The Only Thing In Common Is The Decline: GGP, MOS and HIG

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.

Comments

[User 86074:]

re GGP: How long should the prison terms be for executives who issue good press reseases while they sell their stock?

2008 Oct 03 12:01 PM

[leh:]

MOS still has incredible earnings and margins and is very cheap going forward. This is hedge fund redemption/dumping to the nth degree. Very strong buy here--something tells me people still need to grow food, no matter a global slowdown.

2008 Oct 03 12:32 PM

[Emerald:]

MOS is a buy for all the obvious reasons. Growing populations, less arable land and a great cmpany at a big discount.

2008 Oct 03 05:29 PM

[Urbane Gori...:]

Would it be OK with all the MOSies and POTheads if I bought when they finish going down? jegan ;-)

2008 Oct 03 09:57 PM

[maclean.anna:]

It's time to short MOS, MON, CF and the like. They are completely oversold.
Here's a good article which shows the tech analysis of each with predictions of where they are going.
Good luck...
www.greenfaucet.com/te...

2008 Oct 06 11:23 AM

[frustratedd:]

idiotinc.com/downfalls.../


www.labelscar.com/mass...

the reality of the SILVER CITY GALLERIA MALL STAFF and how we the tenants complains are ignored..... and that's the reason of them going downhill and into bankruptcy... i don't know about the malls ggp owns around America but in mass(Boston) any mall the ggp owns is going bankrupcy because of the staff... and still they don't care about changing the staff..

Feb 28 11:59 AM