The markets resumed their tumbling ways, but your stock went and took an even bigger nosedive. Don't panic, though. 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:
CAPS Rating (out of 5)
Alpha Natural Resources
James River Coal
With the Dow Jones Industrial Average (INDEX: ^DJI) falling 284 points yesterday, or 2.5%, stocks that went down even more are pretty big deals.
Hanging up on growth
Usually, announcing the issuance of patents for a drug doesn't send your stock into a tailspin, but gene-based pharmaceutical products maker Vical has lost almost a quarter of its value after announcing that Canadian and Japanese authorities each issued a patent for its adjuvant Vaxfectin. Adjuvants help boost the body's immune system, so each dose requires less quantity of the vaccine.
Vical has a pipeline of promising drugs, though the one that gets the most attention is melanoma therapy Allovectin-7. It's often put in the same class as Bristol-Myers Squibb's Yervoy and Dendreon's
CAPS member JuanPeter isn't impressed with the results of Allovectin-7 thus far and fears that investors will only be separated from their money in the future. Still, 93% of the CAPS members rating the drug developer think it will outperform the broad market averages. Tell us on the Vical CAPS page whether you think the market's reaction is patently absurd.
The devil's in the details
Is this where we see the emerging markets' economic engine seize? Alpha Natural Resources said shipments of metallurgical coal, which is used in steelmaking, are falling because of "unexpectedly curtailed customer activity levels" in Asia. Rather than China, Alpha is heavily tilted toward India, Brazil, Italy, Turkey, and Ukraine, as they account for 35% of annual coal revenues.
The risk to growth was highlighted when miner Rio Tinto
Wall Street had been unanimously bullish about Alpha's prospects, but that might change as events unfold. You can add your opinion on the Alpha Natural Resources CAPS page and let us know whether you think these reports are just a canary in the coal mine for the rest of the industry.
Ready for a resurrection
Just because your stock has taken a beating, that doesn't mean it's going to roll over and die. Markets are known for overreacting. A closer look on Motley Fool CAPS at what's happened to your stock can give you an edge over other investors who just react to the market's lead. You can decide for yourself whether it's ready to come back from the dead.
Fool contributor Rich Duprey holds no position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Dendreon. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.