Why Mattel, Marinus Pharmaceuticals, and Northern Dynasty Minerals Slumped Today
Monday was another record-setting day for major benchmarks, which had solid gains of between 0.5% and 1%. Market participants were optimistic that they'll get the corporate tax cuts that they've been hoping to receive all year, and the positive impact on earnings has some investors believing that a fresh round of gains could be just around the corner. Nevertheless, not every stock benefited from the positive sentiment on Wall Street, and downbeat news hurt some companies. Mattel (NASDAQ: MAT), Marinus Pharmaceuticals (NASDAQ: MRNS), and Northern Dynasty Minerals (NYSEMKT: NAK) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Mattel fell more than 4%, adding to its recent losses following its announcement early last week warning of poor holiday financial results. More recently, the company said on Friday that it had successfully priced an offering of $1 billion in eight-year notes, but it will see a considerable increase in interest expense as a result of the deal. The new debt carries a coupon rate of 6.75%, up dramatically from the 1.7% it's paying on the debt it intends to retire as a result of the offering. Without any signs of imminent improvement, investors seem to be taking the opportunity to lock in tax losses on the toymaker and look for better performance elsewhere.
Image source: Mattel.
Source: Fool.com
