Posted on 03/18/2020 12:48:23 PM PDT by Red Badger
The Coronavirus market crash is doing the unspeakable: Turning major stocks into pennies. Hope you sold like the pros told you to.
All told, 18 stocks in the broad S&P 1500, including consumer discretionary J.C. Penney (JCP), energy firms like Denbury Resources (DNR) and real estate firm CBL & Associates (CBL), are now trading for less than a buck. The S&P 1500 is a collection of small stocks in the S&P 600, midsize S&P 400 and large S&P 500 companies.
All the S&P 1500 trading for less than $1 were admittedly damaged goods ahead of the coronavirus market crash. Even before the crash, the average share price of the 18 was just 2.87.
But this coronavirus market crash is showing even weak stocks can get decimated further. These 18 S&P 1500 stocks are down another 80%, on average, this year.
Makes cash look supreme.
Energy Stocks Get Pounded
There's no question energy is the center of the coronavirus market crash. The Energy Select Sector SPDR ETF (XLE) is down 58%, just this year. That makes the S&P 500's energy sector the worst performer this year of the 11.
Energy is hurt from all side. Transportation is grinding to a halt. And the price of oil on the Nymex is down 55% this year and off 39% this month. Even if some energy stocks stay over a dollar, they might slash their dividends.
Not surprisingly, energy companies are crashing through $1 like none others. Thirteen of the 18 S&P 1500 stocks trading for under a dollar are energy firms.
Take Denbury Resources. The small-cap energy firm's stock collapsed to 27 cents. That's down 81% this year from the $1.41 a share it started at this year. And it's completely rational.
(Excerpt) Read more at investors.com ...
Some things will never recover. This was a stupid reaction from the get go.
The death of an individual is a statistic. The death of a corporation is a tragedy.
Wall street and the pushers of money are both stupid and evil
All you need to see is theyre panic right now to realize they’re not very smart either
Just as surely as lives will be lost through this, fortunes will be made.
These companies were probably on the brink to start with. JC Penney?
Well. Mr. Investor guy is certainly making the case for not investing in his trash at all.
It takes years for these indexes to get to their lofty heights and then one event - which is likely not near what it was said to be - blows the market out of the water in a couple of weeks?
What a joke. They should leave it in Vegas.
I guess there will be bargain shopping somewhere down the line but which ones to pick...
I’m gonna do some investing!
Bookmark
I’m betting that POS soros is buying up the cheap stocks.
There is a lot of people doing their own trading via their computers and phones.. They do most of the panic selling..
I like that movie Airplane!
Individual stock pickers are probably getting slammed especially if they hold iffy risky unstable companies.
This will pass, time frame ??, but it will pass and funds like VTSAX and other quality indexed stock funds and balanced 4 and 5* funds will tick up and hit new highs as they/it have done for years.
As this settles down it may be time to buy into this historical dip.
Presumably we haven’t hit the bottom yet.
I’m betting that POS soros is buying up the cheap stocks.
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The toad was most certainly strategically shortening target stocks and sectors and using automated computer controlled algorithmic buys & sells to take or leave positions.
As I just posted, we presumably are not at the bottom yet.
What goes down must come up?
Disclaimer - I ride road bicycles. Downhill is so much fun but gotta remember I have to get back to the start line.
[JC Penney]
Their gay CEO did them no favors. Oh sure, he’s long gone.
They got woke. They can go broke.
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