Ten Stocks to Avoid
by Todd P. Bernier | 04-26-01 | 06:00 AM | E-mail Article to a Friend
Wall Street analysts often damn with faint praise--slapping harmless-sounding ratings such as "market perform" or "neutral" on securities they personally wouldn't touch with a 10-foot pole. The byproduct of this "see-no-evil, speak-no-evil" game is research that is often biased. In fact, many analysts have been accused of never meeting a company they didn't love.
Morningstar analysts, on the other hand, aren't afraid to point out which stocks look like duds. Below we've highlighted some stocks that our analysts have been particularly tough on over the past month or so. Not all are out-and-out "sells"; tax and portfolio considerations make it tough for us to make one-size-fits-all recommendations like that. But we do think investors will, at the very least, want to think long and hard about putting any new money behind these stocks.
Stocks to Avoid
Clorox CLX: Clorox is facing such a pile of problems that it doesn't know where to begin scrubbing. Until it conducts a major housecleaning of its disparate brands, we'd look elsewhere.
Procter & Gamble PG: We remain skeptical whether the second restructuring in three years will turn the tide at P&G.
DaimlerChrysler DCX: Successes are few at DaimlerChrysler and show why it's being left in the dust.
Allstate ALL: Sluggish top-line growth continues to show why we think investors are not in good hands with Allstate.
Motorola MOT: A miserable first quarter showing highlights why we think Motorola, a once-venerable high-tech bellwether, is dying a slow death.
IBM IBM: Despite meeting earnings expectations for the March quarter, Big Blue's stock is too expensive for us to get excited.
Rambus RMBS: Rambus' future (and rich valuation) hinges on its lawyers, making this one as speculative as it gets.
Caterpillar CAT: Despite first quarter performance that wasn't bad, storm clouds are forming on The Cat's horizon.
Intel INTC: The still-lofty stock doesn't yet reflect Intel's current problems.
Gap GPS: Denim and khaki just aren't getting it done at Gap, as comparable-store sales continue to erode.
Just a sampling of "union" listings from http://www.barryklein.com/ORGANIZATIONS.HTM
It seems that companies, employees, management, agents, adjusters, and etc. realize the benefits and strategic value of association.
Delaware Compensation Rating Bureau (DCRB) (Delaware�s workers compensation bureau)
Defense Research Institute (DRI) (Organization of lawyers involved in defense of civil action litigation)
Ebix Users Association (EUA) (ebix/Delphi/Redshaw/McCracken/Mountain States)
Federation of Insurance and Corporate Counsel (Check out their legal links)
Federation of Insurance Women of Texas (Lots of educational stuff)
Federation of New York Insurance Professionals (FNYIP) (Regional professional group)
Financial Institutions Insurance Assoc. (Promoting bank insurance sales) NEW
Florida Association of Insurance Agents (FAIA) (Large site for the Florida Big I)
Florida Insurance Council (Florida's largest insurance trade organization)
Florida Windstorm Underwriting Association (FWUA) (Florida�s insurance pool for windstorm coverage)
GAMA (Large life insurance trade group, formerly General Agents & Managers Association)
Georgia Insurance Information Service (GIIS) (Trade organization for P&C insurers)
Global Association of Risk Professionals (GARP) (Sign up for free membership on the site)
Group 500 (Large organization of property/casualty agents)
Health Insurance Association of America (HIAA) (Trade group for the health insurance industry)
IAIABC (International Association of Industrial Accident Boards and Commissions)
IASA (Insurance Accounting & Systems Assn) (Major vendor trade show)
IBAWEST (Insurance Brokers & Agents of the West) (Formerly IIABC & WAIB)
Idaho Surveying & Rating Bureau (ISRB) (Idaho's property bureau)
IEA (Insurance Educational Association) (Non-profit educational organization in the southwest)
IIAA (The Big I, largest of the independent agent organizations)
IIAANJ (Informative site from the Independent Insurance Agents Assn of New Jersey)
IIAANY ('InfoNET', the well-done site for the Independent Insurance Agents Assn of New York)
III International Facts (Basic worldwide insurance data, from Insurance Information Institute)
Illinois Association of Insurance & Financial Advisors (IAIFA) (Formerly IL Life Underwriters Assn)
Independent Automotive Damage Appraisers (IADA) (Over 300 members across the U.S.)
