Individual stocks can surge by 10%, 25%, or even more in a
short time. And they can fall just as far, just as quickly.
For example, shares of United Airlines parent
UAL (Nasdaq: UAUA) fell by 21% one day last
week, when it announced that, like several of its
competitors, it would
dilute shares to raise more money.
Big drops in share price can sometimes signal material
defects or new risks. But at other times, they're simply
pullbacks that go along with the larger pessimism facing the
market today. Fortunately, we have
Motley Fool CAPS, a great
resource to help us understand the bigger picture behind big
price drops.
Is the sky falling?
CAPS contains more than just
the crowd's opinions. Its best-performing members' votes
count more in shaping each
company's ratingthan do the picks of their
poorer-performing peers. That way, investors can
intelligently use the collective wisdom of more
than 140,000 CAPS members to make better
decisions.
We'll use CAPS' handy
stock screening
toolto quickly zero in on companies that have been
slashed by at least 20% in the last four weeks and have a
market cap greater than $100 million and a beta of less than
3. If you want to run this screen for yourself,
please do. Just keep in mind that the results will update
with the market.
Company
CAPS Rating
(out of 5)
4-Week
Price Change
Eastman Kodak (NYSE: EK)
**
(26.9%)
MannKind (Nasdaq: MNKD)
**
(30.4%)
Arena Pharmaceuticals (Nasdaq:
ARNA)
*** Continued... |