Believe it or not, the end of the year is sneaking up on us. There are less than two months until we ring in 2012, and now is the perfect time to reassess your portfolios and prepare for the year ahead.
The fourth quarter is a pivotal time for investors — as it is seasonally the best time of year for stocks and brings the biggest gains. This is why you must be sure that your investments are in the best condition they can be. The best way to do that is by being certain that your portfolio contains top-rated and performing stocks.
Here are three well-known stocks that you might not realize you should stay away from.
No More Love for Netflix
In just a few short years, Netflix (NASDAQ:NFLX) has become a powerhouse in the movie industry. The company revolutionized the way people watched movies.
First, the movie-service offered a low-fee monthly subscription service that allowed subscribers to create their own list of must-see movies and have titles delivered straight to their door. The service saved people from the hassle of having to go out and rent movies and, better yet, eliminated late fees by allowing subscribers to keep a movie as long as they wanted and by providing a return envelope.
Then, the company went virtual by adding an online movie library. In addition, subscribers could just turn on their computer and stream thousands of titles online instantly.
Things were all well and good for the company and stock until Netflix began raising monthly rates and subscribers started to leave.
Recently, although NFLX earnings jumped 63% in the third quarter, a loss of 800,000 subscribers and a weak company outlook for the fourth-quarter sent investors running.
In the hours following Netflix’s report, the stock plunged 27%, falling below the $100 mark for the first time in over a year.
In the two weeks since reporting earnings, NFLX has struggled to regain a positive footing. With the analyst community predicting a 31% drop in earnings for the company in the fourth quarter, now is definitely the time to get out of NFLX, if you haven’t already.
Now let’s take a look at an electronics company that’s in hot water.