10 Stocks Likely to Tumble
By and large, now is a good time to get into the stock market. (Well, honestly, six months ago was a great time to get into the market — everything was much cheaper then.) However, if you are already in, or looking for some good, solid picks, it is important to watch out. There are some stocks that may not do well in the coming months. The Street offers its 10 stocks that are likely to be delisted in coming weeks:
- Sirius XM
- Fair Point Communications
- Mesa Air Group
- Champion Enterprises
- Chipmos Technologies
- Pacific Ethanol
- Emmis Communications
- GSI Group
- TLC Vision
- SMTC Corp
Stock picking
I’m not a huge fan of stock picking. It’s extremely difficult to beat the market, and it is generally risky to rely on the performance of only one stock. Instead, I prefer low-cost, no-load mutual funds, index funds and ETFs. However, there are many who enjoy stock picking, and do a decent job of it. The key is to look at the fundamentals, and consider future prospects for growth. Before picking a stock, it is a good idea to consider these factors:
- Company earnings
- Company profit margin
- How competent a company’s management is
- Likelihood of future demand
- P/E ratio
There are a number of other factors to consider as well, depending on whether or not you plan to employ a buy and hold strategy, or whether you want to do a little short-term day trading. In the end, though, whenever you engage in stock picking, it is important to be careful and consider the possibilities. You should also avoid investing so much that you have to do well. Never invest more than you can afford to lose.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.
