This has been a rough year, and it’s still only February.
From a recent post;
- on 2/23, NYMT reported an earnings miss of $0.20, and the following day the value of the stock dropped by more than 20%.
- on 2/23, NTRI reported in-line earnings with a revenue beat, but light guidance on Q1, and the following day the value of the stock dropped by almost 13%.
- For comparison, WTW also reported but dropped almost 30%. That’s the #OprahEffect!
That’s when losing by $0.20 equals losing 20%!
From another recent post;
- UPDATE: 2/25/16 – NRF announced their dividend amount payable in March will be decreased 46.66% from $0.75 to 0.40 per share. Stock went up about 21%.
This is how the each stock reacted to the news;
As you can see, there were some significant moves in each of the above.
DISCLOSURE: I/We are long NRF, NTRI, & NYMT. We have no position in WTW.
If you haven’t joined StockTwits, you should (if you’re interested in stocks, the markets, investing, etc.)
You can follow the discussion there for the stocks named above by clicking the stock symbol; NRF, NTRI, NYMT, & WTW. You might even learn something, but beware the trolls and other assorted internet distractions.
So, here’s where I give you my “take” on the above.
NYMT; While quite a shock to lose 20% of any investment, it really shouldn’t have come as a surprise because this stock has been declining in value steadily and somewhat severely lately. The question now is; what becomes of the dividend? Oh, I can hardly wait to hear the news. (Uh, that was sarcasm…)
NRF; A dividend cut is never a good thing when you are living off the income provided, it really wasn’t wholly unexpected because this stock has also been declining in value severely for quite some time. The question now is; what becomes of the stock price and future dividends? Oh, I can hardly wait to hear the news. (Uh, that, too, was sarcasm…)
NTRI; This didn’t hurt as badly as the previous two, because I don’t have that much invested. It’s still down almost 21% in our portfolio, but I do expect some recovery after maybe a little further decline based on the ER and global macro conditions. This one is only held in our Capital One Investing (ShareBuilder) account (They really need to get a better name, or just go back to being ShareBuilder!). The (very) general rules for investing there are that the stock must be doing well in order for us to throw more money at it.
WTW; This didn’t hurt us at all, because we have no position. It used to irk me to see the Commercials with Oprah touting the product and shouting about eating bread. It gave me quite the evil thrill to see it bomb about 30%, and I call that the #OprahEffect! She lost 20-something Million Dollars that day, and I felt slightly justified because I thought those commercials were an attempt to manipulate the stock price. I do expect some recovery here also, again after maybe a little further decline based on the ER and global macro conditions.
So, we are “tightening our belts” and trying to “weather the storms”, and hoping our portfolio will last through our retirement.
“Dear liver, today is not going to be a good day for you. Tomorrow doesn’t look good for you, either. You might want to cancel all of your other plans because you have some tough times ahead…”