Why Primero Mining, Cooper Tire & Rubber, and Plug Power Tumbled Today

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

Stocks opened the week on a positive note, with strong data on U.S. factory and industrial activity pointing to a recovery in manufacturing. European data confirmed those gains, although growth rates slowed in China. Nevertheless, even though major market benchmark posted solid advances, Primero Mining (NYSE: PPP  ) , Cooper Tire & Rubber (NYSE: CTB  ) , and Plug Power (NASDAQ: PLUG  ) all lost ground today.

Primero Mining fell almost 7% as the company announced that it would buy out Brigus Gold (NYSEMKT: BRD  ) in a stock-swap deal. Under the arrangement, Brigus shareholders will receive 175 shares of Primero for every 1,000 Brigus shares they own now, and will also get a total 90% stake in a spun-off company that will keep certain Brigus assets largely separate from the combined company. Deals like this might become commonplace as various small producers look for ways to survive lower gold prices, and Brigus Gold shareholders seem happy with the arrangement as its stock jumped 33%.

Cooper Tire & Rubber dropped 5% as a court dismissed the company's lawsuit against India's Apollo Tyres. Cooper has sought to force Apollo to go forward with a proposed merger with the company according to its original terms, but Apollo wants to renegotiate a lower price. Without a court decision in Cooper's favor, the big question now facing Cooper is whether Apollo will agree to make a lower bid or simply walk away from the acquisition entirely.

Plug Power declined 7%, giving back some of its huge gains over the past few weeks that have resulted in the stock's price quadrupling since early November. Promises of a "blowout quarter" with hints of a deal with a major potential customer have raised hopes among the hydrogen fuel-cell power provider. But investors today might well have remembered that Plug Power has made similarly positive forecasts in the past without ever realizing its full potential. With rivals already having substantial sales and backlogs, Plug Power needs to deliver on its promises this time if it wants investors to take its recent jump seriously.

Don't get stuck with losing stocks
Resolve to avoid stocks that will post losses in 2014. But in choosing better prospects, be sure to remember that there's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (4) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 17, 2013, at 8:53 AM, ICanFool wrote:

    pure nonsense.

    No substantiation when you say "But investors today might well have remembered that Plug Power has made similarly positive forecasts in the past without ever realizing its full potential. With rivals already having substantial sales and backlogs, Plug Power needs to deliver on its promises this time if it wants investors to take its recent jump seriously."

  • Report this Comment On December 17, 2013, at 9:15 AM, Paulson545 wrote:

    FCEL may be pulling PLUG down a bit today.

  • Report this Comment On December 17, 2013, at 7:28 PM, killatree wrote:

    Seems that the negative articles on PLUG have one theme: "Well, the CEO said one time before they were going to do good and they didn't!"

    Starting to see some positive articles now and they all use numbers and facts. Weird, huh?

    Open google news and type in "fuel cells" then scan the first couple of pages of headlines. It's going to be a huge year for fuel cells.

  • Report this Comment On December 18, 2013, at 12:26 PM, KevinLangley wrote:

    Great job scaring the heck out of investors. We all know that this is a speculative play. There is risk, true. But where there is risk, there is often gain. The balance sheet looks like it is on the upswing. Sales have improved. Outlook looks promising. But, then maybe I'm just a fool.

Add your comment.

DocumentId: 2767225, ~/Articles/ArticleHandler.aspx, 4/20/2014 10:59:37 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement