2 Stocks I Wouldn't Touch With a 10-Foot Pole
Amid a bear market for the S&P 500 and Nasdaq Composite indexes, lower valuations have dramatically improved the investment theses of many but not all stocks. Warren Buffett's mentor Benjamin Graham liked to say that in the short run, the market is a voting machine, but in the long run, it is a weighing machine, and not all stocks will support their weight well.
While hype may drive stocks for a time, investors will eventually value stocks on competitive advantages and financials. That reality bodes poorly for meme stocks such as GameStop (NYSE: GME) and AMC Entertainment Holdings (NYSE: AMC).
Perhaps no stock tops the avoid list more than GameStop. Admittedly, the passion and loyalty of GameStop shareholders took the stock from penny-stock status to a high of $483 per share from late 2020 to early 2021. More than a year later, it has held many of its gains with a stock price of around $144 per share as of the time of this writing. Consequently, both analysts and traders continue talking about GameStop stock.
Source Fool.com
