trumpeted as a veritable economic miracle and closing about $26 on the day of the IPO, it later careened through $40 on several occasions. And then it blew its earnings numbers last week and slid about 17% from an early high on Monday to a $27.06 close Friday. That makes for one bad trip.

1. While news of Chinese companies has been dominated by Orient Paper (ONP) and RINO International Corp. (RINO), lesser known auto body and part maker Tongxin International Ltd. (TXIC) was down 26.67% Friday after announcing an approximate 30% reduction in revenue guidance, removal of the chief executive and chief financial officer — and denying takeover rumors.

A leader of a shareholder activism group posts on Seeking Alpha:

Tongxin was at one time listed on the NASDAQ, but has now joined the graveyard of companies on the Pink Sheets… the company’s reputation has been tarnished by allegations that money has been inappropriately siphoned off to interests other than TXIC, and specifically to a company that has ties to TXIC China-based management.

Given the nature of the company’s announcement, it sounds like some former execs accompanied Tongxin’s stock price out to the woodshed.

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