Learn from our experts which stocks everyone should avoid or sell immediately, as in today. They’re pure portfolio poison. And then, look at the best stocks to buy now and new IPO stocks. Because active investing beats passive investing.
We've found nine stocks to sell that could cost you if they happen to be lurking in your portfolio.
These "zombie stocks" have become trapped by their own debt. Lured by the cheap money afforded by very low interests, these firms borrowed more than they could handle. The can't make enough income to cover their interest payments, which is unsustainable.
If you own any of these stocks, get rid of them now...
Thanks to a late-day sell-off Thursday (Dec. 21), the Dow Jones Industrial Average just missed yet another record-high close.
Even so, this illustrious index has already logged an incredible 70 record-high closes in 2017, more than in any other year in its 122-year history.
In December of 1999, Radioshack Corp. (NYSE: RSH) stock was worth more than $76 per share. Today, RSH is worth less than $1.
And while RadioShack is the most recent example of a high-flying stock that dropped to penny-stock levels, there are plenty of other major companies that are prime candidates to make the same move.
Here are five companies in danger of trading for less than $1 if they don’t turn it around soon…
In case you missed last week's profiles of some of the best stocks to buy right now, here's an overview of the profit plays our Money Morning experts shared with members.
There is also a stock to avoid...
Recently Money Morning Chief Strategist Keith Fitz-Gerald pointed out that insider selling has been soaring of late. He pointed out that according to Vickers Weekly Insider Report the ratio of insider selling to buying by officers and directors stood at better than 9 to 1.
This is a level that has been predictive of near-term tops in the stock market and individual investors need to be on alert for potentially falling stock prices ahead. While this indicator is not a precise timing measurement it is a red flag telling us that the people running publicly traded companies have concerns about valuation and prospects as we head deeper into 2013.
Insiders can tell us something about the potential performance of individual companies as well.
As far back as the mid-1960s Victor Niederhoffer and Jim Lorie combined on studies that showed insider cluster selling was predictive and indicative of lower prices over the next 12 months. Professor Nejat Seyhun of the University of Michigan has also done extensive research and concluded that when insiders sell in clusters it is likely that lower prices are ahead.
Given that insiders in the aggregate are warning of a market decline it is useful to take a look at which stocks are also showing warnings of lower prices ahead.
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