Seven ‘sinful’ stocks to avoid
2 Aug 17
With the FTSE 100 on an almost continual rise, which are the ‘red flag’ stocks that investors should watch out for? Investment bank Liberum lists the seven ‘sinful’ stocks in the top 100 they would “prudently seek to avoid”.
Liberum actively support shorting Pearson stocks.
It appears in the Sinners’ list for the third year with auditors raising flags over the risky accounts which rely heavily on assumptions and estimation and major restructuring at the firm.
Stretched dividend cover and ‘missing’ capex also raises concerns with Liberum, the note adds.
Ian Whittaker, a media analyst with Liberum said: “Having screened with one of the worst cash covers for the third year in a row, Pearson recently, on 11 July 2017, decided to reduce its dividend, saying it will be more than 2x of a smaller based than anticipated.”
Tags: Investment Strategy
