Bad days. We all have them; some of us deserve them. Here are five stocks whose naughty ways drew investors' scorn on Monday:


Closing Price

CAPS Rating (out of 5)

% Change

52-Week Range

IndyMac Bancorp (OTC BB: IDMC.PK)





Washington Mutual (NYSE:WM)





Zions Bancorp (NASDAQ:ZION)





Wachovia (NYSE:WB)





Lehman Brothers (NYSE:LEH)





Sources: The Wall Street Journal, Yahoo! Finance, Motley Fool CAPS.

Well, OK, we can't exactly call these stocks naughty. There are days when five-star winners and newsletter recommendations appear here. Today is not one of those days.

But if you're an investor, you'll have plenty of bad days. The trick is to avoid dating -- or, worse, marrying -- your losers. That's why I listen when our 110,000-person-strong Motley Fool CAPS community of stock pickers speaks with a poor rating or a negative pitch. You should too.

Thus, here is today's list of the worst stocks in the world.

We begin with Zions Bancorp, which Goldman Sachs (NYSE:GS) now says is a sell. You know the reasons -- two words: housing crisis -- so I won't bore you with the list.

Zions makes today's list because its credit-crunched portfolio has gone so bad, so fast, that Goldman cut its price target almost in half, to $21 per share. Rarely are Wall Street's top brokers so bold.

Fools, on the other hand, are anything but timid. "Great [bank], poor management," CAPS All-Star indian121212 wrote in April. "See no growth in the next 4-5 quarters."

Next up is Washington Mutual, which you've seen in this column before. There isn't much new -- or good -- to report today. A Lehman Brothers analyst says the firm is likely to set aside $4 billion for second-quarter losses, the same amount plus $500 million that executives set aside in Q1.

Foolish colleague Morgan Housel put it best at the time. "Just as Warren Buffett says, you never know who's been swimming naked until the tide goes out," he wrote in April. "And WaMu was caught with its swimming trunks down."

Will someone please get these guys a towel?

But our winner is IndyMac Bancorp, which was seized by the Federal Deposit Insurance Corporation over the weekend. The Feds had little choice; IndyMac didn't have the liquidity to withstand a run on the bank that saw customers withdraw more than $1.3 billion in deposits over 11 days.

We Fools rarely gloat but, on this one ... we told you so. Again, again, and again. IndyMac ... quite simply Monday's Worst Stock in the CAPS world.

Do you agree? Disagree? Let us know what you think by signing up for CAPS today. It's 100% free to participate.

I'll be back tomorrow with more stock horror stories.