The year 2014 has been a roller coaster ride for many investors, with a lot of tech names making big impacts and a lot of energy stock plunging down towards the end of the year mainly due to drop in oil prices. CNBC’s Dominic Chu pointed at some naughty stocks which gave a lot of pain to many investors who longed these stocks. He talked on CNBC about two stocks, which he termed as naughty, Transocean LTD (NYSE:RIG) and Denbury Resources Inc. (NYSE:DNR).
Chu mentioned the investors saw naughty sides of stock, when they had longed stocks related to energy and crude oil in 2014. He pointed out that at least 42% of value was lost in WTI Crude since its high on June 20. He pulled out some other stats which showed a staggering 30% or more value drop in more than 60% of S&P energy stocks since June. Another stat showed a whopping 10% or more drop in around 80% of S&P energy stocks in just the last month.
Chu added that this may or may not be the bottom for the energy stock and oil prices. He talked about two of the stocks which gave a lot of pain to investors who longed them. He said that WTI has lost almost quarter of its value in the last three months, which affected two of the stocks the most, Transocean LTD (NYSE:RIG) and Denbury Resources Inc. (NYSE:DNR).
Transocean LTD (NYSE:RIG) share prices went down by 66% YTD and Denbury Resources Inc. (NYSE:DNR) has lost around 60% of its share prices since the beginning of the year.
“One of them, Denbury Resources, its down 60% just Year to Date. So a huge move down for Denbury Resources, one of the biggest lagers in the S&P 500 energy. Another naughty stock for those who have longed it at least, Transocean, a deep offshore drilling contractor. Those shares are down 66%. So two-thirds of their value gone just so far year to date,” Chu said.
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