Shares in a British subprime bank tanked by as much as 75% in a matter of minutes Tuesday.
Provident Financial, which offers credit cards and loans to people who are normally turned away by traditional banks, issued a statement saying a plan to reorganize a business division had gone awry. Its profitability was in serious doubt.
Making matters worse, another division of the bank is under investigation by a top U.K. financial regulator.
Provident cut its planned dividend payments, and CEO Peter Crook resigned.
All this was simply too much bad news for investors to handle. The London-traded stock experienced a sharp sell off and is currently trading below 拢6 ($7.70) per share, down from the Monday closing level of 拢17.45 ($22.37).
The torrid pace of decline may be reminiscent of 2007 and 2008, but this is not the subprime crisis 2.0. It’s just one company having a very bad day.
Specifically, Provident Financial said the trouble started when it announced it would change its business model. For years they used thousands of self-employed sales agents to go door-to-door offering loans and collecting loan repayments.
penny stock trading: National Fuel Gas Company(NFG)
Advisors’ Opinion:
- [By Lee Jackson]
These companies also reported insider selling last week: National Fuel Gas Co. (NYSE: NFG), Prologis Inc. (NYSE: PLD), Realty Income Corp. (NYSE: O), Ulta Beauty Inc. (NASDAQ: ULTA) and Versartis Inc. (NASDAQ: VSAR).
penny stock trading: LG Display Co., Ltd.(LPL)
Advisors’ Opinion:
- [By Anders Bylund, Chuck Saletta, and Brian Feroldi]
According to comments by Universal Display CEO Steve Abramson, Samsung (NASDAQOTH:SSNLF) is pouring $9 billion into building OLED production facilities this year. LG Display (NYSE:LPL) expects more than half of its 2020 revenues to come from OLED panels. The OLED TV market is expected to grow sixfold in the next four years, and the lighting panel market is only just getting started.
- [By Peter Graham]
A long term performance chart shows shares of Corning Incorporated in a steady uptrend since we recommended the stock while Universal Display Corporation (NASDAQ: OLED) has taken off even higher and LG Display Co Ltd (NYSE: LPL) and AU Optronics Corp (NYSE: AUO) have given a similar performance:
penny stock trading: Teekay Offshore Partners L.P.(TOO)
Advisors’ Opinion:
- [By Lisa Levin]
In trading on Monday, energy shares fell by 0.59 percent. Meanwhile, top losers in the sector included JinkoSolar Holding Co., Ltd. (NYSE: JKS), down 8 percent, and Teekay Offshore Partners L.P. (NYSE: TOO) down 7 percent.
- [By Lisa Levin]
In trading on Friday, energy shares fell 0.83 percent. Meanwhile, top losers in the sector included Teekay Offshore Partners L.P. (NYSE: TOO), down 10 percent, and Approach Resources Inc. (NASDAQ: AREX), down 8 percent.
- [By Lisa Levin]
Teekay Offshore Partners L.P. (NYSE: TOO) shares dropped 21 percent to $2.66. Morgan Stanley downgraded Teekay Offshore from Equal-Weight to Underweight.
- [By Lisa Levin]
Energy shares rose by 1.46 percent in the US market on Monday. Top gainers in the sector included Diamond Offshore Drilling Inc (NYSE: DO), CARBO Ceramics Inc. (NYSE: CRR), and Teekay Offshore Partners L.P. (NYSE: TOO).
penny stock trading: WD-40 Company(WDFC)
Advisors’ Opinion:
- [By Monica Gerson]
WD-40 Company (NASDAQ: WDFC) reported better-than-expected earnings for its second quarter, but the company missed analysts’ sales estimates. WD-40 shares fell 0.97 percent to $106.00 in the after-hours trading session.
- [By Monica Gerson]
WD-40 Company (NASDAQ: WDFC) is projected to post its quarterly earnings at $0.86 per share on revenue of $99.10 million.
Hooker Furniture Corporation (NASDAQ: HOFT) is estimated to report its quarterly earnings at $0.40 per share on revenue of $62.20 million.
