Tuesday's Worst Stocks in the World

Bad days. We all have them; some of us deserve them.

Here are five stocks whose naughty ways drew investors' scorn on Tuesday:

Company

Closing Price

CAPS Rating
(5 max)

%Change

52-Week
Range

Tuesday Morning (NASDAQ:TUES)

$4.78

**

(26.80%)

$4.41-$17.87

Starent Networks (NASDAQ:STAR)

$17.75

**

(22.42%)

$13.29-$31.67

Shaw Group (NYSE:SGR)

$54.00

****

(6.12%)

$28.60-$77.30

CSK Auto (NYSE:CAO)

$4.98

*

(6.04%)

$4.30-$19.14

Coach (NYSE:COH)

$31.13

***

(5.58%)

$30.52-$54.00

Sources: The Wall Street Journal, Yahoo! Finance, Motley Fool CAPS.

Naughty?
Well, OK, we can't exactly call these stocks naughty. But none of them gets much love from our 78,000-person-strong Motley Fool CAPS community of amateur and professional stock pickers.

To the contrary -- when it comes to these stocks, CAPS investors have gone thumbs-down more often than Jack Horner tested pies. They don't believe any of these stocks are worth owning, and they think some may be worth shorting.

Which of today's candidates is worst? Read on, dear Fool.

Worse
We begin with Coach, which was downgraded by an analyst at CAPS All-Star Bank of America Securities. The reason? Price cutting at the luxury bag maker. Quoting: "With only seven days left until Christmas, we think this is extremely telling of their business."

Price cutting is never good for luxury retailers. Ask the good folks at Nordstrom (NYSE: JWN  ) , who have seen better days.

Worser
Next up is CSK Auto, which last week said it was close to defaulting on its loans. This week, the auto parts retailer reported an unexpected loss during its third quarter. (Whoops.)

The numbers weren't even close. CSK lost $0.10 per share after excluding one-time items, well short of the $0.09 a share profit analysts had expected. Not that we should care too much about that. Trouble here is that analysts, for all their faults, are rarely wrong by this much. That they were this time signals to me there's something deeply wrong with the business.

This might be it: Same-store sales, or comps, were down 3% for the quarter. Comps were down 0.7% in last year's Q3.

Or, in simpler terms: once again, a deteriorating business makes for a deteriorating stock.

Worst
But our winner is Shaw Group, whose CEO has sold off shares like nothing I've seen since Crocs (Nasdaq: CROX  ) executives were bailing out over the summer.

The numbers are staggering. Since Dec. 7, Shaw Group chief James Bernhard Jr. has:

  • Cut his direct stake in Shaw from 914,490 shares to 121,950 shares, or 87%.
  • Cashed in more than $63.8 million in stock.

And, for the record, shares of Shaw are down more than 18% since Bernhard's selling spree began. Shaw Group and its parachute-wielding CEO ... Tuesday's worst stock in the CAPS world.

Do you agree? Disagree? Let us know what you think by signing up for CAPS today. It's 100% free to participate.

I'll be back tomorrow with more stock horror stories.


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