Your stock just took a nosedive -- but don't panic. First, let's see whether it had good reason to fall. Sometimes, panic-fueled drops can make excellent buying opportunities. Here's the latest crop of cratered stocks that could provide a possibility for profit:

Stock

CAPS Rating
(out of 5)

Yesterday's Change

Uranium Resources (Nasdaq: URRE)

***

(24.89%)

Denison Mines (NYSE: DNN)

****

(22.49%)

KV Pharmaceutical (NYSE: KV-A)

**

(13.93%)

The U.S. markets looked fairly resilient in the face of the collapse of the Nikkei bourse. After being down 170 points at one point, the market rallied to end down just 51 points. It's a big turnaround, for sure, but the Nikkei has collapsed again, dropping 11% (after being down 14% at one point). The question is, can U.S. markets withstand the aftershocks, thus making stocks that went down by even larger percentages bigger deals still.

The devil's in the details
For any name in the nuclear energy space, there's only one word needed to understand what's happening: Japan. The disaster unfolding at the Fukushima power plant is likely to dramatically set back the nuclear power industry for years.

While Uranium Resources and Denison Mines were two of the biggest decliners in the space and on the market, the entire sector has been damaged. The CAPS Uranium sector was down 17% as a whole and companies like UR-Energy (NYSE: URG), which had already been struggling after reporting its uranium deposits were overstated, plummeted 27%. But even the much more muscular Cameco (NYSE: CCJ), which is the country's leading uranium miner, was unable to hold up against the assault, and it dropped almost 13% on the day.

The crisis in Japan is far from over, and could very well get much, much worse. Europe is already reacting, with Germany saying it will hold to its pledge to go nuclear-free by 2021. I indicated yesterday my belief that, whether rightly or wrongly accused, industry players like USEC (NYSE: USU) and Cameco were going to be lumped together and be damaged goods for some time. Previous bullish positions now need to be reexamined.

For example, CAPS member shanelofgren had expected Cameco to excel because of plans to double uranium production by 2018. If the Obama administration does react by clamping down on expansion, however, such corporate forecasts would likely be revised downward.

But there is an investing opportunity here. It seems to me the fact that the Tepco nuclear facility has not gone into meltdown yet despite the incredible devastation to it, speaks volumes about the overall safety of the design and by extension the industry. And the Fukushimi plant was of an older design, newer ones are said to be even better.

Before the disaster struck there were 441 nuclear reactors in operation, 63 new reactors being built, and an additional 156 ordered or planned. China and India have said they have no intention of swearing off nuclear power anytime soon. The new, lower prices of uranium miners could give investors an opportunity to buy quality companies at depressed levels. I'd just wait for the toxic cloud of doubt to blow out to sea first before looking at which might still be viable.

Cameco certainly seems like one. Let us know on the Cameco CAPS page how soon or whether it will recover from the Japanese debacle.

Truly unconscionable?
It has nothing to do with Japan, but KV Pharmaceutical is still feeling the aftershocks of its decision to hike prices of its drug Makena to $1,500 a dose. The FDA recently approved the treatment it's developing with Hologic (Nasdaq: HOLX) for reducing the risk for women with a history of singleton spontaneous preterm birth.

While it didn't hurt that it's the only such treatment on the market, what did cause the backlash was KV's decision to jack up the cost of a drug that doctor's previously were able to prescribe for just $10. So far Hologic has managed to escape any taint from being associated with KV.

Of course, those complaining loudest are doctors and insurance companies who are routinely subject to criticism for their own high fees and policies.

Despite announcing a "patient assistance" program to help pay for the drug, it seems KV has thoroughly soiled an already tarnished reputation. While each investor has his own threshold he will not cross, CAPS member ImpetuousFool says he's allowing emotions to rule his investment decisions this one time.

As the outrage to KV's actions mount you can see the fallout from the sidelines by putting the stock on your watchlist. Let us know if you think it's an evil company in the comments section below or on the KV Pharmaceutical CAPS page.

Ready for a resurrection
Just because your stock has taken a beating doesn't mean it's going to roll over and die. Markets are known for overreacting. A closer look at what's happened to your stock can give you an edge over other investors who just react to the market's lead.

That's why it pays to start your own research on these stocks on Motley Fool CAPS where you can read a company's financial reports, scrutinize key data and charts, and examine the comments your fellow investors have made, all from the stock's CAPS page. Then you can decide for yourself whether it's ready to come back from the dead.

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. 

Fool contributor Rich Duprey does not have a financial position in any of the stocks mentioned in the article. You can see his holdings here. The Motley Fool has a disclosure policy.