Bear Claws Are Out: Some Charts Show Deep Gashes

The last several weeks have given us a truly epic, slow-motion crash in equity prices. Today's lows had the S&P 500 down by more than 45% from its intraday high of October, 2007. That's a mauling for the ages. Market participants aren't just upset about all of this; they aren't just scared by it. They're also in awe, looking on slack-jawed as each week brings more nuttiness than the last.

So, in the spirit of great art, we think it's time to present a few eye-popping charts, the constituent elements of the broad market's historic selloff. With recent intraday prices, and in no particular order:

Joy Global (JOYG), down more than 76% from its 52-week high of $90.00:

 Potash Corp. of Saskatchewan (POT), down more than 72% from its 52-week high of $241.62:

John Deere (DE), down more than 68% from its 52-week high of $94.89:

Continental Resources (CLR), down more than 74% from its 52-week high of 83.81:

CB Richard Ellis Group (CBG), down more than 82% from its 52-week high of 27.11:

U.S. Steel (X), down more than 82% from its 52-week high of $196.00:

Merrill Lynch (MER), down more than 76% from its 52-week high of $68.18:

American Capital Strategies (ACAS), down more than 75% from its 52-week high of $43.94:

We could go on, but you get the point.

One of the remarkable features of this wicked bear has been the near-total absence of places to hide, though a few prominent consumer staples names have held up better than the overall market. Coca-Cola: Down more than 36% from its 52-week high. Procter & Gamble: Down more than 21%. Clorox: Down more than 17%. Not pretty, but not quite as ugly as the material/energy/financial/industrial darlings-turned-villians.

Some great values have been created amid all this carnage. The challenge, as ever, is to identify where and when--and to do so before everyone else does.

Comments

[Homer II:]

..and it could get even worse yet. J

ust look at what happened during the dot-com crash six years ago.. companies like Sun Microsystems went from $128 down to $5. That is down over 96%.

2008 Oct 24 05:40 PM

[investor88:]

May I add Las Vegas Sands the largest and world's pre-eminent casino and resort company. IPO few years ago at 30+ usd then went to usd 140+ in late 2007. Now usd 7, a drop of some 95%. This is not some dotcom company measuring virtual eyeballs but a long established business giant with real products and services.

Kevin has written a useful counter balance article to the super bull articles we see everywhere BUY BUY BUY just because stocks have fallen quite a lot. PIMCO boss says a bull market is round the corner, Warren says his personal account is fully invested, pros say aggressive bear rally just round the corner, and so on.

2008 Oct 24 08:21 PM

[Big Al45:]

Except for ACAS, most of the stocks charted above were darlings of the momentum hedge funds. So their price declines will probably not stop until the hedge fund liquidation stops (in mid November)???

ACAS' decline is more troublesome because the hedge funds don't own it. (although it is a favorite naked short for them) The ACAS groupies must be losing faith in the stock.

2008 Oct 24 09:07 PM

[riteaider:]

Stay tuned! What has gone out will come back.

2008 Oct 25 11:30 AM

[OldSnowCat:]

I think we are near the “tripping point”. I have been rudely reminded a couple of time we are not there yet, but we are getting close. I believe the recovery trigger will be as sudden and unanticipated as the crash trigger. I wish, I was smart enough to know what the recovery trigger will be [PS every broker already knows what the trigger will be, just ask them].

I believe the two sectors that will surge are Agricultural and Alternative Energy. The Agriculture is a must or more people go hungry. Without Alternative Energy we will never get out from under the $8 trillion debt, any questions, call T Boon Pickens. I am invested in both sectors.

2008 Oct 25 02:43 PM

[Charto:]

Yes and no as energy and commodities rise than the alternative energy stocks rise but near term I do not see a huge run-up in commodity prices. We just ended that run but I enjoy all input on the situation. The best play if you are for alternative energy should be oil itself right?

2008 Oct 25 05:15 PM