After Monday, there are probably no more doubters left. We are in a bear market and we are in a recession and anyone arguing otherwise is living in a made-up world. The only thing left to argue over is how to get out of this dire situation, and how long it will last. Looking at stocks since the beginning of the year, and over the past month since the feds seized Fannie and Freddie, the picture isn't pretty. Many familiar names have vanished, many -- luckily -- have just seen their market value cut about in half. What once were some large stocks are now some of the smaller ones, including some DJIA components.The following list is of selected familiar names and large stocks that have plunged significantly over these time periods. It does not include the obvious names such as AIG, Wachovia, GM and the likes, but decent stocks we all liked and knew over the years. By comparison, the Dow industrials is down 25% year-to-date, the S&P 500 down 28% during the same time and the Nasdaq Composite down nearly 30%. Over the past month (since the Fannie/Freddie rescue), the Dow declined over 11%, the S&P 500 declined nearly 15% and the Nasdaq declined over 17%.
- Alcoa (NYSE: AA) -- aluminum giant Alcoa is feeling the pains of a global economic slowdown and higher costs even as aluminum prices remain high. Alcoa shares hit a 10-year low Monday. YTD, AA market value has been cut in half, and over the past month alone Alcoa lost 36% of its value.
- American Express (NYSE: AXP) -- the credit card company had large exposure to bad loans that affected its results. With analysts expecting credit card debt to be the next shoe to drop, AXP may see its stock fall more than the 42.2% it already has YTD. It plunged 23.68% this past month.
- Apple (NASDAQ: AAPL) -- even this consumer tech darling couldn't escape the claws of the bears as worries over demand for its products increased. AAPL, one of the stocks that actually had a positive day Monday and closed at $98.14, is down 50.45% YTD, 38.73% this past month.
- Boeing (NYSE: BA) -- not even the Dreamliner can help Boeing if no one is manufacturing it as the machinists strike goes on, and as airlines might have to scale back. BA was down 4.7% Monday to $51.21 -- a 4-year low, but lost 41.36% YTD, 18.44% over the past month.
- Citigroup (NYSE: C) -- this bank -- need I say more than 'bank'? -- has been plagued by all that's been plaguing financials throughout this not-over-yet crisis. Citi saw its stock fall 40.86% YTD, 8.7% the past month.
- Dell (NASDAQ: DELL) -- Michael Dell returned to the helm of this computer company, but investors far preferred Hewlett-Packard (NYSE: HPQ). DELL shares saw a 39.37% decline YTD, 27.19% over the past month.
- eBay (NASDAQ: EBAY) -- eBay's problems started long before this crisis started showing its signs. The once-hot auction web site concept may now be passe. EBAY shares have declined 46.1% YTD, 24.74% this past month.
- General Electric (NYSE: GE) -- as a conglomerate GE should have been able to withstand the headwinds better, but with a large exposure to the financial sector through one of its segments, GE slid 42.33% YTD, 23.31% the past month.
- Google (NASDAQ: GOOG) -- concerns over slowing growth overall induced by less advertising expenditures have plagued this search giant. GOOG, which closed down 4.6% Monday at $369.14, dropped 46.32% YTD, 16.44% this past month.
- Merck (NYSE: MRK) -- as it tried to settle the Vioxx suit, Merck continued to hit one road block after another. Shares declined 48.3% YTD, 12.42% this past month.
- Motorola (NYSE: MOT) -- living off the RAZR high days for a while, Motorola finally realized it needs new hot products. It teamed up with Google to use its Android platform for mobile phones among other initiatives. Until the fruits are seen, and as long as Motorola is susceptible to the same growth problems arising from lower consumer spending, it will likely continue to be depressed, despite already plunging 61.72% YTD, 32.23% the past month.
- Sprint Nextel (NYSE: S) -- Sprint continued to lose customers to its rivals even as it decided the merger with Nextel was not the success it had hoped it would be and that it was finally time to part ways. Shareholders were not impressed and Sprint shares lost nearly 60% of their value YTD, 33.92% the past month.
- Research in Motion (NASDAQ: RIMM) -- like rival smartphone maker Apple, concern over this once high-flying growth stock include softer demand from business as the economy slows. RIMM, which split 3:1 in August 2007, has dropped more than 47% YTD, most of it -- 44.22% -- in the last month alone.
- Sirius XM (NASDAQ: SIRI) -- what many hoped was keeping this stock depressed -- the merger -- was finally approved in June of this year. Despite it, SIRI has seen its stock plummet 83.48% YTD, declining 61.49% this past month alone. SIRI closed at $0.50 Monday and as it continues to trade below a $1, it stands the risk of being delisted from the Nasdaq.
- Whole Foods (NASDAQ: WFMI) -- while Wal-Mart (NYSE: WMT) and Costco (NASDAQ: COST) continue to shine in this environment, "Whole Paycheck" is having problems. The merger with Wild Oats only seems to have added issues. WFMI shares plunged 56% YTD, but surprisingly held steady the past month.
Closing Bell: Economic Catapult for Thanksgiving & Black Friday (WMT, TGT, GRMN, GOOG, MSFT)
Deere up on Q4 earnings performance
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Reader Comments (Page 1 of 1)
10-06-2008 @ 9:58PM
john said...
Hey! Obama, ya still want to increase cap gains taxes if people are foolish enough to elect you? Market down 2000 plus and your solution is to raise cap gains taxes??????????????????????Keep in mind, Wall Street is main street also pal!
10-07-2008 @ 5:20PM
Andrew said...
Google is at 369.14 at close today.
10-07-2008 @ 3:09AM
Mohit said...
Ah!! I am not alone. US financial condition is also like mine :)
10-07-2008 @ 8:42AM
kevin said...
"whole paycheck" , so true
10-07-2008 @ 12:13PM
Sam said...
I would modify beginning of this article as follows:
After Monday, there are probably no more doubters left. We are in a bear market and we are in a recession and anyone arguing otherwise is probably voting for John McCain.
10-08-2008 @ 3:31PM
Shelley said...
If this experience has done anything, let's hope its taught all investors that they should ALWAYS have a Protective Exit Strategy in place for themselves at all times. One that can constantly adjust to the stock's behavior and market conditions. It can be a challenge to always have to pick the optimal exit point that can cut losses but let a stock breathe so that profits can accumulate - but it is doable.
10-08-2008 @ 3:35PM
Shelley said...
If this experience has done anything, let's hope its taught all investors that they should ALWAYS have a Protective Exit Strategy in place for themselves at all times. One that can constantly adjust to the stock's behavior and market conditions. It can be a challenge to always have to pick the optimal exit point that can cut losses but let a stock breathe so that profits can accumulate - but it is doable.