The 3 Most Disappointing Stocks of the Week So Far

Includes: C, DNN, S, URG, URRE, URZ, VZ
by: SA Editor Rocco Pendola

Investors generally expect big things from the stocks they put their money in. Often, they expect too much. The following stocks failed to respond the way their long champions had hoped they would on Monday.

Citigroup (NYSE:C). It's great theater reading message boards and watching C longs pine for the stock to hold above $5.00. It looked as if it would happen until Citi surprised on the downside with its most recent earnings report. It's really tough to trust anything Citi CEO Vikram Pandit says or does. First, he puts out a bullish letter to Citi employees just before the weak earnings call. I cannot count how many times he said there would be no reverse stock split period or a dividend until 2012. Both of these things happened yesterday. While the reverse split might spur more institutional buying, it's largely a psychological ploy. And the dividend borders on the comical at a penny a share. Don't spend it all in one place. While part of me thinks there is long-term upside in C, I might end my long-term relationship and go short after the split becomes effective in May. At a higher price, the only difference about C in the near-term is that it has farther to fall.

Uranium Resources (NASDAQ:URRE). Unlike its uranium-mining brothers Denison Mines (NYSEMKT:DNN), UR-Energy (NYSEMKT:URG), and Uranerz Energy (NYSEMKT:URZ), URRE dropped on Monday. Investors oversold most uranium plays in the aftermath of the nuclear situation in Japan. DNN, URG, and URZ performed well on Monday, up 9.96, 18.82, and 25.48 percent, respectively. URRE was the exception, dropping 1.84 percent to $2.13 on the day. I gobbled up some shares on the weakness, as I could not find a reason why URRE's small-cap counterparts outperformed. Some analysts even suggest buying URRE over other uranium names, including DNN. Jennings, for example, puts a $5.00 price target on URRE shares.

Sprint (NYSE:S). In light of the AT&T (NYSE:T)/T-Mobile deal, Sprint shareholders likely expected the stock to take a hit, but the hit that it took was massive. Sprint shares closed the day down 13.61 percent, closing at $4.36. Seeking Alpha contributor H. J. Huneycutt lays out a nice case for and against investing in Sprint right now. Sprint's long-term outlook certainly presents as murky at best. Plenty of people are floating the idea that Verizon (NYSE:VZ) will pay a premium for Sprint, but given the regulatory scrutiny the AT&T/T-Mobile merger should face, any Sprint/Verizon marriage should be a long way off. In any case, I would probably only dip into S for a bounce play today, given that the stock appears quite oversold.

Who knows what the rest of the week holds, but, as of Monday, C, URRE, and S are among the market's most disappointing performers.

Disclosure: I am long C, URRE.

Additional disclosure: I may initiate a long position in S and close my C and URRE long positions over the next 72 hours.

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