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Dump These 3 Toxic Stocks Now!

These stocks should not be in your portfolio ahead of earnings

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Toxic Stocks to Dump Now: Zynga (ZNGA)

znga stock zyngaPerhaps the biggest indication of the risk off trade being in play is the market reaction to the initial public offering of Candy Crush game maker, King (KING). The one-trick pony lost value after coming to market. In a risk on mode, this one could have popped by 100% or more. Not in this environment and the reaction to King Media should have Zynga (ZNGA) shareholders quite nervous. Running up to the King IPO stories abound about how Zynga was a failed IPO.

Like King Zynga was a one product company heavily reliant on Facebook (FB). Its demise is well documented. Now some vultures like Steven Cohen of SAC Capital are swooping in. I wouldn’t be one of them. This company lost money last year and according to analyst estimates will barely make a profit this year. It doesn’t get much better in 2015. What’s the motivation for owning this dog? I have no idea and with a risk off environment Zynga is one of the first stocks I would look to dump.

Article printed from InvestorPlace Media,

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