After all the ups and downs this week, it’s safe to say the “washing machine” market is still in full force. And a big part of what’s leading this recent bout of volatility is the current tech sell off. That means right now is a good time to trim any dead weight in your portfolio. In today’s blog, I’ll reveal to you 22 high tech companies currently on a slippery slope.
|ADS||Alliance Data Systems Corporation||F||B||D|
|ANY||Sphere 3D Corp.||F||C||F|
|ATEN||A10 Networks, Inc.||F||C||F|
|BBOX||Black Box Corporation||F||D||F|
|CHKP||Check Point Software Technologies Ltd.||D||C||D|
|CTXS||Citrix Systems, Inc.||C||D||D|
|EDGW||Edgewater Technology, Inc.||F||C||F|
|IBM||International Business Machines Corporation||F||D||D|
|LEJU||Leju Holdings Ltd.||F||D||F|
|MEET||Meet Group Inc||F||D||F|
|PERI||Perion Network Ltd||F||D||F|
|RUBI||Rubicon Project, Inc.||F||D||F|
|SOFO||Sonic Foundry, Inc.||F||C||F|
|TKAT||Takung Art Co Ltd||F||C||F|
How do I know these stocks are dangerous right now? Simple. I checked all of them in Portfolio Grader.
When you run your holdings through this screening tool, take note of each stock’s Quantitative Grade (the current level of institutional buying pressure) and each stock’s Fundamental Grade (a weighted blend of eight financial metrics). Also check which of your stocks are rated as Conservative, Moderately Aggressive or Aggressive. Shoot to have 60% of your holdings in Conservative stocks, 30% in Moderately Aggressive and 10% in Aggressive.
I can’t stress this last point enough because aggressive stocks will be the first ones to take a beating during a correction. That’s why you want to limit your exposure to these "spicier" stocks.
To wrap up, the best thing you can do to prepare (and to weather the current trading activity) is invest solely in companies with the best earnings prospects. Of course, the best place to start is to run your portfolio through my Portfolio Grader screening tool.
Until next time,