As this is the year’s halfway point, it’s time to look hard at your portfolio for stocks to sell.
Ask yourself what’s working and what’s not. Are your returns as high as they should be, or is something holding you back? Do you have stocks that you need to sell now?
I’ve written lately about the best stocks you can have in your portfolio for the second half of 2023, but it’s also good to look at the other side of the coin and assess what stocks to sell as the calendar flips to July.
As we did when looking at the stocks to buy, we’ll use the Portfolio Grader to benchmark disappointing stocks that should be on your “sell” list today.
As a reminder, the Portfolio Grader uses an “A” through an “F” scale to grade every stock based on various factors. They include earnings growth, sales, buying momentum, analyst sentiment, dividend performance and more.
Here’s hoping that your portfolio doesn’t have any of these F-rated stocks. But if they do, consider these stocks to sell before the second half of 2023 gets rolling.
Mullen Automotive (MULN)
Mullen Automotive (NASDAQ:MULN) is the first of a group of electric vehicle stocks that have an “F” rating on this list. Mullen keeps claiming it’s on the verge of putting together something meaningful and puts out statements announcing partnerships and moves to draw investor attention.
But as I wrote a few days ago, it’s time to abandon hope for MULN stock, which appears to be on the way to zero.
It doesn’t have that far to go to get there. Mullen is down to less than 12 cents per share. They removed it from the Russell 2000 index and it seems destined to be yanked from the Nasdaq composite as well.
Meanwhile, the company continues to dilute its shares, announcing on June 26 a resale of up to 2.33 billion shares.
Mullen did a 1-for-25 stock split in May and now is pitching to shareholders another split that could be as great as 1-for-100.
Whether that keeps Mullen on the Nasdaq is irrelevant at this point. MULN stock has a well-deserved “F” grade in the Portfolio Grader and is prime among the stocks to sell while you can.
Workhorse (NASDAQ:WKHS) was had the inside track on a lucrative government contract. The U.S. Postal Service was looking to buy a new fleet of mail trucks, and Workhorse’s EV solutions seemed an obvious choice.
Losing the contract was devastating for Workhorse, which even sued to stop the deal before abruptly withdrawing its claim in 2021. But it was too late for WKHS stock, which fell nearly 80% in just a few weeks.
Today, the market values Workhorse stock at less than $1 and is in danger of falling out of Nasdaq compliance. It’s still trying to put together deals, but the bloom is undoubtedly off this rose.
WKHS stock has an “F” rating in the Portfolio Grader.
Lordstown Motors (RIDE)
Perhaps no EV stock has had a fall quite like Lordstown Motors (NASDAQ:RIDE). A few years ago, the Ohio company was hailed as a savior of midwestern jobs for its plans to produce EV pickup trucks.
But the company struggled to get off the ground and only sold a few pickups. It filed for Chapter 11 bankruptcy protection in June and probably will sell off its assets, including the technology and intellectual property for its Endurance pickup truck.
The bankruptcy follows a major falling out with primary investor Hon Hai Precision Industry (OTCMKTS:HNHPF), also known as Foxconn. Lordstown says that Foxconn didn’t live up to its investment commitments and did “material damage” to the company.
Foxconn says that Lordstown breached its agreement by allowing the stock to fall below $1.
Either way, the Lordstown ride is over. The company will be delisted from the Nasdaq exchange on July 7.
RIDE stock has an “F” rating in the Portfolio Grader.
Lumen Technologies (LUMN)
Other industries besides EVs have F-rated stocks to sell, of course. One of those stocks is Lumen Technologies (NYSE:LUMN), a telecommunications company that provides network services, cloud solutions, voice and managed services.
But Lumen is having a terrible year. The stock is down 57% and notably lost its coveted place in the S&P 500 in March. Now it’s part of the S&P SmallCap 600, which isn’t nearly as prestigious and has less trading volume.
The Federal Reserve’s frequent interest rate hikes have also challenged Lumen. Lumen carries significant debt ($20.2 billion versus only 1.1 billion in cash) so interest rate increases hurt Lumen’s bottom line and make the stock much less appealing.
Earnings in the first quarter included revenue of $3.74 billion, down 20% from a year ago. That’s trending in the wrong direction, another reason LUMN stock has an “F” rating in the Portfolio Grader.
Solid Power (SLDP)
Colorado-based Solid Power (NASDAQ:SLDP) is an energy storage company specializing in solid-state batteries. Solid-state batteries use solid-state electrolytes instead of liquid or gel electrolytes used in lithium batteries.
The company is hoping to make waves in the EV space, betting that its batteries will be superior to lithium batteries by providing a greater charge and would be less prone to leaks.
But the technology is still unproven, which is why lithium batteries are still in so much demand. While it’s possible that Solid Power may one day take off, I have no expectations that it will happen in the second half of 2023.
The company missed modest revenue expectations in the first quarter, bringing in only $3.79 million, while analysts expected $4.03 million. SLDP stock has an “F” rating in the Portfolio Grader.
Hycroft Mining (HYMC)
Not so long ago, I suggested that if you’re an investor who wants to take a risk, consider Hycroft Mining (NASDAQ:HYMC). The Denver-based exploration-stage gold and silver mining company is sitting on 9.6 million ounces of gold reserves and nearly 446 million ounces of silver reserves. You would think that there’s money to be made.
But Hycroft is a lot risker today than it was in January. The company’s not making any headway, and the stock price is falling fast, from 62 cents per share in January to 29 cents today.
Hycroft got some attention from meme stock traders when AMC Entertainment (NYSE:AMC) unexpectedly took a 22% stake in the company. But that was also a gamble, and it doesn’t seem to be paying off for AMC, either.
Earnings in the first quarter for Hycroft included no revenue and expenses of $13.91 million. The company has $132 million in cash and roughly $137 million in debt, and is facing a delisting threat from Nasdaq.
The stock has an “F” rating from the Portfolio Grader.
Biotech company Oncorus (OTCMTKS:ONCR) develops intravenously administrated RNA medicines for cancer patients.
It’s the smallest company on this list. It doesn’t trade on the major indices, the stock is barely 3 cents per share and it has a market capitalization of less than $1 million.
There are serious questions about the company’s viability. In June, the board approved a plan to lay off the entire workforce of 55 people, including the CEO, COO and chief medical officer. Even with that move, Oncorus announced that it doesn’t have cash or projected cash flow to keep the company operating past the third quarter.
“The company continues to assess all available strategic options to maximize value for all of its stakeholders, including, but not limited to, an acquisition, merger, reverse merger, divestiture of assets, licensing, or other strategic transactions,” it said in a statement. “However, there is no set timetable for this process and there can be no assurance that this process will result in the company pursuing a transaction or that any transaction, if pursued, will be completed on attractive terms.”
If those avenues fail, Oncorus is looking at bankruptcy or simply winding down operations. Either way, it’s not a stock you want to hold in the second half of 2023.
ONCR stock has an “F” rating in the Portfolio Grader.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.