We saw a number of big names crash and burn in 2011 — most recently with American Airlines parent AMR Corp. (NYSE:AMR) declaring bankruptcy and MF Global flaming out spectacularly thanks to what appears to be boneheaded (and illegal) trading with client money. And you can be sure that in 2012, plenty of other companies will make headlines like these as their operations fall apart and they spiral into bankruptcy or are broken up and sold at fire-sale prices.
Investors sometimes like to bottom-fish for winners on the hopes they will bounce back big-time. Others are just afraid to part with a big loser — even if that means it becomes an even bigger loser down the road.
But take note: These five stocks are toxic to your portfolio, and could very well disappear altogether in 2012: