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The
Death List includes two stock portfolios that we think are risky business.
Of course, we don’t know for sure that they’re heading down; so don’t
sell them short based on our opinion. However, you might want to do a
little extra due diligence if you own them.
Last
updated using data from 4/25/08,
next scheduled update: 5/10/08
Death
List #1: Death by Debt
These firms are
on our Death by Debt list because they've built up huge
debt that
will be a drag on earnings and cash flow for years to
come. We employed a variety of financial strength tests to pinpoint this list of
potential losers.
Leverage Ratio:
total assets
divided by shareholders’ equity. A firm with no
debt would have a leverage ratio of one, and the higher the
debt, the higher the ratio.
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