The bulls took another shot on Monday, but once again failed to clear some major technical hurdles when the rally effort just couldn’t gather any steam. The S&P 500 ended the day at 2048.04, down 0.21%.
It was even worse for owners of Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR), Sarepta Therapeutics Inc (NASDAQ:SRPT) and Valeant Pharmaceuticals Intl Inc (NYSE:VRX).
Here’s what went wrong for each.
Petroleo Brasileiro SA Petrobras (ADR) (PBR)
Once again, Petroleo Brasileiro SA Petrobras — better known as just Petrobras — finds itself on the daily “Worst 3” list. PBR didn’t earn a spot on the roster solely thanks to tumbling oil prices though (Crude oil prices did fall, but not a lot). It was sheer uncertainty and upheaval that sent PBR shares more than 4.5% lower on Monday.
Part of this uncertainty at least partially stems from the newest chapter in the impeachment of Brazilian President Dilma Rousseff. This weekend, reports surfaced that the impeachment process may have been rooted in an effort to stop a corruption investigation that could have implemented members of the nation’s newly installed government leadership, some of whom may have had questionable ties with Petrobras.
Fanning the flames of uncertainty for PBR shareholders is the new Mines and Energy Minister … 32 year-old Fernando Coelho Filho, who has little experience in such matters, but is now largely responsible for reviving the state’s oil-driven interests.
Sarepta Therapeutics Inc (SRPT)
Sarepta Therapeutics shares lost almost 9% of their value today, but not for any specific reason just yet.
The company will hear from the FDA regarding its Duchenne muscular dystrophy drug eteplirsen on or before Thursday, and although SRPT shares had been bullish leading up to the event thus far, now that D-Day is near, the market isn’t quite as bold.
Traders are starting to take what profits they can while they can, rather than risk giving it all up, and more, should the news be bad… which it likely will be.
The majority of the FDA advisory panel that makes recommendations to the FDA said eteplirsen did not merit approval.
Valeant Pharmaceuticals Intl Inc (VRX)
Last but not least, another familiar name on the daily Worst 3 list, Valeant Pharmaceuticals, has once again led the bearish charge, as more red flags for the beleaguered company wave.
The latest round of selling was an honest, vocal assessment of the company’s mistakes and challenging future, delivered by none other than recently installed CEO Joseph Papa. At the UBS Global Healthcare Conference Papa explained, “There will be some places where we’ll have to make some decisions on what’s core,” speaking tentatively of rumors that it needs to sell part of itself to regroup before it completely unravels.
Underscoring the notion that the company will need to shed assets is Papa’s vow to cut the company’s debt by $1.5 billion this year, without explaining any details exactly how that could happen.
While VRX knew it was a possibility, hearing Papa say it was something of a wake-up call, sending VRX down nearly 5% for the trading session.
Fanning the bearish flames was Friday’s news that a senior VP for Valeant Pharmaceuticals, Brian Stolz, had resigned. Some traders saw it as just another sign the ship is sinking.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
