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.

Model N Inc (MODN), EZchip Semiconductor Ltd. (EZCH), Glu Mobile Inc. (GLUU), Protalix BioTherapeutics Inc. (PLX): Last Week’s Biggest Losers

There’s never a shortage of losers in the stock market. Let’s take a closer look at five of this past week’s biggest sinkers.

Company Sept. 13 Weekly Loss
Model N Inc (NYSE:MODN) $9.98 32%
EZchip Semiconductor Ltd. (NASDAQ:EZCH) $23.60 19%
Nanosphere, Inc. (NASDAQ:NSPH) $1.84 12%
Glu Mobile Inc. (NASDAQ:GLUU $2.14 11%
Protalix BioTherapeutics Inc. (NYSEMKT:PLX) $4.66 11%

Source: Barron’s.

Model N Inc (NYSE:MODN)

Let’s start with Model N Inc (NYSE:MODN). A couple of analysts downgraded the company after the company issued a disappointing outlook for the new fiscal year that begins next month. Model N Inc (NYSE:MODN) is forecasting revenue for the new fiscal year to clock in between $70 million and $80 million, well below Wall Street’s target of $118 million on the top line.

EZchip Semiconductor Ltd. (NASDAQ:EZCH) stumbled after its biggest customer introduced a new product. Cisco accounts for nearly 40% of EZchip Semiconductor Ltd. (NASDAQ:EZCH)’s business, and the market’s fear is that its new nPower chip will eat into its orders for EZchip’s networking chips. At least one analyst, Feltl & Co’s Jeffrey Schreiner, is standing by his bullish rating and $39 price target. He argues that EZchip Semiconductor Ltd. (NASDAQ:EZCH) has managed to stay relevant despite seemingly threatening new products by Cisco in the past.

Nanosphere, Inc. (NASDAQ:NSPH) stumbled after pricing a secondary offering at a steep discount. The molecular diagnostics company priced 15 million shares at $1.75 apiece on Friday, and that’s not what investors like to see when the stock had closed above $2 the day before. Nanosphere, Inc. (NASDAQ:NSPH) needs the money as it tries to gain traction with its gram-positive blood-culture test, but there’s no joy in secondary offerings when a stock is near its 52-week low.

Glu Mobile Inc. (NASDAQ:GLUU) also priced a secondary offering at a discount. The maker of smartphone and tablet games had to settle for a price of $2.10 for each of the new 6.3 million shares being issued. The stock was at $2.41 just before the news. Dilution is never a good thing, though Glu Mobile Inc. (NASDAQ:GLUU) should be able to turn that capital infusion around into the development of new apps.

Finally we have Protalix BioTherapeutics Inc. (NYSEMKT:PLX) sliding 11% on the week. The biotech exploring the commercialization of recombinant therapeutic proteins stumbled after raising $60 million through a convertible debt offering. The convertible nature of the financing means Protalix BioTherapeutics Inc. (NYSEMKT:PLX) was able get by offering a mere 4.5% in interest, but that also means buyers can convert the notes to stock at a 22% premium to where the shares were when the pricing was announced.

In short, that’s more dilution if Protalix BioTherapeutics Inc. (NYSEMKT:PLX) appreciates in the future.

Ready for a bounce

If you owned some of these losers, how about following the smart money into winners?

The article 5 of Last Week’s Biggest Losers originally appeared on and is written by Rick Munarriz.

Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems.

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

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!