The stock market smashed record after record in 2014, but some companies just didn’t get the memo. As we head into the last week of the year, let’s take a look back at some of the worst performing stocks of 2014. For starters we’ve got your local video game retailer GameStop. This stock is down 30% so far this year following a string of god-awful quarters. GameStop has mistakenly been resting on its laurels, assuming its business would be just fine thanks to a new videogame product cycle, while in reality they’re losing tons of market share to digital direct downloads. What’s worse – management seems to be in denial about this whole problem! Next is Coach, the leader in women’s luxury goods. The company’s North American business has been in a world of pain, with sales down 20% in the latest quarter. With the stock still trading at a lofty valuation in spite of tepid projected sales growth, I’d also keep away from this one. Last up is THE worst performing stock in the S&P 500, and unsurprisingly it’s an energy company: Transocean, an offshore driller which owns the largest ultra-deep water fleet in the world. Following its 60% drop this year, Transocean is one that I like for its dirt cheap valuation (it’s trading at less than half of its book value) coupled with strong cash flow generation and a huge order book. Don’t be surprised if this forgotten name is one of the strongest performers in 2015.
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