STEC INC (STEC) 12.69 -$0.21 (-1.63%) 01:30PM (15 mins delay)

Today's Big Losers: VG, STEC, CNW

Nov 04, 2009 - 3:20 PM EST

Shares of Vonage Holdings (VG) were falling Wednesday morning after the company reported a net loss of $54.6 million. In an ironic twist of fate, it was the rallying stock price of Vonage in late August that caused the company to take a sizable charge in the quarter. Certain convertible bonds issued by the company had increased in value after the stock's rally, leading to the $63 million charge. Excluding this item, the company would have reported a profit of three cents per share. Investors couldn't look past the charge and shares have sank by more than twenty three percent so far. Shares of Stec (STEC) were falling Wednesday morning after the company reported a weaker than expected outlook for the rest of 2009. In its quarterly earnings report issued last night, the company reported earnings had surged on higher revenue, but investors were focused on the company's outlook which fell short of Wall Street estimates. The company guided towards revenues of $102 million, just short of the $106 million anticipated by analysts. Further adding pain to investors was news that Stec's largest customer, EMC, could delay orders until 2010 as its current inventory should suffice for the rest of 2009. Shares of Stec lost more than one third of its value on Wednesday morning as investors rushed to sell. And logistics company Con-Way (CNW) reported weaker-than-expected earnings last night of thirty nine cents per share, short of Wall Street estimates of fifty two cents per share. Third quarter revenue fell as the company said the slow economy continues to present obstacles to earnings growth. Driving shares lower this morning was an analyst report from Bank of America. Shares of Con-Way were downgraded from Buy to Hold as the firm now prefers rival JB Hunt for investors. Shares of Con-Way were falling Wednesday morning, off more than nine and a half percent following the weak earnings. For MarketNewsVideo.com, I'm Sayoko Murase.

Source: Market News Video (Nov 04, 2009 - 3:20 PM EST)