These three companies just didn't live up to Mr. Market's expectations last week. Sometimes an earnings stumble is a signal to sell, but digging in the dirt is also a good way to find turnaround candidates while they're getting beaten down.
Today, we have one company with a dual personality, another with five voices in its head, and a third that is trying to figure out what to do with the one identity it's got.
Not so happy together
Solar power panels and fiber optic communications equipment sounds like an odd coupling, even to Emcore
Emcore is buying Intel's optical telecommunications operations for $85 million. This seems to be in line with the company's plans to split into two separate companies. In fact, CEO Reuben Richards stated that "the progress in each of our business segments continues to point towards the path of separating EMCORE into two separate companies." The way I see it, that move would in turn prepare the components for buyouts of their own. JDSU
Always the fifth wheel
The little online conglomerate that could, a.k.a. IAC
Fellow Fool Rick Munarriz thinks the five-way split makes sense, and can't wait to see it happen. Me, I think it's a lot like rearranging the deck chairs on the Exxon Valdez. You don't keep a sinking ship afloat by cutting it into pieces. I would much rather hitch my wagon to any one of the three big boys, once the flirtations among them subside.
That's one spicy burger
CEO Kerrii Anderson said, "We executed our strategic plan, implemented many initiatives to drive the business and made tough decisions to position Wendy's for future growth." It appears that Wendy's is looking for prospective buyers. In the meantime, there's a fresh advertising campaign designed to put the iconic red-haired girl to work for her paycheck under the slogan "Waaay Better."
Wendy's stock is 29% cheaper today than it was a year ago, despite seriously improved fundamentals and rising valuations of archrivals Burger King and McDonald's
Some of these underperformers are victims of larger circumstances, while others might have only themselves to blame. It's up to you to decide which down-on-their-luck companies should be able to pull themselves up by the bootstraps, and which ones are stuck in the mud for real.
Further Foolish reading:
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Fool contributor Anders Bylund holds no position in the companies discussed this week. It's his birthday today, so it's OK to have some cake and eat it, too. The Fool has an ironclad disclosure policy, and you can see his current holdings for yourself.