The S&P 500 fell 6% in August 2011, as a strong rebound at the end of the month helped the index recover earlier losses. Despite this rally, investors continue to fear a resumption of the recession that hit in 2008, resulting in heavier losses for many stocks in the S&P 500. (For tips on helping your portfolio from suffering, check out Survival Tips For A Stormy Market.)

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The Losers
CB Richard Ellis Group (NYSE:CBG) and Nabors Industries Ltd. (NYSE:NBR) both dropped 27% and 26% for the month, and are a few of the worst performing S&P 500 stock in August 2011.

CB Richard Ellis Group reported earnings at the end of July and missed consensus earnings estimates by 3 cents. This may have been the catalyst for a 6% drop in the average sell side target price for the company.

CB Richard Ellis Group operates a number of businesses involved with commercial real estate in the United States, and investors may have backed away from this stock due to its sensitivity to the economy. There has also been negative commentary from the company's competitors on the pace of recovery in commercial real estate.

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Nabors Industries Ltd. is one of the largest land rig operators in the United States, and has a significant business abroad as well. The company missed second quarter consensus earnings estimates by 1 cent and also suffered from a general investor flight out of the energy sector during the month. The management of Nabors Industries Ltd. was optimistic about a recovery in its international unit, which has lagged behind the strong results from the North American drilling boom.

Hewlett Packard (NYSE:HPQ) was the victim of some self-inflicted wounds over the last month. The company announced its intention to get out of the PC business through a future sale or spinoff of this segment. Hewlett Packard is a leader in this business and has a 27% share of the market as of the second quarter of 2011.

Hewlett Packard also plans to discontinue support for Smart Phones and other devices that use webOS, including the TouchPad, which was released earlier in the year. The webOS was acquired approximately a year earlier when Hewlett Packard purchased Palm for $1.2 billion.

Hewlett Packard also announced the purchase of Autonomy, a software company, for $10.2 billion. Although the entry into higher margin software and services businesses might be a solid long-term strategy, many investors rebelled at the valuation of 10 times sales and 24 times trailing EBITDA. Hewlett Packard fell 25% in August and now trades at a six-year low.


DeVry (NYSE:DV) fell 32% during the month as this for-profit education company suffered a drop in student enrollment in the most recent quarter. The industry is also experiencing doubt on its growth-oriented business model as the government proposes new regulations.

The Bottom Line
The selloff in the market in August 2011 has hurt some stocks a lot more than others and possibly created opportunities for investors willing to go against consensus thinking. This is usually a successful investment strategy. (To help you with your losses, read The Art Of Cutting Your Losses.)

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