Thursday, November 10, 2011

3 Stocks to Get Rid of Now

Believe it or not, the end of the year is sneaking up on us. There are less
than two months until we ring in 2012, and now is the perfect time to reassess
your portfolios and prepare for the year ahead. The fourth quarter is a pivotal
time for investors as it is seasonally the best time of year for stocks and
brings the biggest gains. This is why you must be sure that your investments are
in the best condition they can be. The best way to do that is by being certain
that your portfolio contains top-rated and performing stocks. Here are three
well-known stocks that you might not realize you should stay away from. No More
Love for Netflix In just a few short years, Netflix (NASDAQ: NFLX ) has become a
powerhouse in the movie industry. The company revolutionized the way people
watched movies. First, the movie-service offered a low-fee monthly subscription
service that allowed subscribers to create their own list of must-see movies and
have titles delivered straight to their door. The service saved people from the
hassle of having to go out and rent movies and, better yet, eliminated late fees
by allowing subscribers to keep a movie as long as they wanted and by providing
a return envelope. Then, the company went virtual by adding an online movie
library. In addition, subscribers could just turn on their computer and stream
thousands of titles online instantly. Things were all well and good for the
company and stock until Netflix began raising monthly rates and subscribers
started to leave. Recently, although NFLX earnings jumped 63% in the third
quarter, a loss of 800,000 subscribers and a weak company outlook for the
fourth-quarter sent investors running. In the hours following Netflixs report,
the stock plunged 27%, falling below the $100 mark for the first time in over a
year. In the two weeks since reporting earnings, NFLX has struggled to regain a
positive footing. With the analyst community predicting a 31% drop in earnings
for the company in the fourth quarter, now is definitely the time to get out of
NFLX, if you havent already. Now lets take a look at an electronics company
thats in hot water.

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