Thursday's Worst Stocks in the World

Bad days. Who doesn't have bad days? Some of us deserve them.

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

Company

Closing Price

CAPS Rating
(out of 5)

%
Change

52-Week
Range

Shutterfly (NASDAQ:SFLY)

$21.52

**

(16.26%)

$13.20-$37.00

Rite Aid (NYSE:RAD)

$2.28

**

(15.24%)

$2.26-$6.74

Krispy Kreme (NYSE:KKD)

$2.81

*

(9.06%)

$2.50-$13.93

Omega Protein (NYSE:OME)

$8.39

**

(8.90%)

$6.00-$10.54

Warner Music Group (NYSE:WMG)

$5.31

*

(8.61%)

$5.29-$23.92

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 79,000-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 Emperor Nero. They don't believe any of these stocks is worth owning, and they think a few may be worth shorting.

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

Worse
We begin with Warner Music Group, which greeted 2008 with news of sinking CD sales. Nielsen SoundScan reports that 500.5 million albums were sold in non-digital formats last year, down 15% from 2006.

But that's no surprise. As accommodating as Apple and its digital music peers have been to listeners, the more traditional music labels think we're all thieves. Common citizens who rip a CD for their own use are being sued.

You know it's bad when Warner and its peers in the RIAA, including Sony (NYSE: SNE  ) , are willing to eat growth the way an insect eats its young.

Worser
Next up is Shutterfly, a former guest in this column, which took a beating after peer Snapfish, which is a division of Hewlett-Packard (NYSE: HPQ  ) , cut prices on certain products. Investors apparently fear a price war that could materially hurt the business.

Trouble is, Shutterfly can't afford a price war unless it wants to start destroying value. Behold:

Metrics

Trailing
12 Months

2006

2005

Return on Capital

2.0%

4.2%

7.3%

Return on Equity

5.1%

5.4%

76.8%

Source: Capital IQ, a division of Standard & Poor's.

Worst
But our winner is fish oil -- yes, I said fish oil -- distributor Omega Protein, which quietly issued this 8-K yesterday morning to announce amendments to its executive employee agreements. Quoting from the text:

The benefits that were previously payable under the Prior Agreements to an executive upon a "Change in Control" of the Company and subsequent termination of a Prior Employment Agreement by the executive within one year of such "Change in Control" are now payable to the executive upon the occurrence of such "Change in Control," and no termination of service by the executive is required to receive the benefits. [Emphasis added.]

Translation: We'll be getting paid for selling the company. Hope you don't mind.

Omega Protein and its let's-just-take-what-we-can-and-see-if-investors-notice management team ... Thursday'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 Tuesday with more stock horror stories.


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Related Tickers

9/30/2014 4:01 PM
HPQ $35.47 Up +0.50 +0.00%
Hewlett-Packard Co… CAPS Rating: **
KKD $17.16 Down -0.27 +0.00%
Krispy Kreme Dough… CAPS Rating: **
OME $12.50 Up +0.09 +0.00%
Omega Protein CAPS Rating: ***
RAD $4.84 Down -0.11 +0.00%
Rite Aid Corp CAPS Rating: **
SNE $18.04 Up +0.26 +0.00%
Sony Corp (ADR) CAPS Rating: **
WMG.DL $0.00 Down +0.00 +0.00%
Warner Music Group… CAPS Rating: *

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