Europe once again was the catalyst for the Dow's fall yesterday, as it's become all-but-guaranteed that Greece will leave the eurozone. Although it's hoped the exit will be an orderly affair, the probability it will turn messy is high, and then comes the possibility that Spain or Italy -- or both! -- will follow Greece out the door.
As the Dow Jones Industrial Average fell for the eighth time in nine days, some companies fell even harder, so first let's see whether they had good reason to drop. Sometimes, panic-fueled declines can make excellent buying opportunities.
Out on a limb
With consumer-finance advocate and Senate candidate Elizabeth Warren seeing her assertion to be 1/32 part Cherokee Indian fall apart after it turned out there was no factual basis for the claim, and with NBC cancelling the "Who Do You Think You Are?" TV show, the family tree of genealogy is looking a little stunted these days.
The stock of Ancestry.com
Because the channel used Ancestry's services to seek out the history of celebrities profiled on the program, it was essentially a long-running commercial for its service. Not surprisingly, the genealogy site was also a show sponsor.
Although the show boosted interest in the site, I think it was already limited in its appeal because of its focus solely on celebrity family histories. How much more interesting would it have been for Ancestry.com had they used some of its actual subscribers in the show who found fascinating branches in their personal histories rather than some Hollywood starlet's pedigree? That probably would have brought in more subscribers than researching Tinseltown's glitterati.
Yet Ancestry.com was already facing slowing subscriber growth before the show's cancelation, as well as higher costs to obtain new subscribers. Offsetting that, I believe, is its willingness to use DNA data from Illumina's
In search of a dent puller
As suspected, lithium-ion battery maker A123 Systems
Privately held carmaker Fisker had cut back its orders of A123's batteries as demand for its electric cars was not as high as it had predicted. Then a much-publicized shutdown of a car while Consumer Reports was testing it did little to help the situation. Investors are hoping for an agreement with General Motors
That hasn't changed my position, though, since I think A123 will eventually go bust. Despite the client list, we see that product revenues amounted to just $7 million in the quarter, down 53% from last year, as product shipments fell to 10 megawatts per hour from 14.3 Mwh.
Before we get to that endpoint, we're going to see a lot of dilution in the meantime, as CAPS member nadanate points out. Just the other day it had a $50 million private offering of convertible notes and warrants.
Previously I rated A123 to underperform the market on CAPS, and I don't plan on changing that outlook, but flame me in the comments section below or express why on the A123 Systems CAPS page you don't agree that this cash-burning company will self-combust. Then add the stock to the Fool's free portfolio tracker to see whether it can power up yet.
Ready for a resurrection
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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 Ancestry.com. Motley Fool newsletter serviceshave recommended buying shares of Illumina, Ancestry.com, and General Motors. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.