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”.
Next
High street retailer Next appears in the Liberum sinners list for the second consecutive year, despite being a favourite of the likes of fund manager Neil Woodford.
A sizable profit warning in 2016 has now been coupled with worsening revenue quality which “should be considered by investors, particularly given the generous terms offered and the deteriorating UK consumer,” Liberum’s note said.
Overall the stock raised five major red flags for Liberum, who would stay well away.
Tags: Investment Strategy
