This story was originally published here.
The world of stocks is a perfect example of what’s known as “survival of the fittest.” Some stocks are meant to last for another 100 years, while others might not even make it past the end of 2020. The latter group are certainly stocks to sell.
Analyzing the business model and fundamental data of a company can help us decide whether a stock truly has staying power. Unfortunately, even some well-known and heavily traded names might not last through the end of the year.
Buyers are hoping that these stocks manage to survive, while short sellers will do everything they can to get them to zero — or delisted. Now we’ll take a closer look at these stocks to sell so you can decide for yourself which ones will still be around in 2021.
Stocks to Sell: Chesapeake Energy (CHK)
How concerned should owners of CHK stock be? When the company itself questions its ability to continue to exist, you know there are problems afoot. After all, this is not an event that happens every day.
More specifically, Chesapeake’s recent 10-Q filing spoke of “substantial doubt about the company’s ability to continue as a going concern.” And it’s not the first time Chesapeake has used the “going concern” phrasing. The company also used it in an U.S. Securities and Exchange Commission filing in November of last year.
Citing low oil prices and a host of other factors, Chesapeake also warned that the company’s liquidity and its “ability to comply with our financial covenants during the next 12 months” could be affected. Honesty is indeed the best policy, and honestly, CHK stock is best left alone.
Editor's Note: Click here for the other three stocks.
Dump America's Most Popular Brand Now
During times of great volatility, investors often cling to what they’re familiar with… including the stocks of companies they know best.
Fear and conventional wisdom push people to the biggest brands.
But what if I told you that America’s top stock picker — a man with 40 recommendations that have gained at least 1,000% in his career — believes that America’s most popular brand is a “must sell” right now?
Because this giant of the past was doomed with or without the fear of a pandemic. Eric believes it’s one of 25 big-name stocks that are going to experience hard times, even if a coronavirus cure is found tomorrow.
And, remember, Eric is the legendary trader that accurately predicted the collapse of more than 70 stocks. That includes Cisco (fell 75% in a year after his prediction), Tyco (fell 74% in the year after his prediction), and Countrywide Financial (fell 87% in the two years after his prediction).
Instead, Eric believes anyone with money in the market should focus on four companies that are in position right now to help people capture huge market gains.
You probably haven’t heard of a single one of these firms…
But you will.
Get the facts for yourself and be one of the first to learn more about the four stocks you should buy right now… as well as the 25 companies you should sell immediately, on our website, here…