Wednesday'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 Wednesday:

Company

Closing Price

CAPS Rating (5 max)

% Change

52-Week Range

National Financial (NYSE:NFP)

$28.00

****

(24.47%)

$27.99-$56.75

Qimonda (NYSE:QI)

$5.17

**

(23.63%)

$3.51-$17.29

Warner Music Group (NYSE:WMG)

$6.94

*

(20.59%)

$4.57-$21.51

USANA Health Sciences (NASDAQ:USNA)

$38.41

*

(15.58%)

$28.51-$61.80

Acordia Therapeutics (NASDAQ:ACOR)

$23.43

*

(11.01%)

$15.80-$28.14

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

Naughty?
Well, OK, we can't exactly call these stocks naughty. There are days when five-star winners and newsletter recommendations appear here.

But, if you're an investor, you'll have plenty of bad days. The trick is to avoid dating -- or worse, marrying -- your losers. That's why I listen when our 83,000-person-strong Motley Fool CAPS community of stock pickers delivers a poor rating or a negative pitch. You should, too. Here's today's list of the worst stocks in the world.

Worse
We begin with USANA Health Sciences. Though it's no longer involved in an unseemly informal SEC inquiry, the company reported a 5% sequential decline in the number of associates selling its nutrition supplements in the U.S.

Here's why that matters. First, USANA is a network marketer; its "associates" are entrepreneurs who act both as salespeople and recruiters. Growth depends on building the network.

Second, more than 38% of USANA's revenue derives from the U.S., which reported a year-over-year decline. So did Singapore and South Korea. Ouch.

Worser
Next up is memory maker Qimonda, which is performing so badly that chipmaking peer Infineon (NYSE: IFX  ) is contemplating a substantial writedown of its 77% stake in the company.

Specifically, chief financial officer Peter Fischl told analysts in a conference call that "there is a fundamental risk" in carrying Qimonda at $12 a share as it is currently.

Translation: Yeah, we know the stock trades for about $5 a share. No, we don't think it's going to rally soon.

Worst
But our winner is Warner Music Group, which copped to a first-quarter loss because of an $18 million writedown for the value of now-defunct promoter Bulldog Entertainment, which Warner acquired last May.

Hang on, it gets worse. Strip out the charge, and Warner would have earned just a penny per share, versus $0.12 in last year's Q1. Yeesh.

But are you really surprised? As CAPS investor rickdoom put in on Tuesday:

There's nothing to like about this stock, and nothing that would justify the huge rally it has sustained so far this year. The company operates in 2 industries -- Recording and Publishing -- both of which are dying... The company had negative earnings in 2007... Then there is the constant stream of threats and lawsuits for piracy-related issues... Thanks to their aggressive scare tactics, they have successfully alienated much of their potential customer base. All things considered, I just don't see how this company can survive much longer.

Nor can I, Fool.

Warner Music Group and its going-out-of-style-faster-than-a-rotary-phone business model ... Wednesday's worst stocks 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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