The Worst Stocks of April 2010 – AKS, MEE, MCO, KG

An article by Punit    No Comments

Overall, April 2010 was a good month for the stock market. The Dow Jones pushed above 11,000 for the first time since 2008, and many stocks saw their values rise. Banks were coming out of the financial crisis, jobs were being created and the Dow Jones had its 12^th month of gains in the last 14. However, the month of April 2010 was not good for all and there were some stocks that fell in value in order to show us that the economy isn’t quite perfect yet.

When most investors look back at April 2010, they will see a month that was pretty decent. Yes, the end of the month saw some slipping as a result of the Goldman Sachs criminal investigation and the energy sector crash due to the oil rig explosion in the Gulf of Mexico. Even with those black marks, the stock market continued to improve. The Dow Jones had its 12^th month of gains in the last 14 and even rose above 11,000 for the first time since the financial crisis began in 2008.

Sadly, not all stocks did well. There were plenty that saw their values crash over the course of the month. So, here are the worst stocks of April 2010.

• AK Steel Holding (NYSE:AKS): This steel company saw its share value fall immensely, by 27 percent. The fall was as a result of the Massey Energy accident that same month. With AK Steel Holding buying one-quarter of all the coal it uses from the Upper Big Branch Mine, which is where the tragic mine accident occurred, the company suffered as a result. Earnings for the company were down, and the price of steel from the company is expected to go up 30 percent, which worries many investors.
• Massey Energy (NYSE:MEE): The worst performing stock of April 2010 was Massey Energy, which suffered a 30 percent drop in its value during the month. The company operates the Upper Big Branch Mine, and with the explosion and death of dozens of workers, the company was hit very hard. Not to mention there is now an FBI investigation against the company.
• Moody’s Corp (NYSE:MCO): Due to several factors that hit the company in April 2010, it saw its value fall significantly. The company received a subpoena from the Financial Crisis Inquiry Commission for one thing, which caused a 17 percent drop in its share price. As well, the company is being seen as a bad investment due to the changing financial reform legislation coming through Congress that could hurt this credit company.
• King Pharmaceuticals (NYSE:KG): In the healthcare field, we have King Pharmaceuticals, which saw a 17 percent drop in its value due to an FDA committee was discovered to have not had enough evidence to support a New Drug Application for Acurix, which is a painkiller developed in part by King Pharmaceuticals.

The S&P 500 and the Dow Jones continued to rise in the month of April, despite these stocks mentioned above. While plenty of other stocks rose, these ones could not just muster enough, due to circumstances, to make a profit. Will they continue to fall? Will there be more trouble ahead? We will see when we compile a list of the worst stocks of May 2010.

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