Why Semiconductor Manufacturing International, Blucora, and Cray Tumbled Today

Even though the stock market traded within a tight range today, some stocks had some dramatic losses. Find out which ones and why here.

Feb 18, 2014 at 8:30PM

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.

Mixed results on Wall Street Tuesday signaled the uncertain among stock market investors right now, as people try to figure out whether the latest rebound from January's modest correction will last or give way to another decline. At least for a few stocks, though, the mood was more dour, as Semiconductor Manufacturing International (NYSE:SMI), Blucora (NASDAQ:BCOR), and Cray (NASDAQ:CRAY) all dropped substantially today despite the relatively flat market.

Semiconductor Manufacturing fell 19% after the Chinese foundry business reported a revenue increase in its fourth quarter of just 1.2% from the year-ago quarter, as earnings fell precipitously. Falling gross margins pointed to the struggles in the semiconductor market recently, and SMI's first-quarter guidance was even less appealing, with expectations for a 5% to 9% drop in sequential revenue and the potential for further margin erosion. With Intel (NASDAQ:INTC) potentially waiting in the wings to utilize its manufacturing capability more profitably, Semiconductor Manufacturing and its foundry peers could soon see an elephant enter the space and make competition a lot tougher.

Blucora fell 8% after the company was the subject of a scathing attack from analysts at Gotham City Research, which made negative comments about the sustainability of its Dogpile and WebCrawler Internet search engines. The report appears to center on the idea that Google should end its relationship with Blucora, and that its TaxACT tax-preparation service provides only minimal protection against a share-price decline. Given the impact of past attacks from Gotham City on other companies, many investors appeared not to want to wait out what could become an extended short attack.

Cray dropped 14%, but it's important to put the move in context as Cray stock soared 39% last Friday. Today's drop erased about half of those gains, but investors remain optimistic about the supercomputer company's past performance and future prospects after its fourth-quarter earnings release. Perhaps the most telling remark was the company's statement that "a wide range of results remains possible," leaving plenty of room for outperformance as well as disappointment.

Upset with losing stocks? Maybe you've got the wrong ones.
It's no secret that investors tend to be impatient with the market, but your best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Intel. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers