Your SlideShare is downloading. ×
3 Stocks Crushed by the Market This Week   04-25-14
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

3 Stocks Crushed by the Market This Week 04-25-14

4,615
views

Published on

3 of the worst health-care stocks this week

3 of the worst health-care stocks this week


0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
4,615
On Slideshare
0
From Embeds
0
Number of Embeds
11
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. 3 Stocks Crushed by the Market This Week
  • 2. Plenty of stocks took a beating this week, but few like these three health-care stocks. Here are this week’s big losers in health care – and why they were crushed.
  • 3. The health-care technology company’s shares plunged over 29% for the week. Castlight Health (NYSE:CSLT) Source: Yahoo! Finance
  • 4. • No real news for Castlight this week • Shares have continued downward momentum for the last three months • A frothy valuation following Castlight’s IPO earlier this year appears to be weighing heavily on the stock • Castlight’s business model of helping consumers make better health-care purchase decisions is great – but the share price got way ahead of near-term revenue and earnings potential Why Castlight’s shares got clobbered
  • 5. Shares of the life sciences technology provider dropped more than 23% this week. Medidata Solutions (Nasdaq:MDSO) Source: Yahoo! Finance
  • 6. • Investors were sorely disappointed by Medidata’s Q1 financial numbers • Adjusted earnings came in at $0.11 per share – well below the consensus estimate of $0.16 • Revenue grew 21% year-over-year to $76.6 million • Shares have traded at a premium price-to-earnings multiple, so any negative surprises (like the Q1 earnings) take their toll Why Medidata’s shares melted
  • 7. The stock of the 3-D bioprinting company fell nearly 21% this week. Organovo Holdings (NYSEMKT:ONVO) Source: Yahoo! Finance
  • 8. • No real news from Organovo this week • The stock’s continued woes probably relate to last week’s big news • On April 15, Organovo responded to what it termed “misleading and inaccurate reports” from two firms the company suspects are linked to short-sellers • Many investors are attracted to the long- term promise of Organovo’s bioprinting technology, but skeptics think that promise could be too far off to justify the stock’s current price tag Why Organovo shares tanked
  • 9. • Castlight Health’s business model is compelling, while the potential for Organovo’s technology is intriguing • Medidata, however, already generates strong revenue and should see brighter days ahead on the bottom line • Like both of this week’s other big losers, though, Medidata’s valuation could be scary for many investors Best shot at bouncing back?
  • 10. Find out which stock The Motley Fool’s chief investment officer selected as the top pick for 2014 in our free report!