Seven ‘sinful’ stocks to avoid
By , 2 Aug 17
With the FTSE 100 on an almost continual rise, which are the ‘red flag’ stocks that investors should watch out for? Investment bank Liberum lists the seven ‘sinful’ stocks in the top 100 they would “prudently seek to avoid”.
Security firm G4S may have hit the headlines for its dealings with the UK government, but Liberum note its accounts don’t give them much faith in the stock.
It raised five red flags to analysts over the risk in “onerous, long-term contracts with subjective treatment of specific income statement items”.
Analysts also noted a £15m rise in the firm’s doubtful debt, the amount of money they do not expect to collect from clients rising 20bps as a percentage of sales over the last two years.
Tags: Investment Strategy
