Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why These 3 Stocks Stumbled in 2013

With only a few days left in the year, it's a good time for investors to reflect on the stocks they own and decide whether their performance has met expectations. Let's look at three companies that are eager to close the books on 2013 and see what made it such a rough year for them.

Barnes & Noble (NYSE: BKS  )

Barnes & Noble continues to struggle with its evolution from a printed-book retailer to its place in our digital world. When the company revealed hefty losses in June for its Nook segment, shares sank 17%. CEO William Lynch resigned the following month after his efforts to boost the company's digital business disappointed. The stock sank even further after the one-two punch of another quarter of losses and the news that Leonard Riggio -- Barnes & Noble's chairman and largest shareholder -- retracted his offer to buy the company's brick-and-mortar stores. Since then, investors have become concerned about Riggio selling more than $27 million of his stock. In the most recent quarter, B&N saw a nearly 5% decline in same-store sales and its important Nook segment's revenue plummeted 32%. The stock is down 1% so far this year. 

Newmont Mining (NYSE: NEM)

As investors have fled gold  on Federal Reserve taper expectations, Newmont Mining has been hammered. Gold prices have tumbled more than 25% this year . The metal is currently trading around $1,210 an ounce , down from all-time highs above $1,900 in 2011 . That's been terrible news for Newmont , one of the world's largest gold miners . Shares have fallen nearly 48% year-to-date. The miner produced nearly 1.3 million ounces of gold in the first nine months of 2013 . Yet, average realized gold prices for Newmont are down 20% from the prior year quarter . During the second quarter, the Colorado-based company  also reported a $2 billion loss, citing a writedown due to plunging gold and copper prices . Earnings recovered in the third quarter, when improved production and stable operating costs offset the decline in gold and copper pricing.

J.C. Penney (NYSE: JCP  )

The distressed retailer is trying to recover from former CEO Ron Johnson and his failed "everyday low prices" strategy that drove away longtime loyal customers. But it's been a long and winding road. Early in the year, J.C. Penney's reported a 25% drop in same-store sales for 2012. Penney's got rid of Johnson in April, who had been brought on as CEO less than two years earlier, and replaced him with his predecessor, Mike Ullman. Even though Ullman has been trying to navigate the department store chain back to its coupon-and-promotion roots , the retailer still struggles. Activist investor Bill Ackman folded, leaving the company's board in August and selling his shares for a $500 million loss. Shares are down 55% so far this year. And that's after an awful 2012, when the stock plunged more than 40%. 

Better luck next year
If you didn't own these stocks in 2013, thank your lucky stars. If, instead, you're still holding on to any of these stocks, strongly consider cutting your losses and making 2014 a better investing year.

Get it right in 2014
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 (0) | Recommend This Article (4)

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.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2777675, ~/Articles/ArticleHandler.aspx, 9/29/2016 6:24:25 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...

Today's Market

updated Moments ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 4:02 PM
BKS $10.99 Up +0.08 +0.73%
Barnes and Noble CAPS Rating: *
JCP $9.25 Down -0.30 -3.14%
J.C. Penney CAPS Rating: *
NEM $39.05 Down -0.16 -0.41%
Newmont Mining CAPS Rating: ***