The following is a list of companies that have seriously disappointed investors. While the leading US indices S&P 500, DOW, NASDAQ added 19.4%, 25.08% and 28.24% respectively, these companies lost at least 44.9% of their value, and some even more than 50%, and this while the market continued to rewrite record highs.
The list is shown in reverse order and includes both start and end prices. If you were the holder of these shares, then we sincerely sympathize with you. It remains to hope for better results in the new year.
5. General Electric: at the beginning of 2017, shares traded at $ 31.6, and ended the year at around $ 17.4 (-44.9%)
General Electric, a global giant in the industrial and technological sectors, was once a bright representative of the blue chips, but 2017 was a very bad year for it. Key executives left the company (one might even say that they fled), including chairman of the board of directors Jeffrey Immelt, who unexpectedly resigned 3 months earlier than the planned date.
In addition, the financial performance of the company is also not up to par.
In the third quarter, the doubled earnings per share of GE fell from $ 0.49 to $ 0.29, which almost halved the dividends, adding negativity to the market.
Today, the company goes through a restructuring procedure.
New CEO John Flannery wants to breathe life into a once-successful company, focusing his efforts on three divisions: aviation, energy and healthcare. Most likely, this puts an end to transportation and GE Lighting.
The result of efforts to improve the company through its reduction may be the elimination of thousands of jobs in the new year. The path of further development of GE is long and thorny, and it has just begun. So far, the company’s efforts are not sufficient for investors to again trust it.
4. SCANA: started 2017 at $ 73.3 and fell to $ 39.7 (-45.8%)
SCANA Corporation, a South Carolina-based power generation, transportation and distribution company, performed well in the first half of 2017.
However, in July, the company announced a halt to the construction of a nuclear power plant after the estimated cost of the project rose to $ 25.7 billion, which is $ 14.2 billion more than the initial estimated cost calculated in 2008. On the day the decision was announced, the company's shares fell 8%.
To date, the reactors are only partially built.
In September, the company received a subpoena to consider the canceled project. According to the results of an audit conducted by the office of the Governor of South Carolina, the company could know about the failure of the project long before the official announcement of the decision. It was the trial that put such strong pressure on the company's securities in the second half of 2017.
3. Envision Healthcare: shares met the beginning of 2017 at around $ 64.1, and finished at $ 34.5 (-46.1%)
Envision Healthcare, a provider of physiotherapy, outpatient care and medical transportation services, experienced a fall in stocks to $ 25 on November 9, so even a subsequent rally of 45% in the last 2 months of 2017 did not save her from getting on our list.
Envision, which owns the medical transportation company AMR and EmCare (which provides emergency and physiotherapy departments), became the subject of verification after the publication of an article by NYT, which spoke about the provision of unexpected and extremely expensive services to emergency centers in the clients.
The publication was followed by a class action lawsuit, and Missouri Senator Claire McCaskill said she would look into similar cases involving residents of her state. Add to this the disappointing financial results for the third quarter, in which diluted earnings per share were 17% below the expected $ 0.88 and amounted to $ 0.73, and you get the perfect combination for a stock crash.
2. Range Resources: 2017 began at around $ 33.6; recent trading ended at $ 17.06 (-49.23%)
Range Resources produces natural gas and oil. Entering it on our list should not surprise anyone who, over the past few years, has followed the dynamics of commodities and shares of industry companies.
Range Resources shares have been falling since 2014, in which they traded at $ 95.
Since then, the company has depreciated by 82%. The combination of low oil prices, reduced production and increased debt burden has put pressure on the company over the past three years.
In 2017, RRC shares fell due to low fuel prices, disappointing quarterly results and a low production forecast for 2018, while most oil and gas companies raised target production levels amid recovering energy prices.
1.Under Armor: over the year, stocks fell from $ 29.3 to $ 14.4 (-50.85%)
In 2015, the future of Under Armor seemed cloudless. A new brand in the market, and NBA's best player Stephen Curry became the face of the company. In December 2015, the ratio of profit to share price (P / E ratio) was 77, reflecting investor confidence in the company.
Unfortunately, since then, the company has not worked out well. Sales never met investor expectations. The company completed the first two quarters of 2017 with losses of $ 2 and $ 12 million, respectively.
Q3 was the biggest blow to the company when it reported its first year-on-year decline in sales. Nike and Adidas maintained a market duopoly in 2017, much to the chagrin of UnderArmour shareholders.
Note: Frontier Communications and the Fossil Group could also be included in this list (shares fell 86.6% and 69.9%, respectively), but they were excluded from the S&P index after their capitalization fell below the minimum $ 6.1 billion.