As I mentioned in yesterday’s blog, August is my least favorite month of the year. Traders are going on vacation, and the thin market conditions mean that we may have some bumpy days ahead of us. That means right now remains an ideal time to continue trimming the dead weight in your portfolio. In today’s blog, I’ll reveal to you 25 aggressive stocks currently on a slippery slope.
Now, all 25 of these stocks currently have either a D- or an F-rating in my Portfolio Grader system. For that reason, I cannot recommend any of these companies as worthwhile investments for any investor to own right now.
Sell These Slippery Slope Stocks Now
|AAOI||Applied Optoelectronics, Inc.||F||D||F|
|APRN||Blue Apron Holdings, Inc.||F||C||D|
|AXON||Axovant Sciences Ltd||D||C||D|
|CVRS||Corindus Vascular Robotics, Inc.||D||D||D|
|EGC||Energy XXI Gulf Coast, Inc.||D||C||D|
|EPE||EP Energy Corp.||D||C||D|
|GNMK||GenMark Diagnostics, Inc.||F||C||D|
|INSY||Insys Therapeutics, Inc.||D||D||D|
|JNCE||Jounce Therapeutics, Inc.||D||D||D|
|KODK||Eastman Kodak Company||D||C||D|
|MLNT||Melinta Therapeutics, Inc.||F||C||D|
|NAK||Northern Dynasty Minerals Ltd.||F||C||D|
|NNDM||Nano Dimension Ltd||F||C||D|
|PRTA||Prothena Corp. Plc||F||C||F|
|RARX||Ra Pharmaceuticals, Inc.||D||C||D|
|SFS||Smart & Final Stores, Inc.||F||C||D|
|SNDX||Syndax Pharmaceuticals Inc||F||C||D|
|SYRS||Syros Pharmaceuticals, Inc.||F||D||F|
|UPL||Ultra Petroleum Corp.||F||D||F|
|VSI||Vitamin Shoppe, Inc.||D||C||D|
|WIN||Windstream Holdings, Inc.||F||C||D|
How do I know these stocks are dangerous investments right now? Simple. I checked all of them in my Portfolio Grader tool.
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 today, the best thing you can do to prepare (and to weather the current market) 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,