Under the cover of big headlines and Presidential proclamations about new all-time highs for the major stock market indices, quite a few well-known stocks are failing to participate in the much-publicized rally. And “failing to participate” might be putting it mildly.
With so much money heading almost continuously into leaders like Microsoft and Apple, if you looked at just the S&P 500 and the NASDAQ Composite, you might miss how some equities are having trouble with the hard work of finding more buyers than sellers.
Checking the “new 52-week lows” list this week offers at least 4 heavily-traded stocks that surprised me with the steady downward trend of their price charts.
Sprint, for example, is the wireless communications company that averages 14 million shares traded daily on the New York Stock Exchange.
Sprint weekly price chart, 12 14 19.
This week the stock took out on the previous low from April, as you can see with the red dotted line on the price chart. The drop from the July high of just past 8 to its current level at 5.21 qualifies as dramatic, I think. Are we in for a re-test of the 2018 low down near 4 or so? Sprint tanked to 2.25 back in 2016. Those are levels to keep an eye on.
Tupperware is an iconic packaging and container company that trades on the NYSE. I hadn’t checked the price chart in ages and the look of it now surprised me:
Tupperware weekly price chart, 12 14 19.
Now going for 7 and change, the shorts have noticed the unmistakable trend: borrowed shares amount to 13% of the total float. In late 2016, the stock went for 64. I knew that it had sold off since then, but the extent of the plunge I’d missed. Thomas Pynchon opens his The Crying of Lot 49 with mention of a Tupperware party — published in the mid-60’s, the product has been around for awhile now.
Overstock is NASDAQ-traded and FinViz.com refers to it as “catalog and mail order houses.”
Overstock weekly price chart, 12 14 19.
The short float is a remarkable 29% so it’s clear that someone doesn’t like the stock. Overstock peaked in the beginning of 2018 at 90 and now trades for 7.14 — with just a few ups and downs in between. “All time highs” for some major market indices, but this individual stock is the opposite.
Dropbox is another NASDAQ-traded issue and the price chart demonstrates that not all software companies go up in price forever:
Dropbox point-and-figure price chart, 12 14 19.
After peaking in mid-2018 at 43, a pattern of unrelenting selling has emerged and now the stock finds itself all the way down at 16.90. The “drop” part of Dropbox proved correct, at least so far. For the record, Nomura analysts issued a “buy” rating on the stock in October with a target of 24/25.
Stats courtesy of FinViz.com.
I do not hold positions in these investments. No recommendations are made one way or the other. If you’re an investor, you’d want to look much deeper into each of these situations. You can lose money trading or investing in stocks and other instruments. Always do your own independent research, due diligence and seek professional advice from a licensed investment advisor.