Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Micro Strategy Bubble Mania - 10th May 24
Biden's Bureau of Labor Statistics is Cooking Jobs Reports - 10th May 24
Bitcoin Price Swings Analysis - 9th May 24
Could Chinese Gold Be the Straw That Breaks the Dollar's Back? - 9th May 24
The Federal Reserve Is Broke! - 9th May 24
The Elliott Wave Crash Course - 9th May 24
Psychologically Prepared for Bitcoin Bull Market Bubble MANIA Rug Pull Corrections 2024 - 8th May 24
Why You Should Pay Attention to This Time-Tested Stock Market Indicator Now - 8th May 24
Copper: The India Factor - 8th May 24
Gold 2008 and 2022 All Over Again? Stocks, USDX - 8th May 24
Holocaust Survivor States Israel is Like Nazi Germany, The Fourth Reich - 8th May 24
Fourth Reich Invades Rafah Concentration Camp To Kill Palestinian Children - 8th May 24
THE GLOBAL WARMING CLIMATE CHANGE MEGA-TREND IS THE INFLATION MEGA-TREND! - 3rd May 24
Banxe Reviews: Revolutionising Financial Transactions with Innovative Solutions - 3rd May 24
MRNA - The beginning of the end of cancer? - 3rd May 24
The Future of Gaming: What's Coming Next? - 3rd May 24
What is A Split Capital Investment Trust? - 3rd May 24
AI Tech Stocks Earnings Season Stock Market Correction Opportunities - 29th Apr 24
The Federal Reserve's $34.5 Trillion Problem - 29th Apr 24
Inflation Still Runs Hot, Gold and Silver Prices Stabilize - 29th Apr 24
GOLD, OIL and WHEAT STOCKS - 29th Apr 24
Is Bitcoin Still an Asymmetric Opportunity? - 29th Apr 24
AI Tech Stocks Earnings Season Opportunities - 28th Apr 24
S&P Stock Market Detailed Trend Forecast Into End 2024 - 25th Apr 24
US Presidential Election Year Equity Performance in the Presence of an Inverted Yield Curve- 25th Apr 24
Stock Market "Bullish Buzz" Reaches Highest Level in 53 Years - 25th Apr 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Is It Time to Buy These "Death Watch" Stocks?

Companies / Investing 2012 Jan 05, 2012 - 06:48 AM GMT

By: Money_Morning

Companies

Kerri Shannon writes: Money Morning's Keith Fitz-Gerald joined Fox Business's Stuart Varney yesterday (Wednesday) to discuss three stocks Varney said were on "death watch" - including Eastman Kodak Co. (NYSE: EK), rumored to be on the brink of filing for bankruptcy.

Varney asked Fitz-Gerald if any of these companies presented a buy-when-it's-cheap opportunity, or if investors should steer clear.


First, Eastman Kodak Co.

The photo company is rumored to be preparing to declare bankruptcy if a plan to sell digital patents doesn't materialize over the next few weeks. The company has plunged a staggering 98% in the past five years, bringing its market cap to a measly $170 million.

"It's hard to believe this company is in danger of delisting and has become a microcap stock," said Fitz-Gerald.

Fitz-Gerald said as an investment this company should be avoided, but did not discount some day-trading opportunities for aggressive traders.

"Of these stocks, this is the one that intrigues me if I want to take a flyer - not an investment, but a flyer. The potential winner if you are a trader here is the patent lawsuit against Apple and Research in Motion."

Kodak initiated a suit against Apple Inc. (Nasdaq: AAPL) and Research in Motion Ltd. (Nasdaq: RIMM) in 2010 claiming patent infringement on imaging technology.

"But my concern is the judge has put off an opinion until September 2012; Kodak may not have the cash to survive until then," said Fitz-Gerald.

Next up, Sears Holding Corp. (Nasdaq: SHLD). Sears announced last month it was closing 100 stores. Its stock lost about 25% in one day after the news broke, and is down 56% over the past year.

Is Sears a "Buy"?

"Nope," Fitz-Gerald told Varney. "The bet about Sears has never been about retailing. The play here for years has been Sears as a land bank. But real estate is in the toilet and no amount of new merchandising can help offset this."

Rounding out the "death watch" stocks is Research in Motion. The Blackberry smartphone maker has struggled to maintain market share as consumers continue flocking to Apple's iPhone and phones using the Google Inc. (Nasdaq: GOOG) Android platform.

News broke Tuesday that RIM might be replacing its long-time co-CEOS, Mike Lazaridis and Jim Balsillie, at the end of the month.

"I've said before I wouldn't touch it with a proverbial ten-foot pole - probably not even a 20-foot pole at this point," said Fitz-Gerald. "If they can't fix things with two CEOs and can't get a handle on their cash flow despite long-term contracts, it's dead. The technology is being replaced."

Source :http://moneymorning.com/2012/01/05/is-it-time-to-buy-these-death-watch-stocks/

Money Morning/The Money Map Report

©2011 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in