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Monday'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 Monday:


Closing Price

CAPS Rating

(5 max)





ShoreTel (Nasdaq: SHOR  )





ev3 (Nasdaq: EVVV  )





Levitt (NYSE: LEV  )





A.M. Castle (NYSE: CAS  )





Jefferies Group (NYSE: JEF  )





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

Well, OK, we can't exactly call these stocks naughty. But none of them gets much love from our 80,000-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 film critic Roger Ebert. 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.

We begin with broker Jefferies, which, according to management, will incur a fourth-quarter loss because of massive bonuses paid to its employees. Quoting CEO Richard Handler: "We did well, and I'm sorry, but that is why we need to pay out people."

So, in other words, the business did well, the employees get rich, and the owners get ... nothing? I suppose it's somewhat comforting that Handler is forfeiting his bonus. But, really sir, you're "sorry"? I've a better idea. How about a promise to leave something for shareholders from now on?

Next up is ShoreTel, which makes Internet protocol switching equipment. What that means, in the simplest terms, is that ShoreTel hopes to profit from a widespread move to voice over Internet protocol.

But now there's evidence that the technology isn't exactly the Next Big Thing, as investors in Vonage (NYSE: VG  ) have surely discovered by now. ShoreTel lowered its fourth-quarter revenue forecast to $29.7 million to $30.7 million from $32 million to $35 million.

Not that anyone should be surprised. ShoreTel has suffered double-digit declines in returns on capital and equity over the trailing 12 months.

But our winner is Levitt, which, though in bankruptcy, is seeking $3.5 million in fresh capital to restart construction on homes in some of the nation's hardest-hit regions, including Florida.

But that's just the first step. Levitt will then need to sell those to-be-completed homes to pay off its mounting debts, which, according to the Associated Press, include $103.9 million to Wachovia (NYSE: WB  ) .

That's possible, of course. But only if the battered housing market cooperates. You wanna take that bet? I didn't think so.

Levitt and its keep-your-fingers-crossed-and-pray business model ... Monday'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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Related Tickers

12/31/1969 7:00 PM
EVVV.DL $0.00 Down +0.00 +0.00%
ev3, Inc. CAPS Rating: ****
JEF.DL $0.00 Down +0.00 +0.00%
Jefferies Group CAPS Rating: **
VG $6.43 Up +0.20 +3.21%
Vonage Holdings CAPS Rating: *
WB.DL2 $5.54 Down +0.00 +0.00%
Wachovia Corp CAPS Rating: **