Why Organovo Holdings, Gogo, and National Bank of Greece Tumbled Today

Even though major-market benchmarks climbed sharply today, these three stocks plunged. Is there a good explanation? Find out why here.

Apr 14, 2014 at 8:35PM

For those investors who feared further losses after last week's declines, Monday provided some relief, with major-market indexes rising almost 1% on the day. Positive news on the economic front helped to bolster investor confidence, but it did little to help the shares of Organovo Holdings (NYSEMKT:ONVO), Gogo (NASDAQ:GOGO), and National Bank of Greece (NYSE:NBG), all of which fell sharply on the day.


Source: Organovo Holdings.

Organovo Holdings declined 14% on a tough day for many 3-D printing stocks generally. Increasingly, momentum-driven investors have been skeptical about Organovo's long-term promise, especially after last week's comments from CEO Keith Murphy that threw cold water in the face of those who expected the company to print entire organs from scratch. But from a medical perspective, the idea that printing a relatively small amount of organic material but tailoring it to work with the patient's own cells and body to develop more compatible organs makes plenty of sense. Even with today's bounce in the stock market, many speculative stocks still face the challenge of convincing their shareholders that they can survive for the long haul, and that's a contributing factor to Organovo Holdings' decline today.

Gogo fell almost 8% as investors apparently reined in their enthusiasm about recent deals that the in-flight Internet service provider made with key partners. Last week's news included a new partnership deal with Canada's biggest airline and a technical services agreement with aircraft manufacturer Boeing to evaluate adding in-flight Internet technology at the production stage rather than waiting for retrofitting already-manufactured aircraft. Yet ever since offering disappointing guidance for the coming year in its earnings release early last month, Gogo shares have struggled to keep altitude. Despite the prudent strategy of investing growing revenue into expanding its offerings, Gogo might decline further even if it keeps delivering good long-term prospects for its business.

National Bank of Greece dropped almost 15% after the Greek bank decided to do a secondary offering of shares in order to improve its capital position. In order to comply with the terms of the Greek bailout, National Bank of Greece will have to raise more than 2 billion euros in capital. The disappointment among shareholders comes from the fact that it had said earlier that it would not issue new shares to meet its capital shortfall, and with the offering, the specter of dilution will weigh heavily on National Bank of Greece's shares. The news highlights the fact that even though prospects for the Greek economy have improved -- the nation was able to sell five-year sovereign debt at less than 5% interest recently -- Greece's fortunes won't necessarily lift those of National Bank of Greece, or the rest of the country's banking sector.

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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.

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