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.
| Company | Aug. 16 | Weekly Loss |
|---|---|---|
| Vical Incorporated (NASDAQ:VICL) | $1.40 | 61% |
| MannKind Corporation (NASDAQ:MNKD) | $5.77 | 23% |
| Orbitz Worldwide, Inc. (NYSE:OWW) | $9.68 | 18% |
| Portugal Telecom, SGPS (ADR) (NYSE:PT) | $3.76 | 10% |
| Kandi Technologies Group Inc (NASDAQ:KNDI) | $4.44 | 10% |
Source: Barron’s.
Let’s start with Vical Incorporated (NASDAQ:VICL). The biotech shed more than half of its value after abandoning its once promising Allovectin program. Data from the potential cancer tumor-shrinking treatment’s late-stage trial failed to meet the study’s efficacy goals.
Vical Incorporated (NASDAQ:VICL) will turn its attention to infectious disease vaccine programs, but the rigorous and lengthy approval process in getting a new treatment to market isn’t going to fly with investors who were hoping for Vical Incorporated (NASDAQ:VICL) to have a product on the market sooner rather than later.
MannKind Corporation (NASDAQ:MNKD) is another company that took a hit on late-stage trial news, but this announcement was initially taken as a positive. Shares of MannKind Corporation (NASDAQ:MNKD) popped higher announcing positive efficacy results for its inhalable insulin treatment for both primary types of diabetes.
It could have been a case of “sell on the news” kicking in. Impatient investors also may have gotten cold feet, since regulatory approval won’t be completed until next year at the earliest.
There were also a couple of small negatives. The type 2 diabetes study found the majority of its Afrezza-inhaling test subjects experiencing low blood sugar. The type 1 diabetes results achieved target levels that weren’t as effective as injection-based insulin that’s already on the market.
In the end, these may be just minor setbacks given the clear appeal of needle-free insulin. It wouldn’t be a surprise to see MannKind Corporation (NASDAQ:MNKD) bounce back after the largely positive report.
Orbitz Worldwide, Inc. (NYSE:OWW) shares went on a steep descent after a large investor moved to sell a sizable chunk of its stake in the online travel portal. PAR Capital Management unloaded 8.1 million of its 24.6 million shares, and that’s a tenth of the total Orbitz Worldwide, Inc. (NYSE:OWW) outstanding shares.
PAR Capital Management made the move to diversify. It’s still holding on to most of its position. However, the market doesn’t appreciate the dramatic expansion of more shares floating around.
Portugal Telecom, SGPS (ADR) (NYSE:PT) disconnected with the market after dramatically slashing its once beefy 11% yield. The telco is struggling on its home turf, but things are faring even worse in Brazil, where eroding currencies and cost-control concerns are weighing on the bottom line.
That’s fine. Investor interest in Kandi Technologies Group Inc (NASDAQ:KNDI) has increased since receiving government approval for its first Geely co-developed pure electric sedan, and the market will have to wait and see that play out.
Ready for a bounce
If you owned some of these losers, how about following the smart money into winners?
The article 5 of Last Week’s Biggest Losers originally appeared on Fool.com is written by Rick Munarriz.
Longtime Fool contributor Rick Munarriz and The Motley Fool have no position in any of the stocks mentioned.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
