Risk of losing market share, when coupled with highly negative margins, unsustainable cash burn, and a soaring stock price mean this firm lands in the Danger Zone.
This firm’s late transition to the cloud based software market has left it with falling profits, lagging margins, and a significantly overvalued stock.
Last week, our analysts parsed 700 filings and collected 102,289 data points. In total, they made 17,454 adjustments with a dollar value of $6.1 trillion. Analyst Allen L. Jackson found a few items in US Steel’s (X) 10-K that caused us to downgrade the stock from Dangerous to Very Dangerous.
Our Most Attractive Stocks (+4.6) outperformed the S&P 500 (+3.5%) last month and our Most Dangerous Stocks (+6.2%) underperformed the S&P 500 (+3.5%) last month.
Our Most Attractive Stocks (-4.4%) underperformed the S&P 500 (-2.6%) last month. Our Most Dangerous Stocks (-6.4%) outperformed the S&P 500 (-2.6%) last month.
In early 2012, Splunk Inc. burst onto the scene with one of the biggest IPOs of the year. Since then, the stock price has ridden the hype and is up more than 320%. This price increase should raise serious concerns for astute investors.
VMW’s valuation has its head in the clouds.
This stock is a great short in most any scenario and is especially attractive in the event of a global economic slowdown led by a recession in Europe.