What You Need to Know About These 4 Falling Stocks

In other news, Staples, Inc. (NASDAQ:SPLS) shares continued to fall after analysts at BB&T downgraded the company to ‘Hold’ from ‘Buy’, due to the FTC putting the kibosh on Staples, Inc. (NASDAQ:SPLS)’s planned merger with Office Depot Inc (NASDAQ:ODP) yesterday. If the merger had been approved, management estimated that the combined company would have realized synergies of upwards of $750 million annually. Because of today’s fall, shares of Staples are now down by over 40% year-to-date and trade at 11.6-times forward earnings. The company’s valuation could prove cheap in the long run if management succeeds in growing the top line.

The pain isn’t over for Kinder Morgan Inc (NYSE:KMI) shareholders, as investors continue to worry that the company might cut/suspend its dividend to preserve its investment grade status. Shares are down by another 3.2% today after falling by 2.4% on Monday. Given the substantial decline of its stock over the past few weeks, Kinder Morgan Inc (NYSE:KMI) bulls hope crude stabilizes and Kinder’s management takes measures to reassure investors. If the company cuts its dividend, bulls hope the company uses that cash flow to pay down debt rather than buy other leveraged companies. Of the 730 elite funds that we track, 72 funds owned Kinder Morgan shares at the close of the third quarter, up from 64 long the stock at the end of the second quarter. 

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