Five Stocks Which You Should Avoid
BlackBerry (NASDAQ:BBRY) was once again caught playing footsie. This time around it was with Fairfax Financial, a possible investment suitor offering $9 per share buyout offer. As lenders feared the risks involved in securing BBRYs finances, the proposed sell out to Fairfax is on pause, while Blackberry opens itself to begin spun off into smaller credit-worthy investable units for interested companies.
Zogenix Inc (NASDAQ:ZGNX) staggered to 17% drop in prices, post the announcement of its third quarter results. It also recorded the poor sales over previous year for two of its headache-migration drugs. However, the downslide was triggered by the announcement of common shares to the tune of $60million, to launch its drug Zohydro ER. However, Zogenix will not be able to survive in terms of financials if it fails to pull in money through common shares.
Synta Pharmaceuticals (NASDAQ:SNTA) was the biggest loser in the pharma field, with nearly 33% slide in share prices. The crash was triggered by the increase in risk-factor of its target, second line cancer treatment drug – Ganetespib, during the phase-III trials.
Credit Suisse Group AG (ADR) (NYSE:CS) saw a massive slide at the end of trading day on Monday, thanks to Swiz governments new Basel III ratio rethink. The proposal is to increase the capital base requirement to 6% and 10% over and above Basel III, 2019 requirements. If this were to be adopted, CS would need $30.1 billion as additional equity. However, CS continues to trade in the red, over issues with ETF trading loss of $6million last year.
LightInTheBox Co Ltd (ADR) (NYSE:LITB), the Chinese ecommerce company stocks showed a disappointing slide to 9% low thanks to some poor next quarter guidance by market leader Dangdang. LightInTheBox sales are essentially US and Europe focused, and it continues disappointment in trade performance even after its –going-public-debut.