Seven Stocks To Sell Immediately

Don't do it.

RE/MAX, which has been around for years, took in only $268 million in revenue over the last 12 months, unconscionable for a real estate firm amid the hottest housing market since 2005. Compare that with Zillow Group Inc. (NASDAQ: Z), which had $3.43 billion in revenue – making RE/MAX look pretty lame.

I don't care that RE/MAX made a little money – because, at a profit margin of 1.55%, we're not just talking "little," but actually "microscopic."

I also don't care that RE/MAX's balance sheet and cash flow metrics are all in good shape. The company's going nowhere. Did I mention this the hottest housing market in years? RE/MAX is toxic – end of the story. Dump this also-ran.

Toxic Stock No. 6: Everyone knows a few hot gambling stocks, and most people assume they're all hot because gambling is hot. Not this one, though; Esports Entertainment Group Inc. (NASDAQ: GMBL) isn't a hot company, and betting on its stock is nothing but pure, wrongheaded gambling.

In fact, it's beyond a long shot. The odds are against you here – way against you – because this company took in miniscule revenue of less than $8 million… while it lost almost $20 million over the last 12 months. That's a whopping negative 246% profit margin for the folks keeping score.

Not all gambling stocks are hot, and this one's a bad bet. Sure, you've got to know when to hold 'em, but, as a wise gambler once said, "you've got to know when to fold 'em," too – and that's just what you should do if this stock's in your "hand."

Now, it's not always immediately obvious that you've got a toxic stock in your holdings.

Toxic Stock No. 7: All "games" have winners and losers. But when companies play games, it's shareholders who end up on the losing end. This popular game player is always looking to get one over on the system – it's a devotee of "financial engineering."

The company I'm thinking about here is Revlon Inc. (NYSE: REV). Don't get me wrong here, the guy who really runs Revlon is Ron Perelman, who – believe me – is one smart cookie, as in "billionaire cookie." Ron was in the right place at the right time in the 1980s when junk-bond king Michael Milken was minting billionaires. Ron ended up with Revlon in one of those deals.

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