It's a gloomy Friday for these stock market crashers: Pixelworks Inc. (Nasdaq: PXLW), Alpha Natural Resources Inc. (NYSE: ANR), and Analogic Corp. (Nasdaq: ALOG). The three companies have dropped 23.89%, 11.04%, and 15.79% respectively so far today.
Here's what's causing each of these companies' dramatic drops...
Profit Taking with Pixelworks Stock (Nasdaq: PXLW)
Pixelworks stock shot up 83.3% Thursday on news that the obscure, small-cap company announced Apple Inc. (Nasdaq: AAPL) is a chief customer.
Reports of the Pixelworks/Apple association came late Wednesday when Pixelworks released its 10K (annual report) to the U.S. Securities and Exchange Commission. In the mandatory report, which gives a comprehensive summary of a company's financial performance, Pixelworks divulged that Apple accounted for more than 10% of its 2013 revenue.
By noon Thursday, more than 12.5 million PXLW shares changed hands.
But on Friday, the profit taking began. Pixelworks stock is down $2.15 per share to $6.28, a 23.89% plunge as of 3 p.m. EST.
Aside from investor cash out, the stock likely suffered today on the realization that PXLW's deal with AAPL is a one-time, non-exclusive licensing contract of which nearly 80% of its value has already been recognized as revenue.
According to its 10K, Pixelworks' core business actually suffered a 33% revenue drop from 2012 to 2013 when revenue from Apple is excluded, from $59.7 million to $40 million. Its net income dropped 200%.
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Alpha Natural Resources Stock (NYSE: ANR) Slammed by Unprecedented Fine
On Wednesday, Alpha Natural Resources - the second-largest U.S. coal producer - agreed to pay a $27.5 million fine and spend around $200 million to implement wastewater treatment systems in a settlement with the U.S. government over toxic discharges from its mines across five states.
"The unprecedented size of the civil penalty in this settlement sends a strong deterrent message to others in this industry that such egregious violations of the nation's Clean Water Act will not be tolerated," the U.S. Justice Department's Environment and Natural Resources Division assistant attorney general Robert G. Dreher said in an e-mailed statement.
News of the settlement slammed Alpha Natural Resources stock.
Since Wednesday, ANR stock has dropped 8.19% to $4.88 as of 3 p.m. EST Friday. It's down over 11% on the day so far.
And Analogic's stock market crasher status is almost doubly worse, on this news...
Analogic Stock (Nasdaq: ALOG) Crashes on Earnings
After the bell on Thursday, Analogic Corp. missed on Q2 earnings and revenue.
The medical technology company reported adjusted earnings per share of $1.17, falling short of Wall Street's expectations of $1.20. Revenue grew 2% compared to the same quarter a year prior to $141.4 million, but fell short of consensus estimates of $151.71 million.
Prior to earnings release, ALOG stock was up 9.03% in 2014.
But since the bad news, the stock hit a 3-month low, falling under both its 50- and 200-day moving averages. As we approach market close, Analogic stock is down 15.79% to $81.31 per share.
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