Why Twitter Inc (TWTR), Exelon Corporation (EXC) and Monsanto Company (MON) Are 3 of Today’s Worst Stocks

Advertisement

What started out as a very compelling rebound effort ended up being anything but. Despite the fact that China unveiled a big stimulus package today after it looked like U.S. stocks capitulated on Monday, the S&P 500’s intraday gain of 2.9% was turned into a 1.4% loss by the time the closing bell rang on Tuesday. The bearish intraday swing painted an alarming picture of poor bullish conviction.

Why Twitter Inc. (TWTR), Exelon Corporation (EXC) and Monsanto Company (MON) Are 3 of Today's Worst StocksUndermining the broad rally effort more than most other names were Monsanto Company (NYSE:MON), Twitter Inc (NYSE:TWTR) and Exelon Corporation (NYSE:EXC). Here’s why.

Exelon Corporation (EXC)

Utility stocks as a group already were under an inordinate amount of selling pressure on Tuesday after traders decidedly reversed a “flight to safety” mindset that had developed over the course of the prior three trading days. But Exelon managed to lead the bearish charge from utility stocks thanks to disappointing news.

As it turns out, Exelon won’t be pairing up with Pepco Holdings, Inc. (NYSE:POM) to serve the Washington, D.C., market as one company after all.

Most investors were counting on the $6.8 billion buyout to go through. But the Public Service Commission of the District of Columbia — unlike the comparable commissions in other areas served by the two companies — deemed the pairing wasn’t in the public’s best interest.

POM fell more than 16% on the news, while the much bigger EXC closed nearly 7% lower on Tuesday.

Monsanto Company (MON)

What’s good for Syngenta AG (NYSE:SYT) isn’t necessarily what’s good for competing agricultural firm Monsanto. In fact, in light of the situation at hand, what’s good for SYT shareholders is ultimately bad for MON owners.

Long story made short, Monsanto is making a bid for Swiss company Syngenta. The first offer of $45 billion was ultimately rejected by SYT shareholders, so MON upped its bid to the equivalent of $47 billion.

Sensing this back-and-forth process could end up squeezing Monsanto dry, though. And now fearing the whole gambit is little more than a setup for the suitor to pay Syngenta up to $3 billion worth in breakup fees should the deal not be allowed by regulators to proceed, MON shareholders voiced their discontent by sending the stock more than 4% lower today.

Twitter Inc (TWTR)

Last but not least, Twitter ended the day a little less than 3% in the red.

A core piece of the reason TWTR managed to head south while everything else was heading north (aside from the fact that it has been a major disappointment in terms of growth) stems from reports that the SEC has officially scrutinized the way Twitter measures the engagement statistics it’s been touting in its quarterly updates.

Namely, the Securities and Exchange Commission asked the company earlier this year if it planned to use other engagement metrics after dropping timeline views as a measure of engagement last year.

Although the matter is months old and Twitter’s response seems to have appeased the SEC, yesterday’s disclosure that the commission was querying at all raised a few red flags. The last thing TWTR stock holders want to see Twitter do is develop an adversarial relationship with the Securities and Exchange Commission.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2015/08/twitter-inc-twtr-exelon-corporation-exc-monsanto-company-mon-3-todays-worst-stocks/.

©2024 InvestorPlace Media, LLC