This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The 5 Dumbest Things on Wall Street This Week: Aug. 24

Stocks in this article: SWSH ZAGG BBY FB WTSLA

4. Zagg Hits Snag

The CEO of Zagg (ZAGG) apparently didn't wake up and smell the Green Mountain Coffee (GMCR).

Zagg hit a snag Monday, tumbling 13% to $7.30, after the smartphone accessory maker's CEO and co-founder, Robert Pedersen, quit the company. Pedersen stepped down as a result of a massive margin call that forced him to unload 515,000 shares last week at an average price of $8.22.

Amazing. The guy brilliantly creates an entire industry out of covering Apple (AAPL) gadgets, but he's still not smart enough to cover his own ass and diversify his holdings. Figure that one out.

Perhaps Pedersen wasn't paying attention back in May when former Green Mountain Coffee founder and chairman Robert Stiller was forced out of the very company he founded for a similarly large margin call that sent his stock reeling. Hey, who knows, he could have been absent that day.

Or perhaps Pedersen simply never imagined it could happen to him. Maybe he was blindsided by the market's violently negative reaction on Aug. 3 after Zagg missed Wall Street's second-quarter earnings estimates by a penny. Despite a 60% year-over-year pop in sales, Zagg still lost a quarter of its value that day and it was that downdraft that most probably triggered the call that undid Pedersen.

Nevertheless, considering more than 27% of Zagg's shares are currently sold short, Wall Street clearly lacks confidence in Zagg's prospects. So if Pedersen did think Zagg could zig indefinitely higher, he might have been the only one.

2 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs