Please ensure Javascript is enabled for purposes of website accessibility

Why Eastman Kodak, Novavax, and Alamos Gold Slumped Today

By Dan Caplinger - Jan 11, 2018 at 4:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

These stocks fell despite a good day for Wall Street. Find out why.

Thursday featured solid gains for major benchmarks, sending the Dow, S&P 500, and Nasdaq Composite to all-time highs. Upbeat views from most market participants continue to power shares higher, with volatility seemingly reserved for the cryptocurrency markets and helping to keep complacency among stock investors at extreme levels. Yet some companies weren't able to participate in the market's overall gains. Eastman Kodak (KODK 5.75%), Novavax (NVAX 1.89%), and Alamos Gold (AGI -0.66%) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.

Kodak gives back some gains

Shares of Eastman Kodak dropped 21%, losing a portion of the 90% gains they made yesterday amid news that the iconic photography giant had decided to get into the cryptocurrency business. Kodak said it would create its own KodakCoin as well as offer customers a chance to mine bitcoin and other cryptocurrencies using its own proprietary mining equipment. Skeptics noted that the underlying business objective didn't seem to require the use of a blockchain-based solution, with customers paying for image licensing rights using KodakCoin rather than money. Some of the decline also likely stemmed from concerns about the propriety of insider transactions involving Kodak restricted stock units immediately before and after the strategic announcement. Kodak will have to work hard to convince investors that it's not just trying to cash in on the bitcoin craze.

Yellow Kodak PixPro camera, a small handheld camera standing on a flat surface.

Image source: Eastman Kodak.

Novavax takes a breather

Novavax stock finished down nearly 7%, also giving back more extensive gains from Wednesday's session. Shares had jumped by about 50% after the biotech company presented at the J.P. Morgan Healthcare Conference on its proposed vaccine candidate for respiratory syncytial virus. Investors had hoped that after having seen failure in helping older adults avoid the disease, the vaccine would work more effectively in helping women who are pregnant avoid spreading infection to their newborns. Today's decline acknowledges that it will take time for Novavax to move forward with mid- and late-stage trials, and there's always the risk that promising early results will give way to less encouraging data later on.

Alamos loses its luster

Finally, shares of Alamos Gold fell 7%. The gold miner announced its fourth-quarter production figures, and on their face, they looked quite good. Alamos reported a record 429,400 ounces of gold production, lower all-in sustaining costs of $940 per ounce, and impressive performance from its key Young-Davidson mine. The miner also projected solid growth in 2018, providing guidance of 480,000 to 520,000 gold ounces due largely to the acquisition of the Island Gold property late in 2017. Long-term projections include falling costs and reduced capital spending, all of which are favorable. Yet investors seem concerned that having seen solid advances in 2016 and 2017, gold might turn downward once again. That's hurting Alamos stock, which has now fallen about 13% in just the past week.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Eastman Kodak Stock Quote
Eastman Kodak
KODK
$4.41 (5.75%) $0.24
Novavax, Inc. Stock Quote
Novavax, Inc.
NVAX
$47.00 (1.89%) $0.87
Alamos Gold Inc. Stock Quote
Alamos Gold Inc.
AGI
$7.57 (-0.66%) $0.05

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
332%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.