3 Stocks on the Verge of a Downfall: Cash Out Now!

InvestorPlace06-25

All three stocks exhibit considerable financial distress, marked by substantial losses and impaired asset valuations. Mullen Automotive (MULN): The equity plummeted due to impairment charges and ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2446123844?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-06-25 22:05","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2446123844","market":"us","top_or_hot":-1,"title":"3 Stocks on the Verge of a Downfall: Cash Out Now!","media":"InvestorPlace","content":"<div>\n<p>All three stocks exhibit considerable financial distress, marked by substantial losses and impaired asset valuations.\nMullen Automotive (MULN): The equity plummeted due to impairment charges and ...</p>\n\n<a href=\"https://investorplace.com/2024/06/3-stocks-on-the-verge-of-a-downfall-cash-out-now/\">Source Link</a>\n\n</div>\n","source":"investorplace_stock_picks","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>3 Stocks on the Verge of a Downfall: Cash Out Now!</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n3 Stocks on the Verge of a Downfall: Cash Out Now!\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-25 22:05 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2024/06/3-stocks-on-the-verge-of-a-downfall-cash-out-now/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>All three stocks exhibit considerable financial distress, marked by substantial losses and impaired asset valuations.\nMullen Automotive (MULN): The equity plummeted due to impairment charges and ...</p>\n\n<a href=\"https://investorplace.com/2024/06/3-stocks-on-the-verge-of-a-downfall-cash-out-now/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1548497426.USD","symbol_name":"安联环球人工智能AT Acc","start_time":0,"source_url":"https://investorplace.com/2024/06/3-stocks-on-the-verge-of-a-downfall-cash-out-now/","article_id":"2446123844","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2446123844","pubTimestamp":1719324359,"sourceInfo":{"source_id":"investorplace_stock_picks","name":"InvestorPlace stock picks"},"weMediaInfo":null,"summary":"Discover why these stocks are on the list of stocks to sell and explore their fundamental weaknesses and potential risks.","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1548497426.USD":"安联环球人工智能AT Acc","BK4588":"碎股","BK4096":"电气部件与设备","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","LU0823414478.USD":"法巴经典能源转换基金","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","BK4099":"汽车制造商","HTZ":"赫兹租车","BK4022":"陆运","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","MULN":"Mullen Automotive","PLUG":"普拉格能源","BK4585":"ETF&股票定投概念","BK4541":"氢能源","BK4230":"旅客陆运"},"translate_title":"3只濒临下跌的股票：立即套现！","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"HTZ":1,"MULN":1,"PLUG":1},"content_text":"All three stocks exhibit considerable financial distress, marked by substantial losses and impaired asset valuations.\nMullen Automotive (MULN): The equity plummeted due to impairment charges and operating losses, signaling financial instability. \nHertz Global (HTZ): Its high vehicle depreciation costs and expenses impacted profitability.\nPlug Power (PLUG): The margin pressures and restructuring costs highlight challenges in achieving a positive bottom line.\n\n\n\n\n\n \n\nSource: shutterstock.com/Aree_S\n\n\n\nIn the stock market, knowing when and what stocks to sell is as critical as identifying when and what to buy.\nOnce hopeful contenders in automobile manufacturing, passenger ground transportation and electrical components industries, these companies now face daunting financial hurdles that could spell trouble.\nUnderstanding why these stocks are ripe for divestment requires a closer look at their fundamental weaknesses. Each company presents unique challenges, from staggering equity declines due to impairment charges to mounting depreciation costs eating into profitability.\nSimilarly, despite its position in the green energy sector, one company among the trio needs help with profitability amidst high operational costs and restructuring expenses. \nWhether it’s liquidity concerns, operational inefficiencies, or strategic missteps, these factors underscore the vitality of decision-making in managing investment portfolios. \nBy identifying these warning signals early on, you can proactively mitigate risks and safeguard their financial interests in an unpredictable market landscape.\nMullen Automotive (MULN)\nSource: MacroEcon / Shutterstock.comMullen Automotive (NASDAQ:MULN) leads in innovative electric vehicle designs. As of March 31, 2024, the company’s equity was $117.4 million, down from $272.8 million on September 30, 2023. The impact of impairment charges and other operating losses, at around $129.9 million, reflects the considerable decline of $155.4 million.\nDespite stock-based pay, warrant exercises and other equity adjustments, equity has decreased considerably overall. Deeper financial trouble is also reflected in the sharp increase in loss per share from the prior year. Thus, the sizable impairment charges draw attention to probable overestimations of future cash flows and underlying problems with asset values.\nMoreover, Mullen’s capacity to support its operations, research endeavors and development goals without largely depending on external funding is limited due to the rapid fall in cash reserves. This reliance may result in higher debt levels or, through extra share issuances, erosion of the ownership held by current shareholders.\nTo sum up, Mullen Automotive’s inclusion on the stocks to sell list stems from a sharp decline in shareholders’ equity, due to impairment charges and persistent operational losses.\nHertz Global (HTZ)\nSource: aureliefrance / Shutterstock.comHertz Global (NASDAQ:HTZ) is a major player in the car rental industry. There is a core weakness of Hertz Global that might potentially impede the company’s fast expansion prospects.\nTactical difficulties in fleet administration further compound the company’s substantial vulnerability to automobile depreciation expenses. Hertz revealed a startling $588 million rise in vehicle depreciation costs in Q1 2024 over Q1 2023.\nThis increase was caused mainly by falling anticipated residual values of automobiles and losses from vehicle disposal. This included a considerable $195 million loss from EVs kept for sale.\nFurther, high car depreciation considerably affects Hertz’s financial performance metrics. Depreciation expenses considerably impacted the company’s adjusted corporate EBITDA, which was negative for the quarter at $567 million.\nBoth this number and the adjusted net loss of $392 million, or a loss of $1.28 per diluted share, highlight the pressure on profitability and operational sustainability. Hence, these figures show a heavy financial load.\nFinally, the above hinders Hertz’s ability to manage debt commitments or properly reinvest in expansion plans, making the firm a top pick on the stocks to sell list.\nPlug Power (PLUG)\nSource: T. Schneider / Shutterstock.comPlug Power (NASDAQ:PLUG) leads in hydrogen fuel cell systems. The company’s profitability and cost-control methods are the source of a fundamental vulnerability.\nThe firm generated $120.3 million in sales, but lost $0.46 per share. This disparity highlights a major obstacle to turning sales into bottom-line profitability.\nThe negative EPS suggests that operational costs are outpacing the rise in revenue. These include production, administrative costs and potentially considerable spending on research and development. Thus, this will eventually affect investor confidence and shareholder returns.\nAdditionally, impairment charges and financial restructuring further showcase the company’s financial difficulties. In Q1 2024, Plug spent almost $46 million on restructuring and asset impairments.\nThis consists of $40 million in non-cash charges for asset impairments and $6 million in restructuring expenditures targeted at streamlining operations and cutting costs. Hence, these expenses show that there are still difficulties in maximizing asset usage and matching expenses to income. Both of which are essential for attaining long-term profitability.\nOverall, Plug Power’s high operational costs, margin pressures and considerable restructuring expenses have led to its presence on the top stocks to sell list.\nOn the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.\nYiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.Consumer Discretionary, Industrial\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nSubmit\n\n\n\n\n\n\n\nArticle printed from InvestorPlace Media, https://investorplace.com/2024/06/3-stocks-on-the-verge-of-a-downfall-cash-out-now/.\n©2024 InvestorPlace Media, LLC","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.2","shortVersion":"4.24.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2446123844"}