Seven Stocks To Sell Immediately

The right stocks can make you rich and change your life.

The wrong stocks, though… They can do a whole lot more than just "underperform." If only! They can eviscerate your wealth, bleeding out your hard-won profits.

They're pure portfolio poison.

Surprisingly, not many investors want to talk about this. You certainly don't hear about the danger in the mainstream media – until it's too late.

That's not to suggest they're obscure companies – some of the "toxic stocks" I'm going to name for you are in fact regularly in the headlines for other reasons, often in glowing terms.

I'm going to run down the list and give you the chance to learn the names of five companies I think everyone should own instead.

But first, if you own any or all of these "toxic stocks," sell them today

Run for Your Financial Life

Toxic Stock No. 1: There's not a more perfect example of a "stay-away" play than Planet Fitness Inc. (NYSE: PLNT). The company went public in the summer of 2015, but it's been around since 1992, and it commits the cardinal sin of longtime public companies: It loses money.

You know, everyone should work out. And I'm betting that maybe you've thought about joining Planet Fitness because its monthly dues are so cheap. But all you have to do is look at Planet's revenue to see how "successful" the company's business model has been.

I'll even make a second wager here: When you look at Planet's $6.7 billion market cap and see that its revenue over the past 12 months was… only $345 million, you'll be shocked. That's not a lot of revenue for a company with thousands of gyms and thousands of customers – especially when it can pump up its sales by selling gym equipment to franchise owners.

Exacerbating that skimpy revenue is the fact that Planet Fitness lost more than $18 million over the past year. Maybe that has something to do with its negative profit margin or the firm's almost $2 billion debt. But just looking at the thin revenue after being around all these years tells you this is a toxic stock.

Sell this "go-nowhere" venture's stock.

Toxic Stock No. 2: One of the most overly hyped stocks actually had a good run… for about a minute. I'm talking about Grubhub Inc. (NYSE: GRUB). After going public in 2014, the stock caught fire in 2018 and took off like a rocket. And that's when the hype became positively deafening. Then, just as fast as Grubhub rose, it crashed right back to earth. Of course, the hype machine revved up again around the pandemic because everyone was having food delivered, and that's what Grubhub does. And so the stock, driven by hype, rocketed anew.

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I laid out seven signs a stock is bad news for my free Total Wealth subscribers –  more

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