There is a debate among investors about whether or not to avoid all stocks trading under $5. This means that theoretically, the list of penny stocks to sell is quite long.
According to Finviz.com, there are 1,511 stocks listed on the Nasdaq with a market capitalization of $300 million or higher. On the NYSE, there are approximately 1,958 stocks with a market cap of over $300 million. Out of these, 138 on the Nasdaq and 105 on the NYSE are trading under $5.
The goal now is to identify three penny stocks that are considered ticking time bombs. These companies are likely losing money currently and are expected to continue to do so in the future. They also have significant debt and limited prospects for growth.
The first penny stock to sell is MultiPlan (MPLN). Recent data shows that its financial situation has worsened significantly, making bankruptcy a possible scenario in the future.
Another example is FuboTV (NYSE: FUBO), which has faced challenges due to competition from sports streaming services launched by major companies like Walt Disney (NYSE: DIS), Fox (NASDAQ: FOX), and Warner Bros. Discovery (NYSE: WBD). Despite filing an antitrust suit against these companies, FuboTV’s financial outlook remains bleak.
Overall, investing in penny stocks like these poses a high risk of losing money. It is important for investors to be cautious and realistic about the potential outcomes.
Author Will Ashworth, who has been writing about investments since 2008, warns against these risky investments. He advises readers to be mindful of the risks involved in trading penny stocks.
In conclusion, it is crucial to be aware of the pitfalls associated with investing in penny stocks. Understanding the risks and making informed decisions can help investors avoid potential losses in the long run.