GGP, HIG and MOS were three of the worst performing stocks in the Russell 1,000 Thursday. Even though their declines yesterday were huge, there is a complacency for losses in this market now that so much bad stuff has happened. At any rate, let's take a look at each one:
General Growth Properties (GGP), a US shopping mall owner, was down a whopping 48% Thursday after a research firm published a report that insiders dumped $40 million in stock after the "No Short" rule went into place for the stock. Every day from 9/17 to 9/26, insiders sold large amounts of shares on the open market. Nothing shores up confidence in a stock more than corporate insiders dumping shares, right?
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Hartford Financial (HIG) was down 32% yesterday, and is down 59% since it peaked following the brief "No Short" rally on 9/19. After Senate Majority Leader Harry Reid mentioned that a big insurance company was on the verge of bankruptcy on the Senate floor last night, default risk soared and stock prices dropped for insurance companies yesterday. HIG is also on the "No Short" list, but it hasn't stopped investors from getting out fast over the last week or two. Harry Reid now "regrets" the comments. Regardless of Reid, it looks like HIG has some serious work to do to get through this mess.
Lastly, the Mosaic Company (MOS) was down 41% Thursday after missing earnings and lowering its phosphate production target. Remember the agriculture boom? That bubble burst quickly. Mosaic (MOS) was one of the main stocks that ran up as commodity prices soared over the last couple of years. From its IPO in 2004 to its peak this June, MOS was up 974%. But the more they go up, the harder they fall, and MOS is now down 75% in a little more than 3 months.
If one big-name stock fell this much in the past, it would be all over the headlines. But after what we've witnessed in the last few months, these declines barely get noticed. In this market, you just have to hope the next day is better than the last one.