9 Companies I am Always Bearish On
9 Companies I am Always Bearish On
Hello readers! I hope you are in a most wonderful mood and everything your way is going totally splendid!
As most of you are likely aware, I've titled myself as a perma bull when it comes to the market and long term trading? Why? Because bearish markets are hard to predict and they don't last very long. It's not specifically about making money in bearish markets, rather, not losing tons. Protection is key.
As active traders, I personally have never traded a full blown bearish market. I started getting into trading back in 2008. I made my first purchases with an $1,800 account in Scottrade. I attempted to diversify. I think I had three shares of STZ, three shares of CBS, two shares of XOM, one share of BP and the rest was garbage penny stocks. Terrible, I know. I had no idea what I was doing.
Well, eight years later, I'm at least a tad more knowledgeable.
What's a perma bull you ask? Someone who is always bullish. Again, I know when to say 'Alright, we're bearish, let's protect ourselvesâ€, but until that time comes, there's no reason to panic and continuously try and pick the top of the market, because 'the stock market can remain irrational much longer than you can remain solventâ€. AKA, you will run out of money. It won't.
There are some stocks, however, I just will not buy long term and not only that, but every time I look at them I start craving fresh salmon swimming up stream. (I become bearish).
Here's a list of stocks/companies I am always bearish on. This means there has to be some serious convincing for me to make a trade bullish on them and if it happens, I likely won't be in very long. Is this good, Jerremy? Is this the right way to be? Well, I don't know. I am 100% positive it causes me to miss out on some of the moves, but if I sniff out a bearish move you can best believe I'll take that one no problem.
At the end of it, all professional traders have their little quirks. This is just one of my many, but fundamentally I can make some valid arguments. These stocks are not listed in any particular order, but you'll never find these companies in any of my long term accounts or portfolios.
BBRY: How many people do you know who own a blackberry? This company is still around because of its patents, security protocol and thusly, it's government contracts in communications. No clue when it hits zero or gets bought out, but it will. *Here's a recent article showing more signs of weakness. *
SPLS: Uhh, Staples will go out of business just like Radio Shack. Even though SPLS now owns Office Max and Office Depot, it will go the way of Circuit City soon enough.
JCP: They are in every mall, along with all of the other myriads of retail stores. Clothing is a tough racket to be in long term.
SHLD: An American classic which, as a retail company, is way over diversified. Customer service is at Defcon 3. My generation is getting bigger and wealthier and none of us shop there.
GPRO: It is a one and done. This shiny tow is almost too perfect. If you buy one (or maybe two) you are finished. You've got what you need. Maybe GPRO can partner with the government or drone companies in the future. It's not fully dead, but the sales cycle is weak and their product was too good. Now though, it's too replicable and competition is too high.
FIT: Same reasoning for GPRO minus all of the things I said about a good product. I knew FIT was a joke of an IPO. My biggest regret was not buying long-term puts the moment I could.
PRTY: Very few people shop at Party City. Their fundamentals are horrible, foot traffic even worse and online presence is a joke. I have yet to attend a party in the last 28 years of life where the host mentioned anything about Party City. The amount of customers who need PRTY supplies to throw an amazing party have the wrong kind of friends. That's why BUD, TAP and STZ will always be a 'buyâ€ in my book.
TWTR: Simple. This company doesn't make money. Too much spam. Too many fake accounts. If it stays free, it dies or gets bought.
GRPN: A dying, easily replaceable model.
That's my list, at least for now. I can say one of these companies will go bankrupt or get bought out in the next three years, fact. No clue which one though. And hey, maybe they all surge to the moon. For those who own shares, I honestly hope so. If they do though, you can rest assured I likely won't be on that Apollo mission.
I'm sure there are probably others out there I'm missing. I would love to hear your thoughts. What do you think? Are there any companies you are personally always bearish on?
Thanks so much for reading. I hope this was beneficial, enlightening and enriching! Keep coming back for more. And until next time, remember, Love Life, Live Life and Trade it.
- Jerremy Alexander Newsome