Smart investing isn’t just knowing what stocks to buy. It’s also knowing what stocks to avoid…
That’s why we’ve put together a list of stocks on death watch in 2016. While companies on this list aren’t guaranteed to fail, they have a high likelihood of doing so.
We’ll come out with a new stock death watch list every month, so be sure to check back often.
Here are three stocks on death watch in October 2016…
Death Watch Stocks, October 2016
Stocks on Death Watch No. 1: Valeant Pharmaceuticals International Inc. (NYSE: VRX)
Valeant is a drug company that makes both branded and generic drugs. It also makes certain medical devices, like contact lenses and surgical equipment. The company is known for its focus on distribution, rather than research and development, which former CEO Michael Pearson said makes it more efficient and profitable.
after hours stock trading: Avnet, Inc.(AVT)
- [By Lisa Levin]
Tech Data Corporation (NASDAQ: TECD) reached a deal with Avnet, Inc. (NYSE: AVT) enabling it to buy the latter's Technology Solutions business. The transaction comprises cash component of $2.4 billion and 2.785 million shares of Tech Data resulting in a total value of about $2.6 billion.
after hours stock trading: Tenneco Inc.(TEN)
- [By Ben Levisohn]
Shares of auto-part makers like Delphi Automotive (DLPH), BorgWarner (BWA), and Tenneco (TEN) are getting killed today, ostensibly due to an article in Automotive News. Wells Fargo’s Richard Kwas and team think Tesla Motors (TSLA) and its Model 3 deserve at least some of the blame:
after hours stock trading: Pacific Biosciences of California Inc.(PACB)
- [By Paul Ausick]
Pacific Biosciences of California Inc. (NASDAQ: PACB) slipped about 5.6% to post a new 52-week low of $2.52 Tuesday after closing at $2.67 on Friday. Volume of about 910,000 was about 10% above the daily average. The company had no specific news.
after hours stock trading: ResMed Inc.(RMD)
- [By STOCKPICKR]
Medical equipment maker ResMed (RMD) is another name that’s starting to look “toppy” after a bullish start to the year. RMD has more or less kept pace with the S&P 500 in 2014, climbing just over 11% from January to today — but shares started forming a long-term triple-top over the summer, and that setup is getting close to completion this fall.
It’s worth noting that long-term price setups come with equally long term trading implications when they trigger.
The triple-top that RMD is showing is a fairly rare pattern, but the trigger is pretty perfunctory: if shares break down below support at $48, then sellers are in control, and it’s time to unload them. Downside isn’t a foregone conclusion in ResMed, but this setup only gets invalidated if shares can close above their prior highs at $54.