3 Stocks Most at Risk of a Catastrophic Collapse in 2024

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  • You’re gonna need to keep an eye on these stocks to sell.
  • Ambow Education (AMBO): Ambow Education may find it difficult to repeat its success stateside.
  • Pop Culture Group (CPOP): Pop Culture Group faces potential governmental crackdown risks.
  • Digital World Acquisition Corp (DWAC): Digital World stakeholders should beware the Swift effect.
stocks to sell - 3 Stocks Most at Risk of a Catastrophic Collapse in 2024

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To be completely upfront, stocks to sell represent a terribly unpopular subject for obvious reasons. Still, I hope you’ll extend me some rope so that I can make my case. Each of the companies you see appear on this list for the following main reasons:

  • They all skyrocketed sharply this year.
  • Worse yet, they feature questionable business models or relevance.
  • Generally, their 15 minutes of fame may be up.

Ultimately, what I’m trying to do is to protect you from the occasional irrationality of the market. You might be enthralled with these ideas and that’s okay. Just consider a different perspective as part of your due diligence. And on that note, here are (in my opinion) the stocks to sell.

Ambow Education (AMBO)

text books on a desk with a chalkboard in the background
Source: Shutterstock

Based on Barchart’s year-to-date performance screener, Ambow Education (NYSEAMERICAN:AMBO) clocks in as one of the top performers, gaining a stratospheric 120%. And most of that performance occurred recently, with AMBO skyrocketing 150% in the past five sessions. Specializing in educational software and hardware, Ambow’s platform should enable hybrid online and offline learning. That may be the future of education.

Except maybe it’s not. I’m not trying to cast aspersions as I believe the concept is intriguing. However, back when the Covid-19 crisis forced so-called distance learning protocols, the matter sounded better in theory. However, in practice, teachers suffered through significant challenges. I anticipate more of the same moving forward.

Yes, Ambow states that the company has a long history of success in China. But that’s a different country, a different culture. Here in the U.S., educational technology (edtech) firms have had mixed success. Plus, on a technical (analysis) level, AMBO shows a high pole warning in its point-and-figure (P&F) chart.

I think the signs are clear. You should consider AMBO one of the stocks to sell.

Pop Culture Group (CPOP)

A photo of someone writing out music on staff paper with guitars in the background.
Source: Kemedo/ShutterStock.com

While you shouldn’t judge a book by its cover, Pop Culture Group (NASDAQ:CPOP) just seems an odd enterprise. According to its website – it’s in Chinese so something may have been lost in translation – Pop Culture goes by the brand nickname “Pupu.” Essentially, it’s a Chinese hip-hop culture company that broadly supports friendship between the U.S. and China. As for its core business, the company provides event experiences focused on disseminating hip-hop elements.

Interestingly, hip hop and other components of Black American popular culture has taken root in China. So, it’s not out of the question for CPOP stock to rise higher. However, it’s also true that the Chinese government has taken action against its own hip-hop stars. Given the heightened censorship environment – along with rising geopolitical tensions – it’s quite possible that the communist government could clamp down on certain cultural catalysts.

Similar to Ambow Education, shares of Pop Culture Group have printed a warning sign in its P&F chart. Here, it’s a long tail up pattern, which points to a possible reverse of optimistic sentiment. Frankly, I think it’s one of the stocks to sell.

Digital World Acquisition Corp (DWAC)

Former President Donald Trump, Trump NFTs
Source: mark reinstein / Shutterstock.com

Previously, I thought that former President Donald Trump would have an excellent chance of winning a non-consecutive reelection. If so, that would bode well for Digital World Acquisition Corp (NASDAQ:DWAC). DWAC is a special purpose acquisition company or SPAC that the real estate mogul is attempting to merge with Trump Media & Technology Group.

However, I’m not so sure now because of pop superstar Taylor Swift. I don’t know much about Swift. Still, I do know that she champions women’s rights. And when I heard that many conservative voices are targeting the singer – basically to warn her to not get involved politically – I thought it was the silliest action to take.

Of course she’s going to get involved politically! Such barbs would likely only fuel her resolve.

Because of the unparalleled popularity and influence of Swift, she can turn the election in favor of President Biden and the Democrats. Plus, with Trump’s surprising number of business failures and shady dealings, DWAC may be on a short lease on life. Based on the Swift effect, I must reassess my take on Trump and his SPAC.

It just might be one of the stocks to sell.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.


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