The right stocks can make you rich and change your life.
The wrong stocks, though… They can do a whole lot more than just “underperform.” If only! They can eviscerate your wealth, bleeding out your hard-won profits.
They’re pure portfolio poison.
Surprisingly, not many investors want to talk about this. You certainly don’t hear about the danger in the mainstream media – until it’s too late.
That’s not to suggest they’re obscure companies – some of the “toxic stocks” I’m going to name for you are, in fact, regularly in the headlines for other reasons, often in glowing terms.
I’m going to run down the list and give you a chance to learn the names of three companies I think everyone should own instead.
But first, if you own any or all of these “toxic stocks,” sell them today…
Mullen Automotive (MULN)
Mullen Automotive has experienced a staggering 99.96% decline since November 2021, making it a prime example of a speculative investment gone awry.
MULN share price surged by 80% last week due to a stock buyback program. This and any future spikes can be viewed as a selling opportunity stock.
The company’s CEO recently expressed skepticism about the stock price’s alignment with the actual company value, emphasizing steady operational progress and the initiation of commercial vehicle production. However, interpreting market signals suggests a lack of investor confidence in the management team. Amid increasing revenue, the ongoing cash burn and the need for equity dilution raise concerns. The timing of the buyback initiative is puzzling, given the company’s apparent need for funds to support growth ventures.
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Windtree Therapeutics (WINT)
Windtree Therapeutics, a Pennsylvania-based biotech firm, specializes in addressing advanced-stage cardiovascular disorders like cardiogenic shock and acute heart failure.
However, the current year hasn’t been favorable for the company. Windtree’s stock has experienced an 85% decline, largely attributed to its chairman, James Huang’s resignation. Huang’s departure was accompanied by statements that the company’s stock price doesn’t accurately reflect its intrinsic value. Moreover, the transfer of ownership shares from existing shareholders was acknowledged as a misstep.
The second quarter saw Windtree reporting a net loss of $6.6 million, equivalent to $1.64 per share. While the quarter generated $12.4 million in funds, the company has enough liquidity to maintain operations until the first quarter of 2024.
With five drugs in its pipeline, four of them in Phase 2 testing, WINT stock is positioned for potential growth. Ideally, the company aims to achieve revenue generation before its financial resources deplete in the upcoming year. However, if this milestone isn’t met, the possibility of seeking additional funds, potentially through equity dilution, looms.
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Marvell Technology (MRVL)
According to Marvell Technology’s CEO, Matt Murphy,, generative AI is playing a pivotal role in attracting fresh investments from the company’s cloud-focused clientele.
Not surprisingly, MRVL stock witnessed a notable surge earlier in the summer, fueled by expectations of it emerging as a major player in the AI stock realm. However, the actual outcome has consistently fallen short of these optimistic projections.
Illustrating this, the company released its earnings report on August 24th. The company not only incurred a financial loss but also experienced an 11% year-over-year dip in revenues. Despite the touted AI revolution, it seems that Marvell is missing out on the AI momentum. With disappointing earnings and waning enthusiasm for its AI prospects, MRVL stock seems poised for a downward trajectory.
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