Independent Broker Network (IBN) (For California personal lines brokers)
Independent Insurance Agents of Indiana (Education, agency services)
Independent Insurance Agents of South Carolina (IIASC) (Nice clean site from IIASC)
Independent Insurance Agents of Texas (IIAT) (Big I of Texas' site, lots of material there)
Indiana Compensation Rating Bureau (Comp bureau for Indiana)
Inland Marine Underwriters Association (IMUA) (400 companies and 67 years strong)
InsGroup (Organization of over 50 large independent agencies)
Insurance Bureau of Canada (Trade group for Canadian property/casualty insurance companies)
Institute for Business & Home Safety (IBHS) (Formerly Insurance Institute for Property Loss Reduction)
Insurance Brokers Association of Canada (IBAC) (Representing almost 30,000 Canadian brokers)
Insurance Brokers Association of Ontario (Ontario affiliate of IBAC)
Insurance Canada (General home page for the Canadian insurance market)
Insurance Committee for Arson Control (ICAC) (Helping to fight arson)
Insurance Council of Canada (Site promoting Canadian insurance to the public)
Applied Systems Client Network (ASCNet) (Formerly NAUGUS)
ARGIAS (User group for Redshaw, Global and ebix systems)
ARIA (American Risk & Insurance Associations (Superb site, check it out)
Art Loss Register (Computerized database of stolen works of art)
Association of Health Insurance Advisors (Also see NAFIA)
Association of Insurance Compliance Professionals (AICP) (For compliance folks, including regulators)
Association of Professional Insurance Women (APIW) (Association of 200+ members)
Atlanta Association of Insurance Professionals (AAIP)
Automobile Insurance Agents of Texas (AIAT) (Trade group of Texas auto insurance agents)
Aviation Insurance Association (Awards the Certified Aviation Insurance Professional degree)
Balducci's Actuarial , Risk , and Insurance Links (Actuarial links, mostly, from the University of Calgary)
British Columbia Society of Fellows (BCSOF) (Of the Insurance Institute of Canada)
BRMA (Brokers & Reinsurers Markets Association) (Treaty reinsurance forum)
California Self-Insurers Association (For workers comp self-insurers)
Canadian Association of Mutual Insurance Companies (CAMIC) (Canadian mutual's trade group)
Canadian Association of Insurance & Financial Advisors (CAIFA)
Canadian Board of Marine Underwriters (CBMU) (Canadian marine insurance industry trade group)
Canadian Coalition Against Insurance Fraud (Fighting fraud in Canada)
Canadian Institute of Actuaries (In English, and French, of course)
Canadian Life & Health Insurance Association (CLHIA) (Canada's oldest insurance trade organization)
Canadian Life Insurance EDI Standards (CLIEDIS) (Setting life data exchange standards)
Canadian Life Insurance Medical Officers Association (CLIMOA)
CareQuest University (Long-term care courses)
CaroTAM (Carolina user group for TAM, The Agency Manager mgmt system)
Casualty Actuarial Society (Info for the public, and some for members only)
CatAdjuster.org (Listings of catastrophe adjusters, forums, other useful information)
Center for Economic Justice (Non-profit advocacy organization)
Center for Insurance Reform ('Watchdog' organization for insurance)
Central Arizona RIMS Chapter (Job openings, member list, more)
Cincinnati Insurance Board (America's first agent's association)
Claims Conference of Northern California (Annual conference)
Coalition Against Insurance Fraud (Focusing government & business efforts to fight insurance fraud)
Compensation Advisory Organization of Michigan (CAOM) (Michigan�s workers comp bureau)
Conference for Advanced Life Underwriting (Conference of CAIFA)
Council for Affordable Health Insurance (CAHI) (Trade group for health carriers)
Council of Insurance Agents & Brokers (CIAB) (Over 300 firms with over 2,000 offices)
Council of Insurance Brokers of Greater New York (CIBGNY)
CPCU Society (Beautiful site, lots of useful information)
CPCU Society - Iowa Chapter (Fast, clean site, the way sites are supposed to be)
CPCU Society - Philadelphia Chapter (Very comprehensive site)
CPCU Society - West Chicago Chapter (Look at their beautiful Chicago skyline graphic)
CPIA (Certified Professional Insurance Agents Society) (Sales classes & CPIA designation)
Crop Insurance Research Bureau (Trade group for crop insurors and related organizations)
CWCI (California Workers' Compensation Institute) (Supporting California workers comp)
AAIS (American Association of Insurance Services) (Bureau for Inland Marine, & more)
AAMGA (American Association of Managing General Agents) (Trade group for MGAs)
AASCIF (American Association of State Compensation Insurance Funds) (& Canadian)
ACORD (Standards-setting organization for the insurance industry)
Advocates for Highway and Auto Safety (Consumer, health & safety groups, & carriers)
AIA (American Insurance Association) (Over 125 years & 370 companies)
AIB (Automobile Insurers Bureau of Massachusetts)
Alabama Independent Insurance Agents, Inc. (Alabama Big I)
Alberta Users Group of Applied Systems (AUGAS)
Alliance of American Insurers (AAI) (Trade group of over 260 carriers, over 75 years old)
American Academy of Actuaries (Professional organization for actuaries)
American Academy of Insurance Medicine (Association of Medical Directors)
American Agents Alliance (Mostly California auto insurance agents)
American Association for Long Term Care Insurance (AALTCI)
American Association of Crop Insurers (Pretty self explanatory, don't you think?)
American Association of Health Plans (AAHP) (Representing HMOs, PPOs, & others)
American Association of Insurance Management Consultants (AAIMCO) (Consultants trade group)
American College (CLU, ChFC & other life insurance designations)
American Council of Life Insurers (ACLI) (Representing approximately 500 life insurance companies)
American Educational Institute (Claims law & other courses)
American Institute for Chartered Property Casualty Underwriters (CPCU designation)
American Institute of Marine Underwriters (AIMU) (Trade group for American wet marine writers)
American Institute of Professional Association Group Insurance Administrators (AIPAGIA)
American Land Title Association (Trade group for the title insurance industry)
American Society for CLU and ChFC (Now the Society of Financial Service Professionals)
American Society for Healthcare Risk Management (ASHRM)
American Society of Appraisers (Professional group for appraisers)
AMS Users' Group (Parent organization for 77 local mini-groups, all AMS agency products)
Hey dufus --- suggestion --
It seems to me that Yahoo Finance is a place where lurkers and participants can possibly learn something about the companies they either own or are looking to buy or sell.
Why don't you just go back to lurking as your posts (and under other names as well) add nothing to anyone's knowledge.
I love yoyos, and it is evident you are one. NAPAA is not a union, unless of course you are a manager, as that is the spin they use to keep agents away from NAPAA. Further, many of the agents who post here and to runningclock are not NAPAA members. That's a shame, as the more members NAPAA has the better informed the agents would be. Transparancies are a useful tool at times, this happens not to be one of them.