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7 of the Worst-Performing Stocks in Gurus' Portfolios

- By Tiziano Frateschi

While gurus hold positions in these companies, the stock prices and returns continue to fall. These are the worst-performing stocks over the last three months with a long-term presence in more than four gurus' portfolios.


Horizon Global Corp. (HZN) had a negative performance of 39.7% over the last six months. Four mutual funds hold the stock with a total weight of 3.40% on their portfolios.

The company has a market cap of $355.03 million, and the stock is trading with a price-sales (P/S) ratio of 0.37. The price of $12.99 is 50.72% below its 52-week high and 22.55% above its 52-week low. Over the last 10 years, it returned a loss of 20%.

The return on equity (ROE) of -87.15% and return on assets (ROA) of -3.11% are underperforming 99% of other companies in the Global Industrial Distribution industry.

During the fourth quarter T Boone Pickens (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) reduced their shares of the company while Joel Greenblatt (Trades, Portfolio) acquired a new position and Jim Simons (Trades, Portfolio) raised his stake.

MDC Partners Inc. Class A (MDCA) had a negative performance of 17.3% over the last six months. Four mutual funds hold the stock with a total weight of 0.10% on their portfolios.

The company has a market cap of $503.3 million, and the stock is trading with a P/S ratio of 0.35. The price of $9.1 is 61.92% below its 52-week high and 230.91% above its 52-week low. Over the last 10 years, it returned a gain of 66%.

Over the last five years, MDC Partners reported a growth of 5.70% of its revenue while earnings per share (EPS) decreased by 26%.

The ROA of 3.00% is ranked lower than 72% of other competitors and return on capital (ROC) of 23.24% is underperforming 53% of other companies in the Global Marketing Services industry.

During the fourth quarter Leon Cooperman (Trades, Portfolio) raised his shares by 59.46% and HOTCHKIS & WILEY, Steven Cohen (Trades, Portfolio), Jones, Simons and Greenblatt acquired new positions.

Sucampo Pharmaceuticals Inc. Class A (SCMP) had a negative performance of 17.9% over the last six months. Four mutual funds hold the stock with a total weight of 0.09% on their portfolios.

The company has a market cap of $512.1 million and is now trading with a price-earnings (P/E) ratio of 24.75 and a price-book ratio (P/B) of 1.96. The price of $10.4 is 40.74% below its 52-week high and 8.11% above its 52-week low. Over the last 10 years, it returned a loss of 15%.

Over the last five years, Sucampo Pharmaceuticals reported a growth of 28.50% of its revenue.

The ROE of 14.84% is ranked higher than 73% of competitors and ROA of 3.92% is outperforming 57% of companies in the Global Drug Manufacturers - Specialty and Generic industry.

During the fourth quarter of the year Chuck Royce (Trades, Portfolio) and Simons raised their shares in the company while Cohen reduced his stake. Cooperman, Greenblatt and Jones acquired new positions in the company.

Essendant Inc. (ESND) had a negative performance of 24.5% over the last six months. Four mutual funds are holding the stock with a total weight of 0.61% on their portfolios.

The company has a market cap of $546.73 million and is now trading with a P/E ratio of 8.43 and a P/S ratio of 0.10. The price of $14.59 is 58.30% below its 52-week high and 5.65% above its 52-week low. Over the last 10 years, it returned a loss of 52%.

Over the last five years, Essendant reported a growth of 5.40% and 1.70% for revenue and free cash flow but a decrease of 10.30% for EBITDA.

The ROE of 8.46% is ranked higher than 58% of other competitors and ROA of 2.82% is underperforming 54% of other companies in the Global Business Equipment industry.

During the fourth quarter Barrow, Hanley, Mewhinney & Strauss and Simons reduced their shares while Richard Pzena (Trades, Portfolio) and Jones raised their holdings. Richard Snow (Trades, Portfolio) and Greenblatt acquired new positions in the company.

Francescas Holdings Corp. (FRAN) had a negative performance of 7.9% over the last six months. Four mutual funds are holding the stock with a total weight of 7.00% on their portfolios.

The company has a market cap of $553.36 million and is now trading with a P/E ratio of 13.40 and a forward P/E ratio of 11.43. The price of $14.74 is 34.17% below its 52-week high and 51.18% above its 52-week low. Over the last 10 years, it returned a loss of 47%. According to the DCF calculator the company is now overpriced by 25%.

Over the last five years, Francescas Holdings has reported a growth of 20.10% of its revenue, 12.30% for free cash flow, 10.10% for EBITDA and 8.90% for EPS.

The ROE of 37.10% is ranked higher than 95% of competitors and ROA of 23.04% is outperforming 97% of companies in the Global Apparel Stores industry.

During the last quarter of the year Greenblatt acquired a new position in the company while Cohen exited his stake. Mariko Gordon (Trades, Portfolio) and Simons reduced their shares.

Tailored Brands Inc. (TLRD) had a negative performance of 11% over the last six months. Four mutual funds are holding the stock with a total weight of 0.53% on their portfolios.

The company has a market cap of $660.04 million and is now trading with a P/E ratio of 27.06 and a forward P/E ratio of 8.33. The price of $13.53 is 52.96% below its 52-week high and 24.13% above its 52-week low. Over the last 10 years, it returned a loss of 72%.

Over the last five years, Tailored Brands reported a growth of 10.60% for revenue.

The ROE of 1.14% is ranked lower than 62% of other competitors and ROA of 11.10% is underperforming 52% of other companies in the Global Apparel Stores industry.

During the third quarter of the year Jones reduced his shares while Greenblatt increased his stake. Arnold Schneider (Trades, Portfolio) and Barrow, Hanley, Mewhinney & Strauss closed their stakes in the company, and Simons acquired a new position in the company.

Myriad Genetics Inc. (MYGN) had a negative performance of 13.3% over the last six months. Four mutual funds are holding the stock with a total weight of 0.19% on their portfolios.

The company has a market cap of $1.25 million and is trading with a P/E ratio of 18.37 and a forward P/E ratio of 16.81. The price of $18.37 is 53.77% below its 52-week high and 21.25% above its 52-week low, and over the long term of 10 years it returned a gain of 7%. According to the DCF calculator the company is now overpriced by 72%.

Over the last five years, Myriad Genetics has reported a growth of 19.20% for revenue, 7.80% for free cash flow, 6.20% for EBITDA and 5.60% for EPS.

The ROE of 9.71% is ranked higher than 66% of competitors and ROA of 7.06% is outperforming 76% of companies in the Global Diagnostics & Research industry.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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This article first appeared on GuruFocus.