I was recently reading an article on the ten worst performing stocks over the past year. While 2010 was a good year for the stock market, it was an absolutely brutal year for these companies. The reason that I bring this up is because to make money investing sometimes you have to go looking in the trash bin for tomorrow’s winners. Yesterday’s dogs could end up being tomorrow’s darlings. Here are the 10 worst performing stocks in the S&P 500 in 2010.
10 Worst Performing Stocks in S&P 500
1. Weyerhaeuser (NYSE: WY) -56.07%
2. Dean Foods (NYSE: DF) -52.00%
3. H&R Block (NYSE: HRB) -47.88%
4. Apollo Group (Nasdaq: APOL) -34.47%
5. Diamond Offshore Drilling (NYSE: DO) -33.01%
6. PulteGroup Inc. (NYSE: PHM) -25.60%
7. Micron Technology (NYSE: MU) -25.19%
8. Supervalu Inc. (NYSE: SVU) -24.94%
9. AK Steel Holding (NYSE: AKS) -24.54%
10. Western Digital (NYSE: WDC) -23.78%
The stocks that I think could be due for a rebound are AK Steel (AKS). I currently own shares of Ak Steel. I think that the steel industry will rebound as the economy continues to improve. The performance of AK Steel is directly linked to iron ore prices.
The steelmaker was hurt the past two quarters by a rise in iron ore prices. It’s not my favorite steel play but a good one nonetheless.
Don’t Buy These Stocks!
I wouldn’t touch Dean Foods and H&R Block right now. These aren’t value stocks but value traps. Dean Foods has been an underachiever for quite some time now and H&R Block is a dinosaur. The tax preparer recently got ahuge joltwhen the federal government chose to no longer underwrite refund anticipation loans anymore.
My big risky turnaround play is Supervalu (SVU). This is an incredibly risky stock because the company is having major financial troubles. The balance sheet is loaded with debt and sales have been hurt by discount stores. I like the stock because it trades at 1.3 times book value and 1 times earnings growth.
I have been buying shares because I think that the company is a long term turnaround play. SuperValu is trying to cut its debt load by selling off many of its assets like Shaw’s. This is a pure speculation play.
Time To Buy Is Coming
Weyerhaeuser is not a bad company but I will be bullish on it once I see a rebound in the housing market. The time to buy Diamong Offshore Drilling and Micron Technology is coming as both stocks are close to falling into value range.
Buy Like Buffett – Make Money Investing The Warren Buffett Way
