Why AeroVironment, Acorda Therapeutics, and Chicago Bridge & Iron Tumbled Today

Even though the stock market managed to post modest gains, these stocks missed out. Find out why.

Jun 17, 2014 at 8:33PM

Stocks generally gained ground Tuesday as investors remained confident despite some signs of challenges for the U.S. economy. Inflation spiked upward in May, and activity in the homebuilding market declined, raising some fears about the sustainability of some of the key drivers of the recovery during the past several years. Also weighing on market sentiment were negative news reports concerning AeroVironment (NASDAQ:AVAV), Acorda Therapeutics (NASDAQ:ACOR), and Chicago Bridge & Iron (NYSE:CBI), each of which posted substantial losses today.

AeroVironment fell more than 5% after an analyst downgraded the stock, reducing its former buy rating to a hold rating. The maker of unmanned drone aircraft has soared during the past year, with prospects for huge growth for new applications for drones ranging from package delivery to surveillance of corporate facilities in remote locations. Just in the past several weeks, AeroVironment shares have jumped 15% as approval of drone use for BP's Prudhoe Bay facilities, and the prospect of greater unmanned aerial vehicle use in a possible escalation of hostilities in Iraq, helped make investors more aware of the company's potential. Even after a modest pullback today, AeroVironment still has plenty of potential to reverse course and start giving shareholders gains again.

Source: AeroVironment.

Acorda Therapeutics dropped 9% after the biotech specialist in multiple sclerosis, spinal cord injuries, and other nervous-system disorders said it would offer convertible notes to raise capital. Acorda said that it would raise $300 million by issuing seven-year convertible senior notes. Pricing of the note offering hasn't happened yet, but the fear that investors have is that the conversion option will potentially dilute existing shareholders, especially if the stock is able to reach its full potential. Nevertheless, for companies whose best prospects lie well in the future, raising capital is a necessary risk that early investors run in exchange for the possibility of getting huge profits.

Chicago Bridge & Iron declined 7% after facing allegations from a small research firm of using "creative acquisition accounting." Ever since Chicago Bridge announced that it had won a contract from a Canadian energy-infrastructure company to help provide front-end engineering and design work on a liquefied natural gas export facility in Canada, the stock has moved downward. Yet, with more attention than ever on engineering and construction projects, especially in the booming energy sector, Chicago Bridge & Iron has a true opportunity for growth if it can capture its fair share of business from companies both within and outside the energy industry.

Do you know this energy tax "loophole"?
You already know record oil and natural gas production is changing the lives of millions of Americans. But what you probably haven't heard is that the IRS is encouraging investors to support our growing energy renaissance, offering you a tax loophole to invest in some of America's greatest energy companies. Take advantage of this profitable opportunity by grabbing your brand-new special report, "The IRS Is Daring You to Make This Investment Now!," and you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends AeroVironment. The Motley Fool owns shares of AeroVironment. 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