12 Stocks Hitting New Lows

by: The Keating Letter

Here is the latest edition of stocks hitting new 52-week lows. Today we’ll focus on stocks trading on the NYSE. There are 12 new lows. Their price, percentage change, volume and market cap are below. Underneath the table I’ve provided some background information on three of the stocks, and discuss why they dropped. Additionally, each weekend I’ll write an in-depth analysis for a few of the companies that have been on the new lows list this week.

Company (Ticker) Price % Chg Volume Market Cap
AllianceBernstein Holding (NYSE:AB) 21.26 -0.42% 554k 2.17b
Allied Irish Banks ADS (AIB) 0.76 -4.44% 9.8m 410m
Baltic Trading (NYSE:BALT) 9.24 -3.25% 386k 208m
Excel Maritime Carriers (NYSE:EXM) 4.65 -5.30% 2.3m 377m
First Majestic Silver (NYSE:AG) 10.49 -3.67% 639k 984m
Genco Shipping&Trading (NYSE:GNK) 11.91 -8.31% 5.1m 417m
Nuveen Build America Bond Fund (NYSE:NBB) 17.6 -0.11% 140k N/A
Nuveen Build America Bond Opportunity Fund (NYSE:NBD) 18.08 0.05% 40k N/A
Paragon Shipping A (PRGN) 3.05 -3.17% 773k 161m
Supervalu (NYSE:SVU) 7.25 0.28% 9.8m 1.54b
TAL Education Group ADS (XRS) 13.04 -14.44% 913k 971m
Whiting USA Trust I (NYSE:WHX) 15.49 -7.08% 2.2m 215m

Genco Shipping & Trading: Genco has been on a serious slide since topping $17.50 in November. Genco transports iron ore, coal, grain, steel products, and other drybulk cargoes. It also charters its vessels to commodities traders, producers, and government-owned entities.

Its latest losses can be linked to a Deutsch Bank (NYSE:DB) downgrade of Genco to hold from buy. The analyst targeted it because Genco relies more on the spot market as opposed to charters, and it is expected that shipping rates will continue to stay low due to fleet growth to be delivered in the next two years. The bankruptcy filing of a major South Korean freight company today, Korea Line, didn’t help matters for the industry either.

SuperValu: SuperValu owns a variety of grocery stores, including Albertson’s Jewel-Osco and Shoppers. SVU also provides supply chain services and wholesale distribution. It’s been rough going since it released disappointing earnings two weeks ago. A slew of analyst downgrades have pushed SuperValu’s stock to 23 year lows.

SuperValu has a large debt burden, but continues to generate a tremendous amount of free cash. It is paying down debt and closing underperforming stores, while also attempting to sell off parts of the business. Investors are concerned about SuperValu’s pricing strategy, and sales growth continues to be negative.

Tal Education Group: It’s a little unfair to group TAL in with the other 52-week lows since it’s only been trading since October 20, 2011. Its recent drop of nearly 15% makes it interesting, though. TAL is a China-based tutoring company that provides K-12 after-school tutoring in China in small classes, one-on-one and online. It was founded in 2003, and its U.S. IPO was priced at $15.

TAL reported earnings on Tuesday. Growth was impressive, with a 48% revenue rise and an enrollment increase of nearly 25% YoY, but overall revenue and income is low for a $1 billion company. The most likely reason for the sudden price drop was the announcement that Yundong Cau, who is the co-founder of TAL, and is currently a director and president, announced he was resigning due to personal reasons. While I don’t know the details surrounding the resignation, my guess is that the money he made from the IPO had something to do with it; the market seems to believe that it’s a significant negative for the company.

Disclosure: I am long SVU.

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