Three Stocks to Avoid for the Week of August 15th

Seeking out great stocks to buy is essential, but many would say it’s even more important to know which stocks to steer clear of.  A losing stock can eat away at your precious long-term returns.  So, figuring out which stocks to trim or get rid of is essential for proper portfolio maintenance.  

Even the best gardens need pruning and our team has spotted a few stocks that seem like prime candidates for selling or avoiding.  Continue reading to find out which three stocks our team is staying away from this week. 



BuzzFeed (BZFD) stumbled out of  the gate eight months ago, as most of its initial investors had a change of heart just before the stock’s December debut, withdrawing 94% of the $287.5 million raised by the SPAC, a smart move given where the stock is now.  Anyone who eagerly bought in when BZFD went public, and kept it, was left holding the bag, with the share price currently lower by 75%.  

Sure, anyone who’s been bullish on the stock over the past month is likely happy with the 26% increase, but it seems unlikely that the company will be able to sustain the momentum.  Although Buzzfeed’s revenue rose by 21% over the past year, thanks to rising ad and content revenue, its third income category – commerce was down 27% due to low interaction with links added to editorial content.  The experiential and product licensing businesses have also suffered greatly. 



BuzzFeed’s second quarter of results as a public company were not received well.  The company logged a 26% year over year revenue increase, clocking in at $91.6 million, but missed analyst estimates of $94.5 million.  Investors had been bracing for a widening deficit, but were not prepared for net loss to quadruple to nearly $44.6 million, which translates to a loss of $0.33 a share, where analysts had been expecting $0.21 a share.   

Management foresees growth decelerating.  The current quarter outlook calls for revenue to grow by 22% from $89.1 million in Q2 2021 to $120.4 million in Q2 2022, where analysts have their sights set on a 35% year-over-year gain.  BuzzFeed has yet to turn a profit, and is not expected to become profitable anytime soon.  Broadening deficit and decreasing revenue growth are a warning sign for anyone eyeing the stock. Even at $2.15 a share BZFD is anything but a bargain. 

The market’s confidence in digital currencies has been rattled, possibly to the point of no return. The move lower in cryptos has led to a more than 60% decline so far this year for MicroStrategy Incorporated (MSTR), a leading worldwide provider of business intelligence software.

You’re likely wondering why the enterprise software company has been so deeply affected by the decline in cryptos.  Well, the answer may shock you.  Executive Officer Michael Saylor has gone all in on Bitcoin over the past two years.  Since May of 2020, MicroStrategy has purchased nearly $4 billion worth in Bitcoin.



However, MicroStrategy didn’t buy Bitcoin with its own money — the company borrowed part of it.  On March 29th, MicroStrategy announced that it had secured a $205 million loan from Silvergate Capital to purchase Bitcoin.  And it collateralized this loan with Bitcoin.  It was a decision that seemed brilliant when he invested billions in the top crypto as it was surging.  But it’s been disastrous on the way down as BTC price has plunged more than 50% since the purchase.

Chaos in the crypto market is intensifying.  At the time of writing this, the price of Bitcoin is at about $21,000, meaning the company will likely need to provide more collateral to avoid liquidation.  According to its Q1 presentation, MicroStrategy has over 95,000 Bitcoins it can use to satisfy its lending agreement with Silvergate Capital at a loss to the company.

 Even if the company’s Bitcoin position doesn’t get liquidated, it has more than $1.6 billion in convertible senior notes due in 2025 and 2027.  Until there’s a concrete plan in place to create shareholder value with Bitcoin, MSTR is one stock we’re staying away from. 

Read Next: America is going mad—is this next?

America is definitely going a little mad…

Some states are threatening to break away. The rich are fleeing. The wealth gap is soaring. 

According to a recent article in the New York Times, people are driving more recklessly than ever… and drinking more alcohol than ever too. 

And that’s just the beginning…

Altercations on airplanes are now at all-time highs. So are murder rates. And violent crime is soaring across the board. Students are more disruptive than ever. Hate crimes have hit a 12-year high, according to the FBI.

The question of course is: 

Where is this all headed… and what’s coming next?

Well, one of the wealthiest and most successful entrepreneurs in America has a very clear answer you’re unlikely to hear anywhere else…

Bill Bonner is a 73-year-old son of a tobacco farmer, who now owns six large properties in South America, Central America, and the U.S… plus three in Europe.

Bonner is also one of the most humble and thoughtful men in the world today. He’s the author of three New York Times bestsellers… and has built several homes with his own hands, using ancient building techniques.

I’m telling you about Bonner today because has just come forward with an important message… 

What he calls: His 4th and Final Warning

It’s worth paying attention to, because Bonner has made 3 other big macro-economic predictions in his career… and each one proved to be exactly right.

Today, Bonner says we are headed towards a very difficult period in the U.S.… one of our most difficult times ever… which will result in something he calls: “America’s Nightmare Winter.”

What does that mean, exactly—and how could it affect you and your money?

Bonner doesn’t claim to have all the answers–but he recently went public with the fascinating analysis, recorded at his 60-acre property overlooking one of Europe’s most beautiful rivers.

He says: 

“I believe it falls on someone like me to warn people… clearly… and without distraction.

“I can do this now because I’m too rich to care about money… and too old to care about what anyone says about me.”

And in this analysis, Bonner explains exactly how he believes this difficult period will play out, and even more important: The 4 Steps every American should take right now to prepare.

Get the facts. 

Learn how to protect yourself and get a peek inside Bonner’s spectacular European property.

We’ve posted Bonner’s full analysis and his 4 recommended steps on our website. 

You can view it free of charge here…



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