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:

Company

Closing Price

CAPS Rating

(5 max)

%

Change

52-Week

Range

Blockbuster (NYSE:BBI)

$2.81

*

(10.22)

$2.52-$6.67

Perini (NYSE:PCR)

$35.36

****

(9.84)

$25.08-$75.43

Limelight Networks (NASDAQ:LLNW)

$2.89

**

(8.25)

$2.86-$24.33

Wachovia (NYSE:WB)

$25.55

**

(8.13)

$23.77-$56.90

Orbitz Worldwide (NYSE:OWW)

$6.96

**

(4.92)

$4.51-$15.00

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 on this list. (Today isn't one of those days.)

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 96,000-person-strong Motley Fool CAPS community of stock pickers speaks with a poor rating or a negative pitch. You should, too.

Thus, here is today's list of the worst stocks in the world.

Worse
We begin with Perini, a former guest in this column that was downgraded by BMO Capital Markets for its recent purchase of privately held Tutor-Saliba Corp. BMO says that Perini overpaid.

I agree. Here's why: In November, Perini reported an $8 billion backlog. The combined company will have a $9 billion backlog. Either Perini has won zero or close to zero deals since November, or Perini is paying $862 million for a relatively empty order book.

Oh, and did I mention that Perini CEO Ron Tutor is the principal shareholder of Tutor-Saliba?

Worser
Next up is Wachovia, which on Monday joined Washington Mutual (NYSE: WM  ) in the club of national banks to beg for change.

Well, OK, it's more serious than that. Wachovia, whose executives had been buying shares in February, now says it needs $7 billion to shore up its balance sheet. It'll go to the public markets to get the funds.

Wait, it gets worse. Executives plan to sell stock at just $24 per share, or a 14% discount to Friday's close. And you thought Britney was desperate for attention.

Worst
But our winner is Blockbuster, which got lots of attention from us Fools yesterday over an ill-conceived $1 billion-plus deal for Circuit City (NYSE: CC  ) .

Since the arguments for and against have already been heard, I'll add only this:

Metrics

Blockbuster

Circuit City

Cash from operations

($56.2)

$13

Capital expenditures

($74.4)

($314.9)

Free Cash Flow

($130.6)

($301.9)

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

So, if Blockbuster goes through with this deal, what do we call it? Busted Circuit?

Blockbuster and its lackluster ideas for creating shareholder value ... 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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