Home [ Market Workshop ] [ Stock Analysis Checklist ] [ Market Glossary ] [ Basic Training ] [ Best Investing Sites ] [ Death List ] [ Free Tutorials ]

the Death List  

High Risk Stocks

The Death List includes two stock portfolios that we think are risky business. Of course, we don’t know for sure that they’re heading down; so don’t sell them short based on our opinion. However, you might want to do a little extra due diligence if you own them. 

Last updated using data from 10/23/09, next scheduled update: 11/7/09

These firms have built up debt levels that could be a drag on earnings and cash flow for years to come. We've employed a variety of financial strength tests to pinpoint this list of potential underperformers. 

Leverage Ratio: total assets divided by shareholders’ equity. A firm with no debt would have a leverage ratio of one, and the higher the debt, the higher the ratio.

Interest Coverage: amount of annual interest covered by a cash flow measure (EBITDA). A ratio of 1.0 means that annual interest and EBITDA are equal. Ratios of 4.0 or higher reflect solid balance sheets. Negative ratios reflect negative cash flow.

Recent
Price

Death List #2: Too Hot Not to Cool Down

Have these overpriced stocks have gone too far, too fast?

This list comes from a screen inspired by a series of occasional articles spotlighting overpriced stocks published by Barron’s in the mid-90s. The screen searches out stocks that are overvalued by a variety of measures, and have already recorded strong results over the past 52 weeks..