Let’s look at some of the poorest performing stocks and why it would be insane to invest in these sinking ships of 2018. Before we get to the article, we’d like to thank you for all the support and love that you have shown.
Blue Apron Holdings
Blue Apron Holdings is similar to Wallmart in the kind of service that it provides, but the similarities end right there. The company is losing a lot of funny and with the debt cycle hitting on August 2019, buying these stocks are equivalent to renting a plot in the graveyard. Don’t get us wrong, Blue Apron had all the making of being a global juggernaut and was on course to provide Wallmart with some stiff competition. But the mismanagement of assets coupled with the markets becoming a lot more difficult to navigate resulted in an eighty percentage drop in stock prices. Right now you can buy stocks for $2 for a 400 million company, which says a lot.
Chipotle is a franchise food chain, and at one point it was giving tough competition to McDonalds and Dominos, but that ship has sailed. Right now, the food sector as such is facing a rather steep decline in stock prices due to growing concerns about food safety regulations by massive corporate chains over the last year. Chipotle does have a new CEO, and there are plans to completely revamp the whole redundant structure and bring in better mechanics coupled with more unit openings across the United States. The biggest issue is that your investment won’t bear fruit until say Q3, so right now we believe that we need to tread lightly when it comes to Chipotle and wait and see whether things can be turned around.
Verdict: Wait and Watch
General Mills reminds us General Electric Company, and that isn’t really a good thing. For years people invested in GE by placing faith in the established organization that had a rich history for success and innovation, but soon the building blocks started to tumble, and soon the stock prices crashed. We believe that General Mills is on a similar course; the stocks are priced at $45 and don’t look too bad on the surface, but if one were to look closely and analyse, then he would know that a hornet’s nest awaits. General Mills will probably perform decently in the next two quarters which will be hyped out of proportion thus leading many to believe that the stocks are a great investment, but we believe that the crash is just around the corner and that the company has to get worse before it can get better.