Fortune: 3 Stocks Which Could Go To $0

The three symbols he names: $PTON $CVNA $FRPT

Peloton and 2 other major ‘zombie’ companies could soon go to $0, leading stock research firm CEO says
June 23, 2022 1:21 PM EDT…

Trainer warned investors in 2021 that many high-flying tech stocks and IPOs at the time were trading at “tech bubble” levels. And even worse, some were what he calls “zombie companies,” or firms that are unable to generate enough cash flow to cover their debts, forcing them to continually borrow in order to stay alive. You’ve probably heard of some of these zombies, like the workout-bike maker Peloton.

And Trainer has credibility here: His firm’s website says its cutting-edge use of machine learning to analyze markets has vaulted it to the front of its field, yielding partnerships with many hedge funds and information providers including Refinitiv and Ernst & Young.

Now, with the Federal Reserve aggressively raising interest rates in order to combat levels of inflation not seen in four decades, Trainer argues that some of these zombie companies could see their stock prices fall to $0 as the cost of borrowing soars.

Someone mentioned Exxon as a zombie company with huge debts. Maybe when oil was at $20/bbl. But that seems ludicrous with oil at $100+.

Boeing could be at risk. They borrowed heavily while 737 Max was down. Should be recovering now that sales are resumed. But interest costs could be a problem.

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When reading articles like this it might be good to remember that in 1997 Michael Dell said Apple should be liquidated and the money returned to shareholders.…


Probably before the return of Steve Jobs. Apple did struggle without him.

It was actually after Steve Jobs’ return. I don’t think anyone could have predicted what would happen with Apple in the 25 years after Dell’s comment. Which was the point I was trying to make. Whether it was Niels Bohr, Samuel Goldwyn, or Yogi Berra who said it, predicting is hard, especially about the future.

And take the right fork in the road.

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