Shareholders of Studio City International Holdings Ltd. (MSC, Financial) and The9 Ltd. (NCTY, Financial) have experienced meaningful losses with their holdings over the past couple of years, underperforming the S&P 500 Index by a large margin.
Furthermore, these companies have negative recommendation ratings on Wall Street, which means their stocks are expected to continue to decline in the coming months.
Thus, shareholders may want to consider softening their positions in these two companies.
Studio City International Holdings
American depository receipts of the Hong Kong-based operator of resorts and casinos in China have declined 19% over the past year and 14% over the past two years through Oct. 28. The stock has underperformed the S&P 500 by 33% and 42%.
Currently, Studio City International does not pay dividends to its shareholders and has never paid one.
ADRs were trading at around $15.46 each at close on Oct. 28 for a market capitalization of $1.71 billion and a 52-week range of $12.48 to $21.1.
The 14-day relative strength index of 46 suggests the stock is still far from oversold levels.
Wall Street analysts issued a sell recommendation rating for this stock with an average target price of $11.50.
ADRs of the Chinese operator and developer of online games in China have fallen 74% over the past year, 92% over the past three years and 95% over the past five years through Oct. 28. The stock has underperformed the S&P 500 by 82%, 120% and 153%.
Currently, The9 does not pay dividends as the last payment is dated Feb. 9, 2009.
ADRs were trading at around $2.15 each at close on Oct. 28 for a market capitalization of $18.79 million and a 52-week range of $2.07 to $12.3.
The 14-day relative strength index of 31 indicates that the stock stands a whisper away from oversold levels.
Wall Street sell-side analysts recommend an underweight rating for this stock.
Disclosure: I have no positions in any securities mentioned in this article.
Read more here:
- 3 Stocks Winking at Growth-Focused Investors
- 3 Stocks With Low Price-Earnings Ratios
- 3 Tech Growth Stocks to Consider
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.