Millions of People Will Soon Be Blindsided. Will You Be One of Them?

On April 20 at 7 p.m. ET, Louis Navellier and Matt McCall will reveal an event that’s about to rock the stock market and how you could use it to beat the markets by nearly 11X.

Tue, April 20 at 7:00PM ET
 
 
 
 

Why Worthington Industries (WOR), Melco Crown Entertainment (MPEL) and Alkermes (ALKS) Are 3 of Today’s Worst Stocks

It took a while to get the ball rolling. But, once the stock market had some time to decide that Janet Yellen sounded more accommodative and dovish than hawkish in her testimony to the Senate Banking Committee this morning, traders rekindled what’s now become a three-week rally. Most major indices hit new 52-week highs today, if not record highs.

why worthington industries inc wor melco crown entertainment ltd adr mpel and alkermes plc alks are 3 of todays worst stocksNot every stock out there was a winner on Tuesday, however. Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL), Alkermes Plc (NASDAQ:ALKS) and Worthington Industries, Inc. (NYSE:WOR) all finished deep in the red. Here’s why.

Alkermes Plc (ALKS)

The good news is, ALKS topped last quarter’s earnings and revenue expectations. Unfortunately, that victory was more than marred by bad news on the drug development front. Almost in tandem with its fourth quarter results announcement, Alkermes reported it was ending the development ALKS-7106, a painkiller with little potential for abuse. But the drug will never see market, as the painkiller in that particular format failed to meets its primary goals in its Phase I trial; ALKS stock fell nearly 4% on the news.

Either way, ALKS reported encouraging numbers for Q4. The biotech company generated $175.2 million in revenue versus estimates of only $158.9 million. Alkermes also beat on EPS, posting a profit of 20 cents per share of ALKS stock versus expectations of only 11 cents per share.

Melco Crown Entertainment Ltd (ADR) (MPEL)

As impossible as it may seem, the outlook for the gambling industry in Macau may have just become even dimmer, sending casino stocks sharply lower. Melco Crown Entertainment, which relies almost entirely on that region for its revenue, led the charge lower.

Per an article posted at Barrons.com on Tuesday morning, Macau government officials are looking to quell an overcrowding problem in that relatively small space by limiting the number of visas allowing visitors into the region. Although nothing official has been decided yet, China is cracking down on illegal activities largely fueled by its gambling industry, and fewer visas will further inhibit the pockets of Macau casinos.

When all was said and done, MPEL stock fell more than 7% on the news.

Worthington Industries, Inc. (WOR)

Last but not least, the precipitous drop in steel prices since December has forced Worthington Industries to rethink its previous — and relatively optimistic — profit outlook for the full year. Though no specifics were given, Worthington Industries CEO John P. McConnell plainly stated:

“I previously expressed my confidence in our ability to grow earnings on a year-over-year basis. While I remain confident in our team and our ability to drive improvement, in light of these headwinds, it will be difficult to achieve year-over-year EPS growth in fiscal 2015. Increasing turmoil throughout the world tilts the scales toward continuing softness in the global economy, keeping downward pressure on the price of steel and other commodities.”

McConnell wasn’t just pre-making excused for what would likely be disappointing results for WOR stock, either. Rebar, for instance, is down 16% from its late January peak, and had been off by nearly 19%.

For perspective, analysts had been expecting WOR stock to report a profit of $2.42 per share for the current fiscal year ending in May. Today’s 13% plunge from WOR stock clearly says the stock market now expects major downward revisions to that number.

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/2015/02/why-worthington-industries-inc-wor-melco-crown-entertainment-ltd-adr-mpel-and-alkermes-plc-alks-are-3-of-todays-worst-stocks/.

©2021 InvestorPlace Media, LLC