I've got it on good authority that there are people who
actually search through the Dumpsters behind grocery stores
to find food that might still be edible.
Gross, right?
So why are you doing the same thing in your portfolio?
What's that rotten stink?
The recent rising market tide has floated all boats.
Even
AIG (NYSE: AIG), 80% owned by the government
and absolutely emblematic of all that has gone wrong in
recent years, is up a couple of hundred percent!
And it's not the only one. The stocks of many beleaguered,
struggling, debt-laden, second-string companies have soared
for no good reason, beyond the possibility that some
investors think there might be money to be made from sifting
through the market's trash bin.
Just take a look at this garbage:
Company
Price Appreciation (6 months)
Earnings/Loss Per Share (LTM)
Revenue Increase/Decrease (LTM)
Total Debt-to-Capital
Avis (NYSE: CAR)
2,316%
($11.60)
(10.8%)
98.3%
Krispy Kreme Doughnuts (NYSE:
KKD)
192%
($0.09)
(11.4%)
47.2%
Sirius XM (Nasdaq: SIRI)
357%
($1.72)
119%
95.8% Continued... |