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Monster Beverage Corp (MNST), Biogen Idec Inc (BIIB): Today’s Worst Stocks

Investors weren’t blown away with today’s data, which is understandable since there wasn’t anything too meaningful released. Though the bearish mood can partially be justified by the downtick in June pending home sales, an even bigger decline was expected. The rest of the week looks to be more informative, with a deluge of economic events: A two-day Federal Open Market Committee meeting, weekly jobless claims, the monthly payroll report, and GDP all promise to spice things up. The S&P 500 Index fell 6 points, or 0.4%, ending at 1,685.

“Alternative beverage” and energy drinks company Monster Beverage Corp (NASDAQ:MNST) logged some of the steepest losses in the index today, losing 3.6%. There wasn’t much material news today for investors to be fearful of, but the same can’t be said for the last several months. One perpetual setback for the company is the legal risk it assumes for selling and marketing its controversial energy drinks. In May, for example, the city of San Francisco sued Monster Beverage Corp (NASDAQ:MNST) for marketing its caffeine-heavy drinks to kids without concern for potential health risks.

Biogen Idec Inc (NASDAQ:BIIB)

Drugmaker Biogen Idec Inc (NASDAQ:BIIB) shed 3.3% Monday after Perrigo Company (NYSE:PRGO) reached an agreement to buy the Ireland-based Elan Corporation, plc (ADR) (NYSE:ELN). This entitles Perrigo Company (NYSE:PRGO) to the royalties Biogen Idec Inc (NASDAQ:BIIB) pays to Elan Corporation, plc (ADR) (NYSE:ELN) for its 50% ownership stake in multiple sclerosis drug Tysabri. While the success of the drug, which generated $1.6 billion in revenue last year, is obviously welcomed by Biogen Idec Inc (NASDAQ:BIIB) investors, the company will start paying a higher royalty once sales cross $2 billion annually, a figure not so far away with a nearly 20% growth rate.

Lastly, Southwestern Energy Company (NYSE:SWN) , which produces and explores for oil and natural gas in the U.S., slumped 3% today. A decline of some kind was appropriate, considering that the oil and gas sector was the worst-performing sector of the index today. The 3% slip becomes even easier to understand upon noting falling natural gas prices, an unfavorable trend for natural gas explorers like Southwestern Energy Company (NYSE:SWN).

The article Today’s 3 Worst Stocks originally appeared on is written by John Divine.

Fool contributor John Divine has no position in any stocks mentioned. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.The Motley Fool recommends and owns shares of Monster Beverage.

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