For most people, Friday’s just the day before the weekend.
But in the Wall Street Daily Nation, it’s the day we ditch the longwinded analysis and let some graphics talk for us.
After all, a picture is supposed to be worth a thousand words, right?
This week, we’re serving up a reason to dread Mondays in the stock market.
We’re highlighting two stocks that crashed and burned, which we predicted.
And lastly, we’re sharing a shocking truth about one of the world’s most difficult sporting trophies to win.
So let’s get to it…
Just Another Manic Market Monday
It’s not just “déjà vu all over again.” It’s déjà vu seven times over! (Not sure what Yogi Berra calls that.)
Every Monday for the last eight weeks, U.S. stocks hit the skids. And while that might seem like an anomaly, it’s not!
Since 1900, the Dow’s sold off for at least eight Mondays in a row, 27 other times, according to Bespoke Investment Group.
The bad news is, five of the losing streaks lasted for 12 weeks or more. So we could be in for a few more terrible Mondays.
The good news is, once the Monday curse is broken, stocks tend to rally over the next week. Sometimes as much as 5.5%.
The only thing performing worse on Mondays? The Atlanta Braves! They’ve lost every single game they’ve played on Mondays this year. Twelve in a row (and counting).
Who knew being a professional baseball player could be more depressing than being an investor? I guess it all depends on your team (Go Yankees!) and the individual investments you make.
Speaking of investments…
Poor, Poor Zynga
The company reported results after the bell Wednesday. Not only did it miss expectations by a country mile, it also slashed full-year profit guidance by more than 50%.
It took investors all of two seconds to figure out that fewer profits don’t add up to higher share prices. Not in a rational world, at least.
Of course, it wouldn’t be Wall Street if some finger pointing didn’t ensue after such terrible results. Zynga tried to blame its profit shortfall on Facebook (Nasdaq: FB) for making it harder to find existing games. Seriously?
I think Arvind Bhatia, an analyst at Sterne Agee & Leach put a finger on the truth. As Bhatia said, the weak results are “a sign of fatigue among users,” and “[Zynga’s] starting to look more and more like a fad, and any hope of a second-half recovery is shot with these kinds of numbers.”
Agreed! This stock is a goner. The only question left is, will Zynga beat Groupon to the courthouse steps?
Poor, Poor RadioShack, Too
More pity goes out to investors that ignored my warning that RadioShack’s (NYSE: RSH) dividend would be cut or eliminated. Why? Because it was suspended on Wednesday. And share prices immediately cratered to an all-time low.
Any investors that bought shares a few weeks ago expecting to collect a fat 12.14% yield are now nursing a fat lip (and a fat loss) instead.
For the rest of us, let this be a startling reminder why we should never chase yield! Never, ever, ever, ever.
Cash for Gold… Or Not!
With the 2012 Summer Olympics kicking off today, I began to wonder what a gold medal is really worth. Not to the hardworking Olympians, but in real world terms. Turns out, it’s not much.
Gold medals aren’t even made of pure gold. (Talk about a rip off!) They haven’t been since 1912. Instead, they’re comprised of 93% silver and 6% copper.
The scrap metal value for these “fake” gold medals is around $650 each, according to CNN Money. That makes swimming sensation, Michael Phelps’, eight gold medals from the 2008 Beijing Olympics worth about $5,200.
The good news for Olympians pressed for cash? Investors are willing to pay HUGE premiums.
Case in point: A gold medal worn by Mark Wells, a member of the 1980 “Miracle on Ice” U.S. men’s hockey team, fetched $310,700 at an auction two years ago.
That’s it for today. Before you sign off, though, do us a favor. Let us know what you think about this weekly column – or any of our recent work at Wall Street Daily – by sending an email to firstname.lastname@example.org, leaving a comment on our website, or catching us on Facebook or Google+.
Ahead of the tape,