Why Newmont Mining, Netflix, and Denbury Resources Are Today's 3 Worst Stocks

Miners, energy producers, and internet companies all end towards the bottom of the S&P 500 on Monday

Mar 31, 2014 at 7:29PM
Longview

When Janet Yellen speaks, investors tend to listen. Markets emphatically approved of what the Federal Reserve chairwoman had to say on Monday, as seven in 10 stocks advanced and all 10 sectors finished with gains. Yellen all but assured the financial world that low interest rates were here to stay, which should help facilitate economic growth. But even in this state of euphoria, Newmont Mining (NYSE:NEM), Netflix (NASDAQ:NFLX), and Denbury Resources (NYSE:DNR) still managed to lose ground on Monday. The S&P 500 Index (SNPINDEX:^GSPC) did not lose ground, gaining 14 points, or 0.8%, to end at 1,872 today.

Boddington

Newmont's Boddington gold mine.

Shares of Newmont Mining, a gold and copper miner, lost 2% today. Like any other mining company, Newmont's gains and losses are largely simple functions of the prices of the commodities it mines for. Despite the upbeat stock market, investors found it hard to get bullish on Newmont on a day when both gold and copper prices retreated. On top of this, conflicting accounts about whether or not Newmont's copper production in Indonesia has been hit by new tax laws is confusing investors. Newmont denies the claims, made by an Indonesian government official last week. 

Netflix shares shed 1.9% today; the stock has tumbled more than 7% in the last week as concern mounts that big-time competition is on its way. Recent reports from the Wall Street Journal cite both Apple  and Amazon.com as working to improve or develop streaming services to compete with Netflix's offerings. While Amazon denied reports that it was working on a free streaming service, Apple does appear to be negotiating with Comcast (NASDAQ: CMCSA) on a deal for high-quality streaming TV on its set-top boxes.

Lastly, shares of Denbury Resources dropped 1.6%, a dip large enough to make it one of the S&P's weakest performers. Like Newmont, Denbury's performance as a stock is subject to the daily fluctuations of the materials it extracts. A U.S.-based oil and natural gas producer, shares didn't respond well to natural gas's 2.5% decline today. From a long-term perspective, Denbury remains well-positioned for the future, as a new era of American energy independence bodes well for domestic energy producers. Not only does their location give them transportation cost advantages over foreign competitors, but sheer production volume also should allow for more export opportunities to arise.

3 stock picks to ride America's energy bonanza
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a look at three energy companies using a small IRS "loophole" to help line investor pockets. Learn this strategy, and the energy companies taking advantage, in our special report "The IRS Is Daring You To Make This Energy Investment." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

John Divine owns shares of Apple. You can follow him on Twitter, @divinebizkid, and on Motley Fool CAPS, @TMFDivine.

The Motley Fool recommends Amazon.com, Apple, and Netflix and owns shares of Amazon.com, Apple, Denbury Resources, and Netflix. 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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

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.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

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. It's also featured on several dozen 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 ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers