Coronavirus Crash Reduces 18 Major Companies To Penny Stocks

[22:27, 19/03/2020] Whatsapp Law Enforcement: Coronavirus Crash Reduces 18 Major Companies To Penny Stocks https://finance.yahoo.com/m/be56c5c0-e425-3f13-9501-9ed316c531d4/coronavirus-crash-reduces-18.html [22:28, 19/03/2020] Whatsapp Law Enforcement: 117 comments or reactions: Actually, the pros keep saying "don't sell, ride it out" I have had arguments with fund managers over this, I listened to them and lost hundreds and thousands of dollars, and they are still saying "Now is not the time to sell" tell that to my wife! 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. SPDR Sector ETFs: Intraday % Chg. Consumer StaplesXLP-2.57% Communication ServicesXLC-3.32% Health CareXLV-3.32% Information TechnologyXLK-3.77% UtilitiesXLU-4.35% Consumer DiscretionaryXLY-5.74% MaterialsXLB-6.39% Real EstateXLRE-7.02% IndustrialsXLI-7.37% FinancialsXLF-8.49% EnergyXLE-14.36% Provided by Nasdaq Last Sale. Real-time quote and/or trade prices are not sourced from all markets. 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 sides. 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. Analysts think the company's earnings per share will fall 70% to 12 cents this year. And even that might prove optimistic. Small-Cap Debacle In Cornavirus Market Crash Much of the coronavirus market crash pain is with small stocks. The small-cap focused S&P 600 and ETFs tied to it are down 39% this year. That's significantly worse than the 21% drop in the large-stock S&P 500 and the linked SPY stock. And it's not surprising, all 18 of the S&P 1500 new penny stocks are small caps. That includes former large-cap J.C. Penney. The retailer is now trading for 42 cents a share, making it worth just $164 million. That's a 63% decline, just this year. If the coronavirus market crash continues, though, expect some midsize and large companies to drop below $1 next. Midsize energy firm Transocean (RIG) is the closest S&P 400 stock to $1. Shares are down 83% this year to 1.16. And among the S&P 500, Noble Energy (NBL) is down 87% this year to 3.23. So again, if you're holding individual stocks, you need to cut your losses. Things can get worse. S&P 1500 Stocks Now Trading For Pennies Company Ticker Index Constituents [Primary Listing] Stock Price On 3/18/2020 Sector YTD Ch. HighPoint Resources (HPR) S&P 600 0.23 Energy -86.2% Denbury Resources (DNR) S&P 600 0.27 Energy -80.7% Noble (NE) S&P 600 0.30 Energy -75.5% CBL & Associates Properties (CBL) S&P 600 0.31 Real Estate -70.7% Oasis Petroleum (OAS) S&P 600 0.37 Energy -88.7% TETRA Technologies (TTI) S&P 600 0.37 Energy -81.1% QEP Resources (QEP) S&P 600 0.38 Energy -91.5% Laredo Petroleum (LPI) S&P 600 0.39 Energy -86.4% Nabors Industries (NBR) S&P 600 0.40 Energy -86.1% J.C. Penney (JCP) S&P 600 0.42 Consumer Discretionary -62.5% Callon Petroleum (CPE) S&P 600 0.45 Energy -90.7% Valaris (VAL) S&P 600 0.53 Energy -91.9% Akorn (AKRX) S&P 600 0.55 Health Care -63.3% Gulfport Energy (GPOR) S&P 600 0.58 Energy -81.0% Ring Energy (REI) S&P 600 0.68 Energy -74.2% Acorda Therapeutics (ACOR) S&P 600 0.75 Health Care -63.2% Cedar Realty Trust (CDR) S&P 600 0.86 Real Estate -70.8% U.S. Silica Holdings (SLCA) S&P 600 0.88 Energy -85.7% Source: IBD, S&P Global Market Intelligence Follow Matt Krantz on Twitter @mattkrantz YOU MAY ALSO LIKE: Watch These 5 'Absolute Losers'; Futures Volatile Why You Should Hope This Coronavirus Bear Market Is Like 1987 How Much The Coronavirus Bear Market Is Costing Every American Thirteen Companies Drown On Debt In Coronavirus Crash Check Out IBD's New IBD Live Panel Discussion TODAY'S SPOTLIGHT IBD’s Getting Started Get started making money with IBD and make smarter investing decisions. Take a tour now! IBD Digital Spring Sale! We're celebrating a new season with a great deal: 5 weeks of IBD Digital for only $5. Get it now! Watch the Latest Podcast! Hear Scott O’Neil’s analysis of the market correction and learn how to protect your portfolio. SECTORS Coronavirus Stock Market Crash Plays Reveal What's Going On FacebookTwitterLinkedInShare Licensing MATT KRANTZ08:00 AM ET 03/18/2020 Getting out of the coronavirus stock market crash — and staying out — is prudent for traders. But daring ETF investors might still monitor how trends are working amid the volatility. Three main market themes with ETFs come to mind: plays on market volatility, consumer staples and medical breakthroughs. Not all funds tied to these themes are up since the S&P 500 peaked on Feb. 19. But each one illustrates important trends to watch as the coronavirus infects markets. Traders are looking for any clues for how long the volatility will continue. "Dow 20,000 will be an important number to watch both for support and resistance over the next few weeks," said Fane Lozman, trader at Scanshift.com. How can ETFs signal movements going on inside the topsy-turvy coronavirus stock market crash? Here are some signs to keep an eye on. SPDR Sector ETFs: Intraday % Chg. Consumer StaplesXLP-2.57% Communication ServicesXLC-3.32% Health CareXLV-3.32% Information TechnologyXLK-3.77% UtilitiesXLU-4.35% Consumer DiscretionaryXLY-5.74% MaterialsXLB-6.39% Real EstateXLRE-7.02% IndustrialsXLI-7.37% FinancialsXLF-8.49% EnergyXLE-14.36% Provided by Nasdaq Last Sale. Real-time quote and/or trade prices are not sourced from all markets. ETFs Tied To Coronavirus Stock Market Crash Fear Fear is off the charts. And that's given investors a way to profit. Just don't expect the extreme fright to continue. The CBOE Volatility S&P 500 Index, a measure of investors' fears, has spiked more than 400% this year. The volatility index surged to a rating of more than 82 on March 16, setting an all-time record of fear. The week's VIX reading, which is keyed to fear in the market, surpassed the 80.86 high at the peak of terror during the late 2008 financial crisis. Not surprisingly, investments that let investors profit from skyrocketing fear spiked, too. The largest of its kind, the $2.9 billion-in-assets, VelocityShares Daily 2x VIX Short-Term ETN (TVIX), surged more than 1,306% from the S&P 500's Feb. 19 peak. The fund uses leverage and VIX futures to amp up gains when volatility spikes. If you didn't catch the spike, though, Lozman says don't jump on it now. He says the historic jump in market fear in the coronavirus stock market crash is unlikely to return to the 82 level. Fear and volatility could actually trend lower even if markets sink further. "The longer we grind around (Dow 20,000) the more volatility will contract," he said. Dave Nadig, chief investment officer at ETFtrends.com, agrees. "VIX ETFs are day-trading tools. Period. Even owning one overnight seems like a pretty aggressive speculation right now," he said. "No normal investor should even consider them. Betting on VIX day to day is just like betting on coin flips." Consumer Staples Perk Up In Coronavirus Stock Market Crash Finding S&P 500 stocks that are up through all this is tough. But a number of S&P 500 Consumer Staples giants come to mind. Clorox (CLX), Kroger (KR) and Campbell Soup (CPB) are all up from the S&P 500's peak. Consumers are stockpiling food, turning these slow-growing stocks into a place for large investors to hide from the coronavirus stock market crash. Fearful investors "are looking to defensive health care and consumer staples ETFs" amid the coronavirus stock market crash, says Todd Rosenbluth, head of ETF and mutual fund research at CFRA. "When the going gets tough the tough get eating, drinking and smoking. Then they have to go to the doctor." The $426 million-in-assets Invesco S&P 500 Equal Weight Consumer Staples ETF (RHS) owns the greatest weight of any ETF of top-performing Clorox stock, at 4.2% of its portfolio. But while Clorox is up 17% from the market's high, the Invesco ETF is down 14%. "I worry that people are coming way late to this," Nadig said. "I don't see a reason for (consumer staples) to continue to be valued higher ... than the market now that we're processing the impacts on the real economy." Spotting Medical Breakthroughs In S&P 500 Regeneron (REGN) and Gilead Sciences (GILD) are the biggest S&P 500 winners in this coronavirus stock market crash. Both companies are working on treatments for the outbreak. That showcases their other developments, too. Regeneron alone is up more than 20% from the February high. With so many companies rushing for a treatment, investors logically want to spread their bet. The $44.5 million-in-assets Innovator IBD Breakout Opportunities ETF (BOUT) holds a larger position in Regeneron, 7.7%, than any other ETF, says ETF.com. But Regeneron is also a significant holding, 7.2%, in the $313 million in assets VanEck Vectors Biotech ETF (BBH). The VanEck ETF also puts 8.9% of its portfolio in Gilead. Nadig has concerns with health care investments, too, though. "The entire global medical and pharma industry is going to face incredible scrutiny coming out of this," he said. "There's an increased chance for nationalization of many parts of the medical economy, around the world, once we come out of this and start rethinking our societal response." Select Plays On Coronavirus Stock Market Crash Symbol ETF Stock % Ch. From 2/19/2020 Market High Consumer Staples Own largest amounts of Clorox stock RHS Invesco S&P 500 Equal Weight Consumer Staples ETF -13.2% JHMS John Hancock Multifactor Consumer Staples ETF -14.6% LVHD Legg Mason Low Volatility High Dividend ETF -23.7% Volatility TVIX VelocityShares Daily 2x VIX Short-Term ETN 1,398.2% VIIX VelocityShares Daily Long VIX Short-Term ETN 337.0% SH ProShares Short S&P500 27.5% Innovative Breakthroughs BBH VanEck Vectors Biotech ETF -16.7% CNCR Loncar Cancer Immunotherapy ETF -17.5% IDNA ishares Genomics Immunology And Healthcare ETF -20.4% BOUT Innovator IBD Breakout Opportunities ETF -26.0% BIB ProShares Ultra Nasdaq Biotechnology -37.4% SPY* SPDR S&P 500 ETF Trust -25.6% Source: IBD, S&P Global Market Intelligence, SPY shown for comparison Follow Matt Krantz on Twitter @mattkrantz YOU MAY ALSO LIKE: Why You Should Hope This Coronavirus Bear Market Is Like 1987 How Much The Coronavirus Bear Market Is Costing Every American Thirteen Companies Drown On Debt In Coronavirus Crash Check Out IBD's New IBD Live Panel Discussion