It is not unusual for stocks to lose half of their value in a year. Certainly a number of financial shares like Countrywide and MBIA did it over the last few months. And other firms which have lost market share, as AMD did in the chip business, have taken very big tumbles since the beginning of 2007. All three of these companies could fall further if they do not begin to post better financial results.
These companies are part of a list of ten stocks which could fall by half in 2008. This list includes companies whose stocks were inflated because they are in hot markets like China. That puts Baidu and LDK Solar into the category of shares which could fall if the big Asian economy slows.
Some of the other shares that may fall are from companies in badly damaged industries like autos and newspapers. That includes Ford and Journal Register. The 24/7 Wall St. in-depth look at those companies is available in a longer article. The list contains an IPO from 2007, VMWare. It is in an attractive sector of the software market, but competition is heating up from companies including Microsoft, and the value of the company may have gotten ahead of itself.
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