Atlantic Power Corp (AT), Cliffs Natural Resources Inc (CLF): Four Stocks That Have Gotten Cut in Half in 2013

The stock market is trading at record highs, and many investors have cashed in on the market’s gains. But some companies haven’t let their shareholders join the party, as they’ve not only missed out on the big bull rally but have seen their shares plunge precipitously.

Let’s take a closer look at four stocks that have lost half their value so far this year and the reasons for their respective downfalls.

Atlantic Power Corp (NYSE:AT) — down 54%
Atlantic Power Corp (NYSE:AT) is a small utility that has gotten a lot bigger in recent years by making numerous acquisitions. Until last month, the company was a favorite among dividend investors, with monthly payouts that equated to a 10% yield for shareholders adding onto solid share performance from late 2009 through the third quarter of last year. But the cracks started appearing last November, when the utility missed quarterly estimates on earnings and sales.

At the beginning of March, the real plunge came for Atlantic Power Corp (NYSE:AT), as it not only reported a much worse loss than in the previous year but also slashed its dividend by two-thirds. That sent the shares down 30% in a single week and left many dividend investors with far less reason to hold the stock. The lesson: Some lucrative dividends are simply unsustainable.

Cliffs Natural Resources Inc (NYSE:CLF) — down 53%
Cliffs Natural Resources Inc (NYSE:CLF) specializes in iron ore and metallurgical coal production. During better times, those key components for steelmaking were in high demand, allowing Cliffs Natural Resources Inc (NYSE:CLF) to pay a high dividend and enjoy strong growth prospects. But in February, Cliffs shares lost a quarter of their value in a single day as Cliffs cut its quarterly dividend payout by more than 75%, citing extremely weak prices for both iron ore and coal. It also announced secondary share offerings — never a pretty sight after a big share-price plunge.

Now, many analysts doubt whether iron ore prices will bounce back anytime soon. Meanwhile, Cliffs Natural Resources Inc (NYSE:CLF)’ operational challenges could continue to weigh on the company’s financials going forward. With the company planning to idle an iron-pellet plant in Quebec by the end of this quarter, Cliffs Natural Resources Inc (NYSE:CLF) doesn’t seem to foresee better times in the immediate future.

Allied Nevada Gold Corp. (NYSEMKT:ANV) — down 52%
Unlike Cliffs and Atlantic Power, Allied Nevada Gold Corp. (NYSEMKT:ANV) has fallen fairly steadily during 2013. In mid-January, the precious-metals miner gave 2013 guidance for 225,000 to 250,000 ounces of gold and 1.5 million to 1.8 million silver ounces at its Hycroft mine, implying solid growth but still disappointing investors, who sent shares down 5% after the announcement. The company’s full quarterly report in late February only added to the pessimism, as it increased its capital expenditure estimates.

In general, mining companies have faced high production costs and pressures from stalling gold and silver prices. Allied Nevada’s 11% drop yesterday alone reflected further declines in precious metals. Until those prices reverse course, Allied Nevada will have trouble bouncing back.

Millennial Media, Inc. (NYSE:MM) — down 51%
Millennial Media, Inc. (NYSE:MM)‘s big drop came in February after it announced earnings that fell well short of expectations. The mobile advertising company said that its strategic decision to focus on large clients and leave smaller prospects unpursued led to sales shortfalls during the first quarter.

Mobile advertising’s effectiveness still hasn’t been proven, so investors should see Millennial Media’s growing pains as a normal part of a cutting-edge business. If the company can stay on top of current trends and continue working hard to innovate in mobile, then Millennial has plenty of potential to keep growing.

The article 4 Stocks That Have Gotten Cut in Half in 2013 originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!