2 Risky Stocks That Are Running Low on Cash
Investors should always be wary of businesses that are low on cash. While they can always raise money through debt or by issuing more shares, neither option is particularly attractive to shareholders as the former leads to rising costs while the latter causes dilution.
A couple of risky stocks that don't have much cash on their books today include Bluebird Bio (NASDAQ: BLUE) and Bed Bath & Beyond (NASDAQ: BBBY). These are both stocks investors need to be very careful with as they require a high risk tolerance.
In August, shares of Bluebird Bio popped as the Food and Drug Administration approved Zynteglo to treat people with beta-thalassemia who require ongoing blood transfusions. And while the news is promising, the market for the treatment isn't terribly large, with Bluebird estimating that there are between 1,300 and 1,500 people in the U.S. with this specific condition that could benefit from the treatment.
Source Fool.com
