7 Stocks That Didn't Make It To The Rally

by: Bill Maurer

Thanks to continued intervention throughout Europe, including Wednesday's global coordination to provide liquidity to banks, global markets have soared over the past few days. Over the past 3 trading sessions, the Dow is up 7.25%, the Nasdaq is up 7.32%, and the S&P 500 is up 7.62%. However, not all stocks have fared so well. Here are seven names that have not gotten the invite to the party.

Netflix (NASDAQ:NFLX): To be fair, Netflix is up 1.05% over the past three days, but that's well below the overall market, and Netflix dropped 4.5% on Wednesday, despite the huge rally. The company was hit with another downgrade this morning from Wedbush Securities. The analyst there today put a sell rating on the stock with a $45 price target. That implies another 30% drop from here. We are already down almost 80% from the all-time high, but it doesn't seem like there are many buyers right now. This analyst note this morning called Netflix's business model "broken", and forecasted a 30 cent plus loss for fiscal 2012, while current estimates call for a 59 cent profit. I have an article coming out soon on Netflix, so look for my in-depth analysis of the company's struggles.

Corning (NYSE:GLW): Corning is down 4.87% this week after yesterday's guidance lowering. The shocking news is that just a month ago, executives from the firm were on CNBC shows reporting how good things were. Apparently, in a month, they've gotten much worse. Corning announced that it would cut its worldwide glass capacity by 25%, and that it is seeing lower demand for its Gorilla Glass. This product is used in tablet computers and LCD televisions, however, analysts on Wednesday said that this issue is not iPad related. Corning also announced that quarterly earnings would fall about 30% compared to estimates for a 5% decline. The stock fell nearly 11% on Tuesday and was barely able to recover any of those losses on Wednesday. Volume was 3.5 times the 3-month average on Tuesday, and twice the average on Wednesday.

Tiffany's (NYSE:TIF): The high end jewelry store has seen it shares decline 3.54% this week after the company lowered fourth quarter guidance on Tuesday. Despite a strong third quarter, the company announced fourth quarter sales in the "low-teens percentage", which probably means below the 14% current expected. Also, earnings per share guidance of $1.48 to $1.58 was a bit below the $1.61 currently expected (and $1.64 expectations 30 days ago). When a company lowers guidance for their best quarter of the year, it's not a good sign. This is especially worrisome for other high-end retailers when looking at this holiday season. Diamonds may be forever, but this stock is not in favor right now. The stock lost even more ground Wednesday despite the huge market rally.

Universal Display (NASDAQ:PANL): Shares of the company, which helps research and develop OLEDs for flat-panel displays, are down 0.87% this week, and that loss is after a late day rally brought these shares back from $37 (and today's low of $36 ) to $39. There really is no new news out on the name, but a recent report showed that in the first half of November, short interest in the name increased from 6.5 million to 9 million shares. That's currently about 28% of the float. This name soared a few months ago when it announced licensing agreements with Samsung and other major technology companies. However, most of those gains have been lost. The company only recently reported its first profitable quarter, and is not expected to be extremely profitable for a few more years. However, revenues are expected up 100% this year and 80% next, so everyone is jumping on the growth bandwagon. Being that this was a name people have loved to take risk in recently, it's a huge surprise that PANL has not taken part in this market rally.

Angie's List (NASDAQ:ANGI): The newly trading company that provides consumer research has seen its shares decline 14.37% this week, continuing their fall from the $18 and higher level they saw on the first day of trading two weeks ago. It's been a bad couple of weeks for recent IPOs, as we've seen huge losses in LinkedIn (NYSE:LNKD) after its insider lockup expired, and Groupon (NASDAQ:GRPN). However, both of those names surged today, but Angie's List did not rally in stride. I said recently that I think this name will go under $10 soon, and the way it traded today, it could be very soon.

Imperial Sugar (NASDAQ:IPSU): Shares of the small-cap sugar producer fell nearly 20% on Wednesday which roughly equals its loss for the week. As you can see from this 3-month chart, the stock has lost nearly 50% of its value recently. About a month ago, the company suspended its quarterly dividend and announced it would be boosting marketing for its Mexican joint venture. This name has appeared on the largest decliners list a few times this month, and Wednesday was another one of those days. There really wasn't any news, but it appears that anyone who didn't get out at $6 to $8 is getting out now. Volume was nearly 7 times the 3-month average, the highest amount of shares traded since early August.

Bank of America (NYSE:BAC): Bank of America is up 5.22% so far this week, but that has trailed the overall market rally. Given that the name is down so much lately, you would expect this name to rally hard. It was up 7.3% on Wednesday, but as of 2pm this afternoon, the name was barely up for the week. It took a late rally to get it up to the $5.44 close. The name was one of 37 banks downgraded by S&P on Tuesday, forcing shares to trade below $5 in after-hours. There were multiple times during Wednesday's trading that this stock started to crumble, so it appears that the rally will be short lived. $5 will be taken out soon. People may find this pick for my list controversial, but B of A barely rallied during Monday's huge rally. Given the huge gains overall, I would have expected this name to be at $5.75 or $6 by now, and we're not even at $5.50. That's not a good sign.

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