Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Are These 3 Stocks Down for the Count?: Ruckus Wireless Inc (RKUS) and More

Page 1 of 2

Wal-Mart Stores, Inc. (WMT)Horse meat and Wal-Mart Stores, Inc. (NYSE:WMT) jockeyed for position in sending the Dow Jones Industrial Average lower on Friday, but the index fought its way back into positive territory and closed out the day up eight points, though it was still under the psychologically important 14,000-point threshold.

The three companies below, however, looked like they were about to be sent off to the glue factory nonetheless, as they were among the more notable ones heading in the other direction and leading the way sharply lower.

Company Percent Change
Amicus Therapeutics (NASDAQ:FOLD) (25.7%)
Ruckus Wireless Inc (NYSE:RKUS) (13.8%)
IPG Photonics (NASDAQ:IPGP) (9.7%)

Now don’t panic: It could just be a temporary situation. Let’s first see whether they had good reason to fall, as panic-fueled routs can sometimes lead to excellent buying opportunities.

On the precipice
Shares of Amicus Therapeutics did what its ticker symbol suggested it would do — namely, fold like a house of cards following additional unfavorable results from its Fabry disease treatment migalastat. In December, Amicus and development partner GlaxoSmithKline plc (ADR) (NYSE:GSK) said phase 3 clinical trials also failed to meet its primary endpoint.

The current results showed there wasn’t enough of a statistically significant improvement in patients treated with migalastat, though Amicus remains committed to moving forward to the next stage, with results due out sometime in the second quarter.

Fabry disease is a rare inherited disorder resulting from the buildup of a particular type of fat in the body’s cells. Primarily a male disorder, Fabry disease affects an estimated 1 in 40,000 to 60,000 individuals. Sanofi SA (ADR) (NYSE:SNY) is one pharmaceutical already producing a therapy, Fabrazyme, which saw sales almost double in 2012 to 292 million euros after a new manufacturing facility was constructed, though its shares also gave a up few pennies on Friday.

Raising a ruckus
Wi-Fi equipment maker Ruckus Wireless went public last November in a disappointing IPO that saw shares tumble 18% on its first day of trading, only to double in value over the next few months. After reporting earnings last week that handily beat analyst expectations but provided guidance that was only in-line with forecasts, the stock has been steadily selling off, losing a quarter of its value since last Tuesday.

That could be because the competition in the space is heating up and large, well-financed rivals like Cisco Systems, Inc. (NASDAQ:CSCO) are seeing their own Wi-Fi product sales soaring. Cisco recently said Wi-Fi sales doubled from the year-ago period, and with its acquisition of Meraki for $1.2 billion — just as Ruckus was going public, coincidentally enough — it could crowd out the potential of the upstart.

Yet being a newly public company means the equipment maker is going to experience periods of volatility as investors adjust to the changing landscape, but Cisco’s presence, which it admits was pretty “tame” up until now, means the road forward for Ruckus may not be smooth.

Page 1 of 2
Loading Comments...