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We had 426 stocks hitting new 52 week high last week on the NYSE, Nasdaq an AMEX. Conversely, there were only 25 new 52 week lows. The markets were up, but this ratio suggests the day was stronger than the indexes appeared.

Below, I’ve highlighted 11 of the 25 stocks who hit new 52 week lows on Thursday. I removed the 14 new issues that haven’t traded for more than a year, as well as any stocks that have split or issued unusual dividends.

We've got a couple names who have been on the new low list for a few days now: AllianceBernstein (NYSE:AB), Genco (NYSE:GNK), and Savient Pharmaceuticals (SVNT). If you like those names, it would be a good idea to dollar cost average your way into them, or wait until the prices firm up.

Below the table I highlight GigaMedia (NASDAQ:GIGM), Martha Stewart Living Omnimedia (NYSE:MSO), and Tellabs (NASDAQ:TLAB), and discuss why the stock dropped.

Company (Ticker)


% Chg


Market Cap

AllianceBernstein Holding (AB)










Earthstone Energy (NYSEMKT:ESTE)





GigaMedia (GIGM)





Genco Shipping & Trading (GNK)





Martha Stewart Living Omnimedia (MSO)





Stream Global Services (NYSEMKT:SGS)





Suffolk Bancorp (NASDAQ:SUBK)





Savient Pharmaceuticals (SVNT)





Tellabs (TLAB)





Westway Group (WWAYU)





GigaMedia (GIGM): GigaMedia reported poor earnings before the opened on Wednesday and the stock has steadily been dropping since then, hitting a fresh 52 week low Thursday. Volume was more than four times the normal amount. The company reported a 17 cent/share loss and revenue that was down 28% quarter over quarter. However, CEO Arthur Wang said that he expects 2011 to be a profitable year, and that they had an interesting transaction last year that has shored up their balance sheet and given them tremendous flexibility.

GigaMedia operates online games in Europe and Asia, including poker and casino games, and other popular regional games. This may be a capitulation moment for them, if you believe that they'll be profitable again in 2011. It will be interesting to see how they deploy the newfound cash on their balance sheet.

Martha Stewart Living Omnimedia (MSO): MSO is Martha Stewart’s vehicle for creating, producing and licensing products under the Martha Stewart name. It has four segments: Publishing, Broadcasting, Internet, and Merchandising. Publishing has magazines and books; broadcasting has television and radio programming; internet is online sales primarily through; and merchandising involves designs, promotional materials, and licensing.

It's obvious Martha is trying to cash out some of her assets from the company, whether it's to diversify or because she can sense that the trajectory of the value is going downward, I don't know. However, I don't like the strategic direction of the company and I believe the Martha Stewart brand has gone downmarket and is unlikely to change direction barring a major change.

Martha is on a 83,333 share a month sell schedule since June of last year. The market was spooked by a 47,500 share sale at 11:09 am. After that trade, which made up about 13% of the day’s volume, the stock spent the rest of the day down 1% from the price when the trade was made. There was no specific news, but MSO has been on a general downward trend since hitting the mid $7’s in April. I don't like the stock or the company and would stay away.

Telllabs (TLAB): Tellabs designs, develops and supports telecommunications networking products for communications service providers. It operates through three segments: Broadband, Transport, and Services. Broadband provides access products that enable service providers to deliver bundled voice, video, and high-speed Internet/data services; Transport enables service providers to transport services and manage bandwidth; Services support the network.

On Thursday night's Mad Money, Jim Cramer recommended staying away from the stock, saying that the company had delivered “the worst quarter that’s been reported so far in 2011.” The stock first dropped almost 19% on Tuesday due to horrendous earnings and a weak sales outlook. Over the last few days the stock has continued to drift downwards. Analysts fear that Tellabs is losing market share to its rivals, including Cisco (NASDAQ:CSCO). This is a classic example of why it's not a good idea to buy a stock immediately after its initial drop. It's down another 4% from the Tuesday close. If you believe in the name, which I do not, wait until the price firms up and a new trading range materializes.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.