Stocks Worth Less Than $1
CNN has done its readers a major favor. It has posted the names of what analysts believe are stocks worth $1 a share or less, and sometimes $0. It is worth looking at the list, particularly for investors who might be drawn to own them.
Loop Capital put a price target of $1 on Bed Bath & Beyond Inc. (NASDAQ: BBBY). The company recently announced it has raised capital to keep it afloat. It does not matter. The retailer is doomed. Revenue dropped 25% in the most recent quarter to below $1.5 billion. The company lost a breathtaking $358 million. It is clear that shoppers already have turned elsewhere for what Bed Bath & Beyond sells.
MKM Partners, according to CNN, put a $1 price target on AMC Entertainment Holdings Inc. (NYSE: AMC), the country’s largest movie theater chain. Its rival Cineworld is about to go under. AMC’s CEO Adam Aron commented that his company’s third quarter would be weak. He hopes to post a recovery later in the year. As the world moves to streaming, that is unlikely. AMC lost $121 million in the most recent quarter.
New Constructs has a $0 target on GameStop, Doordash and Rivian Automotive Inc. (NASDAQ: RIVN). Rivian’s problems are particularly notable. Rivian just eliminated the least expensive vehicle it sells, a blow to many truck buyers. Its production levels are well below expectations. And the Ford F-150 Lightning will bury it. Rivian only produced 4,401 vehicles in its most recent quarter. It lost $1.7 billion.
Get Our Free Investment Newsletter
Finally, Morgan Stanley put a $0 price target on Carnival Corp. & PLC (NYSE: CCL), the cruise line. Battered by a decline in the number of passengers due to COVID-19, it has barely recovered. The company continues to work on its balance sheet, but it lost $1.8 billion in the second quarter.
ALSO READ: Citigroup Says Buy Palo Alto Networks and Sell These Other 2 Stocks
Shareholders in some companies have taken outsized risks recently, which have triggered one-day run-ups of double-digit percentages. As some of these fall, the bottom may be zero.
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Source: Read Full Article