Northern,WI 2/5/2013 (BasicsMedia) – It is early in the week and we hope the following losers regain their footing and start heading in the other direction, but for the day here are your downhill racers for the morning session.
Diana Containerships Inc. (DCIX), is a global shipping company specializing in owning and operating containerships. The company just its financial results for the fourth quarter and year ended December 31, 2012 and the stock is taking a big dip in morning trading to the tune of over 14%. Diana Containerships Inc. owns and operates containerships in Greece. The company engages in the seaborne transportation of semi-finished and finished consumer and industrial products. As of November 6, 2012, its fleet consisted of 9 containerships. The company was founded in 2010 and is based in Athens, Greece.
Baidu, Inc. (BIDU), shares are down some 10 this morning following the company’s Q4 financial results, as analysts at both Raymond James and Stifel Nicolaus reduced ratings on the China-based Internet search company. While results and guidance were largely in line, there are new concerns this morning about the company’s margin performance. Baidu reported generally in line Q4 revenues and in line Q1 2013 revenue guidance. However, Q4 margins declined substantially and look like they will be pressured throughout 2013 due to increased investments in the core search business and the consolidation of iQiyi [the company's online video website]. Baidu’s mobile position is less dominant than its desktop position and we believe significant mobile monetization is still several quarters away.
Last on our Tuesday downward mover list is NII Holdings Inc. (NIHD) off some 8% this morning. The company sells mobile-phone service in Latin America under the Nextel brand and has dropped the most in almost three months after forecasting 2013 sales that fall short of analysts’ estimates.
Revenue will reach $5.7 billion to $5.9 billion this year, Reston, Virginia-based NII said in a statement. That compares with the $6.1 billion average estimate of 13 analysts polled by Bloomberg.
NII is struggling to hold on to subscribers as it converts its network to newer technology to better compete with America Movil SAB and Telefonica SA. (TEF) The Nextel carrier said its customer base expanded 6 percent in 2012 for a total of 11.4 million, The number will expand this year by a “mid-single digit” percentage, NII said. NII fell 11 percent to $5.68 at 9:32 a.m. in New York after dropping as much as 14 percent, the largest intraday decline since Nov. 13. The shares had dropped 11 percent this year through yesterday, compared to a 5.1 percent gain for the Russell 1,000 Index.
The company also announced plans to sell $400 million in bonds due 2019, saying it would use the funding for purposes including network upgrades, acquisitions, capital investments or refinancing.
Disclaimer: We have no position in any stock mentioned here.