What are the tell-tale signs that a company or an industry is a loser?
So what are the tell-tale signs that a company or an industry is a loser? Well one thing that is a sure fire sign of a company in trouble is its history of issuing equity. If management think continually selling equity is a good idea, it is more than likely that as investors you should be selling equity too.
Russell Clark
Sell stocks of companies that announce huge acquisitions, that overdiversify, or that spend a fortune on a lavish new headquarters.
Barry Ritholtz
More about the same
http://thoughtmeme.blogspot.pt/2012/12/investment-overcapacity-collapse.html
PS I just spoke with someone that did a paper about IPO's and the picture is that an industry that have many IPO's stops performing in the stock market. I never liked IPO's for the simple reason that the companies only come to the market in very good times. This year 7 out of the 10 biggest IPO's are under water (below offering price!)
PS I just spoke with someone that did a paper about IPO's and the picture is that an industry that have many IPO's stops performing in the stock market. I never liked IPO's for the simple reason that the companies only come to the market in very good times. This year 7 out of the 10 biggest IPO's are under water (below offering price!)
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