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)



Harman International (NYSE:HAR)





Steak n Shake (NYSE:SNS)





Compuware (NASDAQ:CPWR)





NetSuite (NYSE:N)





Tiffany & Co. (NYSE:TIF)





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 81,000-person-strong Motley Fool CAPS community of amateur and professional stock pickers.

On 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 NetSuite, which has fallen 40% since skyrocketing to $45.98 a day after its December initial public offering. You can thank Citigroup analyst Brent Thill for yesterday's 5% clipping. He initiated coverage of the stock with a "sell" rating.

But he's not alone. Much as I like NetSuite and its software-as-a-service peer (NYSE: CRM  ) , my math says the stock is hardly worth more than its once-projected $16 per share IPO price.

Next up is Compuware, a testing and development software company that yesterday reduced estimates for its fiscal third quarter. But that's not what concerns me. What does? License revenue, which declined 7% year over year.

CEO Peter Karmanos explained the shortfall by pointing to higher levels of ratable versus up-front revenue, with the implication being that Compuware does more business via long-term contracts. Karmanos calls this "great for the long-term health of the business."

Really? License revenue -- that is, sales to new, rather than existing, customers -- is the lifeblood of software firms. Lower license revenue, therefore, is rarely a good sign.

But our winner is Harman International, which cut its full-year earnings guidance from at least $4.14 a share to a range of $3.00 to $3.10 per share before one-time charges.

That awful performance should be more than enough to put Harman on today's list. What makes it today's worst is the excuse management offered up to investors. Quoting from yesterday's press release:

The change in guidance was prompted primarily by a major shift in the market for Portable Navigation Devices (PNDs). In recent months this sector has experienced significant pricing pressure, which is affecting the entire industry. [Emphasis added.]

Um, guys? I don't see Garmin (Nasdaq: GRMN  ) suffering, and it's one of the top suppliers of portable and in-auto navigation devices. Demand is so good, in fact, that Garmin debuted two voice-activated models at last week's Consumer Electronics Show.

Harman International and its spin-happy executive team ... 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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10/27/2016 4:02 PM
BH $432.06 Down -1.89 -0.44%
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CPWR.DL $0.00 Down +0.00 +0.00%
Compuware CAPS Rating: ****
CRM $74.74 Down -0.21 -0.28% CAPS Rating: ***
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HAR $77.58 Down -1.24 -1.57%
Harman Internation… CAPS Rating: ****
N $94.37 Down -4.98 -5.01%
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TIF $72.83 Down -0.72 -0.98%
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