NEW YORK - The stock market is rolling but some companies have been stopped dead in their tracks and have not matched the broader market rise. The first loser of 2012 is First Solar, among companies with a market capitalization over $1 billion it has done the worse.
FSLR is down 36% since the start of the year. The company has been struggling as solar products are being demanded less as governments demand less. The problem is that European governments such as Spain and Italy, were solar technology leaders. With European debt troubles government cuts will likely come in government subsidized solar. Chinese solar companies are also competing extra hard and are forcing prices lower.
Exco Resources is down 30% since the start of the year. The company explores and hopes to develop oil and natural gas properties. The companies earnings shrank from over $3 a share in 2010 to 11 cents in 2011. However 2010 had an over $500 million after tax gain. Investors have become nervous of the company's large natural gas exposures. Some analysts say they have a weak liquidity position. The company is currently trading near tangible book.
Deckers Outdoor Corporation, has seen its stock plummet since 2012 began. The company's stock is down 29% since the start of the year and shareholders are saying uggs can't the year be over yet. The company disappointed investors when said 2012 earnings would equal 2011 because of the rise in input costs. Deckers is another retail stock to fall out of favour.
Inergy LP which markets propane distribution is currently trying to sell its 28% share loss to investors since the start of the year. The company now has a 17% yield on its stock. However company profitability sagged to an adjusted $15 million in their first quarter from $60 million in the year before. The company spun off one of its units and owns 75% of the common stock of that company NRGM.
Groupon probably wishes the deal was off on their stock. As the company's share price has sagged by almost 30% as well. The company actually reported profitability in Q1 but there was a loss because of timing differences on accounting and federal taxes. Having said that Groupon trades at an $11 billion market capitalization with a simple business model with little brand equity. Consumers don't seem to be attached to Groupon over other deal sites and the company has to spend a lot on advertising to get customers. Other deal sites are easy to make and popping up everywhere, making Groupon stock expensive.
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