Early Recovery Laggards (AMGN, ARII, IP, MCD, SRZ, URI)

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It almost seems that no matter what happens, there are always some major companies whose shares just won’t recover when the broad market recovers.  Sometimes it’s on news, and sometimes it is just because that sector won’t be the real beneficiary of a market move or a change in the economy.  A 200 point-plus gain in the DJIA and a 43 point gain in the NASDAQ doesn’t mean some aren’t struggling.

American Railcar Industries (NASDAQ: ARII) is one of the worst ones today with shares down over 10% at $19.45, now down more than 50% from 52-week highs.  UBS is the culprit this morning after it downgraded the stock from an already cautious Neutral rating down to a new SELL rating.

Amgen (NASDAQ: AMGN) just can’t catch a break.  Its shares are at a new 52-week low under that $43.02 level down at $42.45 today.  When your core anemia products are under fire from Congress and from the FDA, this is what happens.

International paper (NYSE: IP) is feeling the wrath of a downgrade after JP Morgan cut its rating to Neutral from Overweight, and shares are down almost 2% at $28.94 today.

McDonalds (NYSE: MCD) is so far the only DJIA component trading lower this morning after gapping up.  Maybe this defensive name is going to have a hard time duplicating its massive same-store performance that has been seen over the last two years or more.  Shares are down marginally at $54.21, and its 52-week trading range is $43.65 to $63.69.

Sunrise Senior Living (NYSE: SRZ) shares are down almost 10% at $20.85 this morning, which is another 52-week low.  Two weeks ago it gave preliminary results and noted it would have a 4140 million adjustment.  This morning it noted that it missed the deadline for filing its annual report, a real no-no for investors.

United Rentals Inc. (NYSE: URI) ar also down over 1% today at $17.50 after JPMorgan cuts its rating from an already cautious Neutral down to an "underweight" rating.

Jon C. Ogg
March 18, 2008