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

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.


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.

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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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.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.

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