![]() ![]() Of course, Icahn wasn’t too happy about the accusation and the harsh research report. Colorfully, Hindenburg remarked that IEP ran a “Ponzi-like” structure to pay dividends. Several days ago, short-selling research firm Hindenburg Research blasted the company for primarily overvaluing its holdings. If you follow the news regarding billionaire Carl Icahn, you’ll know that his conglomerate Icahn Enterprises (NASDAQ: IEP) courts serious trouble. It’s a no-brainer inclusion for stocks to avoid like the plague that are overvalued. ![]() And because of this new reality, Blue Apron doesn’t make a whole lot of sense. I guess that’s why if you rounded up, APRN suffers a 100% loss. With millions of workers either working hybrid schedules or fully remote, these folks have plenty of time on their hands. But even during the pre-pandemic timeframe, APRN struggled badly. All other things being equal, Blue Apron supposedly filled a critical niche. In the pre-pandemic environment, several professionals lacked time to cook wholesome meals for their families. Thus, it’s one of the red-flag stocks to avoid like the plague.įundamentally, the problem centers on relevance. opener, APRN gave up nearly 40% of its equity value. While it got off to an auspicious start to the new year, when the company released its fourth quarter of 2022 earnings results, APRN fell almost 26% on the day. While the average price target of $2 implies over 472% upside potential, this forecast should change soon enough.Ī meal-kit delivery service, Blue Apron (NYSE: APRN) has really only delivered disappointment to longtime shareholders. Notably, the company struggles to launch its Endurance electric truck, which it had to recall. If that wasn’t enough, analysts peg RIDE stock as a moderate sell. In the worst-case scenario, Lordstown may cease operations altogether and seek bankruptcy protection.Įven without the drama, Lordstown ranks among stocks to avoid like the plague that could crash. In a regulatory filing, management warned that not resolving the dispute could force the company to curtail operations. Naturally, the overhang devastated Lordstown, which already sits in a precarious financial position. If you’ve been following the upstart EV manufacturer, Hon Hai Precision Industry (OTCMKTS: HNHPF) – which also goes by Foxconn Technology – threatened to pull out of a funding agreement. Just in the past 30 days, RIDE stock tumbled nearly 33%. There are red-flag stocks to avoid like the plague in the electric vehicle sphere and then there’s Lordstown Motors (NASDAQ: RIDE). I imagine that’s going to change pretty soon. As well, the average price target stands at $17.17, implying over 265% upside potential. Therefore, investors have little reason to trust PacWest and similarly troubled regional financial firms.Īs of this writing, TipRanks reports that the consensus view of PACW is a hold. It will not protect shareholders of failed banks. Throughout this banking sector crisis, the rescuing federal agencies have been consistent: the U.S. Nevertheless, the deposits only represent one component of why PACW sits among risky stocks to avoid like the plague. Interestingly, the regional bank stated that “the majority of those outflows came after media reports that said the lender was exploring strategic options.” With the implosion of PacWest Bancorp (NASDAQ: PACW) – shedding nearly 23% of market value on May 11 – it’s time for investors to recognize the obvious: PACW represents one of the red-flag stocks to avoid like the plague. According to CNBC, PacWest reported that its deposits fell 9.5% last week. That means you should be cognizant of stocks to avoid like the plague that could tank your portfolio so that you don’t have to make such difficult decisions. However, this emotional decision-making can lead to holding onto a losing position for too long, which can result in even larger losses.” Of course, an ounce of prevention is worth a pound of cure. “When a stock you own starts to decline in value, it can be tempting to hold onto it in the hope that it will bounce back. However, amid geopolitical flashpoints, stubbornly high inflation, and a banking sector crisis, it’s never been more important to cut losses.Īs ChatGPT reminds us, the process of identifying risky stocks to avoid like the plague helps us to avoid emotional decision-making. Under the remarkable bull market cycle that materialized soon after the spring doldrums of 2020, the idea of red-flag stocks to avoid like the plague would have seemed a distant and ridiculous concept. ![]()
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