3 of the Worst Performing Stocks of 2014, a Look Back
The stock market smashed record after record in 2014, but some companies just didn’t get the memo. As we head into the last week of the year, let’s take a look back at some of the worst performing stocks of 2014. For starters we've got your local video game retailer GameStop. This stock is down 30% so far this year following a string of god-awful quarters. GameStop has mistakenly been resting on its laurels, assuming its business would be just fine thanks to a new videogame product cycle, while in reality they’re losing tons of market share to digital direct downloads. What’s worse – management seems to be in denial about this whole problem! Next is Coach, the leader in women’s luxury goods. The company’s North American business has been in a world of pain, with sales down 20% in the latest quarter. With the stock still trading at a lofty valuation in spite of tepid projected sales growth, I’d also keep away from this one. Last up is THE worst performing stock in the S&P 500, and unsurprisingly it's an energy company: Transocean, an offshore driller which owns the largest ultra-deep water fleet in the world. Following its 60% drop this year, Transocean is one that I like for its dirt cheap valuation (it’s trading at less than half of its book value) coupled with strong cash flow generation and a huge order book. Don’t be surprised if this forgotten name is one of the strongest performers in 2015.
