Why Plug Power, Aeropostale, and Raptor Pharmaceuticals Tumbled Today

Most investors in the broader stock market focused on the Ukrainian situation, resulting in a modest selloff for major market benchmarks. But these three stocks fell much more sharply. Find out why.

Mar 14, 2014 at 8:30PM
Longview

Friday's market action involved many of the same concerns that have plagued stock investors all week, including the planned referendum in Crimea on whether to break off from Ukraine and join Russia. Nervousness led to small declines for broad market measures, with the Dow posting its fifth straight loss. But some stocks suffered much more dramatic moves downward, with Plug Power (NASDAQ:PLUG), Aeropostale (NYSE:ARO), and Raptor Pharmaceuticals (NASDAQ:RPTP) among the worst performers of the day.

Plug Power fell 16% as the popular fuel-cell company suffered from analyst downgrades, reversing all of the stock's gains yesterday following Plug's positive earnings report. One analyst actually raised its price target along with its downgrade, arguing that at current prices, the stock's valuation is reasonable. Yet, the danger that another analyst identified was that it could take longer for potential customers to get the infrastructure in place to supply fuel-cell equipment with the hydrogen they need to operate. If that happens, then expected sales could end up getting deferred into future quarters or years, and that would slow Plug's growth rate and lead to a reversal of sentiment among growth-hungry momentum investors. The move also pulled down industry peers FuelCell Systems (NASDAQ:FCEL) and Ballard Power Systems (NASDAQ:BLDP), which dropped 9% and 5% respectively.

Aeropostale plunged 20% in the wake of the teen retailer's poor results for its fourth quarter. Sales crashed 16%, producing an adjusted loss in what is always a key quarter for the retail industry. Guidance for those losses to double during the current quarter was much worse than investors had expected to see, and even though Aeropostale is taking steps to try to reinvigorate its brand and reawaken some of its growth from past years, shareholders have started to worry about whether the company has enough cash to make a true turnaround. On that score, Aeropostale's arrangement to obtain financing from hedge fund Sycamore Partners might have been more counterproductive than encouraging.

Raptor Pharmaceuticals plummeted 24% after the small biotech gave discouraging guidance for sales of its key drug Procysbi for the current fiscal year. With expectations of just $55 million to $65 million in sales for the treatment for nephropathic cystinosis, Raptor's impressive growth wasn't enough to keep investors happy, especially given that the stock has soared on hopes that Procysbi would become a blockbuster drug for the company. With some other potential indications for Procysbi in the company's pipeline, Raptor could pose an interesting value for those who believe that the prospects for its key drug are brighter than shareholders seem to think after today's plunge.

Get smart about your portfolio
Opportunities to get wealthy from a single investment don't come around often, but they do exist, and our chief technology officer believes he's found one. In this free report, Jeremy Phillips shares the single company that he believes could transform not only your portfolio, but your entire life. To learn the identity of this stock for free and see why Jeremy is putting more than $100,000 of his own money into it, all you have to do is click here now.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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