What do people think about these stock picks?
I read an ariticle on companies who could fail in 2009 (http://www.whybanksfail.com/index.php/2009/02/companies-who-could-fail-in-2009/). Hopefully at least one or two of these companies won’t fail. If I bought 100 shares of each I am bound to make some money right? I know this is risky but what do people think? The companies are Rite Aid (RAD), Dollar Thrifty Automotive Group (DTG), Six Flags (SIX), Blockbuster (BBI), Krispy Kreme (KKD), Sirius Satellite Radio (SIRI), Trump Entertainment Resorts Holdings (TRMP), and Bearing Point (BGPT).
22 Dec 2009
TRMP Trump Resorts Holdings has gone bankrupt. If the shares are still listed, don’t buy them or you’ll lose your entire investment: http://www.reuters.com/article/newsOne/idUSTRE51G05X20090217
KKD – Krispy Kreme. I wouldn’t trust this stock, but the donuts are nice. Have one of those instead. Seriously, franchises in KKD are going bankrupt everywere such as in Hong Kong: http://www.reuters.com/article/rbssRestaurants/idUSHKG10574320081027
BBI – Not sure. Blockbuster cut their dividend in 2005. It’s done better over the last 3 years, but it’s nothing to get excied about.
I’m 50/50 about this one. I wouldn’t buy it though. Blockbuster are working with Microsoft so you can watch movies on your mobile phone. Why would anyone want to watch a movie on such a small screen? Still, you never know.
SIRI – They were preparing for bankruptcy and may still consider it; http://www.reuters.com/article/mnaNewsTechMediaTelco/idUSN1632251620090216 I wouldn’t buy it.
DTG – It’s profit dropped dramatically in 2007 compared to 2006. The car rental company is struggling in the financial crisis. Might be better to see if it’s still standing when the recession eases. Too close to call.
SIX – A roller coaster amusment park. This is one of your better picks this is what I found: http://www.reuters.com/article/rbssMediaDiversified/idUSN1048228320081110
The share price has gone down a bit. Might be good if it gets above 35c a share. If you scroll down on this google link and look at net income Six Flags has made a turn around. It’s just whether they can sustain being back in profit that remains to be seen.
BGPT – My charting and financial data software didn’t pick this stock up. Here’s the google link: http://www.google.com/finance?q=OTC%3ABGPT
They’re losing money. Probably worth leaving alone.
RAD – That’s a drugstore chain. They made a big loss in 2008 and only breaked even in 2007. The shares are down too. No good.
The only one I like is Six Flags (Six). Its shares would still have to go up for me to want to buy it. I guess when times are tough, people go on roller coasters. LOL.