Both VMI and CMRE might be classified as “safe” stocks that investors would turn to when the market is volatile as it has been recently. However, it’s important to distinguish a stock that is really safe from one that just looks safe.
Paying customers can access April's 40 Most Dangerous Stocks as of Wednesday, April 2. We provide 20 large/mid cap names to sell or short and 20 small cap names in this monthly
Momentum chasing is never a good strategy. RCL significantly outperformed the market last year, while F lagged it slightly, but don’t expect those trends to continue in 2014 for either stock.
Our Most Attractive stocks have high and rising return on invested capital (ROIC) and low price to economic book value ratios. Most Dangerous stocks have misleading earnings and long growth appreciation periods implied in their market valuations.