In the article below I reveal the names and ticker symbols of 12 widely-held companies that could go bankrupt in the near future. But first I need to give you a bit of background…
Every year, our independent research team here at StreetAuthority looks over thousands of potential stock picks. We spend countless hours analyzing companies, looking for any signs that a stock is either a good or bad investment.
Most of the companies we research have both bullish and bearish factors to consider. But in a few rare instances — literally less than 1% of the time — we find a handful of stocks that boast some of the best business models on earth. These rare companies enjoy huge sustainable competitive advantages, pristine balance sheets, ample cash flow, and more often than not, they pay healthy dividends. When we find rare gems like these, we like to buy these stocks and hold them forever. In fact, we recently published an entire presentation on our 10 best “Forever” stocks, and it has become the single most popular piece of research in our company’s decade-long history.
But sometimes we find companies that fall on the other side of the spectrum… companies that are in such poor shape that they are at risk of going bankrupt. These companies often sport unnaturally high debt levels compared to their capital base, and we think you should avoid these stocks at all costs. If by some means they’ve already ended up in your portfolio, you might want to consider dumping them now.